I 
108TH CONGRESS 
1ST SESSION H. R. 1309
To amend title 38, United States Code, to provide improved prescription 
drug benefits for veterans. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 18, 2003
Mr. EVANS (for himself, Mr. RODRIGUEZ, Mr. GUTIERREZ, Mr. FILNER, Ms. 
CORRINE BROWN of Florida, Ms. BERKLEY, Mr. STRICKLAND, Mr. RYAN 
of Ohio, Mr. REYES, Mr. MICHAUD, Mr. UDALL of New Mexico, and Ms. 
HOOLEY of Oregon) introduced the following bill; which was referred to 
the Committee on Veterans’ Affairs, and in addition to the Committees 
on Energy and Commerce, and Ways and Means, for a period to be sub-
sequently determined by the Speaker, in each case for consideration of 
such provisions as fall within the jurisdiction of the committee concerned 
A BILL 
To amend title 38, United States Code, to provide improved 
prescription drug benefits for veterans.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Veterans Prescription 
Drug Benefits Act of 2003’’.
SEC. 2. PRESCRIPTION DRUG BENEFIT FOR VETERANS. 
(a) IN GENERAL.—(1) Chapter 17 of title 38, United 
States Code, is amended by inserting after section 1722A 
the following new section:
‘‘§ 1722B. Prescription drug benefit program for 
medicare-eligible veterans and Priority 1 
veterans 
‘‘(a) BENEFIT.—The Secretary shall establish a pre-
scription drug benefit program in accordance with this 
section. Under the program, the Secretary shall furnish 
to veterans who are participants in the program drugs and 
medicines ordered on prescription of a duly licensed physi-
cian or other authorized health care professional who is 
not an employee of the Department, subject to the pay-
ment of any applicable premium and copayment under this 
section. 
‘‘(b) VETERANS ELIGIBLE FOR THE PRESCRIPTION 
DRUG BENEFIT.—The following veterans are eligible to 
participate in the prescription drug benefit program under 
this section: 
‘‘(1) Priority 1 veterans. 
‘‘(2) Medicare-eligible veterans (other than Pri-
ority 1 veterans) who enroll in the program. 
‘‘(c) ENROLLMENT.—(1) In order for a medicare-eli-
gible veteran who is not a Priority 1 veteran to participate 
in the prescription drug benefit program, the veteran must
enroll in the program. Such enrollment shall be carried 
out in such manner as may be prescribed by the Secretary 
by regulation. The status of a veteran as a medicare-eligi-
ble veteran shall be verified by the Secretary of Health 
and Human Services upon request of the Secretary. 
‘‘(2) A medicare-eligible veteran who enrolls in the 
prescription drug benefit program is not eligible for enroll-
ment in the patient enrollment system under section 1705 
of this title. The Secretary shall inform any veteran apply-
ing for enrollment under this section that the veteran, 
while enrolled in the prescription drug benefit program, 
will not be eligible for health care provided by the Sec-
retary. 
‘‘(3) Any medicare-eligible veteran who enrolls in the 
prescription drug benefit program under this section and 
who at the time of such enrollment is enrolled in the pa-
tient enrollment system under section 1705 of this title 
shall, upon such enrollment under this section, be auto-
matically disenrolled from that patient enrollment system. 
‘‘(4) The Secretary shall conduct an annual open en-
rollment period during the last two months of each fiscal 
year. During that period—
‘‘(A) a medicare-eligible veteran who is not a 
Priority 1 veteran may enroll in the program under 
this section; and
‘‘(B) such a veteran previously enrolled under 
this section may disenroll. 
‘‘(5) During the first five fiscal years during which 
the prescription drug benefit program under this section 
is in effect, the Secretary may limit enrollment as deter-
mined necessary by the Secretary for administrative and 
fiscal reasons. All medicare-eligible veterans who apply for 
enrollment under this section during the first year that 
the program under this section is in effect shall be enrolled 
by the end of the fifth such year. 
‘‘(d) ANNUAL PREMIUM AND COPAYMENTS.—(1) The 
Secretary shall by regulation establish an annual premium 
amount that must be paid to the United States by a vet-
eran for drugs and medicines furnished under this section 
each year before such drugs and medicines are furnished 
to that veteran at the expense of the United States that 
year. 
‘‘(2) The Secretary shall by regulation establish an 
amount (known as a ‘copayment’) that must be paid to 
the United States by a veteran for each 30-day supply of 
drugs and medicines furnished under this section. If the 
quantity of such drugs and medicines furnished is less 
than a 30-day supply, the amount of the copayment 
charge may not be reduced.
‘‘(3) The Secretary may establish different copay-
ment amounts for prescriptions depending on—
‘‘(A) whether they are filled under a generic 
drug name or by brand name; 
‘‘(B) whether or not they are available by mail; 
and 
‘‘(C) whether or not they are on the Depart-
ment’s National Prescription Drug Formulary. 
‘‘(4) The amount of the copayment charged for any 
particular prescription—
‘‘(A) may not be less than the amount in effect 
under section 1722A of this title for the copayment 
for medications furnished by the Department on pre-
scription of Department health-care professionals; 
and 
‘‘(B) subject to subparagraph (A), may not ex-
ceed the cost to the Secretary of furnishing the 
drugs or medicine.
‘‘(e) DISPOSITION OF RECEIPTS.—(1) Any amount 
received under subsection (d) from a Priority 1 veteran 
shall be deposited in the Department of Veterans Affairs 
Medical Care Collections Fund. 
‘‘(2) Any amount received under subsection (d) from 
a medicare-eligible veteran enrolled in the prescription 
drug benefit program under subsection (c) shall be trans-
ferred by the Secretary to the Federal Supplementary 
Medical Insurance Trust Fund established in section 1841 
of the Social Security Act (42 U.S.C. 1395t). 
‘‘(f) INTERGOVERNMENTAL
REIMBURSEMENT
OF 
COSTS.—(1) The Secretary of Health and Human Serv-
ices shall transfer to the Secretary, from the fund referred 
to in subsection (e)(2), amounts to reimburse the costs 
to the Department of furnishing drugs and medicine under 
the prescription drug benefit program under this section 
to medicare-eligible veterans enrolled under subsection (c). 
Amounts to be included in such costs are the following: 
‘‘(A) The cost of such drugs and medicines to 
the Department. 
‘‘(B) A reasonable charge for processing, filling, 
and dispensing the prescription, including overhead 
costs such as labor, equipment, space, and utilities. 
‘‘(C) Costs of postage, if furnished by mail. 
‘‘(2) To the extent the Secretary hires new personnel, 
purchases new equipment, or obtains additional facilities 
to carry out the prescription drug benefit program under 
this section, the Secretary shall document those expenses 
in charges to the Secretary of Health and Human Services 
that incorporate those expenses. 
‘‘(3) The Secretary of Health and Human Services 
shall make transfers of funds under this subsection peri-
odically, as agreed upon by the two Secretaries, but not 
less often than weekly. Such payments shall be made upon 
receipt of a certification from the Secretary of Veterans 
Affairs of costs incurred by the Secretary under this sec-
tion for the period with respect to which the certification 
is made. 
‘‘(4) Any amount received under this subsection shall 
be deposited in the Department of Veterans Affairs Med-
ical Care Collections Fund. 
‘‘(5) The Secretary and the Secretary of Health and 
Human Services shall enter into an agreement for the 
methodology to be used for determining costs of the De-
partment for purposes of this subsection.
‘‘(g) NONLIABILITY.—A health care professional may 
not be considered to be an agent or employee of the United 
States by reason of a prescription of that health care pro-
fessional being furnished by the Secretary under this sec-
tion. 
‘‘(h) INFORMATION RESOURCES.—(1) The Secretary 
shall develop and maintain a database of veterans enrolled 
under subsection (c) and of persons who have applied for 
such enrollment. 
‘‘(2) The Secretary shall maintain records of the 
costs of the program under this section, including separate
costs for Priority 1 veterans and for veterans enrolled 
under subsection (c). 
‘‘(3) Not later than six years after the date of the 
enactment of this section, the Secretary shall implement 
a computerized patient profile system for participants in 
the prescription drug benefit plan under this section. The 
patient profile system shall have the capability, for each 
participant in the program, of identifying—
‘‘(A) known drug interactions; 
‘‘(B) contraindicated drugs; 
‘‘(C) available ‘best value’ treatment alter-
natives for prescribed medications; and 
‘‘(D) patient safety issues. 
‘‘(i) ANNUAL REPORT TO CONGRESS.—The Secretary 
shall submit to Congress an annual report on the oper-
ation of this section for each of the first five years this 
section is in effect. Each such report shall include the fol-
lowing: 
‘‘(1) The number of participants in the pro-
gram during the year covered by the report and, of 
that number, the number who are enrolled under 
subsection (c), including the number who were new 
enrollees during such year. 
‘‘(2) The number of veterans who have applied 
for such enrollment and, as of the end of the year
covered by the report, are waiting for such enroll-
ment. 
‘‘(3) The number of veterans who during the 
year covered by the report were disenrolled from the 
patient enrollment system under section 1705 of this 
title in order to enroll under subsection (c). 
‘‘(4) The cost to the Department of the pro-
gram under this section during the year covered by 
the report. 
‘‘(5) The amount of funds transferred to the 
Secretary during the year covered by the report 
under subsection (f). 
‘‘(6) The amount of resources added during the 
year covered by the report to accommodate increased 
workloads by reason of this section. 
‘‘(j) REGULATIONS.—The Secretary shall prescribe 
regulations to carry out this section. Such regulations 
shall be prescribed in consultation with the Secretary of 
Health and Human Services. 
‘‘(k) DEFINITIONS.—For purposes of this section: 
‘‘(A) The term ‘medicare-eligible veteran’ 
means a veteran who is entitled to benefits under 
part A of title XVIII of the Social Security Act (42 
U.S.C. 1395c et seq.) and who is enrolled under part 
B of that title (42 U.S.C. 1395j et seq.).
‘‘(B) The term ‘Priority 1 veteran’ means a vet-
eran covered by section 1705(a)(1) of this title.’’.
(2) The table of sections at the beginning of such 
chapter is amended by inserting after the item relating 
to section 1722A the following new item:
‘‘1722B. Prescription drug benefit program for medicare-eligible veterans and 
Priority 1 veterans.’’.
(b) EFFECTIVE DATE.—Section 1722B of title 38, 
United States Code, as added by subsection (a), shall take 
effect on October 1, 2003. The initial enrollment period 
under subsection (c)(4) of such section shall be the period 
beginning on August 1, 2004, and ending on September 
30, 2004.
Æ