I 
108TH CONGRESS 
1ST SESSION 
H. R. 513
To amend title XVIII of the Social Security Act to authorize the Secretary 
of Health and Human Services to endorse prescription drug discount 
cards for use by Medicare beneficiaries. 
IN THE HOUSE OF REPRESENTATIVES 
JANUARY 31, 2003
Mr. FOLEY 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 juris-
diction of the committee concerned 
A BILL 
To amend title XVIII of the Social Security Act to authorize 
the Secretary of Health and Human Services to endorse 
prescription drug discount cards for use by Medicare 
beneficiaries.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Medicare Rx Drug Dis-
count Act of 2003’’.
SEC. 2. MEDICARE PRESCRIPTION DRUG DISCOUNT CARD 
ENDORSEMENT PROGRAM. 
Title XVIII of the Social Security Act (42 U.S.C. 
1395 et seq.) is amended by inserting after section 1806 
the following new sections: 
‘‘MEDICARE PRESCRIPTION DRUG DISCOUNT CARD 
ENDORSEMENT PROGRAM 
‘‘SEC. 1807. (a) IN GENERAL.—The Secretary shall 
establish a program—
‘‘(1) to endorse prescription drug discount card 
programs that meet the requirements of this section; 
and 
‘‘(2) to make available to medicare beneficiaries 
information regarding such endorsed programs. 
‘‘(b) REQUIREMENTS
FOR
ENDORSEMENT.—The 
Secretary may not endorse a prescription drug discount 
card program under this section unless the program meets 
the following requirements: 
‘‘(1) SAVINGS TO MEDICARE BENEFICIARIES.—
The program passes on to medicare beneficiaries 
who enroll in the program discounts on prescription 
drugs, including discounts negotiated with manufac-
turers. 
‘‘(2) PROHIBITION ON APPLICATION ONLY TO 
MAIL ORDER.—The program applies to drugs that 
are available other than solely through mail order.
‘‘(3) BENEFICIARY
SERVICES.—The program 
provides pharmaceutical support services, such as 
education and counseling, and services to prevent 
adverse drug interactions. 
‘‘(4) 
INFORMATION.—The 
program 
makes 
available to medicare beneficiaries through the Inter-
net and otherwise information, including information 
on enrollment fees, prices charged to beneficiaries, 
and services offered under the program, that the 
Secretary identifies as being necessary to provide for 
informed choice by beneficiaries among endorsed 
programs. 
‘‘(5) DEMONSTRATED EXPERIENCE.—The enti-
ty operating the program has demonstrated experi-
ence and expertise in operating such a program or 
a similar program. 
‘‘(6) QUALITY ASSURANCE.—The entity has in 
place adequate procedures for assuring quality serv-
ice under the program. 
‘‘(7) OPERATION OF ASSISTANCE PROGRAM.—
The entity meets such requirements relating to sol-
vency, compliance with financial reporting require-
ments, audit compliance, and contractual guarantees 
as the Secretary finds necessary for participation.
‘‘(8) ENROLLMENT FEES.—The program may 
charge an annual enrollment fee, but the amount of 
such annual fee may not exceed $25. 
‘‘(9) 
ADDITIONAL
BENEFICIARY
PROTEC-
TIONS.—The program meets such additional require-
ments as the Secretary identifies to protect and pro-
mote the interest of medicare beneficiaries, including 
requirements that ensure that beneficiaries are not 
charged more than the lower of the negotiated retail 
price or the usual and customary price. 
The prices negotiated by a prescription drug discount card 
program endorsed under this section shall (notwith-
standing any other provision of law) not be taken into ac-
count for the purposes of establishing the best price under 
section 1927(c)(1)(C). 
‘‘(c) PROGRAM OPERATION.—The Secretary shall op-
erate the program under this section consistent with the 
following: 
‘‘(1) PROMOTION
OF
INFORMED
CHOICE.—In 
order to promote informed choice among endorsed 
prescription drug discount card programs, the Sec-
retary shall provide for the dissemination of infor-
mation which compares the prices and services of 
such programs in a manner coordinated with the
for a minimum period of time specified by the Sec-
retary. 
‘‘(d) TRANSITION.—The Secretary shall provide for 
an appropriate transition and discontinuation of the pro-
gram under this section at the time outpatient prescrip-
tion drug benefits first become available under this title. 
‘‘(e) ENDORSEMENT
CONDITION.—The Secretary 
shall require, as condition of endorsement under of a pre-
scription drug discount card program under this section 
that the program implement policies and procedures to 
safeguard the use and disclosure of program beneficiaries’ 
individually identifiable health information in a manner 
consistent with the Federal regulations (concerning the 
privacy of individually identifiable health information) pro-
mulgated under section 264(c) of the Health Insurance 
Portability and Accountability Act of 1996. 
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—There 
are authorized to be appropriated such sums as may be 
necessary to carry out the program under this section.’’.
Æ