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