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105TH CONGRESS
2D SESSION
H. R. 4794
To provide for substantial reductions in the price of prescription drugs for
Medicare beneficiaries.
IN THE HOUSE OF REPRESENTATIVES
OCTOBER 10, 1998
Mr. CRAMER introduced the following bill; which was referred to the Commit-
tee on Commerce, and in addition to the Committee on Ways and Means,
for a period to be subsequently determined by the Speaker, in each case
for consideration of such provisions as fall within the jurisdiction of the
committee concerned
A BILL
To provide for substantial reductions in the price of
prescription drugs for Medicare beneficiaries.
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 ‘‘Fairness in Prescrip-
tion Drug Prices Act’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds the following:
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pharmacy to purchase under this Act as much of a covered
outpatient drug as is sold by the pharmacy to Medicare
beneficiaries.
(d) PARTICIPATING PHARMACY DISCOUNT PRICE.—
(1) IN GENERAL.—The Secretary shall deter-
mine a participating pharmacy discount price for
each covered outpatient drug.
(2) DETERMINATION.—The participating phar-
macy discount price for a covered outpatient drug
shall be determined by adding—
(A) the price at which the drug is available
to Federal agencies from the Federal Supply
Schedule under section 8126 of title 38, United
States Code; plus
(B) an amount that reflects the adminis-
trative costs incurred by the Secretary in ad-
ministering this Act.
(e) SPECIAL RULE FOR MEDICARE BENEFICIARIES
ENROLLED IN A HOSPICE PROGRAM.—In the case of a
Medicare beneficiary who makes an election to receive hos-
pice care under section 1812(d)(1) of the Social Security
Act (42 U.S.C. 1395d(d)(1)) provided by, or under ar-
rangements made by, a particular hospice program under
part A of title XVIII of such Act, the hospice program
may enter into agreements with a participating pharmacy
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to procure for and deliver to such a Medicare beneficiary
covered outpatient drugs at a reduced price under this sec-
tion.
SEC. 4. ADMINISTRATION.
(a) IN GENERAL.—The Secretary shall administer
this Act in a manner that uses existing methods of obtain-
ing and distributing drugs to the maximum extent pos-
sible, consistent with efficiency and cost effectiveness.
(b) REGULATIONS.—The Secretary shall issue such
regulations as may be necessary to implement this Act.
SEC. 5. REPORTS TO CONGRESS REGARDING EFFECTIVE-
NESS OF ACT.
(a) IN GENERAL.—Not later than 2 years after the
date of the enactment of this Act, and annually thereafter,
the Secretary shall report to the Congress regarding the
effectiveness of this Act in—
(1) protecting Medicare beneficiaries from dis-
criminatory pricing by drug manufacturers; and
(2) making prescription drugs available to
Medicare beneficiaries at substantially reduced
prices.
(b) CONSULTATION.—In preparing such reports, the
Secretary shall consult with public health experts, affected
industries, organizations representing consumers and
older Americans, and other interested persons.
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(c) RECOMMENDATIONS.—The Secretary shall in-
clude in such reports any recommendations they consider
appropriate for changes in this Act to further reduce the
cost of covered outpatient drugs to Medicare beneficiaries.
SEC. 6. DEFINITIONS.
In this Act:
(1) COVERED OUTPATIENT DRUG.—The term
‘‘covered outpatient drug’’ has the meaning given
that term in section 1927(k)(2) of the Social Secu-
rity Act (42 U.S.C. 1396r–8(k)(2)).
(2) 
MEDICARE
BENEFICIARY.—The 
term
‘‘Medicare beneficiary’’ means an individual entitled
to benefits under part A of title XVIII of the Social
Security Act or enrolled under part B of such title,
or both.
(3) SECRETARY.—The term ‘‘Secretary’’ means
the Secretary of Health and Human Services.
SEC. 7. EFFECTIVE DATE.
The Secretary shall implement this Act as expedi-
tiously as practicable and in a manner consistent with the
obligations of the United States.
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