separate portion of the claim in accordance 
with subparagraph (A). 
‘‘(iii) OBLIGATION TO PAY.—A claim 
for a covered part D drug submitted to a 
PDP sponsor that is not paid or contested 
by the provider within the applicable num-
ber of calendar days (as defined in sub-
paragraph (B)) shall be deemed to be a 
clean claim and shall be paid by the PDP 
sponsor in accordance with subparagraph 
(A). 
‘‘(iv) DATE OF PAYMENT OF CLAIM.— 
Payment of a clean claim under subpara-
graph (A) is considered to have been made 
on the date on which full payment is re-
ceived by the provider. 
‘‘(E) 
ELECTRONIC
TRANSFER
OF 
FUNDS.—A PDP sponsor shall pay all clean 
claims submitted electronically by an electronic 
funds transfer mechanism.’’. 
(b) APPLICATION
TO
MA–PD PLANS.—Section 
1857(f) of such Act (42 U.S.C. 1395w–27) is amended 
by adding at the end the following new paragraph: 
‘‘(3) INCORPORATION
OF
CERTAIN
PRESCRIP-
TION DRUG PLAN CONTRACT REQUIREMENTS.—The 
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provisions of section 1860D–12(b)(4) shall apply to 
contracts with a Medicare Advantage organization in 
the same manner as they apply to contracts with a 
PDP sponsor offering a prescription drug plan 
under part D.’’. 
(c) EFFECTIVE DATE.—The amendments made by 
this section shall apply to contracts entered into or re-
newed on or after the date of the enactment of this Act. 
SEC. 3. RESTRICTION ON CO-BRANDING. 
(a) IN GENERAL.—Section 1860D–4(b)(2)(A) of the 
Social Security Act (42 U.S.C. 1395w–104(b)(2)(A)) is 
amended by adding at the end the following new sen-
tences: ‘‘It is unlawful for a PDP sponsor of a prescription 
drug plan to display on such a card the name, brand, or 
trademark of any pharmacy.’’ 
(b) EFFECTIVE DATE.—With respect to cards dis-
pensed before, on, or after the date of the enactment of 
this Act, the amendment made by this section shall apply 
to such cards on and after the date that is 90 days after 
such date of enactment. Any card dispensed before such 
date that is 90 days after the date of enactment that vio-
lates the second sentence of section 1860D–4(b)(2)(A) of 
the Social Security Act, as added by subsection (a), shall 
be reissued by such 90-day date. 
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SEC. 4. MINIMUM DISPENSING FEES FOR GENERIC COV-
ERED PART D DRUGS. 
(a) IN GENERAL.—Section 1860D–4(b)(1) of the So-
cial Security Act (42 U.S.C. 1395w–104(b)(1)) is amend-
ed by adding at the end the following new subparagraph: 
‘‘(F) MINIMUM DISPENSING FEES FOR GE-
NERIC COVERED PART D DRUGS.— 
‘‘(i) IN GENERAL.—Each PDP spon-
sor under this subsection with respect to a 
prescription drug plan offered by such 
sponsor shall provide that the amount of a 
dispensing fee paid to a participating phar-
macy for a generic covered part D drug 
that is therapeutically equivalent and bio-
equivalent to a brand name drug that is a 
covered part D drug dispensed through the 
pharmacy, shall be an amount that is not 
less than the minimum generic drug dis-
pensing fee specified under clause (ii). 
‘‘(ii) MINIMUM
GENERIC
DRUG
DIS-
PENSING FEE SPECIFIED.—The minimum 
generic drug dispensing fee specified under 
this clause for generic covered part D 
drugs dispensed— 
‘‘(I) in calendar year 2006, is 
$14; and 
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‘‘(II) 
in 
subsequent 
calendar 
years, is the minimum generic drug 
dispensing fee under this clause for 
the previous year increased by the an-
nual percentage increase in the con-
sumer price index (all items; U.S. city 
average) as of July of such previous 
year. 
Any amount established under subclause 
(II), that is based on an increase of $1 or 
$3, that is not a multiple of 5 cents or 10 
cents, respectively, shall be rounded to the 
nearest multiple of 5 cents or 10 cents, re-
spectively.’’. 
(b) EFFECTIVE DATE.—The amendment made by 
subsection (a) shall apply to prescriptions filled on or after 
the date that is the first day of the first contract year 
after the date of the enactment of this Act. 
SEC. 5. PROVISION OF MEDICATION THERAPY MANAGE-
MENT SERVICES UNDER PART D. 
(a) PROVISION OF MEDICATION THERAPY MANAGE-
MENT SERVICES UNDER PART D.— 
(1) IN
GENERAL.—Section 1860D–4(c)(2) of 
the Social Security Act (42 U.S.C.1395w–104(c)(2)) 
is amended— 
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(A) in subparagraph (A)— 
(i) in clause (i)— 
(I) by inserting ‘‘or other health 
care provider with advanced training 
in medication management’’ after 
‘‘furnished by a pharmacist’’; and 
(II) by striking ‘‘targeted bene-
ficiaries described in clause (ii)’’ and 
inserting ‘‘targeted beneficiaries speci-
fied under clause (ii)’’ 
(ii) by striking clause (ii) and insert-
ing the following: 
‘‘(ii) TARGETED
BENEFICIARIES.— 
The Secretary shall specify the population 
of part D eligible individuals appropriate 
for services under a medication therapy 
management program based on the fol-
lowing characteristics: 
‘‘(I) Having a disease state in 
which evidence-based medicine has 
demonstrated the benefit of medica-
tion therapy management intervention 
based on objective outcome measures. 
‘‘(II) Taking multiple covered 
part D drugs or having a disease state 
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in which a complex combination medi-
cation regimen is utilized. 
‘‘(III) Being identified as likely 
to incur annual costs for covered part 
D drugs that exceed a level specified 
by the Secretary or where acute or 
chronic decompensation of disease 
would likely increase expenditures 
under the Federal Hospital Insurance 
Trust Fund or the Federal Supple-
mentary Medical Insurance Trust 
Fund under sections 1817 and 1841, 
respectively, such as through the re-
quirement of emergency care or acute 
hospitalization.’’; 
(B) by striking subparagraph (B) and in-
serting the following: 
‘‘(B) ELEMENTS.— 
‘‘(i) MINIMUM DEFINED PACKAGE OF 
SERVICES.—The Secretary shall specify a 
minimum defined package of medication 
therapy management services that shall be 
provided to each enrollee. Such package 
shall be based on the following consider-
ations: 
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‘‘(I) Performing necessary assess-
ments of the health status of each en-
rollee. 
‘‘(II) Providing medication ther-
apy review to identify, resolve, and 
prevent medication-related problems, 
including adverse events. 
‘‘(III) Increasing enrollee under-
standing to promote the appropriate 
use of medications by enrollees and to 
reduce the risk of potential adverse 
events associated with medications, 
through beneficiary and family edu-
cation, counseling, and other appro-
priate means. 
‘‘(IV) Increasing enrollee adher-
ence with prescription medication 
regimens through medication refill re-
minders, special packaging, and other 
compliance programs and other appro-
priate means. 
‘‘(V) Promoting detection of ad-
verse drug events and patterns of 
overuse and underuse of prescription 
drugs. 
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‘‘(VI) Developing a medication 
action plan which may alter the medi-
cation regimen, when permitted by the 
State licensing authority. This infor-
mation should be provided to, or ac-
cessible by, the primary health care 
provider of the enrollee. 
‘‘(VII) Monitoring and evaluating 
the response to therapy and evalu-
ating the safety and effectiveness of 
the therapy, which may include lab-
oratory assessment. 
‘‘(VIII) Providing disease-specific 
medication therapy management serv-
ices when appropriate. 
‘‘(IX) Coordinating and inte-
grating medication therapy manage-
ment services within the broader scope 
of health care management services 
being provided to each enrollee. 
‘‘(ii) DELIVERY OF SERVICES.— 
‘‘(I) PERSONAL
DELIVERY.—To 
the extent feasible, face-to-face inter-
action shall be the preferred method 
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