Resources and Guidance for Provisions in the Deficit Reduction Act Of 2005

Updated March 2008

NCSL 's policy has urged congress to amend federal Medicaid law to give states greater flexibility in administering their individual state programs. The enactment of the Deficit Reduction Act of 2005 presents states with an opportunity to implement some of the initiatives they otherwise would have been prohibited from trying. S. 1932 was signed by President Bush on February 8, 2006 and became Public Law No. 109-171. The following provides links to resources and information on the health provisions in the act.

OVERVIEW: DEFICIT REDUCTION ACT OF 2005 (S. 1932) (4/18/2007)

MEDICAID PRESCRIPTION DRUG REFORMS

Federal Upper Payment Limit (FUL) For Ingredient Cost Of Covered Outpatient Drugs
(Sec. 6001)

NCSL Comments Concerning CMS Proposed Rule
Medicaid Prescription Drugs--Average Manufacturer Price, Proposed Rule Published December 22, 2006
A Department of Health and Human Services (HHS) Office of the Inspector General (OIG) Document: Determining Average Manufacturer Prices for Prescription Drugs Under the Deficit Reduction Act of 2005 (67 page pdf document).
HHS OIG Document:Review of 340B Prices (52 page pdf document).

Collection And Submission Of Utilization Data For Certain Physician Administered Drugs
(Sec. 6002)

CMS Letter to state Medicaid Directors--SMDL 06-016
Top 20 Multiple Source Physician-Administered Drugs [PDF 21KB]

Improved Regulation Of Drugs Sold Under New Drug Application Approved Under The Food, Drug and Cosmetic Act
(Sec. 6003)
Children's Hospital Participation In Section 340B Drug Discount Program
(Sec. 6004)

NCSL Web Resource: States and the 340B Drug Pricing Program
HRSA Resource: 340B Drug Pricing Program Questions

Prohibition On Restocking And Double Billing Prescription Drugs
(Sec. 6033)

CMS Letter to state Medicaid Directors--SMD 06-005

Special Rules For Cost-Sharing For Prescription Drugs
(Sec. 6042)

CMS Letter to State Medicaid Directors--SMDL #06-015

LONG TERM CARE REFORMS /TRANSFER OF ASSETS
LONG TERM CARE REFORMS /HOME AND COMMUNITY BASED CARE
ELIMINATING FRAUD, WASTE AND ABUSE
FLEXIBILITY IN COST-SHARING AND BENEFITS
STATE FINANCING
FAMILY OPPORTUNITY ACT PROVISIONS
STATE CHILDREN’S HEALTH INSURANCE
HURRICANE KATRINA ASSISTANCE
STATE HIGH RISK POOL FUNDING
LOW INCOME HOME ENERGY ASSISTANCE PROGRAM
SUPPLEMENTAL SECURITY INCOME
MEDICAL CHILD SUPPORT ENFORCEMENT
MEDICARE

Link to DRA Cover Page

For further information, please call NCSL staff Joy Johnson Wilson, Health Policy Director at 202-624-8689 or Rachel Morgan RN, BSN, Senior Health Policy Specialist at 202-624-3569.