Legalizing Drug Discounts for Seniors Act of 2020

Bill: 116-s-4274
Sponsor: full_name: Sen. Paul, Rand [R-KY]
Introduced: 2020-07-22
Policy area: Health
Latest action: action_date: 2020-07-22
text: Read twice and referred to the Committee on Finance.

Summaries:
action_date: 2020-07-22
action_desc: Introduced in Senate
text: <p><b>Legalizing Drug Discounts for Seniors Act of 2020</b></p> <p>This bill excludes certain discounts for covered drugs under the Medicare prescription drug benefit from the federal anti-kickback statute.</p>

tv_txt: II 116th CONGRESS 2d Session S. 4274 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.

1. Short title This Act may be cited as the Legalizing Drug Discounts for Seniors Act of 2020 . 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.