Bill > HR1102

This bill, the Medicare Prescription Drug Price Negotiation Act of 2013, would amend Medicare Part D, which is the voluntary prescription drug benefit program for Medicare beneficiaries. The key provision is that it directs the Secretary of Health and Human Services (HHS) to negotiate directly with pharmaceutical manufacturers for lower prices on prescription drugs covered under Medicare Part D. These negotiated prices would then apply to prescription drug plan (PDP) sponsors and Medicare Advantage (MA) organizations, which are the entities that offer drug coverage to Medicare beneficiaries enrolled in either a standalone prescription drug plan or a Medicare Advantage plan that includes drug coverage (MA-PD plans). The bill explicitly states that these negotiations do not authorize the Secretary to dictate specific drug formularies, which are lists of covered drugs, but it also clarifies that this restriction does not prevent the Secretary from ensuring beneficiaries have adequate access to necessary medications. Furthermore, the bill requires the Secretary to submit semi-annual reports to Congress detailing the negotiation outcomes, including achieved prices and discounts, and the changes would take effect upon enactment, applying to plan years beginning January 1, 2014.