Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Drug Availability and Health Care Access Improvement
Act of 2001’’.
(b) TABLE OF CONTENTS.—The table of contents of
this Act is as follows:
Sec. 1. Short title; table of contents.
TITLE I—MEDICAID PRESCRIPTION DRUG COVERAGE FOR LOW-
INCOME MEDICARE BENEFICIARIES
Sec. 101. Medicaid prescription drug coverage for low-income medicare bene-
ficiaries.
TITLE II—IMPROVED ACCESS OF MEDICARE BENEFICIARIES TO
MEDICARE+CHOICE PLANS
Sec. 201. Improved access to Medicare+Choice plans through an increase in
the minimum Medicare+Choice capitation rate.
TITLE III—IMPROVED ACCESS TO REASONABLY PRICED
PRESCRIPTION DRUGS
Sec. 301. Amendments to program for importation of certain prescription drugs
by pharmacists and wholesalers.
TITLE I—MEDICAID PRESCRIP-
TION DRUG COVERAGE FOR
LOW-INCOME 
MEDICARE
BENEFICIARIES
SEC. 101. MEDICAID PRESCRIPTION DRUG COVERAGE FOR
LOW-INCOME MEDICARE BENEFICIARIES.
(a) IN GENERAL.—Section 1902(a)(10) of the Social
Security Act (42 U.S.C. 1396a(a)(10)) is amended—
(1) by striking ‘‘and’’ at the end of subpara-
graph (F);
(2) by adding ‘‘and’’ at the end of subpara-
graph (G); and
(3) by inserting after subparagraph (G) the fol-
lowing new subparagraph:
‘‘(H) for making medical assistance avail-
able for prescribed drugs (in the same amount,
duration, and scope as for individuals described
in subparagraph (A)) for qualified medicare
beneficiaries described in section 1905(p)(1)
and for individuals who would be such qualified
medicare beneficiaries but for the fact that
their income exceeds the income level estab-
lished by the State under section 1905(p)(2)
but is less than 175 percent of the official pov-
erty line (referred to in such section) for a fam-
ily of the size involved;’’.
(b) 100 PERCENT FEDERAL FINANCING OF ADDI-
TIONAL COSTS.—Section 1903(a) of such Act (42 U.S.C.
1396b(a)) is amended—
(1) by redesignating paragraph (7) as para-
graph (8); and
(2) by adding after paragraph (6) the following
new paragraph:
‘‘(7) an amount equal to 100 percent of
amounts as expended as medical assistance for pre-
scribed drugs described in section 1902(a)(10)(H) to
individuals who are eligible for such assistance only
on the basis of such section; and’’.
(c) PERMITTING CHARGING OF SLIDING SCALE PRE-
MIUMS FOR QUALIFYING INDIVIDUALS WITH INCOMES
ABOVE 135 PERCENT OF POVERTY LINE.—Section 1916
of such Act Social Security Act is amended—
(1) in subsection (b), by striking ‘‘or (E)’’ and
inserting ‘‘, (E), or (H)’’; and
(2) in subsection (d)—
(A) by inserting ‘‘(1)’’ after ‘‘(d)’’, and
(B) by adding at the end the following new
paragraph:
‘‘(2)(A) With respect to an individual described in
section 1902(a)(10)(H) whose income (as determined
under section 1905(p)(1)(B)) exceeds 135 percent of the
official poverty line referred to in that section, the State
plan of a State shall provide for the charging of a premium
(expressed as a percentage of the average actuarial cost
of the benefits described in section 1902(a)(10)(H) pro-
vided with respect to individuals described in such section)
according to a sliding scale under which such percentage
increases from 0 percent to 100 percent, in reasonable in-
crements (as determined by the Secretary), as the individ-
ual’s income increases from 135 percent of such poverty
line to 175 percent of such poverty line.
‘‘(B) A State shall not require prepayment of a pre-
mium imposed pursuant to subparagraph (A) and shall
not terminate eligibility of an individual for medical assist-
ance under this title on the basis of failure to pay any
such premium until such failure continues for a period of
not less than 60 days. The State may waive payment of
any such premium in any case where the State determines
that requiring such payment would create an undue hard-
ship.
‘‘(C) A State may permit State or local funds avail-
able under other programs to be used for payment of a
premium imposed under subparagraph (A). Payment of
a premium with such funds shall not be counted as income
to the individual with respect to whom such payment is
made.’’.
(d) EFFECTIVE DATE.—The amendments made by
this section take effect on the first day of the first year
that begins more than 6 months after the date of the en-
actment of this Act.
TITLE II—IMPROVED ACCESS OF
MEDICARE 
BENEFICIARIES
TO 
MEDICARE+CHOICE
PLANS
SEC. 201. IMPROVED ACCESS TO MEDICARE+CHOICE PLANS
THROUGH AN INCREASE IN THE MINIMUM
MEDICARE+CHOICE CAPITATION RATE.
(a) IN GENERAL.—Section 1853(c)(1)(B) of the So-
cial Security Act (42 U.S.C. 1395w–23(c)(1)(B)), as
amended by section 601(a) of Medicare, Medicaid, and
SCHIP Benefits Improvement and Protection Act of 2000
(as enacted into law by section 1(a)(6) of Public Law 106–
554), is amended—
(1) by redesignating clause (iv) as clause (v);
(2) by inserting after clause (iii) the following
new clause:
‘‘(iv) For 2002—
‘‘(I) for any area in the 50
States and the District of Columbia,
$600; and
‘‘(II) for any other area, the min-
imum amount specified in clause (iii)
for that area for 2001 increased by
the 
national 
per 
capita
Medicare+Choice growth percentage,
described in paragraph (6)(A) for
2002.’’; and
(3) in clause (v), as so redesignated—
(A) by striking ‘‘2002’’ and inserting
‘‘2003’’; and
(B) by striking ‘‘or clause (iii)’’ and insert-
ing ‘‘or clause (iv)’’.
(b) EFFECTIVE DATE.—The amendments made by
subsection (a) apply to years beginning with 2002.
TITLE 
III—IMPROVED 
ACCESS
TO 
REASONABLY 
PRICED
PRESCRIPTION DRUGS
SEC. 301. AMENDMENTS TO PROGRAM FOR IMPORTATION
OF CERTAIN PRESCRIPTION DRUGS BY PHAR-
MACISTS AND WHOLESALERS.
Section 804 of the Federal Food, Drug, and Cosmetic
Act (as added by section 745(c)(2) of Public Law 106–
387) is amended—
(1) by striking subsections (e) and (f) and in-
serting the following subsections:
‘‘(e) TESTING; APPROVED LABELING.—
‘‘(1) TESTING.—Regulations under subsection
(a)—
‘‘(A) shall require that testing referred to
in paragraphs (6) through (8) of subsection (d)
be conducted by the importer of the covered
product pursuant to subsection (a), or the man-
ufacturer of the product;
‘‘(B) shall require that, if such tests are
conducted by the importer, information needed
to authenticate the product being tested be sup-
plied by the manufacturer of such product to
the importer; and
‘‘(C) shall provide for the protection of any
information supplied by the manufacturer
under subparagraph (B) that is a trade secret
or commercial or financial information that is
privileged or confidential.
‘‘(2) APPROVED LABELING.—For purposes of
importing a covered product pursuant to subsection
(a), the importer involved may use the labeling ap-
proved for the product under section 505, notwith-
standing any other provision of law.
‘‘(f) DISCRETION OF SECRETARY REGARDING TEST-
ING.—The Secretary may waive or modify testing require-
ments described in subsection (d) if, with respect to spe-
cific countries or specific distribution chains, the Secretary
has entered into agreements or otherwise approved ar-
rangements that the Secretary determines ensure that the
‘‘(A) evaluate importers’ compliance with
regulations, determine the number of ship-
ments, if any, permitted under this section that
have been determined to be counterfeit, mis-
branded, or adulterated; and
‘‘(B) consult with the United States Trade
Representative and United States Patent and
Trademark Office to evaluate the effect of im-
portations permitted under this section on trade
and patent rights under Federal law.
‘‘(2) REPORT.—Not later than 5 years after the
effective date of final regulations issued pursuant to
this section, the Comptroller General of the United
States shall prepare and submit to Congress a re-
port containing the study described in paragraph
(1).’’;
(3) in subsection (k)(2)—
(A) by redesignating subparagraphs (A)
through (E) as subparagraphs (B) through (F),
respectively; and
(B) by inserting before subparagraph (B)
(as so redesignated) the following subpara-
graph:
‘‘(A) The term ‘discrimination’ includes a
contract provision, a limitation on supply, or
other measure which has the effect of providing
United States pharmacists, wholesalers, or con-
sumers access to covered products on terms or
conditions that are less favorable than the
terms or conditions provided to any foreign pur-
chaser of such products.’’;
(4) by striking subsection (m); and
(5) by inserting after subsection (l) the fol-
lowing subsection:
‘‘(m) FUNDING.—For the purpose of carrying out
this section, there are authorized to be appropriated such
sums as may be necessary for fiscal year 2002 and each
subsequent fiscal year.’’.
Æ