I 

110TH CONGRESS 

2D SESSION H. R. 5317 

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

increase in premium costs for beneficiaries under the Medicare prescription drug program to no more than the Social Security cost-of-living 

adjustment, and to direct the Secretary of Health and Human Services 

to negotiate lower prescription drug prices on behalf of Medicare beneficiaries. 

IN THE HOUSE OF REPRESENTATIVES 

FEBRUARY 7, 2008 

Mr. WEXLER 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 part D of title XVIII of the Social Security 

Act to limit the increase in premium costs for beneficiaries under the Medicare prescription drug program 

to no more than the Social Security cost-of-living adjustment, and to direct the Secretary of Health and Human 

Services to negotiate lower prescription 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 Affordability Act of 2008’’. 

4 SEC. 2. LIMITING MEDICARE PART D COST INCREASES TO 

5 THE SOCIAL SECURITY COST-OF-LIVING IN6 CREASE. 

7 (a) IN GENERAL.—Section 1860D–11(e)(2) of the 

8 Social Security Act (42 U.S.C. 1395w–111) is amended 

9 by adding at the end the following new subparagraph: 

10 ‘‘(E) BID AMOUNT INCREASE BY NO MORE

11 THAN SOCIAL SECURITY COST-OF-LIVING IN12 CREASE.— 

13 ‘‘(i) IN GENERAL.—The Secretary de14 termines that the amount of the bid sub15 mitted for the plan year under subsection 

16 (b) is not greater than— 

17 ‘‘(I) the amount of the bid ap18 proved for such plan for the previous 

19 plan year, increased by 

20 ‘‘(II) the SS COLA percentage. 

21 ‘‘(ii) EXCEPTION FOR A PLAN WITH

22 NO PREVIOUS PLAN YEAR.—The require23 ment of clause (i) shall not apply with re24 spect to a plan for which there was no pre25 vious plan year. 


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•HR 5317 IH

1 ‘‘(iii) SS COLA PERCENTAGE DE2 FINED.—For purposes of this subpara3 graph, the term ‘SS COLA percentage’ 

4 with respect to a plan year in a calendar 

5 year is the percentage increase under sec6 tion 215(i) in primary insurance amounts 

7 effective for December of the second pre8 vious calendar year.’’. 

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

10 this section shall apply with respect to plan years begin11 ning on or after January 1, 2009. 

12 SEC. 3. NEGOTIATION OF LOWER COVERED PART D DRUG 

13 PRICES ON BEHALF OF MEDICARE BENE14 FICIARIES. 

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

16 the Social Security Act (42 U.S.C. 1395w–111) is amend17 ed by striking subsection (i) (relating to noninterference) 

18 and inserting the following: 

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

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

21 provision of law, the Secretary shall negotiate with 

22 pharmaceutical manufacturers the prices (including 

23 discounts, rebates, and other price concessions) that 

24 may be charged to PDP sponsors and MA organiza25 tions for covered part D drugs for part D eligible inVerDate Aug 31 2005 05:18 Feb 09, 2008 Jkt 069200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5317.IH H5317

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•HR 5317 IH

1 dividuals who are enrolled under a prescription drug 

2 plan or under an MA–PD plan. 

3 ‘‘(2) NO CHANGE IN RULES FOR

4 FORMULARIES.— 

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

6 (1) shall be construed to authorize the Sec7 retary to establish or require a particular for8 mulary. 

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

10 shall not be construed as affecting the Sec11 retary’s authority to ensure appropriate and 

12 adequate access to covered part D drugs under 

13 prescription drug plans and under MA–PD 

14 plans, including compliance of such plans with 

15 formulary requirements under section 1860D– 

16 4(b)(3). 

17 ‘‘(3) CONSTRUCTION.—Nothing in this sub18 section shall be construed as preventing the sponsor 

19 of a prescription drug plan, or an organization offer20 ing an MA–PD plan, from obtaining a discount or 

21 reduction of the price for a covered part D drug 

22 below the price negotiated under paragraph (1). 

23 ‘‘(4) SEMI-ANNUAL REPORTS TO THE CON24 GRESS.—Not later than June 1, 2008, and every six 

25 months thereafter, the Secretary shall submit to the 


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1 Committees on Ways and Means, Energy and Com2 merce, and Oversight and Government Reform of 

3 the House of Representatives and the Committee on 

4 Finance of the Senate a report on negotiations con5 ducted by the Secretary to achieve lower prices for 

6 Medicare beneficiaries, and the prices and price dis7 counts achieved by the Secretary as a result of such 

8 negotiations.’’. 

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

10 subsection (a) shall take effect on the date of the enact11 ment of this Act and shall first apply to negotiations and 

12 prices for plan years beginning on January 1, 2009. 

Æ 


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