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SECTION 1. SHORT TITLE.

This Act may be cited as the ''Medicare Rx Drug Discount Act of
2003''.

SEC. 2. MEDICARE PRESCRIPTION DRUG DISCOUNT CARD ENDORSEMENT PROGRAM.

Title XVIII of the Social Security Act (42 U.S.C. 1395 et seq.) is
amended by inserting after section 1806 the following new sections:

''medicare prescription drug discount card endorsement program

''Sec. 1807. (a) In General.--The Secretary shall establish a
program--
''(1) to endorse prescription drug discount card programs
that meet the requirements of this section; and
''(2) to make available to medicare beneficiaries
information regarding such endorsed programs.
''(b) Requirements for Endorsement.--The Secretary may not endorse
a prescription drug discount card program under this section unless the
program meets the following requirements:
''(1) Savings to medicare beneficiaries.--The program
passes on to medicare beneficiaries who enroll in the program
discounts on prescription drugs, including discounts negotiated
with manufacturers.
''(2) Prohibition on application only to mail order.--The
program applies to drugs that are available other than solely
through mail order.
''(3) Beneficiary services.--The program provides
pharmaceutical support services, such as education and
counseling, and services to prevent adverse drug interactions.
''(4) Information.--The program makes available to medicare
beneficiaries through the Internet and otherwise information,
including information on enrollment fees, prices charged to
beneficiaries, and services offered under the program, that the
Secretary identifies as being necessary to provide for informed
choice by beneficiaries among endorsed programs.
''(5) Demonstrated experience.--The entity operating the
program has demonstrated experience and expertise in operating
such a program or a similar program.
''(6) Quality assurance.--The entity has in place adequate
procedures for assuring quality service under the program.
''(7) Operation of assistance program.--The entity meets
such requirements relating to solvency, compliance with
financial reporting requirements, audit compliance, and
contractual guarantees as the Secretary finds necessary for
participation.
''(8) Enrollment fees.--The program may charge an annual
enrollment fee, but the amount of such annual fee may not
exceed $25.
''(9) Additional beneficiary protections.--The program
meets such additional requirements as the Secretary identifies
to protect and promote the interest of medicare beneficiaries,
including requirements that ensure that beneficiaries are not
charged more than the lower of the negotiated retail price or
the usual and customary price.
The prices negotiated by a prescription drug discount card program
endorsed under this section shall (notwithstanding any other provision
of law) not be taken into account for the purposes of establishing the
best price under section 1927(c)(1)(C).
''(c) Program Operation.--The Secretary shall operate the program
under this section consistent with the following:
''(1) Promotion of informed choice.--In order to promote
informed choice among endorsed prescription drug discount card
programs, the Secretary shall provide for the dissemination of
information which compares the prices and services of such
programs in a manner coordinated with the dissemination of
educational information on Medicare+Choice plans under part C.
''(2) Oversight.--The Secretary shall provide appropriate
oversight to ensure compliance of endorsed programs with the
requirements of this section, including verification of the
discounts and services provided.
''(3) Use of medicare toll-free number.--The Secretary
shall provide through the 1-800-medicare toll free telephone
number for the receipt and response to inquiries and complaints
concerning the program and programs endorsed under this
section.
''(4) Sanctions for abusive practices.--The Secretary may
implement intermediate sanctions or may revoke the endorsement
of a program in the case of a program that the Secretary
determines no longer meets the requirements of this section or
that has engaged in false or misleading marketing practices.
''(5) Enrollment practices.--A medicare beneficiary may not
be enrolled in more than one endorsed program at any time. A
medicare beneficiary may change the endorsed program in which
the beneficiary is enrolled, but may not make such change until
the beneficiary has been enrolled in a program for a minimum
period of time specified by the Secretary.
''(d) Transition.--The Secretary shall provide for an appropriate
transition and discontinuation of the program under this section at the
time outpatient prescription drug benefits first become available under
this title.
''(e) Endorsement Condition.--The Secretary shall require, as
condition of endorsement under of a prescription drug discount card
program under this section that the program implement policies and
procedures to safeguard the use and disclosure of program
beneficiaries' individually identifiable health information in a manner
consistent with the Federal regulations (concerning the privacy of
individually identifiable health information) promulgated under section
264(c) of the Health Insurance Portability and Accountability Act of
1996.
''(f) Authorization of Appropriations.--There are authorized to be
appropriated such sums as may be necessary to carry out the program
under this section.''.
Medicare Rx Drug Discount Act of 2003 - Amends title XVIII (Medicare) of the Social Security Act (SSA) to: (1) endorse any Medicare prescription drug discount card program that meets specified criteria; and (2) inform Medicare beneficiaries about such programs.