Bill > S44

This bill, the Medicare Prescription Drug Price Negotiation Act of 2011, would amend Medicare Part D, the voluntary prescription drug benefit program, to empower the Secretary of Health and Human Services (HHS) to negotiate directly with pharmaceutical manufacturers for lower prices on prescription drugs covered by Medicare. These negotiated prices, which could include discounts and rebates, would then apply to prescription drug plan (PDP) sponsors and Medicare Advantage (MA) organizations, which are entities that offer prescription drug coverage to Medicare beneficiaries enrolled in either traditional PDPs or MA-Prescription Drug (MA-PD) plans. The bill explicitly states that these negotiations would not authorize the Secretary to dictate specific drug formularies, which are lists of covered drugs, but would still require plans to ensure beneficiaries have appropriate access to necessary medications. The provision also clarifies that PDP sponsors and MA organizations can still seek additional discounts below the negotiated prices, and the Secretary is required to report to Congress on these negotiation efforts and outcomes. This change would take effect upon enactment and apply to plan years beginning January 1, 2012.