Teacher:In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Teacher: Now, understand the problem? Solve this instance: SECTION 1. SHORT TITLE.

This Act may be cited as the ''Making Affordable Prescriptions
Available for Seniors Act''.

SEC. 2. FINDINGS.

The Congress makes the following findings:
(1) although prescription drugs represent one of the most
frequently used medical care interventions in treating common
acute and chronic diseases, many Americans, especially the
elderly and other vulnerable populations, are unable to afford
their medication because of excessive and persistent drug price
inflation;
(2) between 1985 and 1991, the prices of the 20 top selling
prescription drugs, which account for almost a third of
prescription sales, rose 79 percent--nearly 4 times the general
rate of inflation;
(3) prescription drug manufacturers continue to make
enormous profits on the backs of the elderly, poor, and other
vulnerable populations that are unable to afford their
medications;
(4) because of the limited availability of private or
public prescription drug coverage for the elderly, prescription
drugs represent the highest out-of-pocket medical care cost for
3 of 4 elderly patients, surpassed only by the cost of long-
term care services;
(5) individuals over the age of 65 fill an average of 15
prescriptions a year to treat chronic health conditions
compared to an annual average of 5 prescriptions for those
under the age of 65;
(6) 90 percent of Americans who are 60 years of age or
older take one or more medications daily;
(7) The United States spends several billion dollars on
biomedical and related health research and in 1994 the United
States spent $33 billion on such research and the
pharmaceutical industry only spent $14 billion on such research
in such year; and
(8) The pharmaceutical industry makes large profits off of
the sale of drugs produced from the benefit of research paid
for by the United States and, aside from royalties, none of
such profits are reimbursed back to the United States
taxpayers.

SEC. 3. PRESCRIPTION DRUG ASSISTANCE PROGRAM.

The Public Health Service Act is amended by adding at the end the
following:

''TITLE XXVIII--PRESCRIPTION DRUG ASSISTANCE PROGRAM

''SEC. 2801. ESTABLISHMENT.

''(a) In General.--The Secretary shall establish a program of
pharmacy assistance (referred to in this title as the 'program') for
eligible persons.
''(b) Administration.--Pharmacy assistance shall be provided under
the program to eligible persons in the manner that the Secretary
determines to be the most cost-effective, including indemnification,
vouchers, coupons, or direct provider reimbursement through the claims
payment system under title XIX of the Social Security Act, except that
no system of administration shall make direct cash payments to an
eligible person before the presentation of a receipt or other invoice
for the purchase of any covered benefit. The Secretary may implement
utilization review, clinical management, and other administrative
techniques used in the management of the pharmacy benefits program
under title XIX of the Social Security Act in order to identify and
reduce drug interactions, overutilizations, therapeutic duplications,
or early refills.
''(c) Income Levels.--The Secretary may authorize local councils on
aging, community action agencies, and home care corporations to assist
the Secretary in determining if persons meet the income eligibility
requirements of the program.
''(d) Fee.--The Secretary may require an annual enrollment fee in
an amount not to exceed $15 to be paid to defray the administrative
expenses of the program.
''(e) Other Program Items.--The Secretary shall develop copayment
requirements and may establish deductibles to control program expenses.
Copayment amounts may vary to promote the purchase of generic drugs and
may be based on a sliding income scale, except that copayment shall not
be more than $10 per prescription.

''SEC. 2802. PROFITS FROM RESEARCH.

''(a) In General.--Except as provided in paragraph (2), any
manufacturer of a drug which submits, in connection with an application
for such drug under section 351 of this Act or section 505 of the
Federal Food, Drug, and Cosmetic Act, the results of research--
''(1) carried out by an entity of the National Institutes
of Health, or
''(2) under an agreement under section 12 of the Stevenson-
Wydler Technology Innovation Act of 1980,
shall not receive approval of such application until the manufacturer
enters into an agreement with the Secretary under which the
manufacturer will pay to the Secretary 7 percent of the gross amount
received by the manufacturer from sales of such drug. Such agreement
shall specify the manner in which such gross amount shall be
determined.
''(b) Exception.--The Secretary may waive the application of a
subsection (a) to a manufacturer of a drug when the Secretary
determines that it would be in the public interest to exempt such
manufacturer.

''SEC. 2803. DEFINITIONS.

''For purposes of section 2801:
''(1) Covered benefits.--The term 'covered benefits' means
prescription drugs, including insulin syringes and insulin
needles, and insulin, eligible for reimbursement under the
program as defined by the Secretary, except that within each
class of maintenance drugs eligible for reimbursement all such
prescription drugs that have been approved safe and effective
by the Federal Food and Drug Administration or are otherwise
legally marketed in the United States shall be covered under
the program. The term does not include experimental drugs or
over-the-counter pharmaceutical products except insulin. The
Secretary may restrict covered benefits to prescription drugs
manufactured by pharmaceutical companies who agree to provide
manufacturer rebates.
''(2) Eligible person.--The term 'eligible person' means an
individual who is 65 years or older with no existing pharmacy
benefits or coverage from an insurance policy supplemental to
benefits under title XVIII of the Social Security Act or
pharmacy benefits or coverage from any other third party payor
and one whose annual income does not exceed 175 percent of the
Federal poverty guidelines.
''(3) Pharmacy assistance.--The term 'pharmacy assistance'
means an amount not exceeding $500 in any year for each
eligible person to assist in the purchase of covered
benefits.''.
Student:
Making Affordable Prescriptions Available for Seniors Act - Amends the Public Health Service Act to establish a program of pharmacy assistance for persons at least 65 years old with no pharmacy benefits from an insurance policy supplemental to title XVIII (Medicare) of the Social Security Act or coverage from any third party payor, and whose income is under a specified level. Allows an annual enrollment fee (of not over $15) and deductibles. Mandates copayments not over $10 per prescription.
Prohibits approval of an application under provisions of the Public Health Service Act relating to biological products or provisions of the Federal Food, Drug, and Cosmetic Act relating to new drugs if the drug manufacturer submits with the application the results of research carried out by the National Institutes of Health, or under an agreement under the Stevenson-Wydler Technology Innovation Act of 1980, until the manufacturer agrees to pay to the Secretary of Health and Human Services seven percent of the gross sales receipts.