(1) IN
GENERAL.—There are hereby appro-
priated (out of any money in the Treasury not other-
wise appropriated) for each fiscal year to each fund 
under the Social Security Act or the Railroad Re-
tirement Act of 1974 an amount equal to the reduc-
tion in the transfers to such fund for such fiscal 
year by reason of section 86(g) of the Internal Rev-
enue Code of 1986. 
(2) NO TAX INCREASES.—It is the sense of the 
Congress that tax increases will not be used to pro-
vide the revenue necessary to carry out paragraph 
(1). 
SEC. 6. INCOME TAX CREDIT FOR PRESCRIPTION DRUGS 
PURCHASED BY INDIVIDUALS WHO HAVE AT-
TAINED RETIREMENT AGE. 
(a) IN GENERAL.—Subpart A of part IV of sub-
chapter A of chapter 1 of the Internal Revenue Code of 
1986 (relating to nonrefundable personal credits) is 
amended by inserting after section 25D the following new 
section: 
‘‘SEC. 25E. PRESCRIPTION DRUGS PURCHASED BY INDIVID-
UALS WHO HAVE ATTAINED SOCIAL SECU-
RITY RETIREMENT AGE. 
‘‘(a) IN GENERAL.—In the case of an individual who 
has attained social security retirement age, there shall be 
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allowed as a credit against the tax imposed by this chapter 
for the taxable year an amount equal to 80 percent of the 
amount paid by the taxpayer during the taxable year (and 
not compensated for by insurance or otherwise) for any 
prescribed drug (as defined in section 213(d)(3)) for use 
by such individual. 
‘‘(b) SOCIAL SECURITY RETIREMENT AGE.—For 
purposes of this section, the term ‘social security retire-
ment age’ means retirement age (as defined in section 
216(l)(1) of the Social Security Act). 
‘‘(c) DENIAL OF DOUBLE BENEFIT.— 
‘‘(1) COORDINATION WITH MEDICAL EXPENSE 
DEDUCTION.—The amount which would (but for this 
subsection) be taken into account by the taxpayer 
under section 213 for the taxable year shall be re-
duced by the credit (if any) allowed by this section 
to the taxpayer for such year. 
‘‘(2) 
COORDINATION
WITH
MEDICAL
AND 
HEALTH SAVINGS ACCOUNTS.—No credit shall be al-
lowed under this section for amounts paid from any 
Archer MSA (as defined in section 220(d)) or any 
health savings account (as defined in section 
223(d)). 
‘‘(d) ELECTION NOT TO HAVE CREDIT APPLY.—This 
section shall not apply to a taxpayer for a taxable year 
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if the taxpayer elects not to have this section apply for 
such year.’’. 
(b) CLERICAL AMENDMENT.—The table of sections 
for subpart A of part IV of subchapter A of chapter 1 
of such Code is amended by inserting after the item relat-
ing to section 25D the following new item: 
‘‘Sec. 25E. Prescription drugs purchased by individuals who have attained social 
security retirement age’’ 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to taxable years beginning more 
than 1 year after the date of the enactment of this Act. 
SEC. 7. FACILITATION OF IMPORTATION OF DRUGS AP-
PROVED BY FOOD AND DRUG ADMINISTRA-
TION AND INTERNET SALES OF PRESCRIP-
TION DRUGS. 
(a) FACILITATION OF IMPORTATION OF DRUGS AP-
PROVED BY FOOD AND DRUG ADMINISTRATION.—Chap-
ter VIII of the Federal Food, Drug, and Cosmetic Act (21 
U.S.C. 381 et seq.) is amended— 
(1) by striking section 804; and 
(2) in section 801(d)— 
(A) by striking paragraph (2); and 
(B) by striking ‘‘(d)(1)’’ and all that fol-
lows through the end of paragraph (1) and in-
serting the following: 
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‘‘(d)(1)(A) A person who meets applicable legal re-
quirements to be an importer of drugs described in sub-
paragraph (B) may import such a drug (without regard 
to whether the person is a manufacturer of the drug) if 
the person submits to the Secretary an application to im-
port the drug and the Secretary approves the application. 
‘‘(B) For purposes of subparagraph (A), the drugs 
described in this subparagraph are drugs that are subject 
to section 503(b)(1) or that are composed wholly or partly 
of insulin. 
‘‘(C) The Secretary shall approve an application 
under subparagraph (A) if the application demonstrates 
that the drug to be imported meets all requirements under 
this Act for the admission of the drug into the United 
States, including demonstrating that— 
‘‘(i) an application for the drug has been ap-
proved under section 505, or as applicable, under 
section 351 of the Public Health Service Act; and 
‘‘(ii) the drug is not adulterated or misbranded. 
‘‘(D) Not later than 60 days after the date on which 
an application under subparagraph (A) is submitted to the 
Secretary, the Secretary shall— 
‘‘(i) approve the application; or 
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