,,ii  #aafth ,,congress  #b;d ,session  
,s4 #dbgd  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,july #bb1     
#bjbj,mr4 ,paul introduced the following
 bill2 which was read twice and referred
 to the ,committee on ,finance  ,a      
,,bill  ,to amend title ,,xi of the     
,social ,security ,act to exclude       
discounts for covered part ,d drugs from
 the anti-kickback prohibition1 and for 
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,legalizing    
,drug ,discounts for ,seniors ,act of   
#bjbj4  #b4 ,exclusion of discounts for 
covered ,part ,d drugs from the         
anti-kickback prohibition  7a7          
,exclusion of discounts ,section        
#aabh;,b7b77#c7 of the ,social ,security
 ,act 7#db ,u4,s4,c4                    
#acbj;a-#g;b7b77#c77 is amended-- 7#a7  
in subparagraph 7,j7-- 7,a7 by moving   
such subparagraph #b ems to the left2   
and  7,b7 by striking and at the end2   
7#b7 in subparagraph 7,k7-- 7,a7 by     
moving such subparagraph #b ems to the  

left2 and  7,b7 by striking the period  
at the end and inserting 2 and2 and     
7#c7 by adding at the end the following 
new subparagraph3  7,l7 a discount1     
including through a rebate1 discount    
card1 or coupon1 with respect to a      
covered part ,d drug 7as defined in     
section #ahfj;,d-#b7;e77 under part ,d  
of title ,,xviii if-- 7i7 the full value
 of such discount is provided initially 
to a part ,d eligible individual 7as    
defined in section                      
#ahfj;,d-#a7;a77#c77;,a77 enrolled in a 
part ,d plan 7as defined in section     
#ahfj;,d-#bc7;a77#e771 and the discount 
is not structured for the specific      
purpose of providing a price concession1
 other than a bona fide service fee1 to 
another individual or entity2 and  7ii7 
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 ,,xviii1 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 plan4  4  7b7    
,application of the protection against  
out-of-,pocket expenditures ,section    
#ahfj;,d-#b7;b77#d77;,c77iii7 of the    
,social ,security ,act 7#db ,u4,s4,c4   
#aciew-#ajb7;b77#d77;,c77iii77 is       
amended-- 7#a7 in subclause 7,,iii71 by 
striking or at the end2  7#b7 in        
subclause 7,,iv71 by striking the period
 at the end and inserting 2 or2 and     
7#c7 by adding at the end the following3
  7,v7 under an arrangement described in
 section #aabh;,b7b77#c77,l74  4  7c7   
,effective date ,the amendments made by 
this section shall take effect on       
,january #a1 #bjba4