To amend title XVIII of the Social Security Act to provide the authority for negotiating fair prices for medicare prescription drugs.

SA 2371. Ms. SNOWE (for herself, Mr. Wyden, Mr. McCain, and Ms.
Stabenow) submitted an amendment intended to be proposed by her to the
bill S. 1932, to provide for reconciliation pursuant to section 202(a)
of the concurrent resolution on the budget for fiscal year 2006 (H.
Con. Res. 95); which was ordered to lie on the table; as follows:

After section 6115, insert the following:

SEC. 6116. NEGOTIATING FAIR PRICES FOR MEDICARE PRESCRIPTION
DRUGS.

(a) In General.--Section 1860D-11 (42 U.S.C. 1395w-111) is
amended by striking subsection (i) (relating to
noninterference) and inserting the following:
``(i) Authority To Negotiate Prices With Manufacturers.--
``(1) In general.--Subject to paragraph (4), 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.

[[Page S12271]]

``(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).
``(4) No particular formulary or price structure.--In order
to promote competition under this part and in carrying out
this part, the Secretary may not require a particular
formulary or institute a price structure for the
reimbursement of covered part D drugs.''.
(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).
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