II 

112TH CONGRESS 

1ST SESSION S. 44 

To amend part D of title XVIII of the Social Security Act to require 

the Secretary of Health and Human Services to negotiate covered part 

D drug prices on behalf of Medicare beneficiaries. 

IN THE SENATE OF THE UNITED STATES 

JANUARY 25 (legislative day, JANUARY 5), 2011 

Ms. KLOBUCHAR (for herself and Mr. BEGICH) introduced the following bill; 

which was read twice and referred to the Committee on Finance 

A BILL 

To amend part D of title XVIII of the Social Security 

Act to require the Secretary of Health and Human Services to negotiate covered part D drug prices on behalf 

of Medicare beneficiaries. 

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

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Medicare Prescription 

5 Drug Price Negotiation Act of 2011’’. 


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1 SEC. 2. NEGOTIATION OF LOWER COVERED PART D DRUG 

2 PRICES ON BEHALF OF MEDICARE BENE3 FICIARIES. 

4 (a) NEGOTIATION BY SECRETARY.—Section 1860D– 

5 11 of the Social Security Act (42 U.S.C. 1395w–111) is 

6 amended by striking subsection (i) (relating to noninter7 ference) and inserting the following: 

8 ‘‘(i) NEGOTIATION OF LOWER DRUG PRICES.— 

9 ‘‘(1) IN GENERAL.—Notwithstanding any other 

10 provision of law, the Secretary shall negotiate with 

11 pharmaceutical manufacturers the prices (including 

12 discounts, rebates, and other price concessions) that 

13 may be charged to PDP sponsors and MA organiza14 tions for covered part D drugs for part D eligible in15 dividuals who are enrolled under a prescription drug 

16 plan or under an MA–PD plan. 

17 ‘‘(2) NO CHANGE IN RULES FOR

18 FORMULARIES.— 

19 ‘‘(A) IN GENERAL.—Nothing in paragraph 

20 (1) shall be construed to authorize the Sec21 retary to establish or require a particular for22 mulary. 

23 ‘‘(B) CONSTRUCTION.—Subparagraph (A) 

24 shall not be construed as affecting the Sec25 retary’s authority to ensure appropriate and 

26 adequate access to covered part D drugs under 


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1 prescription drug plans and under MA–PD 

2 plans, including compliance of such plans with 

3 formulary requirements under section 1860D– 

4 4(b)(3). 

5 ‘‘(3) CONSTRUCTION.—Nothing in this sub6 section shall be construed as preventing the sponsor 

7 of a prescription drug plan, or an organization offer8 ing an MA–PD plan, from obtaining a discount or 

9 reduction of the price for a covered part D drug 

10 below the price negotiated under paragraph (1). 

11 ‘‘(4) SEMI-ANNUAL REPORTS TO CONGRESS.— 

12 Not later than June 1, 2012, and every 6 months 

13 thereafter, the Secretary shall submit to the Com14 mittees on Ways and Means, Energy and Commerce, 

15 and Oversight and Government Reform of the House 

16 of Representatives and the Committee on Finance of 

17 the Senate a report on negotiations conducted by the 

18 Secretary to achieve lower prices for Medicare bene19 ficiaries, and the prices and price discounts achieved 

20 by the Secretary as a result of such negotiations.’’. 

21 (b) EFFECTIVE DATE.—The amendment made by 

22 subsection (a) shall take effect on the date of the enact23 ment of this Act and shall first apply to negotiations and 

24 prices for plan years beginning on January 1, 2012. 

Æ 


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