I 
112TH CONGRESS 
1ST SESSION H. R. 2296 
To establish an America Rx program to establish fairer pricing for prescrip-
tion drugs for individuals without access to prescription drugs at dis-
counted prices. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 22, 2011 
Mr. MICHAUD (for himself, Mr. HINCHEY, Ms. PINGREE of Maine, and Mr. 
JACKSON of Illinois) introduced the following bill; which was referred to 
the Committee on Energy and Commerce 
A BILL 
To establish an America Rx program to establish fairer pric-
ing for prescription drugs for individuals without access 
to prescription drugs at discounted prices. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE; PURPOSE. 
(a) SHORT TITLE.—This Act may be cited as the 
‘‘America Rx Act of 2011’’. 
(b) PURPOSE.—The purpose of this Act is to estab-
lish an America Rx program that utilizes manufacturer 
rebates and pharmacy discounts to reduce prescription 
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drug prices to those residents who are without access to 
discounted prices for outpatient prescription drugs. 
SEC. 2. AMERICA RX PROGRAM. 
(a) ESTABLISHMENT.— 
(1) IN GENERAL.—Not later than 1 year after 
the date of the enactment of this Act, the Secretary 
of Health and Human Services shall establish a pro-
gram (in this section referred to as the ‘‘America Rx 
program’’) consistent with the provisions of this sec-
tion to provide qualified residents with access to dis-
counted prices for outpatient prescription drugs 
through rebate agreements that the Secretary has 
negotiated with prescription drug manufacturers. 
(2) OUTREACH.—The Secretary shall provide 
for— 
(A) outreach efforts to build public aware-
ness of the program and maximize enrollment 
of qualified residents; and 
(B) simplified eligibility procedures and 
uniform eligibility standards for qualified resi-
dents. 
(3) SUSPENSION; TERMINATION.—If the Sec-
retary determines that American Health Benefit Ex-
changes are operational under subtitle D of title I of 
the Patient Protection and Affordable Care Act 
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(Public Law 111–148) and the America Rx program 
is no longer needed to ensure that qualified residents 
have access to outpatient prescription drugs at af-
fordable prices, the Secretary may suspend or termi-
nate the program. 
(b) REBATE
AGREEMENTS
WITH
MANUFACTUR-
ERS.— 
(1) IN GENERAL.—Under the America Rx pro-
gram the Secretary shall negotiate with manufactur-
ers of outpatient prescription drugs rebate agree-
ments with respect to drugs offered under the pro-
gram to qualified residents. 
(2) MINIMUM AMOUNT OF REBATES.—In nego-
tiating the amount of such a rebate under paragraph 
(1), the Secretary shall take into consideration the 
amount of the rebate calculated under the Medicaid 
program, the average manufacturer price of pre-
scription drugs, and other information on prescrip-
tion drug prices and price discounts. The Secretary 
shall negotiate the amount of such rebates in a man-
ner so that the rebates on average are comparable 
to the average percentage rebate obtained in out-
patient prescription drugs provided under section 
1927(c) of the Social Security Act (42 U.S.C. 
1396r–8(c)). 
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(3) DISCOUNTED PRICES.—The Secretary shall 
specify the method for computing and applying such 
discounts, including a method for computing and ap-
plying discounts on a uniform, average percentage 
basis. 
(4) PAYMENT.—Rebates under such agreements 
shall be payable to the Secretary according to a 
schedule (not less often than quarterly) negotiated 
with manufacturers and shall be paid, directly or 
through States, to participating pharmacies that 
provide discounts to qualified residents. 
(5) INCENTIVE.—In order to induce manufac-
turers of outpatient prescription drugs to enter into 
such rebate agreements to carry out the purpose de-
scribed in section 1(b), the Secretary shall provide, 
in the case of a manufacturer that has not entered 
into such an agreement, for a denial of a deduction 
under chapter 1 of the Internal Revenue Code of 
1986 for the amount of expenses of the manufac-
turer for advertising and marketing of drugs of the 
manufacturer, other than expenses for free samples 
of drugs subject to section 503(b)(1) of the Federal 
Food, Drug, and Cosmetic Act intended to be dis-
tributed to patients. 
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