Budgeting for Opioid Addiction Treatment Act

To amend the Internal Revenue Code of 1986 to establish an excise tax on the production and importation of opioid pain relievers, and for other purposes. 1. Short title This Act may be cited as the Budgeting for Opioid Addiction Treatment Act 2. Excise tax on opioid pain relievers (a) In general Subchapter E of chapter 32 4192. Opioid pain relievers (a) In general There is hereby imposed on the sale of any taxable active opioid by the manufacturer, producer, or importer a tax equal to 1 cent per milligram so sold. (b) Taxable active opioid For purposes of this section— (1) In general The term taxable active opioid (2) Exclusion for certain prescription medications Such term shall not include any prescribed drug which is used exclusively for the treatment of opioid addiction as part of a medically assisted treatment effort. (3) Exclusion of other ingredients In the case of a product that includes a taxable active opioid and another ingredient, subsection (a) shall apply only to the portion of such product that is a taxable active opioid. . (b) Clerical amendments (1) The heading of subchapter E of chapter 32 Medical devices Other medical products (2) The table of subchapters for chapter 32 of such Code is amended by striking the item relating to subchapter E and inserting the following new item: Subchapter E. Other medical products . (3) The table of sections for subchapter E of chapter 32 of such Code is amended by adding at the end the following new item: Sec. 4192. Opioid pain relievers. . (c) Effective date The amendments made by this section shall apply to sales on or after the date that is 1 year after the date of the enactment of this Act. (d) Rebate or discount program for certain cancer and hospice patients (1) In general The Secretary of Health and Human Services, in consultation with patient advocacy groups and other relevant stakeholders as determined by such Secretary, shall establish a mechanism by which— (A) any amount paid by an eligible patient in connection with the tax under section 4192 (B) amounts paid by an eligible patient for taxable active opioids (as defined in section 4192(b) of such Code) are discounted at time of payment or purchase to ensure that such patient does not pay any amount attributable to such tax, with as little burden on the patient as possible. The Secretary shall choose whichever of the options described in subparagraph (A) or (B) is, in the Secretary's determination, most effective and efficient in ensuring eligible patients face no economic burden from such tax. (2) Eligible patient For purposes of this section, the term eligible patient (A) a patient for whom any taxable active opioid (as so defined) is prescribed to treat pain relating to cancer or cancer treatment; (B) a patient participating in hospice care; and (C) in the case of the death or incapacity of a patient described in subparagraph (A) or (B) or any similar situation as determined by the Secretary of Health and Human Services, the appropriate family member, medical proxy, or similar representative or the estate of such patient. 3. Block grants for prevention and treatment of substance abuse (a) Grants to States Section 1921(b) of the Public Health Service Act ( 42 U.S.C. 300x–21(b) , and, as applicable, for carrying out section 1923A (b) Nonapplicability of prevention program provision Section 1922(a)(1) of the Public Health Service Act ( 42 U.S.C. 300x–22(a)(1) except with respect to amounts made available as described in section 1923A, will expend (c) Opioid treatment programs Subpart II of part B of title XIX of the Public Health Service Act ( 42 U.S.C. 300x–21 et seq. 1923A. Additional substance abuse treatment programs A funding agreement for a grant under section 1921 is that the State involved shall provide that any amounts made available by any increase in revenues to the Treasury in the previous fiscal year resulting from the enactment of section 4192 Budgeting for Opioid Addiction Treatment Act (1) establishing new addiction treatment facilities, residential and outpatient, including covering capital costs; (2) establishing sober living facilities; (3) recruiting and increasing reimbursement for certified mental health providers providing substance abuse treatment in medically underserved communities or communities with high rates of prescription drug abuse; (4) expanding access to long-term, residential treatment programs for opioid addicts (including (5) establishing or operating support programs that offer employment services, housing, and other support services to help recovering addicts transition back into society; (6) establishing or operating housing for children whose parents are participating in substance abuse treatment programs, including capital costs; (7) establishing or operating facilities to provide care for babies born with neonatal abstinence syndrome, including capital costs; and (8) other treatment programs, as the Secretary determines appropriate. . (d) Additional funding Section 1933(a)(1)(B)(i) of the Public Health Service Act ( 42 U.S.C. 300x–33(a)(1)(B)(i) , plus any increase in revenues to the Treasury in the previous fiscal year resulting from the enactment of section 4192 Budgeting for Opioid Addiction Treatment Act 4. Report Not later than 2 years after the date described in section 2(c), the Secretary of Health and Human Services shall submit to Congress a report on the impact of the amendments made by sections 2 and 3 on— (1) the retail cost of taxable active opioids (as defined in section 4192 (2) patient access to such opioids, particularly cancer and hospice patients, including the effect of the discount or rebate on such opioids for cancer and hospice patients under section 2(d); (3) how the increase in revenue to the Treasury resulting from the enactment of section 4192 (4) suggestions for improving— (A) access to opioids for cancer and hospice patients; and (B) substance abuse treatment efforts under such section 1923A.

Summary: Budgeting for Opioid Addiction Treatment Act This bill amends the Internal Revenue Code to impose a one cent per milligram excise tax on the sale of active opioids by the manufacturer, producer, or importer. The tax excludes prescription drugs used exclusively for the treatment of opioid addiction as part of a medically assisted treatment effort. The Department of Health and Human Services (HHS) must establish a program to provide rebates or discounts to cancer and hospice patients to ensure that they do not pay the tax. The bill amends the Public Health Service Act to require any increase in federal revenues from the tax after rebates and discounts are subtracted to be distributed to states under the Substance Abuse Prevention and Treatment Block Grant program to be used exclusively for substance abuse (including opioid abuse) efforts in the states, including specified treatment programs. HHS must report to Congress on the impact of this bill on the retail cost of opioids and patient access to opioid medication, the effectiveness of the discount or rebate for cancer and hospice patients, how the funds are being used to improve substance abuse treatment efforts, and suggestions for improving access to opioids for cancer and hospice patients and substance abuse treatment efforts.