In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.

Ex Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Federal Activities Inventory Reform 
Act of 1998''.
SEC. 2. ANNUAL LISTS OF GOVERNMENT ACTIVITIES NOT INHERENTLY 
GOVERNMENTAL IN NATURE.
    (a) Lists Required.--Not later than the end of the third quarter of 
each fiscal year, the head of each executive agency shall submit to the 
Director of the Office of Management and Budget a list of activities 
performed by Federal Government sources for the executive agency that, 
in the judgment of the head of the executive agency, are not inherently 
governmental functions. The entry for an activity on the list shall 
include the following:
        (1) The fiscal year for which the activity first appeared on a 
    list prepared under this section.
        (2) The number of full-time employees (or its equivalent) that 
    are necessary for the performance of the activity by a Federal 
    Government source.
        (3) The name of a Federal Government employee responsible for 
    the activity from whom additional information about the activity 
    may be obtained.
    (b) OMB Review and Consultation.--The Director of the Office of 
Management and Budget shall review the executive agency's list for a 
fiscal year and consult with the head of the executive agency regarding 
the content of the final list for that fiscal year.
    (c) Public Availability of Lists.--
        (1) Publication.--Upon the completion of the review and 
    consultation regarding a list of an executive agency--
            (A) the head of the executive agency shall promptly 
        transmit a copy of the list to Congress and make the list 
        available to the public; and
            (B) the Director of the Office of Management and Budget 
        shall promptly publish in the Federal Register a notice that 
        the list is available to the public.
        (2) Changes.--If the list changes after the publication of the 
    notice as a result of the resolution of a challenge under section 
    3, the head of the executive agency shall promptly--
            (A) make each such change available to the public and 
        transmit a copy of the change to Congress; and
            (B) publish in the Federal Register a notice that the 
        change is available to the public.
    (d) Competition Required.--Within a reasonable time after the date 
on which a notice of the public availability of a list is published 
under subsection (c), the head of the executive agency concerned shall 
review the activities on the list. Each time that the head of the 
executive agency considers contracting with a private sector source for 
the performance of such an activity, the head of the executive agency 
shall use a competitive process to select the source (except as may 
otherwise be provided in a law other than this Act, an Executive order, 
regulations, or any executive branch circular setting forth 
requirements or guidance that is issued by competent executive 
authority). The Director of the Office of Management and Budget shall 
issue guidance for the administration of this subsection.
    (e) Realistic and Fair Cost Comparisons.--For the purpose of 
determining whether to contract with a source in the private sector for 
the performance of an executive agency activity on the list on the 
basis of a comparison of the costs of procuring services from such a 
source with the costs of performing that activity by the executive 
agency, the head of the executive agency shall ensure that all costs 
(including the costs of quality assurance, technical monitoring of the 
performance of such function, liability insurance, employee retirement 
and disability benefits, and all other overhead costs) are considered 
and that the costs considered are realistic and fair.

SEC. 3. CHALLENGES TO THE LIST.

    (a) Challenge Authorized.--An interested party may submit to an 
executive agency a challenge of an omission of a particular activity 
from, or an inclusion of a particular activity on, a list for which a 
notice of public availability has been published under section 2.
    (b) Interested Party Defined.--For the purposes of this section, 
the term ``interested party'', with respect to an activity referred to 
in subsection (a), means the following:
        (1) A private sector source that--
            (A) is an actual or prospective offeror for any contract, 
        or other form of agreement, to perform the activity; and
            (B) has a direct economic interest in performing the 
        activity that would be adversely affected by a determination 
        not to procure the performance of the activity from a private 
        sector source.
        (2) A representative of any business or professional 
    association that includes within its membership private sector 
    sources referred to in paragraph (1).
        (3) An officer or employee of an organization within an 
    executive agency that is an actual or prospective offeror to 
    perform the activity.
        (4) The head of any labor organization referred to in section 
    7103(a)(4) of title 5, United States Code, that includes within its 
    membership officers or employees of an organization referred to in 
    paragraph (3).
    (c) Time for Submission.--A challenge to a list shall be submitted 
to the executive agency concerned within 30 days after the publication 
of the notice of the public availability of the list under section 2.
    (d) Initial Decision.--Within 28 days after an executive agency 
receives a challenge, an official designated by the head of the 
executive agency shall--
        (1) decide the challenge; and
        (2) transmit to the party submitting the challenge a written 
    notification of the decision together with a discussion of the 
    rationale for the decision and an explanation of the party's right 
    to appeal under subsection (e).
    (e) Appeal.--
        (1) Authorization of appeal.--An interested party may appeal an 
    adverse decision of the official to the head of the executive 
    agency within 10 days after receiving a notification of the 
    decision under subsection (d).
        (2) Decision on appeal.--Within 10 days after the head of an 
    executive agency receives an appeal of a decision under paragraph 
    (1), the head of the executive agency shall decide the appeal and 
    transmit to the party submitting the appeal a written notification 
    of the decision together with a discussion of the rationale for the 
    decision.

SEC. 4. APPLICABILITY.

    (a) Executive Agencies Covered.--Except as provided in subsection 
(b), this Act applies to the following executive agencies:
        (1) Executive department.--An executive department named in 
    section 101 of title 5, United States Code.
        (2) Military department.--A military department named in 
    section 102 of title 5, United States Code.
        (3) Independent establishment.--An independent establishment, 
    as defined in section 104 of title 5, United States Code.
    (b) Exceptions.--This Act does not apply to or with respect to the 
following:
        (1) General accounting office.--The General Accounting Office.
        (2) Government corporation.--A Government corporation or a 
    Government controlled corporation, as those terms are defined in 
    section 103 of title 5, United States Code.
        (3) Nonappropriated funds instrumentality.--A part of a 
    department or agency if all of the employees of that part of the 
    department or agency are employees referred to in section 2105(c) 
    of title 5, United States Code.
        (4) Certain depot-level maintenance and repair.--Depot-level 
    maintenance and repair of the Department of Defense (as defined in 
    section 2460 of title 10, United States Code).

SEC. 5. DEFINITIONS.

    In this Act:
        (1) Federal government source.--The term ``Federal Government 
    source'', with respect to performance of an activity, means any 
    organization within an executive agency that uses Federal 
    Government employees to perform the activity.
        (2) Inherently governmental function.--
            (A) Definition.--The term ``inherently governmental 
        function'' means a function that is so intimately related to 
        the public interest as to require performance by Federal 
        Government employees.
            (B) Functions included.--The term includes activities that 
        require either the exercise of discretion in applying Federal 
        Government authority or the making of value judgments in making 
        decisions for the Federal Government, including judgments 
        relating to monetary transactions and entitlements. An 
        inherently governmental function involves, among other things, 
        the interpretation and execution of the laws of the United 
        States so as--
                (i) to bind the United States to take or not to take 
            some action by contract, policy, regulation, authorization, 
            order, or otherwise;
                (ii) to determine, protect, and advance United States 
            economic, political, territorial, property, or other 
            interests by military or diplomatic action, civil or 
            criminal judicial proceedings, contract management, or 
            otherwise;
                (iii) to significantly affect the life, liberty, or 
            property of private persons;
                (iv) to commission, appoint, direct, or control 
            officers or employees of the United States; or
                (v) to exert ultimate control over the acquisition, 
            use, or disposition of the property, real or personal, 
            tangible or intangible, of the United States, including the 
            collection, control, or disbursement of appropriated and 
            other Federal funds.
            (C) Functions excluded.--The term does not normally 
        include--
                (i) gathering information for or providing advice, 
            opinions, recommendations, or ideas to Federal Government 
            officials; or
                (ii) any function that is primarily ministerial and 
            internal in nature (such as building security, mail 
            operations, operation of cafeterias, housekeeping, 
            facilities operations and maintenance, warehouse 
            operations, motor vehicle fleet management operations, or 
            other routine electrical or mechanical services).

SEC. 6. EFFECTIVE DATE.

    This Act shall take effect on October 1, 1998.

                               Speaker of the House of Representatives.

                            Vice President of the United States and    
                                               President of the Senate.

Ex Output:
Federal Activities Inventory Reform Act of 1998 - Directs the head of each executive agency to submit to the Director of the Office of Management and Budget, not later than the end of the third quarter of each fiscal year, a list of activities performed by Federal Government sources for the agency that, in the judgment of the head of the executive agency, are not inherently governmental functions. 
Requires:  (1) the Director to review the agency's list and consult with the agency head regarding the contents of the final list for the fiscal year; (2) the agency head to transmit a copy of the list to the Congress and make the list publicly available; (3) the Director to publish in the Federal Register a notice that the list is publicly available; and (4) the agency head to publish a notice regarding, make available to the public, and transmit to the Congress, any subsequent change to the list. 
Requires the agency head to:  (1) review the activities on the list within a reasonable time after such a notice of its availability is published; and (2) use a competitive process (with specified exceptions) and ensure that all costs are considered each time that he or she considers contracting with a private sector source for the performance of an activity on the list. 
(Sec. 3) Permits an interested party to submit to an agency a challenge of an omission of a particular activity from, or an inclusion of a particular activity on, a list for which a notice has been published.  Sets forth procedures governing filing challenges, agency decisions on challenges, appealing such decisions, and agency decisions on such appeals. 
(Sec. 4) Provides that this Act shall not apply to or with respect to:  (1) the General Accounting Office; (2) Government corporations and Government controlled corporations; (3) a part of a department or agency if all of the employees of that part are employees paid from nonappropriated funds of certain instrumentalities of the United States under the jurisdiction of the armed forces; and (4) depot-level maintenance and repair of the Department of Defense.


Ex Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Housing Opportunities and Mitigating 
Emergencies Act of 2005''.

SEC. 2. FINDINGS.

    Congress finds the following:
            (1) The Gulf Coast region of the United States was recently 
        decimated by twin natural disasters: Hurricanes Katrina and 
        Rita.
            (2) Hurricane Katrina crashed into the Gulf Coast on August 
        29, 2005, as a category 4 storm.
            (3) At the time of its landing, Hurricane Katrina was 
        recorded as the third strongest hurricane to ever make landfall 
        on the United States, with sustained winds over 140 miles per 
        hour.
            (4) The damage and destruction caused by Hurricane Katrina 
        along the coastal regions of Louisiana, Mississippi, and 
        Alabama were unmatched in their breadth and scope.
            (5) A 10- to 30-foot storm surge came ashore on over 200 
        continuous miles of coastline from southeast Louisiana, 
        including Mississippi and Alabama, through to the Florida 
        panhandle.
            (6) The 30-foot storm surge recorded at Biloxi, 
        Mississippi, is the highest ever observed in the United States.
            (7) Hurricane Katrina's storm surge quickly breached the 
        levee system that protected the city of New Orleans from Lake 
        Pontchartrain and the Mississippi River, subsequently flooding 
        at least 80 percent of the city.
            (8) The magnitude of Hurricane Katrina was of such an 
        unprecedented scale that the Federal disaster declarations 
        which followed its destructive path blanketed over 90,000 
        square miles of the United States, an area almost as large as 
        the United Kingdom, displacing more than 1,000,000 people--a 
        humanitarian crisis on a scale unseen in the United States 
        since the Great Depression.
            (9) The storm has now become the most destructive and 
        costliest natural disaster in the history of the United States, 
        resulting in over 1,300 deaths and estimated damage between 
        $70,000,000,000 and $130,000,000,000.
            (10) Less than one month later, on September 24, 2005, the 
        region was battered again, this time by the strongest-measured 
        hurricane to ever have entered the Gulf of Mexico--Hurricane 
        Rita.
            (11) Hurricane Rita came ashore between Texas and Louisiana 
        as a category 3 hurricane, packing winds up to 120 miles per 
        hour and a storm surge of 10 feet.
            (12) A day prior to landfall, the resultant storm surge 
        also reopened some of the levee breaches caused by Hurricane 
        Katrina a month earlier and re-flooded parts of New Orleans.
            (13) Local storm surges of 15 to 20 feet in southwestern 
        Louisiana were reported, and damage was extensive in coastal 
        parishes.
            (14) Thousands of residents and families in the effected 
        States, who lived outside the 100-year flood plain and were 
        told they did not need flood insurance, suffered significant 
        damage to their homes and in many cases total losses.
            (15) These families are currently without any type of 
        permanent shelter or any means by which to acquire such shelter 
        or otherwise make themselves whole, thus crippling the Gulf 
        Coast region and its economy.
            (16) Because of the unprecedented magnitude of the storm 
        and the impact that the devastation of such a large region will 
        have on the United States as a whole, the Federal Government 
        should play a role in providing emergency assistance to these 
        families to help them rebuild and get on with their lives.

SEC. 3. TEMPORARY EMERGENCY ASSISTANCE FOR PRIMARY RESIDENCES DAMAGED 
              OR DESTROYED BY HURRICANES KATRINA AND RITA.

    Title IV of the Robert T. Stafford Disaster Relief and Emergency 
Assistance Act (42 U.S.C. 5170 et seq.) is amended by adding at the end 
the following:

``SEC. 425. TEMPORARY EMERGENCY ASSISTANCE FOR PRIMARY RESIDENCES 
              DAMAGED OR DESTROYED BY HURRICANES KATRINA AND RITA.

    ``(a) In General.--The Director shall provide emergency assistance 
to owners of eligible structures in accordance with this section.
    ``(b) Application.--The Director shall provide for owners of 
eligible structures to submit applications for assistance under this 
section in such form, containing such information, and in accordance 
with such procedures, as the Director may require.
    ``(c) Use of Funds; Scope of Coverage.--
            ``(1) In general.--The amount of any assistance under this 
        section provided to an owner of an eligible structure in a 
        covered disaster area of a State may be used only for paying--
                    ``(A) the costs of repair, reconstruction, or 
                replacement of such structure or construction or 
                purchase of any other structure (including a 
                manufactured home) to be used as the primary residence 
                of the owner in the covered disaster area of such 
                State; or
                    ``(B) the amount remaining to be paid by the owner 
                on the mortgage of the eligible structure.
            ``(2) Replacement cost.--
                    ``(A) In general.--Subject to subsection (d), the 
                amount of any assistance provided under this section 
                shall be based on the replacement cost necessary for 
                repair, reconstruction, or replacement of the eligible 
                structure to its original specifications and standards 
                prior to--
                            ``(i) August 29, 2005, in the case of a 
                        structure damaged by flooding resulting from 
                        Hurricane Katrina; or
                            ``(ii) September 23, 2005, in the case of a 
                        structure damaged by flooding resulting from 
                        Hurricane Rita.
                Such costs shall include adjustments as necessary for 
                compliance with the requirements of subsection 
                (e)(1)(B).
                    ``(B) Documentation.--An owner of an eligible 
                structure applying for assistance under paragraph (1) 
                shall submit to the Director documentation and such 
                other evidence (including a report completed by a 
                State-licensed, nationally-certified home inspector) as 
                the Director may require to establish the replacement 
                cost of the eligible structure under subparagraph (A).
    ``(d) Cost Sharing.--
            ``(1) Federal share.--Subject to subsection (f) and 
        paragraph (2), the Federal share of the cost of assistance 
        provided under this section for an eligible structure that the 
        Director shall pay to the owner of the eligible structure shall 
        be 80 percent of the replacement cost of the eligible structure 
        as determined under subsection (c)(2).
            ``(2) Maximum amount.--The maximum amount of assistance 
        that may be provided to an owner of an eligible structure under 
        this section for such structure may not exceed $150,000.
            ``(3) Optional state share.--If the owner of an eligible 
        structure in a State is provided assistance under this section, 
        the State may provide to the owner 10 percent of the 
        replacement cost of the eligible structure as determined under 
        subsection (c)(2), but not to exceed $15,000.
    ``(e) Requirements Regarding Future Flood Insurance Coverage and 
Mitigation Actions.--
            ``(1) In general.--The Director may not provide assistance 
        under this section for an eligible structure unless--
                    ``(A) the owner of the property upon which the 
                eligible structure is located has entered into a 
                legally binding agreement with the Director, including 
                such deed restrictions as the Director considers 
                appropriate, to ensure that such owner, and any future 
                owners, will at all times after such assistance is 
                provided under this section with respect to the 
                property, purchase and maintain flood insurance, in 
                perpetuity, for any structures located at any time on 
                the same property on which, at the time of purchase, 
                such eligible structure is located, in an amount at 
                least equal to the lesser of--
                            ``(i) the value of the structure, as 
                        determined by the Director; or
                            ``(ii) the maximum limit of coverage made 
                        available with respect to the particular type 
                        of property under the National Flood Insurance 
                        Program, if such coverage is available; and
                    ``(B) the owner of the property certifies to the 
                Director that any structure constructed, repaired, or 
                reconstructed with such assistance will be constructed, 
                repaired, or reconstructed in accordance with--
                            ``(i) standards established by the 
                        International Code Council in effect at the 
                        time the building permit is issued by the local 
                        government to the owner of the eligible 
                        structure; and
                            ``(ii) any final flood elevations or flood 
                        maps in effect for purposes of the National 
                        Flood Insurance Program at the time the 
                        building permit is issued by the local 
                        government to the owner of the eligible 
                        structure and any advisory flood elevations or 
                        advisory flood insurance rate maps issued by 
                        the Director for purposes of such program 
                        before such building permit is issued.
            ``(2) Waiver authority.--The Director may waive the 
        requirements of paragraph (1)(B) with respect to the repair of 
        an eligible structure if the Director determines that the cost 
        of compliance with such requirements by the owner in repairing 
        the eligible structure outweigh the benefit derived from such 
        compliance pursuant to a substantial damage analysis.
    ``(f)  Prohibition on Duplicative Benefits in Excess of Replacement 
Costs.--Notwithstanding section 312, the Director shall assure that no 
owner of an eligible structure will receive assistance under this 
section that, when combined with other financial assistance received by 
the owner under any program, including section 404 or 408, or from 
insurance or any other source for the purpose of repair, 
reconstruction, or replacement of the eligible structure, is in excess 
of the replacement cost of the eligible structure as determined under 
subsection (c)(2). Before receipt of any assistance for which an owner 
is eligible under this section for an eligible structure, the owner 
shall enter into a legally binding agreement with the Director to repay 
any and all of such assistance that is in excess of the replacement 
cost of the eligible structure as determined under subsection (c)(2).
    ``(g) Verification of Use of Funds and Compliance.--
            ``(1) Documentation; reports.--Within 6 months after the 
        date on which an owner of an eligible structure receives 
        assistance under this section, and every 6 months thereafter 
        until all such assistance is accounted for, the owner shall 
        submit to the Director--
                    ``(A) all receipts and documentation verifying the 
                use of such assistance for the purpose for which it was 
                provided; and
                    ``(B) reports completed by a State-licensed, 
                nationally-certified home inspector verifying 
                compliance by the owner with the requirements of 
                subsection (e)(1)(B) if such requirements are not 
                waived by the Director.
            ``(2) Enforcement.--The Director may suspend assistance 
        under this section, and take any additional action which the 
        Director deems appropriate, with respect to an owner of an 
        eligible structure if the Director determines that the owner is 
        not complying with paragraph (1).
    ``(h) Definitions.--In this section, the following definitions 
apply:
            ``(1) Covered disaster area.--The term `covered disaster 
        area' means an area--
                    ``(A) for which a major disaster was declared by 
                the Director pursuant to title IV of the Robert T. 
                Stafford Disaster Relief and Emergency Assistance Act 
                as a result of Hurricane Katrina or Hurricane Rita in 
                2005; and
                    ``(B) in which the sale of flood insurance coverage 
                was available under the National Flood Insurance Act of 
                1968 (42 U.S.C. 4001 et seq.) as of--
                            ``(i) August 29, 2005, in the case of an 
                        area for which a declaration referred to in 
                        subparagraph (A) was made as a result of 
                        Hurricane Katrina; or
                            ``(ii) September 23, 2005, in the case of 
                        an area for which a declaration referred to in 
                        subparagraph (A) was made as a result of 
                        Hurricane Rita.
            ``(2) Eligible structure.--The term `eligible structure' 
        means a structure (including a manufactured home) that--
                    ``(A) sustained damage or losses from flooding 
                resulting from Hurricane Katrina or Hurricane Rita in 
                2005;
                    ``(B) is located in a covered disaster area;
                    ``(C) is a residential structure that was used as 
                the primary residence of the owner of the structure as 
                of--
                            ``(i) August 29, 2005, in the case of a 
                        structure damaged by flooding resulting from 
                        Hurricane Katrina; and
                            ``(ii) September 23, 2005, in the case of a 
                        structure damaged by flooding resulting from 
                        Hurricane Rita;
                    ``(D) was covered by an insurance policy for losses 
                caused by wind or windstorm as of--
                            ``(i) August 29, 2005, in the case of a 
                        structure damaged by flooding resulting from 
                        Hurricane Katrina; and
                            ``(ii) September 23, 2005, in the case of a 
                        structure damaged by flooding resulting from 
                        Hurricane Rita;
                    ``(E) is of a type for which coverage was generally 
                made available under the National Flood Insurance 
                Program as of August 29, 2005; and
                    ``(F) is not located in an area that has been 
                identified by the Director as an area having special 
                flood hazards (as such term is used for purposes of 
                section 102 of the Flood Disaster Protection Act of 
                1973 (42 U.S.C. 4012a)) as of August 29, 2005.
            ``(3) Director.--The term `Director' means the Director of 
        the Federal Emergency Management Agency.
    ``(i) Termination.--The Director may not provide any assistance 
under this section except pursuant to an application for such 
assistance submitted to the Director before the expiration of the 180-
day period beginning on the date of the enactment of this section.
    ``(j) Regulations.--The Director may issue any regulations 
necessary to carry out this section.''.

SEC. 4. HAZARD MITIGATION.

    (a) In General.--Section 404(a) of the Robert T. Stafford Disaster 
Relief and Emergency Assistance Act (42 U.S.C. 5170c(a)) is amended--
            (1) in the first sentence by striking ``75'' and inserting 
        ``90''; and
            (2) in the last sentence by striking ``7.5'' and inserting 
        ``15''.
    (b) Property Acquisition and Relocation Assistance.--Section 404(b) 
of such Act (42 U.S.C. 5170c(b)) is amended by adding at the end the 
following:
            ``(4) Reduction.--The amount of any assistance that would 
        otherwise be provided to an owner of an eligible structure 
        under section 425(c)(1)(B) shall be reduced by the amount of 
        assistance the owner receives for such structure under such 
        section.''.
    (c) Applicability.--The amendments made by subsections (a) and (b) 
shall apply with respect to a major disaster declared by the President 
on or after August 24, 2005.

Ex Output:
Housing Opportunities and Mitigating Emergencies Act of 2005 - Amernds the Robert T. Stafford Disaster Relief and Emergency Assistance Act to require the Director of the Federal Emergency Management Agency (FEMA) to provide temporary emergency assistance for primary residences damaged or destroyed by Hurricanes Katrina and Rita.

Increases from 75% to 90% the amount the President may contribute toward the cost of cost-effective hazard mitigation measures which substantially reduce the risk of future damage, hardship, loss, or suffering in any area affected by a major disaster. Doubles from 7.5% to 15% of the estimated aggregate federal disaster relief grants to an area the limit on the total amount of such presidential contributions.


Ex Input:
SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicare Enhancements for Needed 
Drugs Act of 2005''.

SEC. 2. GAO STUDIES AND REPORTS ON PRICES OF PRESCRIPTION DRUGS.

    (a) Review and Reports on Retail Prices of Prescription Drugs.--
            (1) Initial review.--The Comptroller General of the United 
        States shall conduct a review of the retail cost of 
        prescription drugs in the United States during 2000 through 
        2003, with an emphasis on the prescription drugs most utilized 
        for individuals age 65 or older.
            (2) Subsequent review.--After conducting the review under 
        paragraph (1), the Comptroller General shall continuously 
        review the retail cost of such drugs through April 1, 2006, to 
        determine the changes in such costs.
            (3) Reports.--
                    (A) Initial review.--Not later than September 1, 
                2005, the Comptroller General shall submit to Congress 
                a report on the initial review conducted under 
                paragraph (1).
                    (B) Subsequent review.--Not later than July 1, 
                2006, January 1, 2007, and July 1, 2007, the 
                Comptroller General shall submit to Congress a report 
                on the subsequent review conducted under paragraph (2).
    (b) Annual GAO Study and Report on Retail and Acquisition Prices of 
Certain Prescription Drugs.--
            (1) Ongoing study.--The Comptroller General of the United 
        States shall conduct an ongoing study that compares the average 
        retail cost in the United States for each of the 20 most 
        utilized prescription drugs for individuals age 65 or older 
        with--
                    (A) the average price at which private health plans 
                acquire each such drug;
                    (B) the average price at which the Department of 
                Defense under the Defense Health Program acquires each 
                such drug;
                    (C) the average price at which the Department of 
                Veterans Affairs under the laws administered by the 
                Secretary of Veterans Affairs acquires each such drug; 
                and
                    (D) the average negotiated price for each such drug 
                that eligible beneficiaries enrolled in a prescription 
                drug plan under part D of title XVIII of the Social 
                Security Act, as added by section 101 of the Medicare 
                Prescription Drug, Improvement, and Modernization Act 
                of 2003 (Public Law 108-173), that provides only basic 
                prescription drug coverage have access to under such 
                plans.
            (2) Annual report.--Not later than December 1, 2007, and 
        annually thereafter, the Comptroller General shall submit to 
        Congress a report on the study conducted under paragraph (1), 
        together with such recommendations as the Comptroller General 
        determines appropriate.

SEC. 3. INCLUSION OF AVERAGE AGGREGATE BENEFICIARY COSTS AND SAVINGS IN 
              COMPARATIVE INFORMATION FOR BASIC MEDICARE PRESCRIPTION 
              DRUG PLANS.

    Section 1860D-1(c)(3) of the Social Security Act (42 U.S.C. 1395w-
101(c)(3)) is amended--
            (1) in subparagraph (A)--
                    (A) in the matter preceding clause (i), by striking 
                ``subparagraph (B)'' and inserting ``subparagraphs (B) 
                and (C)''; and
                    (B) by adding at the end the following new clause:
                            ``(vi) Average aggregate beneficiary costs 
                        and savings.--With respect to plan years 
                        beginning on or after January 1, 2007, the 
                        average aggregate costs, including deductibles 
                        and other cost-sharing, that a beneficiary will 
                        incur for covered part D drugs in the year 
                        under the plan compared to the average 
                        aggregate costs that an eligible beneficiary 
                        with no prescription drug coverage will incur 
                        for covered part D drugs in the year.''; and
            (2) by adding at the end the following new subparagraph:
                    ``(C) Average aggregate beneficiary costs and 
                savings information only for basic prescription drug 
                plans.--The Secretary shall not provide comparative 
                information under subparagraph (A)(vi) with respect 
                to--
                            ``(i) a prescription drug plan that 
                        provides supplemental prescription drug 
                        coverage; or
                            ``(ii) a Medicare Advantage plan.''.

SEC. 4. NEGOTIATING FAIR PRICES FOR MEDICARE PRESCRIPTION DRUGS.

    (a) In General.--Section 1860D-11 of the Social Security Act (42 
U.S.C. 1395w-111) is amended by striking subsection (i) (relating to 
noninterference) and by inserting the following:
    ``(i) Authority To Negotiate Prices With Manufacturers.--
            ``(1) In general.--In order to ensure that beneficiaries 
        enrolled under prescription drug plans and MA-PD plans pay the 
        lowest possible price, the Secretary shall have authority 
        similar to that of other Federal entities that purchase 
        prescription drugs in bulk to negotiate contracts with 
        manufacturers of covered part D drugs, consistent with the 
        requirements and in furtherance of the goals of providing 
        quality care and containing costs under this part.
            ``(2) Mandatory responsibilities.--The Secretary shall be 
        required to--
                    ``(A) negotiate contracts with manufacturers of 
                covered part D drugs for each fallback prescription 
                drug plan under subsection (g); and
                    ``(B) participate in negotiation of contracts of 
                any covered part D drug upon request of an approved 
                prescription drug plan or MA-PD plan.
            ``(3) Rule of construction.--Nothing in paragraph (2) shall 
        be construed to limit the authority of the Secretary under 
        paragraph (1) to the mandatory responsibilities under paragraph 
        (2).''.
    (b) Effective Date.--The amendment made by this section shall take 
effect as if included in the enactment of section 101 of the Medicare 
Prescription Drug, Improvement, and Modernization Act of 2003 (Public 
Law 108-173).

SEC. 5. NAIC REVIEW AND REPORT ON CHANGES IN MEDIGAP POLICIES THAT 
              PROVIDE COVERAGE OF PRESCRIPTION DRUGS CONTAINED IN THE 
              MEDICARE PRESCRIPTION DRUG, IMPROVEMENT, AND 
              MODERNIZATION ACT OF 2003.

    (a) In General.--The Secretary of Health and Human Services shall 
request the National Association of Insurance Commissioners to conduct 
a review of the changes to the rules relating to medicare supplemental 
policies that provide prescription drug coverage contained in 
subsection (v) of section 1882 of the Social Security Act (42 U.S.C. 
1395ss), as added by section 104(a) of the Medicare Prescription Drug, 
Improvement, and Modernization Act of 2003 (Public Law 108-173).
    (b) Impact on Medicare Beneficiaries.--The review conducted 
pursuant to subsection (a) should focus on the impact the changes 
described in such subsection will have on medicare beneficiaries.
    (c) Report.--The Secretary shall request the National Association 
of Insurance Commissioners to submit to Congress, by not later than 
January 1, 2006, a report on the review conducted pursuant to 
subsection (a), together with such recommendations as the National 
Association of Insurance Commissioners determines appropriate.

Ex Output:

Medicare Enhancements for Needed Drugs Act of 2005 - Directs the Comptroller General to review and report to Congress on the retail cost of prescription drugs in the United States during 2000 and 2003, and through April 1, 2006, with an emphasis on the prescription drugs most utilized for individuals age 65 or older.

Requires the Comptroller General to conduct an ongoing study that compares the average retail cost in the United States for each of the 20 most utilized prescription drugs for individuals age 65 or older with: (1) the average prices at which private health plans, the Department of Defense under the Defense Health Program, and the Department of Veterans Affairs acquire each such drug; and (2) the average negotiated price for each such drug that eligible beneficiaries have access to under a Medicare prescription drug plan providing only basic prescription drug coverage.

Amends title XVIII (Medicare) of the Social Security Act (SSA) to include in the comparative plan information for beneficiaries under new Medicare part D (Voluntary Prescription Drug Benefit Program) a comparison of average aggregate prescription drug plan beneficiary costs and savings with such costs for a beneficiary with no prescription drug plan.

Repeals the prohibition against interference by the Secretary with the negotiations between drug manufacturers and pharmacies and prescription drug plan sponsors, as well as the requirement of a particular formulary to institute a price structure for the reimbursement of Medicare part D covered drugs. Authorizes the Secretary instead, like other Federal entities that purchase prescription drugs in bulk, to negotiate contracts with manufacturers of covered part D drugs.