II
109th CONGRESS
2d Session
S. 2181
IN THE SENATE OF THE UNITED STATES
January 20, 2006
Mr. Lautenberg (for himself, Ms. Snowe, Mr. Schumer, Mr. Coleman, Mrs. Feinstein, Mr. Pryor, Mr. DeWine, Mrs. Boxer, Mr. Menendez, Ms. Collins, Mr. Dayton, Mr. Reed, Mr. Jeffords, Mrs. Lincoln, Mr. Leahy, Mr. Wyden, Ms. Stabenow, Mr. Johnson, Mr. Kennedy, Mr. Dorgan, Mr. Lieberman, Mrs. Clinton, Mr. Chafee, and Mr. Dodd) introduced the following bill; which was read twice and referred to the Committee on Finance
A BILL
To amend title XIX of the Social Security Act to provide for an offset from the Medicaid clawback for State 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(c)) is amended—
in paragraph
(1)(A), by striking Each of the 50 States
and inserting
Subject to paragraph (7), each of the 50 States
; and
by adding at the end the following new paragraph:
Offset for State prescription drug expenditures for covered part D drugs for medicare beneficiaries
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—
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
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 is made under paragraph (1)) at a rate equal to the weighted average of interest on 3-month marketable Treasury securities determined for such period, increased by 0.1 percentage point.
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.
.