Title: Legalizing Drug Discounts for Seniors Act of 2020
Policy area: Health

Summary:
Legalizing Drug Discounts for Seniors Act of 2020
This bill excludes certain discounts for covered drugs under the Medicare prescription drug benefit from the federal anti-kickback statute.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[S. 4274 Introduced in Senate (IS)]

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116th CONGRESS
  2d Session
                                S. 4274

 To amend title XI of the Social Security Act to exclude discounts for 
covered part D drugs from the anti-kickback prohibition, and for other 
                               purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 22, 2020

   Mr. Paul introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
 To amend title XI of the Social Security Act to exclude discounts for 
covered part D drugs from the anti-kickback prohibition, and for other 
                               purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Legalizing Drug Discounts for 
Seniors Act of 2020''.

SEC. 2. EXCLUSION OF DISCOUNTS FOR COVERED PART D DRUGS FROM THE ANTI-
              KICKBACK PROHIBITION.

    (a) Exclusion of Discounts.--Section 1128B(b)(3) of the Social 
Security Act (42 U.S.C. 1320a-7b(b)(3)) is amended--
            (1) in subparagraph (J)--
                    (A) by moving such subparagraph 2 ems to the left; 
                and
                    (B) by striking ``and'' at the end;
            (2) in subparagraph (K)--
                    (A) by moving such subparagraph 2 ems to the left; 
                and
                    (B) by striking the period at the end and inserting 
                ``; and''; and
            (3) by adding at the end the following new subparagraph:
            ``(L) a discount, including through a rebate, discount 
        card, or coupon, with respect to a covered part D drug (as 
        defined in section 1860D-2(e)) under part D of title XVIII if--
                    ``(i) the full value of such discount is provided 
                initially to a part D eligible individual (as defined 
                in section 1860D-1(a)(3)(A)) enrolled in a part D plan 
                (as defined in section 1860D-23(a)(5)), and the 
                discount is not structured for the specific purpose of 
                providing a price concession, other than a bona fide 
                service fee, to another individual or entity; and
                    ``(ii) in the case where such discount includes a 
                reduction in price applicable to individuals enrolled 
                in a health plan but not to individuals enrolled in a 
                prescription drug plan under such part D or a MA-PD 
                plan under part C of such title XVIII, such discount is 
                not structured for the specific purpose of increasing 
                utilization of such covered part D drug under such a 
                prescription drug plan or MA-PD plan.''.
    (b) Application of the Protection Against Out-of-Pocket 
Expenditures.--Section 1860D-2(b)(4)(C)(iii) of the Social Security Act 
(42 U.S.C. 1395w-102(b)(4)(C)(iii)) is amended--
            (1) in subclause (III), by striking ``or'' at the end;
            (2) in subclause (IV), by striking the period at the end 
        and inserting ``; or''; and
            (3) by adding at the end the following:
                                    ``(V) under an arrangement 
                                described in section 1128B(b)(3)(L).''.
    (c) Effective Date.--The amendments made by this section shall take 
effect on January 1, 2021.
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