S. 445

Medicare Prescription Drug Price Reduction Act of 2005

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II

109th CONGRESS

1st Session

S. 445

IN THE SENATE OF THE UNITED STATES

February 17, 2005

Ms. Stabenow (for herself, Mr. Carper, Mr. Kennedy, Mr. Schumer, Mr. Bingaman, and Mr. Johnson) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend part D of title XVIII of the Social Security Act, as added by the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, to provide for negotiation of fair prices for Medicare prescription drugs.

1.

Short title

This Act may be cited as the Medicare Prescription Drug Price Reduction Act of 2005.

2.

Negotiating fair prices for Medicare prescription drugs

Section 1860D–11 of the Social Security Act (42 U.S.C. 1395w–111) is amended by striking subsection (i) (relating to noninterference) and by inserting the following:

(i)

Authority To negotiate prices with manufacturers

In order to ensure that each part D eligible individual who is enrolled under a prescription drug plan or an MA–PD plan pays the lowest possible price for covered part D drugs, 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 of this part and in furtherance of the goals of providing quality care and containing costs under this part.

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