Detailed Instructions: In this task, you are given text for US Congressional and California state bills, your task is to generate a summary for this bill.
Problem:SECTION 1. SHORT TITLE.

This Act may be cited as the ''Medicare Prescription Drug Savings
and Choice Act of 2004''.

SEC. 2. ESTABLISHMENT OF MEDICARE OPERATED PRESCRIPTION DRUG PLAN
OPTION.

(a) In General.--Subpart 2 of part D 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), is amended by
inserting after section 1860D-11 the following new section:

''medicare operated prescription drug plan option

''Sec. 1860D-11A. (a) In General.--Notwithstanding any other
provision of this part, for each year (beginning with 2006), in
addition to any plans offered under section 1860D-11, the Secretary
shall offer one or more medicare operated prescription drug plans (as
defined in subsection (c)) with a service area that consists of the
entire United States and shall enter into negotiations with
pharmaceutical manufacturers to reduce the purchase cost of covered
part D drugs for eligible part D individuals in accordance with
subsection (b).
''(b) Negotiations.--Notwithstanding section 1860D-11(i), for
purposes of offering a medicare operated prescription drug plan under
this section, the Secretary shall negotiate with pharmaceutical
manufacturers with respect to the purchase price of covered part D
drugs and shall encourage the use of more affordable therapeutic
equivalents to the extent such practices do not override medical
necessity as determined by the prescribing physician. To the extent
practicable and consistent with the previous sentence, the Secretary
shall implement strategies similar to those used by other Federal
purchasers of prescription drugs, and other strategies, to reduce the
purchase cost of covered part D drugs.
''(c) Medicare Operated Prescription Drug Plan Defined.--For
purposes of this part, the term 'medicare operated prescription drug
plan' means a prescription drug plan that offers qualified prescription
drug coverage and access to negotiated prices described in section
1860D-2(a)(1)(A). Such a plan may offer supplemental prescription drug
coverage in the same manner as other qualified prescription drug
coverage offered by other prescription drug plans.
''(d) Monthly Beneficiary Premium.--
''(1) Qualified prescription drug coverage.--The monthly
beneficiary premium for qualified prescription drug coverage
and access to negotiated prices described in section 1860D-
2(a)(1)(A) to be charged under a medicare operated prescription
drug plan shall be uniform nationally. Such premium for months
in 2006 shall be $35 and for months in succeeding years shall
be based on the average monthly per capita actuarial cost of
offering the medicare operated prescription drug plan for the
year involved, including administrative expenses.
''(2) Supplemental prescription drug coverage.--Insofar as
a medicare operated prescription drug plan offers supplemental
prescription drug coverage, the Secretary may adjust the amount
of the premium charged under paragraph (1).
''(3) Requirement for at least one plan with a $35 premium
in 2006.--The Secretary shall ensure that at least one medicare
operated prescription drug plan offered in 2006 has a monthly
premium of $35. ''.
(b) Conforming Amendments.--
(1) Section 1860D-3(a) of the Social Security Act, as added
by section 101 of the Medicare Prescription Drug, Improvement,
and Modernization Act of 2003, is amended by adding at the end
the following new paragraph:
''(4) Availability of the medicare operated prescription
drug plan.--
''(A) In general.--A medicare operated prescription
drug plan (as defined in section 1860D-11A(c)) shall be
offered nationally in accordance with section 1860D-
11A.
''(B) Relationship to other plans.--
''(i) In general.--Subject to clause (ii),
a medicare operated prescription drug plan
shall be offered in addition to any qualifying
plan or fallback prescription drug plan offered
in a PDP region and shall not be considered to
be such a plan purposes of meeting the
requirements of this subsection.
''(ii) Designation as a fallback plan.--
Notwithstanding any other provision of this
part, the Secretary may designate the medicare
operated prescription drug plan as the fallback
prescription drug plan for any fallback service
area (as defined in section 1860D-11(g)(3))
determined to be appropriate by the
Secretary.''.
(2) Section 1860D-13(c)(3) of such Act, as added by such
section, is amended--
(A) in the heading, by inserting ''and medicare
operated prescription drug plans'' after ''Fallback
plans''; and
(B) by inserting ''or a medicare operated
prescription drug plan'' after ''a fallback
prescription drug plan''.
(3) Section 1860D-16(b)(1) of such Act, as added by such
section, is amended--
(A) in subparagraph (C), by striking ''and'' after
the semicolon at the end;
(B) in subparagraph (D), by striking the period at
the end and inserting ''; and''; and
''(E) payments for expenses incurred with respect
to the operation of medicare operated prescription drug
plans under section 1860D-11A.''.
(4) Section 1860D-41(a) of such Act, as added by such
section, is amended by adding at the end the following new
paragraph:
''(19) Medicare operated prescription drug plan.--The term
'medicare operated prescription drug plan' has the meaning
given such term in section 1860D-11A(c).''.
(c) Effective Date.--The amendments 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.
Solution:
Medicare Prescription Drug Savings and Choice Act of 2004 - Amends part D (Voluntary Prescription Drug Benefit Program) of title XVIII (Medicare) of the Social Security Act, as added by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, to direct the Secretary of Health and Human Services, for each year beginning with 2006, to: (1) offer one or more Medicare operated prescription drug plans nationally that offers qualified prescription drug coverage and access to negotiated prices, while allowing the plan to offer supplemental prescription drug coverage in the same manner as other qualified prescription drug coverage offered by other prescription drug plans; and (2) enter into negotiations with pharmaceutical manufacturers to reduce the purchase cost of covered Medicare part D drugs for eligible part D individuals, and encourage the use of more affordable therapeutic equivalents. Requires the monthly beneficiary premium charged under such a plan to be uniform nationally and for months in 2006 shall be $35 and for months in succeeding years shall be based on the average monthly per capita actuarial cost of offering the Medicare operated prescription drug plan for the year involved, including administrative expenses. Allows for adjustment of such premium amount in case of supplemental prescription drug coverage.