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[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[S. 2512 Introduced in Senate (IS)]

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.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Drug Discount Card Simplification 
Act of 2004''.

SEC. 2. MEDICARE PRESCRIPTION DRUG DISCOUNT CARD SIMPLIFICATION.

    (a) Increased Competition.--Section 1860D-31(h)(2) of the Social 
Security Act (42 U.S.C. 1395w-141(h)(2)) is amended--
            (1) in subparagraph (C), by inserting ``, including for 
        purposes of limiting the number of sponsors in a State under 
        subparagraph (D)(ii)'' after ``as defined by the Secretary''; 
        and
            (2) in subparagraph (D)--
                    (A) in clause (ii), by striking ``The Secretary may 
                limit (but not below 2)'' and inserting ``On and after 
                January 1, 2005, the Secretary shall limit to not more 
                than 3''; and
                    (B) by adding at the end the following new clause:
                            ``(iii) Selection of sponsors.--In limiting 
                        the number of sponsors under this subparagraph, 
                        the Secretary shall consider--
                                    ``(I) the negotiated prices of 
                                covered discount card drugs available 
                                under the endorsed discount card 
                                program;
                                    ``(II) the number of classes of 
                                covered discount card drugs for which 
                                discounts are available under the 
                                program; and
                                    ``(III) the access of enrollees to 
                                pharmacies participating in the 
                                endorsed drug discount card program 
                                that dispense drugs directly to 
                                enrollees other than solely by mail 
                                order and without requiring the use of 
                                the Internet.''.
    (b) Limitation on Prices.--Section 1860D-31(e)(1)(A) of the Social 
Security Act (42 U.S.C. 1395w-141(e)(1)(A)) is amended by adding at the 
end the following new clause:
                            ``(iii) Limitation on negotiated prices and 
                        prices paid by pharmacies.--On and after 
                        January 1, 2005--
                                    ``(I) the negotiated price of each 
                                covered discount card drug dispensed to 
                                an individual enrolled in an endorsed 
                                discount card program may not exceed 
                                the negotiated price of that drug under 
                                such program as of December 31, 2004, 
                                and the dispensing fee applicable with 
                                respect to each such drug (if any) may 
                                not be reduced after such date; and
                                    ``(II) each prescription drug card 
                                sponsor shall ensure that the price 
                                paid by pharmacies participating in its 
                                network for each covered discount card 
                                drug dispensed to an individual 
                                enrolled in an endorsed discount card 
                                program offered by such sponsor does 
                                not exceed the price paid by those 
                                pharmacies for each such drug as of 
                                December 31, 2004.''.
    (c) Continuation of Coverage.--Section 1860D-31(e)(1) of the Social 
Security Act (42 U.S.C. 1395w-141(e)(1)) is amended by adding at the 
end the following new subparagraph:
                    ``(E) Continuation of coverage.--During the portion 
                of the period of operation described in subsection 
                (a)(2) that begins on January 1, 2005, each 
                prescription drug card sponsor that offers an endorsed 
                discount card program shall provide each discount card 
                eligible individual enrolled in the program with access 
                to negotiated prices for each covered discount card 
                drug for which a negotiated price was available under 
                such program as of December 31, 2004.''.
                                 <all>
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