To amend title XVIII of the Social Security Act to require drug manufacturers to provide drug rebates for drugs dispensed to low-income individuals under the Medicare prescription drug benefit program.
Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Medicare Drug Savings Act of 2011''.
SEC. 2. REQUIRING DRUG MANUFACTURERS TO PROVIDE DRUG REBATES FOR DRUGS DISPENSED TO LOW-INCOME INDIVIDUALS.
(a) In General.--Section 1860D-2 of the Social Security Act (42 U.S.C. 1395w-102) is amended-- (1) in subsection (e)(1), in the matter preceding subparagraph (A), by inserting ``and subsection (f)'' after ``this subsection''; and (2) by adding at the end the following new subsection: ``(f) Prescription Drug Rebate Agreement for Rebate Eligible Individuals.-- ``(1) Requirement.-- ``(A) In general.--For plan years beginning on or after January 1, 2013, in this part, the term `covered part D drug' does not include any drug or biological product that is manufactured by a manufacturer that has not entered into and have in effect a rebate agreement described in paragraph (2). ``(B) 2012 plan year requirement.--Any drug or biological product manufactured by a manufacturer that declines to enter into a rebate agreement described in paragraph (2) for the period beginning on January 1, 2012, and ending on December 31, 2012, shall not be included as a `covered part D drug' for the subsequent plan year. ``(2) Rebate agreement.--A rebate agreement under this subsection shall...