Plain English summary not yet available
The full original text is available below. Check back soon as we process this bill.
II
116TH CONGRESS
2D SESSION
S. 4274
To amend title XI of the Social Security Act to exclude discounts for covered
part D drugs from the anti-kickback prohibition, and for other purposes.
IN THE SENATE OF THE UNITED STATES
JULY 22, 2020
Mr. PAUL introduced the following bill; which was read twice and referred to
the Committee on Finance
A BILL
To amend title XI of the Social Security Act to exclude
discounts for covered part D drugs from the anti-kick-
back prohibition, and for other purposes.
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 ‘‘Legalizing Drug Dis-
4
counts for Seniors Act of 2020’’.
5
VerDate Sep 11 2014
05:33 Aug 05, 2020
Jkt 099200
PO 00000
Frm 00001
Fmt 6652
Sfmt 6201
E:\BILLS\S4274.IS
S4274
kjohnson on DSK79L0C42PROD with BILLS
2
•S 4274 IS
SEC. 2. EXCLUSION OF DISCOUNTS FOR COVERED PART D
1
DRUGS FROM THE ANTI-KICKBACK PROHIBI-
2
TION.
3
(a)
EXCLUSION
OF
DISCOUNTS.—Section
4
1128B(b)(3) of the Social Security Act (42 U.S.C. 1320a–
5
7b(b)(3)) is amended—
6
(1) in subparagraph (J)—
7
(A) by moving such subparagraph 2 ems to
8
the left; and
9
(B) by striking ‘‘and’’ at the end;
10
(2) in subparagraph (K)—
11
(A) by moving such subparagraph 2 ems to
12
the left; and
13
(B) by striking the period at the end and
14
inserting ‘‘; and’’; and
15
(3) by adding at the end the following new sub-
16
paragraph:
17
‘‘(L) a discount, including through a rebate,
18
discount card, or coupon, with respect to a covered
19
part D drug (as defined in section 1860D–2(e))
20
under part D of title XVIII if—
21
‘‘(i) the full value of such discount is pro-
22
vided initially to a part D eligible individual (as
23
defined in section 1860D–1(a)(3)(A)) enrolled
24
in a part D plan (as defined in section 1860D–
25
23(a)(5)), and the discount is not structured
26
VerDate Sep 11 2014
05:33 Aug 05, 2020
Jkt 099200
PO 00000
Frm 00002
Fmt 6652
Sfmt 6201
E:\BILLS\S4274.IS
S4274
kjohnson on DSK79L0C42PROD with BILLS
3
•S 4274 IS
for the specific purpose of providing a price
1
concession, other than a bona fide service fee,
2
to another individual or entity; and
3
‘‘(ii) in the case where such discount in-
4
cludes a reduction in price applicable to individ-
5
uals enrolled in a health plan but not to individ-
6
uals enrolled in a prescription drug plan under
7
such part D or a MA–PD plan under part C of
8
such title XVIII, such discount is not struc-
9
tured for the specific purpose of increasing uti-
10
lization of such covered part D drug under such
11
a prescription drug plan or MA–PD plan.’’.
12
(b) APPLICATION
OF
THE PROTECTION AGAINST
13
OUT-OF-POCKET
EXPENDITURES.—Section
1860D–
14
2(b)(4)(C)(iii) of the Social Security Act (42 U.S.C.
15
1395w–102(b)(4)(C)(iii)) is amended—
16
(1) in subclause (III), by striking ‘‘or’’ at the
17
end;
18
(2) in subclause (IV), by striking the period at
19
the end and inserting ‘‘; or’’; and
20
(3) by adding at the end the following:
21
‘‘(V) under an arrangement de-
22
scribed in section 1128B(b)(3)(L).’’.
23
VerDate Sep 11 2014
05:33 Aug 05, 2020
Jkt 099200
PO 00000
Frm 00003
Fmt 6652
Sfmt 6201
E:\BILLS\S4274.IS
S4274
kjohnson on DSK79L0C42PROD with BILLS
4
•S 4274 IS
(c) EFFECTIVE DATE.—The amendments made by
1
this section shall take effect on January 1, 2021.
2
Æ
VerDate Sep 11 2014
05:33 Aug 05, 2020
Jkt 099200
PO 00000
Frm 00004
Fmt 6652
Sfmt 6301
E:\BILLS\S4274.IS
S4274
kjohnson on DSK79L0C42PROD with BILLS