110TH CONGRESS 

1ST SESSION H. R. 4

AN ACT

To amend part D of title XVIII of the Social Security 

Act to require the Secretary of Health and Human Services to negotiate lower 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,
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1 SECTION 1. SHORT TITLE. 

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

3 Drug Price Negotiation Act of 2007’’. 

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

5 PRICES ON BEHALF OF MEDICARE BENE6 FICIARIES. 

7 (a) NEGOTIATION BY HHS.—Section 1860D–11 of 

8 the Social Security Act (42 U.S.C. 1395w–111) is amend9 ed by striking subsection (i) (relating to noninterference) 

10 and inserting the following: 

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

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

13 provision of law, the Secretary shall negotiate with 

14 pharmaceutical manufacturers the prices (including 

15 discounts, rebates, and other price concessions) that 

16 may be charged to PDP sponsors and MA organiza17 tions for covered part D drugs for part D eligible in18 dividuals who are enrolled under a prescription drug 

19 plan or under an MA–PD plan. 

20 ‘‘(2) NO CHANGE IN RULES FOR

21 FORMULARIES.—

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

23 (1) shall be construed to authorize the Sec24 retary to establish or require a particular for25 mulary. 
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1 ‘‘(B) CONSTRUCTION.—Subparagraph (A) 

2 shall not be construed as affecting the Sec3 retary’s authority to ensure appropriate and 

4 adequate access to covered part D drugs under 

5 prescription drug plans and under MA–PD 

6 plans, including compliance of such plans with 

7 formulary requirements under section 1860D–

8 4(b)(3). 

9 ‘‘(3) CONSTRUCTION.—Nothing in this sub10 section shall be construed as preventing the sponsor 

11 of a prescription drug plan, or an organization offer12 ing an MA–PD plan, from obtaining a discount or 

13 reduction of the price for a covered part D drug 

14 below the price negotiated under paragraph (1). 

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

16 Not later than June 1, 2007, and every six months 

17 thereafter, the Secretary shall submit to the Com18 mittees on Ways and Means, Energy and Commerce, 

19 and Oversight and Government Reform of the House 

20 of Representatives and the Committee on Finance of 

21 the Senate a report on negotiations conducted by the 

22 Secretary to achieve lower prices for Medicare bene23 ficiaries, and the prices and price discounts achieved 

24 by the Secretary as a result of such negotiations.’’. 
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1 (b) EFFECTIVE DATE.—The amendment made by 

2 subsection (a) shall take effect on the date of the enact3 ment of this Act and shall first apply to negotiations and 

4 prices for plan years beginning on January 1, 2008. 

Passed the House of Representatives January 12, 

2007. 

Attest:

Clerk. 

110TH CONGRESS 

1ST SESSION H. R. 4

AN ACT

To amend part D of title XVIII of the Social Secuficiaries. D drug prices on behalf of Medicare bene- Human Services to negotiate lower covered part rity Act to require the Secretary of Health and