IB
Union Calendar No. 325
107TH CONGRESS
2D SESSION
H. R. 4961
[Report No. 107–544]
To establish a National Bipartisan Commission on the Future of Medicaid.
IN THE HOUSE OF REPRESENTATIVES
JUNE 19, 2002
Mr. TAUZIN introduced the following bill; which was referred to the Committee
on Energy and Commerce
JUNE 26, 2002
Committed to the Committee of the Whole House on the State of the Union
and ordered to be printed
A BILL
To establish a National Bipartisan Commission on the
Future of Medicaid.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
TITLE 
IX—MEDICAID, 
PUBLIC
HEALTH, AND OTHER HEALTH
PROVISIONS
Subtitle A—Medicaid Provisions
SEC. 901. NATIONAL BIPARTISAN COMMISSION ON THE FU-
TURE OF MEDICAID.
(a) ESTABLISHMENT.—There is established a com-
mission to be known as the National Bipartisan Commis-
sion on the Future of Medicaid (in this section referred
to as the ‘‘Commission’’).
(b) DUTIES OF THE COMMISSION.—The Commission
shall—
(1) review and analyze the long-term financial
condition of the medicaid program under title XIX
of the Social Security Act (42 U.S.C. 1396 et seq.);
(2) identify the factors that are causing, and
the consequences of, increases in costs under the
medicaid program, including—
(A) the impact of these cost increases upon
State budgets, funding for other State pro-
grams, and levels of State taxes necessary to
fund growing expenditures under the medicaid
program;
(B) the financial obligations of the Federal
government arising from the Federal matching
requirement for expenditures under the med-
icaid program; and
(C) the size and scope of the current pro-
gram and how the program has evolved over
time;
(3) analyze potential policies that will ensure
both the financial integrity of the medicaid program
and the provision of appropriate benefits under such
program;
(4) make recommendations for establishing in-
centives and structures to promote enhanced effi-
ciencies and ways of encouraging innovative State
policies under the medicaid program;
(5) make recommendations for establishing the
appropriate balance between benefits covered, pay-
ments to providers, State and Federal contributions
and, where appropriate, recipient cost-sharing obli-
gations;
(6) make recommendations on the impact of
promoting increased utilization of competitive, pri-
vate enterprise models to contain program cost
growth, through enhanced utilization of private
plans, pharmacy benefit managers, and other meth-
ods currently being used to contain private sector
health-care costs;
(7) make recommendations on the financing of
prescription drug benefits currently covered under
medicaid programs, including analysis of the current
Federal manufacturer rebate program, its impact
upon both private market prices as well as those
paid by other government purchasers, recent State
efforts to negotiate additional supplemental manu-
facturer rebates and the ability of pharmacy benefit
managers to lower drug costs;
(8) review and analyze such other matters relat-
ing to the medicaid program as the Commission
deems appropriate; and
(9) analyze the impact of impending demo-
graphic changes upon medicaid benefits, including
long term care services, and make recommendations
for how best to appropriately divide State and Fed-
eral responsibilities for funding these benefits.
(c) MEMBERSHIP.—
(1) NUMBER AND APPOINTMENT.—The Com-
mission shall be composed of 17 members, of
whom—
(A) four shall be appointed by the Presi-
dent;
(B) six shall be appointed by the Majority
Leader of the Senate, in consultation with the