II 118TH CONGRESS 1ST SESSION S. 1450 To establish a cap on costs for covered prescription drugs under Medicare parts B and D. IN THE SENATE OF THE UNITED STATES MAY 4, 2023 Mr. SANDERS (for himself and Ms. KLOBUCHAR) introduced the following bill; which was read twice and referred to the Committee on Finance A BILL To establish a cap on costs for covered prescription drugs under Medicare parts B and D. 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 ‘‘Cutting Medicare Pre- 4 scription Drug Prices in Half Act’’. 5 SEC. 2. CAP ON COSTS FOR COVERED PRESCRIPTION 6 DRUGS UNDER MEDICARE PARTS B AND D. 7 (a) IN GENERAL.—Title XVIII of the Social Security 8 Act (42 U.S.C. 1395 et seq.) is amended by adding at 9 the end the following new section: 10 VerDate Sep 11 2014 03:18 May 13, 2023 Jkt 039200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6201 E:\BILLS\S1450.IS S1450 pbinns on DSKJLVW7X2PROD with $$_JOB 2 •S 1450 IS ‘‘SEC. 1899C. CAP ON COSTS FOR COVERED PRESCRIPTION 1 DRUGS UNDER MEDICARE PARTS B AND D. 2 ‘‘(a) IN GENERAL.—In no case may the amount of 3 payment for a drug or biological under part B or a covered 4 part D drug (as defined in section 1860D–2(e)) under a 5 prescription drug plan under part D exceed the lower of 6 the following: 7 ‘‘(1) The amount paid by the Secretary of Vet- 8 erans Affairs to procure the drug under the laws ad- 9 ministered by the Secretary. 10 ‘‘(2) The amount paid to procure the drug 11 through the Federal Supply Schedule of the General 12 Services Administration. 13 ‘‘(b) MANUFACTURER REQUIREMENT.—In order for 14 coverage to be available under part B for a drug or biologi- 15 cal of a manufacturer or under part D for a covered part 16 D drug of a manufacturer, the manufacturer must agree 17 to provide such drug or biological to providers of services 18 and suppliers under part B or such covered part D drug 19 to prescription drug plans under part D for an amount 20 that does not exceed the maximum payment amount appli- 21 cable under subsection (a). 22 ‘‘(c) ACCESS TO PRICING INFORMATION.—The Sec- 23 retary of Veterans Affairs and the Administrator of Gen- 24 eral Services shall provide to the Secretary of Health and 25 Human Services the information described in paragraphs 26 VerDate Sep 11 2014 03:18 May 13, 2023 Jkt 039200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1450.IS S1450 pbinns on DSKJLVW7X2PROD with $$_JOB 3 •S 1450 IS (1) and (2), respectively, of subsection (a) and such other 1 information as the Secretary of Health and Human Serv- 2 ices may request in order to carry out this section. 3 ‘‘(d) EFFECTIVE DATE.—This section shall apply 4 with respect to drugs furnished or dispensed on or after 5 January 1, 2024.’’. 6 (b) CONFORMING AMENDMENTS.— 7 (1) APPLICATION UNDER PART B.—Section 8 1847A of the Social Security Act (42 U.S.C. 9 1395w–3a) is amended— 10 (A) in subsection (b)(1), by striking ‘‘and 11 (e)’’ and inserting ‘‘(e), and (i)’’; 12 (B) by redesignating subsection (i) as sub- 13 section (j); and 14 (C) by inserting after subsection (h) the 15 following subsection: 16 ‘‘(i) APPLICATION OF CAP ON COSTS FOR PART B 17 DRUGS.—Notwithstanding the preceding provisions of this 18 subsection, the amount of payment under this section for 19 a drug or biological furnished on or after January 1, 2024, 20 shall not exceed the maximum payment amount applicable 21 to the drug or biological under section 1899C(a).’’. 22 (2) APPLICATION AS NEGOTIATED PRICE 23 UNDER PART D.—Section 1860D–2(d)(1)(B) of the 24 Social Security Act (42 U.S.C. 1395w– 25 VerDate Sep 11 2014 03:18 May 13, 2023 Jkt 039200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1450.IS S1450 pbinns on DSKJLVW7X2PROD with $$_JOB 4 •S 1450 IS 102(d)(1)(B)) is amended by adding at the end the 1 following new sentence: ‘‘Notwithstanding any other 2 provision of this part, the negotiated price used for 3 payment for a covered part D drug dispensed on or 4 after January 1, 2024, shall not exceed the max- 5 imum payment amount applicable to the covered 6 part D drug under section 1899C(a).’’. 7 Æ VerDate Sep 11 2014 03:18 May 13, 2023 Jkt 039200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6301 E:\BILLS\S1450.IS S1450 pbinns on DSKJLVW7X2PROD with $$_JOB