SEC. 2. MEDICARE PRESCRIPTION DRUG DISCOUNT CARD
ENDORSEMENT PROGRAM.
Title XVIII of the Social Security Act is amended by
inserting after section 1806 the following new section:
‘‘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) 
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.
‘‘(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 costs and benefits of
such programs in a manner coordinated with the
dissemination 
of 
educational 
information 
on
Medicare+Choice plans under part C.
‘‘(2) OVERSIGHT.—The Secretary shall provide
appropriate oversight to ensure compliance of en-
dorsed programs with the requirements of this sec-
tion, including verification of the discounts and serv-
ices provided.
‘‘(3) USE OF MEDICARE TOLL-FREE NUMBER.—
The Secretary shall provide through the 1-800-medi-
care toll free telephone number for the receipt and
response to inquiries and complaints concerning the
program and programs endorsed under this section.
‘‘(4) DISQUALIFICATION
FOR
ABUSIVE
PRAC-
TICES.—The Secretary shall revoke the endorsement
of a program that the Secretary determines no
longer meets the requirements of this section or that
has engaged in false or misleading marketing prac-
tices.
‘‘(5) ENROLLMENT
PRACTICES.—A medicare
beneficiary may not be enrolled in more than one en-
dorsed program at any time.
‘‘(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 a part D.
‘‘(e) AUTHORIZATION OF APPROPRIATIONS.—There
are authorized to be appropriated such sums as may be
necessary to carry out the program under this section.’’.
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