Medicare Prescription Drug Price Negotiation Act of 2019

I 116TH CONGRESS 1ST SESSION H. R. 275 To amend part D of title XVIII of the Social Security Act to require the Secretary of Health and Human Services to negotiate covered part D drug prices on behalf of Medicare beneficiaries. IN THE HOUSE OF REPRESENTATIVES JANUARY 8, 2019 Mr. WELCH (for himself, Mr. ROONEY of Florida, Mr. POCAN, Ms. DELAURO, Ms. CASTOR of Florida, Mr. CICILLINE, Mr. CUMMINGS, Ms. SCHA- KOWSKY, Ms. MCCOLLUM, Mr. LIPINSKI, Mr. LYNCH, Mr. SHERMAN, and Mr. COHEN) 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 part D of title XVIII of the Social Security Act to require the Secretary of Health and Human Serv- ices to negotiate covered part D drug prices on behalf of Medicare beneficiaries. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE. 3 This Act may be cited as the ‘‘Medicare Prescription 4 Drug Price Negotiation Act of 2019’’. 5 VerDate Sep 11 2014 04:07 Jan 17, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\H275.IH H275 kjohnson on DSK79L0C42 with BILLS 2 •HR 275 IH SEC. 2. NEGOTIATION OF LOWER COVERED PART D DRUG 1 PRICES ON BEHALF OF MEDICARE BENE- 2 FICIARIES. 3 (a) NEGOTIATION BY SECRETARY.—Section 1860D– 4 11 of the Social Security Act (42 U.S.C. 1395w–111) is 5 amended by striking subsection (i) (relating to noninter- 6 ference) and inserting the following: 7 ‘‘(i) NEGOTIATION OF LOWER DRUG PRICES.— 8 ‘‘(1) IN GENERAL.—Notwithstanding any other 9 provision of law, the Secretary shall negotiate with 10 pharmaceutical manufacturers the prices (including 11 discounts, rebates, and other price concessions) that 12 may be charged to PDP sponsors and MA organiza- 13 tions for covered part D drugs for part D eligible in- 14 dividuals who are enrolled under a prescription drug 15 plan or under an MA–PD plan. 16 ‘‘(2) NO CHANGE IN RULES FOR 17 FORMULARIES.— 18 ‘‘(A) IN GENERAL.—Nothing in paragraph 19 (1) shall be construed to authorize the Sec- 20 retary to establish or require a particular for- 21 mulary. 22 ‘‘(B) CONSTRUCTION.—Subparagraph (A) 23 shall not be construed as affecting the Sec- 24 retary’s authority to ensure appropriate and 25 adequate access to covered part D drugs under 26 VerDate Sep 11 2014 04:07 Jan 17, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H275.IH H275 kjohnson on DSK79L0C42 with BILLS 3 •HR 275 IH prescription drug plans and under MA–PD 1 plans, including compliance of such plans with 2 formulary requirements under section 1860D– 3 4(b)(3). 4 ‘‘(3) CONSTRUCTION.—Nothing in this sub- 5 section shall be construed as preventing the sponsor 6 of a prescription drug plan, or an organization offer- 7 ing an MA–PD plan, from obtaining a discount or 8 reduction of the price for a covered part D drug 9 below the price negotiated under paragraph (1). 10 ‘‘(4) SEMI-ANNUAL REPORTS TO CONGRESS.— 11 Not later than June 1, 2020, and every 6 months 12 thereafter, the Secretary shall submit to the Com- 13 mittees on Ways and Means, Energy and Commerce, 14 and Oversight and Government Reform of the House 15 of Representatives and the Committee on Finance of 16 the Senate a report on negotiations conducted by the 17 Secretary to achieve lower prices for Medicare bene- 18 ficiaries, and the prices and price discounts achieved 19 by the Secretary as a result of such negotiations.’’. 20 (b) EFFECTIVE DATE.—The amendment made by 21 subsection (a) shall take effect on the date of the enact- 22 ment of this Act and shall first apply to negotiations and 23 prices for plan years beginning on January 1, 2020. 24 Æ VerDate Sep 11 2014 04:07 Jan 17, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6301 E:\BILLS\H275.IH H275 kjohnson on DSK79L0C42 with BILLS