Encouraging Innovative Benefit Design to Lower Costs for Seniors Act

Bill: 116-s-3013
Sponsor: full_name: Sen. Toomey, Patrick [R-PA]
Introduced: 2019-12-10
Policy area: Health
Subjects: Government information and archives

Health care costs and insurance

Health care coverage and access

Insurance industry and regulation

Medicare

Prescription drugs
Latest action: action_date: 2019-12-10
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2019-12-10
action_desc: Introduced in Senate
text: <p><b>Encouraging Innovative Benefit Design to Lower Costs for Seniors Act</b></p> <p>This bill allows prescription drug plan (PDP) sponsors under the Medicare prescription drug benefit to offer additional plans in a region. </p> <p>Specifically, the Centers for Medicare &amp; Medicaid Services (CMS) must update guidance to allow PDP sponsors to offer up to four plans in a region; the CMS may also set a greater limit, as appropriate. </p> <p>PDP sponsors may offer up to two additional plans beyond this limit if the PDP sponsor ensures that, under at least one of the plans, pharmacy benefit managers do not receive any remuneration unless at least 10% of price reductions received from drug manufacturers are reflected at the point-of-sale or otherwise used to reduce beneficiary cost-sharing. </p>

tv_txt: II 116th CONGRESS 1st Session S. 3013 IN THE SENATE OF THE UNITED STATES December 10, 2019 Mr. Toomey (for himself and Mr. Crapo ) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To amend title XVIII of the Social Security Act to allow for the offering of additional prescription drug plans under Medicare part D.

1. Short title This Act may be cited as the Encouraging Innovative Benefit Design to Lower Costs for Seniors Act . 2. Allowing the offering of additional prescription drug plans under Medicare part D (a) Rescinding and issuance of new guidance Not later than one year after the date of the enactment of this Act, the Secretary of Health and Human Services (in this section referred to as the Secretary ) shall— (1) rescind sections of any sub-regulatory guidance that limit the number of prescription drug plans in each PDP region that may be offered by a PDP sponsor under part D of title XVIII of the Social Security Act ( 42 U.S.C. 1395w–101 et seq.); and (2) issue new guidance specifying that a PDP sponsor may offer up to 4 (or a greater number if determined appropriate by the Secretary) prescription drug plans in each PDP region, except in case where the PDP sponsor may offer up to 2 additional plans in a PDP region pursuant to section 1860D–11(d)(4) of the Social Security Act ( 42 U.S.C. 1395w–111(d)(4) ), as added by subsection (b). (b) Offering of additional plans Section 1860D–11(d) of the Social Security Act ( 42 U.S.C. 1395w–111(d) ) is amended by adding at the end the following new paragraph: (4) Offering of additional plans (A) In general For plan year 2022 and each subsequent plan year, a PDP sponsor may offer up to 2 additional prescription drug plans in a PDP region (in addition to any limit established by the Secretary under this part) provided that the PDP sponsor complies with subparagraph (B) with respect to at least one such prescription drug plan. (B) Requirements In order to be eligible to offer up to 2 additional plans in a PDP region pursuant to subparagraph (A), a PDP sponsor must ensure that, with respect to at least one such prescription drug plan, the sponsor or any entity that provides pharmacy benefits management services under a contract with any such sponsor or plan does not receive direct or indirect remuneration, as defined in section 423.308 of title 42, Code of Federal Regulations (or any successor regulation), unless at least 10 percent of the aggregate reductions in price or other remuneration received by the PDP sponsor or entity from drug manufacturers with respect to the plan and plan year— (i) are reflected at the point-of-sale to the enrollee; or (ii) are used to reduce total beneficiary cost-sharing estimated by the PDP sponsor for prescription drug coverage under the plan in the annual bid submitted by the PDP sponsor under section 1860D–11(b). (C) Definition of reductions in price For purposes of subparagraph (B), the term reductions in price refers only to collectible amounts, as determined by the Secretary, which excludes amounts which after adjudication and reconciliation with pharmacies and manufacturers are duplicate in nature, contrary to other contractual clauses, or otherwise ineligible (such as due to beneficiary disenrollment or coordination of benefits). . (c) Rule of construction Nothing in the provisions of, or amendments made by, this section shall be construed as limiting the ability of the Secretary to increase any limit otherwise applicable on the number of prescription drug plans that a PDP sponsor may offer, at the discretion of the PDP sponsor, in a PDP region under part D of title XVIII of the Social Security Act ( 42 U.S.C. 1395w–101 et seq.).