S. 523Senate115th Congress (2017-2019)In Committee

Budgeting for Opioid Addiction Treatment Act

Introduced March 2, 2017

AI-Generated Summary

Updated April 15, 2026 at 1:25 PM UTC

The Budgeting for Opioid Addiction Treatment Act would add a small tax—one cent per milligram—on every opioid pain‑reliever that manufacturers, producers, or importers sell. The money collected would be used to fund state programs that treat opioid addiction, while cancer‑related and hospice patients (or their families) would get a rebate or discount so they don’t pay the fee.

Key Provisions

  • Imposes a 1‑cent‑per‑milligram stewardship fee on the sale of any active opioid, defined as any opium, opiate, or derivative, except drugs used solely for treating opioid addiction.
  • The fee applies only to the opioid portion of a product that contains other ingredients.
  • Effective one year after the law’s enactment.
  • The Health and Human Services Secretary must set up a rebate or discount program so eligible cancer‑treatment or hospice patients (and their representatives) are not financially burdened by the fee.
  • Revenue from the fee, minus any rebates, is earmarked for block grants to states for opioid‑addiction treatment, including new facilities, sober‑living homes, mental‑health provider recruitment, housing for children of patients, and care for babies with neonatal abstinence syndrome.
  • States must use these grant funds for the listed treatment and support services.
  • The HHS Secretary must report to Congress within two years on the fee’s impact on opioid prices, patient access, and how the new revenue is being used for treatment programs.

Legislative Activity

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1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance.

March 2, 2017

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SenateIntro Referral

Introduced in Senate

March 2, 2017

SenateIntro Referral

Read twice and referred to the Committee on Finance.

March 2, 2017

Floor Debate

24 members

What members said about S. 523 on the floor

6 Republicans17 Democrats1 Independent
Chris Van Hollen
Sen. Chris Van HollenD-MD · Jul 26, 2017

I thank the Presiding Officer, and I want to start by thanking my friend and our colleague, Senator Joe Donnelly, for standing up for Hoosiers and, in standing up for Hoosiers, standing up for all…

Rand Paul
Sen. Rand PaulR-KY · Jul 26, 2017

Mr. President, as a physician and an eye surgeon, I have seen ObamaCare up close, and it is not working for Americans. If you look across the country and say ``Is it working?'' you find that…

Ron Johnson
Sen. Ron JohnsonR-WI · Jul 26, 2017

Mr. President, I come to the floor today to speak to three amendments that I have either submitted or plan to submit on the matter before the Senate here today, the repeal and hopefully complete…

Ron Wyden
Sen. Ron WydenD-OR · Jul 26, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Madam President, on this matter of repealing the Affordable Care Act, soon the Senate is going to vote on just…

Michael B. Enzi
Sen. Michael B. EnziR-WY · Jul 26, 2017

Mr. President, I have 12 requests for committees to meet during today's session of the Senate. They do not have the approval of the Democratic leader; therefore, they will not be permitted to meet…

Show 8 more
Benjamin L. Cardin
Sen. Benjamin L. CardinD-MD · Jul 26, 2017

Mr. President, I have listened very carefully to the majority leader and his requests that we come forward and bring amendments to the floor--all of our ideas about how we can improve our healthcare…

Thomas R. Carper
Sen. Thomas R. CarperD-DE · Jul 26, 2017

I am happy to yield. I was happy to yield. Good to see you. Mr. President, I want to say a few words about ObamaCare. If you ask most people in this country ``What is ObamaCare?'' my guess is, they…

Robert P. Casey Jr.
Sen. Robert P. Casey Jr.D-PA · Jul 26, 2017

Mr. President, I have a motion to commit at the desk. Mr. President, first, I thank my friend from Indiana, Senator Donnelly, for his remarks this afternoon and also for his efforts to help to…

John Cornyn
Sen. John CornynR-TX · Jul 26, 2017

Mr. President, I am advised we are not in a quorum call. Is that correct? Mr. President, yesterday we took a giant step toward delivering on our promise to the American people to provide relief from…

Charles E. Schumer
Sen. Charles E. SchumerD-NY · Jul 26, 2017

Mr. President, I ask unanimous consent that my speaking time be taken from leader time, not the debate time. Mr. President, as the Senate continues the debate on the Republican healthcare bill, it…

Robert Menendez
Sen. Robert MenendezD-NJ · Jul 26, 2017

Madam President, I intend to offer a motion to commit the reconciliation bill to the Committe on Health, Education, Labor and Pensions with instructions to report the same back to the Senate in 3…

Lindsey Graham
Sen. Lindsey GrahamR-SC · Jul 26, 2017

Mr. President, I ask unanimous consent that the order for the quorum call be rescinded. Mr. President, let me just tell my colleagues where I am coming from. Under the current system--ObamaCare as we…

Sheldon Whitehouse
Sen. Sheldon WhitehouseD-RI · Jul 26, 2017

Madam President, I appreciate the remarks of my friend. I would simply note that nothing he has said explains why you would want to strip hundreds of millions of dollars out of Medicaid or why you…

Show 11 more
Mark R. Warner
Sen. Mark R. WarnerD-VA · Jul 26, 2017

Mr. President, first of all, I thank my friend, the Senator from Massachusetts, for her comments today and for her relentless willingness to take on this fight and so many other fights that are so…

Joe Donnelly
Sen. Joe DonnellyD-IN · Jul 26, 2017

Mr. President, I rise today to offer a motion that would protect Medicaid, the Medicaid expansion, and the Healthy Indiana Plan--known as HIP 2.0--in my home State of Indiana. I first want to thank…

Richard J. Durbin
Sen. Richard J. DurbinD-IL · Jul 26, 2017

Mr. President, yesterday, on the floor of the Senate, there was a speech which will be remembered for a long time. Our friend and colleague Senator John McCain came to the floor just days after he…

Al  Franken
Sen. Al Franken D-MN · Jul 26, 2017

Thank you, Madam President. Madam President, I rise this evening to speak in opposition to the Republican plan to dismantle our healthcare system. Their effort to repeal the Affordable Care Act and…

Christopher Murphy
Sen. Christopher MurphyD-CT · Jul 26, 2017

Mr. President, no one should normalize what is happening on this Senate floor right now. We are all waiting for the white smoke to come out of Republican leadership offices so that the millions and…

Jack Reed
Sen. Jack ReedD-RI · Jul 26, 2017

Madam President, let me join the Democratic leader in expressing my dismay in what has been going on on the Senate floor with respect to healthcare. For over 7 years, my colleagues on the other side…

Dean Heller
Sen. Dean HellerR-NV · Jul 26, 2017

Mr. President, I rise today to talk about my amendment, Heller amendment No. 288. My amendment reinforces the important role Medicaid has played in my home State and in the States of many of my…

Bernard Sanders
Sen. Bernard SandersI-VT · Jul 26, 2017

Madam President, will my friend from Oregon yield for a question? Madam President, our friend from Oregon is pointing out that this legislation would impact virtually every American because, in one…

Maria Cantwell
Sen. Maria CantwellD-WA · Jul 26, 2017

Mr. President, I saw the remarks of the President of the United States in Youngstown, OH, and it has brought me to the floor this morning because the focus of some of his speech was on the economy…

Jeanne Shaheen
Sen. Jeanne ShaheenD-NH · Jul 26, 2017

Mr. President, as we all know, we are continuing to debate what amounts to repealing the Affordable Care Act without any indication of what is going to replace it--what is actually in the Republican…

Elizabeth Warren
Sen. Elizabeth WarrenD-MA · Jul 26, 2017

Mr. President, since the Republicans have announced that their top legislative priority in this Congress would be to rip away healthcare from millions of Americans, I have come down to the floor many…

Bill Text

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Introduced in SenateIssued March 2, 2017

II

115th CONGRESS

1st Session

S. 523

IN THE SENATE OF THE UNITED STATES

March 2, 2017

Mr. Manchin (for himself, Ms. Klobuchar, Ms. Heitkamp, Mr. Nelson, Mr. King, Mr. Murphy, Ms. Baldwin, Ms. Warren, Ms. Hassan, and Mrs. Shaheen) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to establish a stewardship fee on the production and importation of opioid pain relievers, and for other purposes.

1.

Short title

This Act may be cited as the Budgeting for Opioid Addiction Treatment Act.

2.

Stewardship fee on opioid pain relievers

(a)

In general

Subchapter E of chapter 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section:

4192.

Opioid pain relievers

(a)

In general

There is hereby imposed on the sale of any active opioid by the manufacturer, producer, or importer a fee equal to 1 cent per milligram so sold.

(b)

Active opioid

For purposes of this section—

(1)

In general

The term active opioid means any controlled substance (as defined in section 102 of the Controlled Substances Act, as in effect on the date of the enactment of this section) which is opium, an opiate, or any derivative thereof.

(2)

Exclusion for certain prescription medications

Such term shall not include any prescribed drug which is used exclusively for the treatment of opioid addiction as part of a medically assisted treatment effort.

(3)

Exclusion of other ingredients

In the case of a product that includes an active opioid and another ingredient, subsection (a) shall apply only to the portion of such product that is an active opioid.

.

(b)

Clerical amendments

(1)

The heading of subchapter E of chapter 32 of the Internal Revenue Code of 1986 is amended by striking Medical devices and inserting Other medical products.

(2)

The table of subchapters for chapter 32 of such Code is amended by striking the item relating to subchapter E and inserting the following new item:

Subchapter E. Other medical products

.

(3)

The table of sections for subchapter E of chapter 32 of such Code is amended by adding at the end the following new item:

.

(c)

Effective date

The amendments made by this section shall apply to sales on or after the date that is 1 year after the date of the enactment of this Act.

(d)

Rebate or discount program for certain cancer and hospice patients

(1)

In general

The Secretary of Health and Human Services, in consultation with patient advocacy groups and other relevant stakeholders as determined by such Secretary, shall establish a mechanism by which—

(A)

any amount paid by an eligible patient in connection with the stewardship fee under section 4192 of the Internal Revenue Code of 1986 (as added by this section) shall be rebated to such patient in as timely a manner as possible, or

(B)

amounts paid by an eligible patient for active opioids (as defined in section 4192(b) of such Code) are discounted at time of payment or purchase to ensure that such patient does not pay any amount attributable to such fee,

with as little burden on the patient as possible. The Secretary shall choose whichever of the options described in subparagraph (A) or (B) is, in the Secretary's determination, most effective and efficient in ensuring eligible patients face no economic burden from such fee.
(2)

Eligible patient

For purposes of this section, the term eligible patient means—

(A)

a patient for whom any active opioid (as so defined) is prescribed to treat pain relating to cancer or cancer treatment;

(B)

a patient participating in hospice care; and

(C)

in the case of the death or incapacity of a patient described in subparagraph (A) or (B) or any similar situation as determined by the Secretary of Health and Human Services, the appropriate family member, medical proxy, or similar representative or the estate of such patient.

3.

Block grants for prevention and treatment of substance abuse

(a)

Grants to States

Section 1921(b) of the Public Health Service Act (42 U.S.C. 300x–21(b)) is amended by inserting , and, as applicable, for carrying out section 1923A before the period.

(b)

Nonapplicability of prevention program provision

Section 1922(a)(1) of the Public Health Service Act (42 U.S.C. 300x–22(a)(1)) is amended by inserting except with respect to amounts made available as described in section 1923A, before will expend.

(c)

Opioid treatment programs

Subpart II of part B of title XIX of the Public Health Service Act (42 U.S.C. 300x–21 et seq.) is amended by inserting after section 1923 the following:

1923A.

Additional substance abuse treatment programs

A funding agreement for a grant under section 1921 is that the State involved shall provide that any amounts made available by any increase in revenues to the Treasury in the previous fiscal year resulting from the enactment of section 4192 of the Internal Revenue Code of 1986, reduced by any amounts rebated or discounted under section 2(d) of the Budgeting for Opioid Addiction Treatment Act (as described in section 1933(a)(1)(B)(i)) be used exclusively for substance abuse (including opioid abuse) treatment efforts in the State, including—

(1)

treatment programs—

(A)

establishing new addiction treatment facilities, residential and outpatient, including covering capital costs;

(B)

establishing sober living facilities;

(C)

recruiting and increasing reimbursement for certified mental health providers providing substance abuse treatment in medically underserved communities or communities with high rates of prescription drug abuse;

(D)

expanding access to long-term, residential treatment programs for opioid addicts (including 30-, 60-, and 90-day programs);

(E)

establishing or operating support programs that offer employment services, housing, and other support services to help recovering addicts transition back into society;

(F)

establishing or operating housing for children whose parents are participating in substance abuse treatment programs, including capital costs;

(G)

establishing or operating facilities to provide care for babies born with neonatal abstinence syndrome, including capital costs; and

(H)

other treatment programs, as the Secretary determines appropriate; and

(2)

recruitment and training of substance use disorder professionals to work in rural and medically underserved communities.

.

(d)

Additional funding

Section 1933(a)(1)(B)(i) of the Public Health Service Act (42 U.S.C. 300x–33(a)(1)(B)(i)) is amended by inserting , plus any increase in revenues to the Treasury in the previous fiscal year resulting from the enactment of section 4192 of the Internal Revenue Code of 1986, reduced by any amounts rebated or discounted under section 2(d) of the Budgeting for Opioid Addiction Treatment Act before the period.

4.

Report

Not later than 2 years after the date described in section 2(c), the Secretary of Health and Human Services shall submit to Congress a report on the impact of the amendments made by sections 2 and 3 on—

(1)

the retail cost of active opioids (as defined in section 4192 of the Internal Revenue Code of 1986, as added by section 2);

(2)

patient access to such opioids, particularly cancer and hospice patients, including the effect of the discount or rebate on such opioids for cancer and hospice patients under section 2(d);

(3)

how the increase in revenue to the Treasury resulting from the enactment of section 4192 of the Internal Revenue Code of 1986 is used to improve substance abuse treatment efforts in accordance with section 1923A of the Public Health Service Act (as added by section 3); and

(4)

suggestions for improving—

(A)

access to opioids for cancer and hospice patients; and

(B)

substance abuse treatment efforts under such section 1923A.