Section 1 Short title
This Act may be cited as the “Legalizing Drug Discounts for Seniors Act of 2020”.
Legalizing Drug Discounts for Seniors Act of 2020
A BILL
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.
Sec. 2 Exclusion of discounts for covered Part D drugs from the anti-kickback prohibition
Exclusion of discounts— Section 1128B(b)(3) of the Social Security Act (42 U.S.C. 1320a–7b(b)(3)) is amended—
in subparagraph (J)—
by moving such subparagraph 2 ems to the left; and
by striking “and” at the end;
in subparagraph (K)—
by moving such subparagraph 2 ems to the left; and
by striking the period at the end and inserting “; and”; and
by adding at the end the following new subparagraph:
“(L) a discount, including through a rebate, discount card, or coupon, with respect to a covered part D drug (as defined in section 1860D–2(e)) under part D of title XVIII if—
“(i) the full value of such discount is provided initially to a part D eligible individual (as defined in section 1860D–1(a)(3)(A)) enrolled in a part D plan (as defined in section 1860D–23(a)(5)), and the discount is not structured for the specific purpose of providing a price concession, other than a bona fide service fee, to another individual or entity; and
“(ii) in the case where such discount includes a reduction in price applicable to individuals enrolled in a health plan but not to individuals enrolled in a prescription drug plan under such part D or a MA–PD plan under part C of such title XVIII, such discount is not structured for the specific purpose of increasing utilization of such covered part D drug under such a prescription drug plan or MA–PD plan.”
Application of the protection against out-of-Pocket expenditures— Section 1860D–2(b)(4)(C)(iii) of the Social Security Act (42 U.S.C. 1395w–102(b)(4)(C)(iii)) is amended—
in subclause (III), by striking “or” at the end;
in subclause (IV), by striking the period at the end and inserting “; or”; and
by adding at the end the following:
“(V) under an arrangement described in section 1128B(b)(3)(L).”
Effective date— The amendments made by this section shall take effect on January 1, 2021.