II 

108TH CONGRESS 

2D SESSION S. 2512

To amend title XVIII of the Social Security Act to simplify the medicare 

prescription drug card program, and for other purposes. 

IN THE SENATE OF THE UNITED STATES 

JUNE 8, 2004

Mr. CONRAD introduced the following bill; which was read twice and referred 

to the Committee on Finance 

A BILL

To amend title XVIII of the Social Security Act to simplify 

the medicare prescription drug card program, and for 

other purposes.

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 ‘‘Drug Discount Card 

5 Simplification Act of 2004’’. 

6 SEC. 2. MEDICARE PRESCRIPTION DRUG DISCOUNT CARD 

7 SIMPLIFICATION. 

8 (a) INCREASED COMPETITION.—Section 1860D–

9 31(h)(2) of the Social Security Act (42 U.S.C. 1395w–

10 141(h)(2)) is amended—
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•S 2512 IS 

1 (1) in subparagraph (C), by inserting ‘‘, includ2 ing for purposes of limiting the number of sponsors 

3 in a State under subparagraph (D)(ii)’’ after ‘‘as de4 fined by the Secretary’’; and 

5 (2) in subparagraph (D)—

6 (A) in clause (ii), by striking ‘‘The Sec7 retary may limit (but not below 2)’’ and insert8 ing ‘‘On and after January 1, 2005, the Sec9 retary shall limit to not more than 3’’; and 

10 (B) by adding at the end the following new 

11 clause: 

12 ‘‘(iii) SELECTION OF SPONSORS.—In 

13 limiting the number of sponsors under this 

14 subparagraph, the Secretary shall con15 sider—

16 ‘‘(I) the negotiated prices of cov17 ered discount card drugs available 

18 under the endorsed discount card pro19 gram; 

20 ‘‘(II) the number of classes of 

21 covered discount card drugs for which 

22 discounts are available under the pro23 gram; and 

24 ‘‘(III) the access of enrollees to 

25 pharmacies participating in the en-
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•S 2512 IS 

1 dorsed drug discount card program 

2 that dispense drugs directly to enroll3 ees other than solely by mail order 

4 and without requiring the use of the 

5 Internet.’’. 

6 (b) LIMITATION ON PRICES.—Section 1860D–

7 31(e)(1)(A) of the Social Security Act (42 U.S.C. 1395w–

8 141(e)(1)(A)) is amended by adding at the end the fol9 lowing new clause: 

10 ‘‘(iii) LIMITATION ON NEGOTIATED

11 PRICES AND PRICES PAID BY PHAR12 MACIES.—On and after January 1, 2005—

13 ‘‘(I) the negotiated price of each 

14 covered discount card drug dispensed 

15 to an individual enrolled in an en16 dorsed discount card program may 

17 not exceed the negotiated price of that 

18 drug under such program as of De19 cember 31, 2004, and the dispensing 

20 fee applicable with respect to each 

21 such drug (if any) may not be reduced 

22 after such date; and 

23 ‘‘(II) each prescription drug card 

24 sponsor shall ensure that the price 

25 paid by pharmacies participating in 
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•S 2512 IS 

1 its network for each covered discount 

2 card drug dispensed to an individual 

3 enrolled in an endorsed discount card 

4 program offered by such sponsor does 

5 not exceed the price paid by those 

6 pharmacies for each such drug as of 

7 December 31, 2004.’’. 

8 (c) CONTINUATION OF COVERAGE.—Section 1860D–

9 31(e)(1) of the Social Security Act (42 U.S.C. 1395w–

10 141(e)(1)) is amended by adding at the end the following 

11 new subparagraph: 

12 ‘‘(E) CONTINUATION OF COVERAGE.—Dur13 ing the portion of the period of operation de14 scribed in subsection (a)(2) that begins on Jan15 uary 1, 2005, each prescription drug card spon16 sor that offers an endorsed discount card pro17 gram shall provide each discount card eligible 

18 individual enrolled in the program with access 

19 to negotiated prices for each covered discount 

20 card drug for which a negotiated price was 

21 available under such program as of December 

22 31, 2004.’’.

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