I 

109TH CONGRESS 

2D SESSION H. R. 4675 

To amend title XIX of the Social Security Act to provide for an offset 

from the Medicaid clawback for State emergency prescription drug expenditures for covered part D drugs for Medicare beneficiaries. 

IN THE HOUSE OF REPRESENTATIVES 

JANUARY 31, 2006 

Mr. PALLONE (for himself, Ms. MCCOLLUM of Minnesota, Mr. JEFFERSON, 

Ms. BALDWIN, Mr. HOLT, Mr. SANDERS, Mr. MCDERMOTT, Mr. HIGGINS, Mr. BOREN, Mr. HONDA, Mr. STARK, Mr. ANDREWS, Mr. 

GRIJALVA, Mr. BROWN of Ohio, Mr. MICHAUD, Ms. JACKSON-LEE of 

Texas, Mr. BERRY, Mr. LYNCH, Mr. KUCINICH, Mr. CONYERS, Mr. 

FRANK of Massachusetts, Mr. NADLER, Mr. COSTA, and Ms. LEE) introduced the following bill; which was referred to the Committee on Energy 

and Commerce, and in addition to the Committee on Ways and Means, 

for a period to be subsequently determined by the Speaker, in each case 

for consideration of such provisions as fall within the jurisdiction of the 

committee concerned 

A BILL 

To amend title XIX of the Social Security Act to provide 

for an offset from the Medicaid clawback for State emergency prescription drug expenditures for covered part 

D drugs for Medicare beneficiaries. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 
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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Medicare State Reim3 bursement Act of 2006’’. 

4 SEC. 2. FEDERAL RESPONSIBILITY FOR STATE PRESCRIP5 TION DRUG EXPENDITURES FOR COVERED 

6 PART D DRUGS FOR MEDICARE BENE7 FICIARIES. 

8 Section 1935(c) of the Social Security Act (42 U.S.C. 

9 1396v–5(c)) is amended— 

10 (1) in paragraph (1)(A), by striking ‘‘Each of 

11 the 50 States’’ and inserting ‘‘Subject to paragraph 

12 (7), each of the 50 States’’; and 

13 (2) by adding at the end the following new 

14 paragraph: 

15 ‘‘(7) OFFSET FOR STATE PRESCRIPTION DRUG

16 EXPENDITURES FOR COVERED PART D DRUGS FOR

17 MEDICARE BENEFICIARIES.— 

18 ‘‘(A) IN GENERAL.—The amount of pay19 ment for a month (beginning with January 

20 2006) under paragraph (1) shall be reduced by 

21 an amount equal to the sum of— 

22 ‘‘(i) the amount (as documented by 

23 the State) that the State expended during 

24 the month for payment for covered part D 

25 drugs for part D eligible individuals who 

26 are enrolled in a prescription drug plan 
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1 under part D of title XVIII but were un2 able to access on a timely basis prescrip3 tion drug benefits to which they were enti4 tled under such plan; and 

5 ‘‘(ii) interest on such amount (for the 

6 period beginning on the day after the date 

7 on which an expenditure described in sub8 paragraph (A) is made and ending on the 

9 date on which payment under paragraph 

10 (1)) at a rate equal to the weighted aver11 age of interest on three-month marketable 

12 Treasury securities determined for such 

13 period, increased by 0.1 percentage point. 

14 ‘‘(B) RECOVERY OF REDUCED PAYMENT

15 FROM PRESCRIPTION DRUG PLANS.—The Sec16 retary shall provide for recovery of payment re17 ductions made under subparagraph (A) from 

18 those prescription drug plans under part D of 

19 title XVIII or MA–PD plans under part C of 

20 such title that would otherwise be responsible 

21 for the expenditures described in subparagraph 

22 (A)(i). Any such amounts recovered shall be de23 posited into the Medicare Prescription Drug Ac-
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1 count in the Federal Supplementary Medical 

2 Insurance Trust Fund.’’. 

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