(1) notify the manufacturer of such drug of the
Board’s finding, and
(2) remove from all publications and reports of
the Board after the date of such finding any state-
ment that the price or increase in the price of such
drug is excessive.
(c) PATENT REVOCATION.—If, after a public hearing
under subsection (a), the Board finds that the price or
an increase in the price of a prescription drug is excessive,
the Board shall—
(1) notify the manufacturer of such drug of the
Board’s finding,
(2) notify the manufacturer of such drug of the
Board’s intent to revoke the patent for such drug if
the drug is patented or to revoke the patent of an-
other drug of such manufacturer if such drug is not
patented, and
(3) take such action as may be necessary to re-
voke a drug patent under paragraph (2) if the man-
ufacturer of such drug does not reduce the price of
the drug to a level that is not excessive.
SEC. 805. MANUFACTURERS.
Each manufacturer of a prescription drug subject to
review under section 803 shall—
(1) provide to the Board such information as
the Board may require to make the determinations
under section 803, including—
(A) information identifying such drug,
(B) the price at which such drug is being
sold or has been sold in any market,
(C) the cost of manufacturing and market-
ing such drug, and
(D) such other information as the Board
considers necessary to be provided in such form
and manner and at such time as the Board pre-
scribes by regulation, and
(2) notify the Board immediately of any in-
crease in the wholesale price of any prescription
drug marketed by the manufacturer.
SEC. 806. STUDY.
The Board shall engage the Institute of Medicine of
the National Academy of Sciences to conduct a study of
prescription drug research and development and pricing
practices, the difficulties many Americans have in afford-
ing prescription drugs, and options for making prescrip-
tion drugs available to all that need them. Such study
shall—
(1) examine Federal incentives for research and
development and determine which incentives are
most effective and what changes would better en-
courage the development of low cost, effective drugs,
(2) examine the Federal regulatory process and
identify ways it might be streamlined without jeop-
ardizing consumer safety,
(3) consider whether the authority of the Food
and Drug Administration should be enhanced and
whether the funding for such agency should be in-
creased to improve Federal regulation of drugs,
(4) consider steps the United States might take
(including possible trade sanctions) to protect manu-
facturers of drugs in the United States from product
pirating and other unfair trade practices by foreign
competitors,
(5) consider changes in the patent laws (includ-
ing delaying the start of a product’s 17 years patent
protection until after the product has been approved
under the Federal Food, Drug, and Cosmetic Act) to
allow manufacturers to charge lower prices and still
recoup their research and development costs,
(6) consider whether a Board review of non-pre-
scription drug prices would have a positive effect on
consumer costs of such drugs,
(7) consider mechanisms to assist consumers
with the high cost of prescription drugs (including
providing reimbursement under title XVIII of the
Social Security Act for prescription drugs at lower
prices negotiated with manufacturers of drugs),
(8) examine Federal policies regarding the li-
censing of drugs discovered and developed by feder-
ally funded researchers and recommend actions that
would allow the United States to recoup its costs or
to influence the pricing of such drugs, and
(9) examine the effects on retail pharmacies of
disparities in drug prices wherein the drug manufac-
turers charge hospitals, mail order pharmacies, and
health maintenance organizations significantly lower
prices than those charged wholesalers for such
drugs.
TITLE IX—TERMINATION OF
PROGRAMS
SEC. 901. TERMINATION OF CERTAIN FEDERAL HEALTH
CARE PROGRAMS.
(a) MEDICARE AND MEDICAID.—Titles XVIII and
XIX of the Social Security Act are repealed.
(b) REPEAL OF CHAMPUS PROVISIONS.—
(1) AMENDMENTS TO CHAPTER 55 OF TITLE
10.—Sections 1079 through 1083, 1086, and 1097
through 1100 of title 10, United States Code, are
repealed.