S. 1840Senate109th Congress (2005-2007)In Committee

Safety Net Inpatient Drug Affordability Act

Sponsored by John ThuneSen. John Thune (R-SD)
Introduced October 6, 2005

Legislative Activity

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2 earlier actions
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

October 6, 2005

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SenateIntro Referral

Introduced in Senate

October 6, 2005

SenateIntro Referral

Sponsor introductory remarks on measure. (CR 10/07/2005 S11230-11231)

October 6, 2005

SenateIntro Referral

Read twice and referred to the Committee on Finance.

October 6, 2005

Floor Debate

23 members

What members said about S. 1840 on the floor

9 Republicans13 Democrats1 Independent
Mary L. Landrieu
Sen. Mary L. LandrieuD-LA · Oct 6, 2005

I object. I suggest the absence of a quorum. Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I ask to speak for as much time as I may consume. I…

Byron L. Dorgan
Sen. Byron L. DorganD-ND · Oct 6, 2005

Mr. President, I ask unanimous consent the order for the quorum call be rescinded. Mr. President, because we are at this point postcloture, I want to speak on a subject unrelated to the bill. I ask…

James M. Jeffords
Sen. James M. JeffordsI-VT · Oct 6, 2005

Mr. President, over the past several weeks, in the wake of two hurricanes, we have felt the heartbreak of Americans forced from their homes with no return in sight. Safe and affordable housing is not…

Orrin G. Hatch
Sen. Orrin G. HatchR-UT · Oct 6, 2005

If I could. Mr. President, I rise with a heavy heart to announce the untimely passing of one of the Senate's own, our long-time staffer and former colleague, Shawn Bentley. What can you say about a…

Robert C. Byrd
Sen. Robert C. ByrdD-WV · Oct 6, 2005

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, I understand that the distinguished Senator from Louisiana, Ms. Landrieu, wishes to continue her…

Show 8 more
Richard J. Durbin
Sen. Richard J. DurbinD-IL · Oct 6, 2005

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, the much awaited speech by President Bush this morning about the challenges we face in Iraq and…

Joseph R. Biden Jr.
Sen. Joseph R. Biden Jr.D-DE · Oct 6, 2005

Mr. President, are we in morning business? Mr. President, may I proceed for 7 or 8 minutes as in morning business between now and the time Senator Hatch comes at 2:30? I thank the Senator. Mr.…

Jeff Bingaman
Sen. Jeff BingamanD-NM · Oct 6, 2005

Mr. President, today I join my colleague and the chairman of the Committee on Energy and Natural Resources, Senator Domenici, in introducing three bills, by request, to make necessary changes to law…

Pat Roberts
Sen. Pat RobertsR-KS · Oct 6, 2005

Mr. President, I am pleased to be introducing the Influenza Vaccine Security Act with Senator Clinton today because I believe this legislation is critical to strengthening our public health…

Mark Dayton
Sen. Mark DaytonD-MN · Oct 6, 2005

Mr. President, I send a modification of my amendment to the desk, and I ask unanimous consent it be so modified. The staff is working on slight adjustments to the amendment so it meets the concerns…

Herb Kohl
Sen. Herb KohlD-WI · Oct 6, 2005

Mr. President, I rise today to discuss an issue that will greatly affect our Nation's aging population, workforce, and economy: the need to expand opportunities for older Americans to continue…

Ted Stevens
Sen. Ted StevensR-AK · Oct 6, 2005

Mr. President, the time is equally divided on this amendment. This amendment would add $100 million to childcare services and $20 million for family assistance centers. I will speak in response to…

Barbara A. Mikulski
Sen. Barbara A. MikulskiD-MD · Oct 6, 2005

Yes. Mr. President, as I noted under the request made by the chairman of the Senate Defense appropriations, I have time at 2:30. I know it is a minute or two earlier, but I ask for the ability to…

Show 11 more
Ken Salazar
Sen. Ken SalazarD-CO · Oct 6, 2005

Mr. President, I rise to make a statement regarding an important bill I am introducing today. It is a bill that is meant to provide a straightforward and commonsense fix to a nettlesome problem that…

John Thune
Sen. John ThuneR-SD · Oct 6, 2005

Mr. President, the rising cost of prescription drugs has squeezed not only the budgets of American consumers but also the budgets of America's health care providers. The rural hospitals in my State…

John Thune
Sen. John ThuneR-SD · Oct 6, 2005

Mr. President, the rising cost of prescription drugs has squeezed not only the budgets of American consumers but also the budgets of America's health care providers. The rural hospitals in my State…

Pete V. Domenici
Sen. Pete V. DomeniciR-NM · Oct 6, 2005

Mr. President, today I join my colleague, the Ranking member of the Committee on Energy and Natural Resources, Senator Bingaman, in introducing three bills, by request, to make necessary changes to…

Bill Nelson
Sen. Bill NelsonD-FL · Oct 6, 2005

Mr. President, I am pleased to be joined by my colleagues and cosponsors Senators Stabenow and Harkin as we introduce the Medicare Informed Choice Act of 2005. This bill provides additional essential…

James M. Inhofe
Sen. James M. InhofeR-OK · Oct 6, 2005

Mr. President, today I proudly rise to introduce the ``Fort Reno Mineral Leasing Act''. Fort Reno was established as a frontier cavalry post in 1874, and it played a key role in the settlement of the…

Jack Reed
Sen. Jack ReedD-RI · Oct 6, 2005

Mr. President, today I introduce the Rhode Island Fishermen's Fairness Act of 2005. This legislation would address a serious flaw in our Nation's regional fisheries management system by adding Rhode…

Saxby Chambliss
Sen. Saxby ChamblissR-GA · Oct 6, 2005

Mr President, I rise today in favor of the amendment I am offering to H.R. 2863 that will establish pilot projects regarding pediatric early literacy on military installations. Reach Out and Read,…

Jim DeMint
Sen. Jim DeMintR-SC · Oct 6, 2005

Mr. President, I rise today to offer a bill that would require hospitals to disclose their charges for the most common procedures and drugs. This bill recognizes that consumers seeking routine…

George V. Voinovich
Sen. George V. VoinovichR-OH · Oct 6, 2005

Mr. President, today I rise to introduce the ``Federal and District of Columbia Government Real Property Act of 2005,'' a bill to authorize the exchange of certain land parcels between the Federal…

Patrick J. Leahy
Sen. Patrick J. LeahyD-VT · Oct 6, 2005

Mr. President, I suggest the absence of a quorum. Mr. President, the Senator from Utah and I are here to talk about something where somebody's schedule has been terribly changed, the schedule of his…

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued October 6, 2005
        [Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[S. 1840 Introduced in Senate (IS)]

109th CONGRESS
1st Session
S. 1840

To amend section 340B of the Public Health Service Act to increase the
affordability of inpatient drugs for Medicaid and safety net hospitals.

_______________________________________________________________________

IN THE SENATE OF THE UNITED STATES

October 6, 2005

Mr. Thune (for himself and Mr. Bingaman) introduced the following bill;
which was read twice and referred to the Committee on Finance

_______________________________________________________________________

A BILL

To amend section 340B of the Public Health Service Act to increase the
affordability of inpatient drugs for Medicaid and safety net hospitals.

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Safety Net Inpatient Drug
Affordability Act''.

SEC. 2. EXTENSION OF DISCOUNTS TO INPATIENT DRUGS.

(a) In General.--Section 340B(b) of the Public Health Service Act
(42 U.S.C. 256b(b)) is amended by inserting before the period the
following: ``, except that, notwithstanding the limiting definition set
forth in section 1927(k)(3) of the Social Security Act, the terms
`covered outpatient drug' and `covered drug' include any inpatient or
outpatient drug purchased by a hospital described in subsection
(a)(4)(L)''.
(b) Payment of Medicaid Rebates on Inpatient Drugs.--Section
340B(c) of such Act (42 U.S.C. 256b(c)) is amended to read as follows:
``(c) Payment of Medicaid Rebates on Inpatient Drugs.--
``(1) In general.--For the cost reporting period covered by
the most recently filed Medicare cost report, a hospital
described in subsection (a)(4)(L) shall provide to each State
with an approved State plan under title XIX of such Act--
``(A) a rebate on the estimated annual costs of
single source and innovator multiple source drugs
provided to Medicaid recipients for inpatient use; and
``(B) a rebate on the estimated annual costs of
noninnovator multiple source drugs provided to Medicaid
recipients for inpatient use.
``(2) Calculations of rebates.--
``(A) Single source and innovator multiple source
drugs.--For purposes of paragraph (1)(A)--
``(i) the rebate under such paragraph shall
be calculated by multiplying the estimated
annual costs of single source and innovator
multiple source drugs provided to Medicaid
recipients for inpatient use by the minimum
rebate percentage described in section
1927(c)(1)(B) of the Social Security Act;
``(ii) the estimated annual costs of single
source drugs and innovator multiple source
drugs provided to Medicaid recipients for
inpatient use under clause (i) shall be equal
to the product of--
``(I) the hospital's actual
acquisition costs of all drugs
purchased during the cost reporting
period for inpatient use;
``(II) the Medicaid inpatient drug
charges as reported on the hospital's
most recently filed Medicare cost
report divided by total inpatient drug
charges reported on the cost report;
and
``(III) the percent of the
hospital's annual inpatient drug costs
described in subclause (I) arising out
of the purchase of single source and
innovator multiple source drugs; and
``(iii) the terms `single source drug' and
`innovator multiple source drug' have the
meanings given such terms in section 1927(k)(7)
of the Social Security Act.
``(B) Noninnovator multiple source drugs.--For
purposes of subparagraph (1) (B)--
``(i) the rebate under such paragraph shall
be calculated by multiplying the estimated
annual costs of noninnovator multiple source
drugs provided to Medicaid recipients for
inpatient use by the applicable percentage as
defined in section 1927(c)(3)(B) of the Social
Security Act;
``(ii) the estimated annual costs of
noninnovator multiple source drugs provided to
Medicaid recipients for inpatient use shall be
equal to the product of--
``(I) the hospital's actual
acquisition cost of all drugs purchased
during the cost reporting period for
inpatient use;
``(II) the Medicaid inpatient drug
charges as reported on the hospital's
most recently filed Medicare cost
report divided by total inpatient drug
charges reported on the cost report;
and
``(III) the percent of the
hospital's annual inpatient drug costs
described in subclause (I) arising out
of the purchase of noninnovator
multiple source drugs; and
``(iii) the term `noninnovator multiple
source drug' has the meaning given such term in
section 1927(k)(7) of the Social Security Act.
``(3) Payment deadline.--The rebates provided by a hospital
under paragraph (1) shall be paid within 90 days of the filing
of the hospital's most recently filed Medicare cost report.
``(4) Offset against medical assistance.--Amounts received
by a State under this subsection in any quarter shall be
considered to be a reduction in the amount expended under the
State plan in the quarter for medical assistance for purposes
of section 1903(a)(1) of the Social Security Act.''.
(c) Clarification That Group Purchasing Prohibition for Certain
Hospitals Is Not Applicable to Inpatient Drugs.--Section
340B(a)(4)(L)(iii) of such Act (42 U.S.C. 256b(a)(4)(L)(iii)) is
amended by inserting ``(not including such drugs purchased for
inpatient use)'' after ``covered outpatient drugs''.

SEC. 3. PROVIDING ACCESS TO DISCOUNTED DRUG PRICES FOR CRITICAL ACCESS
HOSPITALS.

(a) In General.--Section 340B of the Public Health Service Act (42
U.S.C. 256b) is amended--
(1) in subsection (a)(4), by adding at the end the
following:
``(M) An entity that--
``(i) is a critical access hospital (as
determined under section 1820(c)(2) of the
Social Security Act); and
``(ii) does not obtain covered outpatient
drugs though a group purchasing organization or
other group purchasing arrangement (not
including such drugs purchased for inpatient
use).'';
(2) in subsection (b), as amended by section 2(a), by
inserting ``or subsection (a)(4)(M)'' after ``subsection
(a)(4)(L)''; and
(3) in subsection (c)(1), as added by inserting ``or
subsection (a)(4)(M)'' after ``subsection (a)(4)(L)''.
(b) Exclusion From Medicaid Best Price Calculations.--Section
1927(c)(1)(C)(i)(I) of the Social Security Act (42 U.S.C. 1396r-
8(c)(1)(C)(i)(I)) is amended by inserting ``and to critical access
hospitals described in section 340B(a)(4)(M) of such Act'' after
``Public Health Service Act''.
(c) Effective Date.--The amendments made by this section shall
apply to drugs purchased on or after January 1, 2006.
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