H.R. 4675 – Reading Mode

109th CONGRESS

2d Session

H. R. 4675

IN THE HOUSE OF REPRESENTATIVES

January 31, 2006

Mr. Pallone (for himself, Ms. McCollum of Minnesota, Mr. Jefferson, Ms. Baldwin, Mr. Holt, Mr. Sanders, Mr. McDermott, Mr. Higgins, Mr. Boren, Mr. Honda, Mr. Stark, Mr. Andrews, Mr. Grijalva, Mr. Brown of Ohio, Mr. Michaud, Ms. Jackson-Lee of Texas, Mr. Berry, Mr. Lynch, Mr. Kucinich, Mr. Conyers, Mr. Frank of Massachusetts, Mr. Nadler, Mr. Costa, and Ms. Lee) introduced the following bill; which was referred to the Committee on Energy and Commerce, and in addition to the Committee on Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned

A BILL

To amend title XIX of the Social Security Act to provide for an offset from the Medicaid clawback for State emergency prescription drug expenditures for covered part D drugs for Medicare beneficiaries.

Short title

This Act may be cited as the Medicare State Reimbursement Act of 2006.

Federal responsibility for State prescription drug expenditures for covered part D drugs for Medicare beneficiaries

Section 1935(c) of the Social Security Act (42 U.S.C. 1396v–5(c)) is amended—

(1)

in paragraph (1)(A), by striking Each of the 50 States and inserting Subject to paragraph (7), each of the 50 States; and

(2)

by adding at the end the following new paragraph:

(7)

Offset for State prescription drug expenditures for covered part D drugs for Medicare beneficiaries

(A)

In general

The amount of payment for a month (beginning with January 2006) under paragraph (1) shall be reduced by an amount equal to the sum of—

(i)

the amount (as documented by the State) that the State expended during the month for payment for covered part D drugs for part D eligible individuals who are enrolled in a prescription drug plan under part D of title XVIII but were unable to access on a timely basis prescription drug benefits to which they were entitled under such plan; and

(ii)

interest on such amount (for the period beginning on the day after the date on which an expenditure described in subparagraph (A) is made and ending on the date on which payment under paragraph (1)) at a rate equal to the weighted average of interest on three-month marketable Treasury securities determined for such period, increased by 0.1 percentage point.

(B)

Recovery of reduced payment from prescription drug plans

The Secretary shall provide for recovery of payment reductions made under subparagraph (A) from those prescription drug plans under part D of title XVIII or MA–PD plans under part C of such title that would otherwise be responsible for the expenditures described in subparagraph (A)(i). Any such amounts recovered shall be deposited into the Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund.