S 1688 — Empowering Medicare Seniors to Negotiate Drug Prices Act of 2017

(a) Establishment of PDP regions; service areas (1) Coverage of entire PDP region The service area for a prescription drug plan shall consist of an entire PDP region established under paragraph (2). (2) Establishment of PDP regions (A) In general The Secretary shall establish, and may revise, PDP regions in a manner that is consistent with the requirements for the establishment and revision of MA regions under subparagraphs (B) and (C) of section 1395w–27a(a)(2) of this title. (B) Relation to MA regions To the extent practicable, PDP regions shall be the same as MA regions under section 1395w–27a(a)(2) of this title. The Secretary may establish PDP regions which are not the same as MA regions if the Secretary determines that the establishment of different regions under this part would improve access to benefits under this part. (C) Authority for territories The Secretary shall establish, and may revise, PDP regions for areas in States that are not within the 50 States or the District of Columbia. (3) National plan Nothing in this subsection shall be construed as preventing a prescription drug plan from being offered in more than one PDP region (including all PDP regions). (b) Submission of bids, premiums, and related information (1) In general A PDP sponsor shall submit to the Secretary information described in paragraph (2) with respect to each prescription drug plan it offers. Such information shall be submitted at the same time and in a similar manner to the manner in which information described in paragraph (6) of section 1395w–24(a) of this title is submitted by an MA organization under paragraph (1) of such section. (2) Information described The information described in this paragraph is information on the following: (A) Coverage provided The prescription drug coverage provided under the plan, including the deductible and other cost-sharing. (B) Actuarial value The actuarial value of the qualified prescription drug coverage in the region for a part D eligible individual with a national average risk profile for the factors described in section 1395w–115(c)(1)(A) of this title (as specified by the Secretary). (C) Bid Information on the bid, including an actuarial certification of— (i) the basis for the actuarial value described in subparagraph (B) assumed in such bid; (ii) the portion of such bid attributable to basic prescription drug coverage and, if applicable, the portion of such bid attributable to supplemental benefits; (iii) assumptions regarding the reinsurance subsidy payments provided under section 1395w–115(b) of this title subtracted from the actuarial value to produce such bid; and (iv) administrative expenses assumed in the bid. (D) Service area The service area for the plan. (E) Level of risk assumed (i) In general Whether the PDP sponsor requires a modification of risk level under clause (ii) and, if so, the extent of such modification. Any such modification shall apply with respect to all prescription drug plans offered by a PDP sponsor in a PDP region. This subparagraph shall not apply to an MA–PD plan. (ii) Risk levels described A modification of risk level under this clause may consist of one or more of the following: (I) Increase in Federal percentage assumed in initial risk corridor An equal percentage point increase in the percents applied under subparagraphs (B)(i), (B)(ii)(I), (C)(i), and (C)(ii)(I) of section 1395w–115(e)(2) of this title. In no case shall the application of previous sentence prevent the application of a higher percentage under section 1395w–115(e)(2)(B)(iii) 1 of this title. (II) Increase in Federal percentage assumed in second risk corridor An equal percentage point increase in the percents applied under subparagraphs (B)(ii)(II) and (C)(ii)(II) of section 1395w–115(e)(2) of this title. (III) Decrease in size of risk corridors A decrease in the threshold risk percentages specified in section 1395w–115(e)(3)(C) of this title. (F) Additional information Such other information a...