Improving Transparency and Accuracy in Medicare Part D Spending Act

Bill: 116-hr-789
Sponsor: full_name: Rep. Welch, Peter [D-VT-At Large]
Introduced: 2019-01-24
Policy area: Health
Subjects: Medicare

Prescription drugs
Latest action: action_date: 2019-03-01
text: Referred to the Subcommittee on Health.

Summaries:
action_date: 2019-01-24
action_desc: Introduced in House
text: <p><strong>Improving Transparency and Accuracy in Medicare Part D Spending Act</strong></p> <p>This bill prohibits Medicare prescription drug plan sponsors from retroactively reducing payment on clean claims submitted by pharmacies. (A "clean claim" is a Medicare claim that is free&nbsp;of defects such as incomplete documentation.)</p>

tv_txt: I 116th CONGRESS 1st Session H. R. 789 IN THE HOUSE OF REPRESENTATIVES January 24, 2019 Mr. Welch (for himself, Mr. Carter of Georgia , Mr. Collins of Georgia , and Mrs. Rodgers of Washington ) introduced the following bill; which was referred to the Committee on Energy and 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 amend title XVIII of the Social Security Act to prohibit prescription drug plan sponsors and MA–PD organizations under the Medicare program from retroactively reducing payment on clean claims submitted by pharmacies.

1. Short title This Act may be cited as the Improving Transparency and Accuracy in Medicare Part D Spending Act . 2. Prohibiting Medicare PDP sponsors and MA–PD organizations from retroactively reducing payment on clean claims submitted by pharmacies (a) In general Section 1860D–12(b)(4)(A) of the Social Security Act ( 42 U.S.C. 1395w–112(b)(4)(A) ) is amended by adding at the end the following new clause: (iv) Prohibiting retroactive reductions in payments on clean claims Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall provide that after the date of receipt of a clean claim submitted by a pharmacy, the PDP sponsor (or an agent of the PDP sponsor) may not retroactively reduce payment on such claim directly or indirectly through aggregated effective rate or otherwise except in the case such claim is found to not be a clean claim (such as in the case of a claim lacking required substantiating documentation) during the course of a routine audit as permitted pursuant to written agreement between the PDP sponsor (or such an agent) and such pharmacy. The previous sentence shall not prohibit any retroactive increase in payment to a pharmacy pursuant to a written agreement between a PDP sponsor (or an agent of such sponsor) and such pharmacy. . (b) Effective date The amendment made by subsection (a) shall apply with respect to contracts entered into on or after January 1, 2020.