Bill > S117

This bill, the Medicare Prescription Drug Price Negotiation Act of 2013, would amend the Social Security Act to require the Secretary of Health and Human Services to negotiate prices for prescription drugs covered under Medicare Part D, which is the prescription drug benefit program for Medicare beneficiaries. Specifically, it would remove a previous restriction that prevented such negotiations and instead mandate that the Secretary negotiate with pharmaceutical manufacturers for lower prices, including discounts and rebates, for drugs purchased by Medicare prescription drug plans (PDP sponsors) and Medicare Advantage Prescription Drug plans (MA organizations) for eligible individuals. While the Secretary would negotiate prices, the bill clarifies that this authority does not allow the Secretary to dictate specific drug formularies, which are lists of covered drugs, but it also ensures that plans must still provide adequate access to covered drugs and meet existing formulary requirements. The bill also requires the Secretary to report to Congress every six months on the progress and outcomes of these negotiations, and the changes would take effect upon enactment, applying to negotiations and prices for plan years beginning January 1, 2014.