text: SECTION 1. SHORT TITLE.
  
      This Act may be cited as the ``Fair and Speedy Treatment (FAST) of 
  Medicare Prescription Drug Claims Act of 2007''.
  
  SEC. 2. PROMPT PAYMENT BY MEDICARE PRESCRIPTION DRUG PLANS AND MA-PD 
                PLANS UNDER PART D.
  
      (a) Application to Prescription Drug Plans.--Section 1860D-12(b) of 
  the Social Security Act (42 U.S.C. 1395w-112 (b)) is amended by adding 
  at the end the following new paragraph:
              ``(4) Prompt payment of clean claims.--
                      ``(A) Prompt payment.--Each contract entered into 
                  with a PDP sponsor under this subsection with respect 
                  to a prescription drug plan offered by such sponsor 
                  shall provide that payment shall be issued, mailed, or 
                  otherwise transmitted with respect to all clean claims 
                  submitted under this part within the applicable number 
                  of calendar days after the date on which the claim is 
                  received.
                      ``(B) Definitions.--In this paragraph:
                              ``(I) Clean claim.--The term `clean claim' 
                          means a claim, with respect to a covered part D 
                          drug, that has no apparent defect or 
                          impropriety (including any lack of any required 
                          substantiating documentation) or particular 
                          circumstance requiring special treatment that 
                          prevents timely payment from being made on the 
                          claim under this part.
                              ``(ii) Applicable number of calendar 
                          days.--The term `applicable number of calendar 
                          days' means--
                                      ``(I) with respect to claims 
                                  submitted electronically, 14 calendar 
                                  days; and
                                      ``(II) with respect to claims 
                                  submitted otherwise, 30 calendar days.
                      ``(c) Interest payment.--If payment is not issued, 
                  mailed, or otherwise transmitted within the applicable 
                  number of calendar days (as defined in subparagraph 
                  (B)) after a clean claim is received, interest shall be 
                  paid at a rate used for purposes of section 3902(a) of 
                  title 31, United States Code (relating to interest 
                  penalties for failure to make prompt payments), for the 
                  period beginning on the day after the required payment 
                  date and ending on the date on which payment is made.
                      ``(D) Procedures involving claims.--
                              ``(I) Claims deemed to be clean claims.--
                                      ``(I) In general.--A claim for a 
                                  covered part D drug shall be deemed to 
                                  be a clean claim for purposes of this 
                                  paragraph if the PDP sponsor involved 
                                  does not provide a notification of 
                                  deficiency to the claimant by the 10th 
                                  day that begins after the date on which 
                                  the claim is submitted.
                                      ``(II) Notification of 
                                  deficiency.--For purposes of subclause 
                                  (II), the term `notification of 
                                  deficiency' means a notification that 
                                  specifies all defects or improprieties 
                                  in the claim involved and that lists 
                                  all additional information or documents 
                                  necessary for the proper processing and 
                                  payment of the claim.
                              ``(ii) Payment of clean portions of 
                          claims.--A PDP sponsor shall, as appropriate, 
                          pay any portion of a claim for a covered part D 
                          drug that would be a clean claim but for a 
                          defect or impropriety in a separate portion of 
                          the claim in accordance with subparagraph (A).
                              ``(iii) Obligation to pay.--A claim for a 
                          covered part D drug submitted to a PDP sponsor 
                          that is not paid or contested by the provider 
                          within the applicable number of calendar days 
                          (as defined in subparagraph (B)) shall be 
                          deemed to be a clean claim and shall be paid by 
                          the PDP sponsor in accordance with subparagraph 
                          (A).
                              ``(iv) Date of payment of claim.--Payment 
                          of a clean claim under subparagraph (A) is 
                          considered to have been made on the date on 
                          which full payment is received by the provider.
                      ``(E) Electronic transfer of funds.--A PDP sponsor 
                  shall pay all clean claims submitted electronically by 
                  an electronic funds transfer mechanism.''.
      (b) Application to MA-PD Plans.--Section 1857(f) of such Act (42 
  U.S.C. 1395w-27) is amended by adding at the end the following new 
  paragraph:
              ``(3) Incorporation of certain prescription drug plan 
          contract requirements.--The provisions of section 1860D-
          12(b)(4) shall apply to contracts with a Medicare Advantage 
          organization in the same manner as they apply to contracts with 
          a PDP sponsor offering a prescription drug plan under part 
          D.''.
      (c) Effective Date.--The amendments made by this section shall 
  apply to contracts entered into or renewed on or after the date of the 
  enactment of this Act.
  
  SEC. 3. RESTRICTION ON CO-BRANDING.
  
      (a) Application to Prescription Drug Information Disseminated.--
  Subsection (a) of section 1860D-4 of the Social Security Act (42 U.S.C. 
  1395w-104) is amended by adding at the end the following new paragraph:
              ``(5) Restriction on displaying pharmacy brand or trademark 
          information.--
                      ``(A) In general.--It is unlawful for a PDP sponsor 
                  of a prescription drug plan to display on any 
                  explanatory information described in subparagraph (B), 
                  with respect to benefits provided under this part, the 
                  brand or trademark of any pharmacy.
                      ``(B) Explanatory information described.--For 
                  purposes of subparagraph (A), explanatory information 
                  is each of the following:
                              ``(i) Information on evidence of coverage 
                          under this part.
                              ``(ii) Information that summarizes benefits 
                          provided under this part.
                              ``(iii) Enrollment and disenrollment forms.
                              ``(iv) Enrollment and disenrollment 
                          letters.
                              ``(v) Pharmacy directories.
                              ``(vi) Formulary information.
                              ``(vii) Grievance letters provided pursuant 
                          to subsection (f), coverage determination 
                          letters provided pursuant to subsection (g), 
                          and appeals letters provided pursuant to 
                          subsection (h).
                              ``(viii) Exceptions process letters.
                              ``(ix) Information contained in sales 
                          descriptions or sales presentations.''.
      (b) Application to Enrollee Cards.--Subsection (b)(2)(A) of such 
  section is amended by adding at the end the following new sentence: 
  ``It is unlawful for a PDP sponsor of a prescription drug plan to 
  display on such a card the name, brand, or trademark of any pharmacy.''
      (c) Effective Date.--
              (1) Explanatory information.--With respect to explanatory 
          information dispensed on or after the date of the enactment of 
          this Act, the amendment made by subsection (a) shall apply to 
          such information on and after the date that is 90 days after 
          such date of enactment.
              (2) Enrollee cards.--With respect to cards dispensed 
          before, on, or after the date of the enactment of this Act, the 
          amendment made by subsection (b) shall apply to such cards on 
          and after the date that is 90 days after such date of 
          enactment. Any card dispensed before such date that is 90 days 
          after the date of enactment that violates the second sentence 
          of section 1860D-4(b)(2)(A) of the Social Security Act, as 
          added by subsection (b), shall be reissued by such 90-day date.
target: Fair and Speedy Treatment (FAST) of Medicare Prescription Drug Claims Act of 2007 - Amends title XVIII of the Social Security Act to require prompt payment of clean claims to pharmacies by prescription drug plans (PDPs) and Medicare Advantage prescription drug plans (MA-PD Plans). Defines "prompt payment" as within 14 calendar days from submission for claims submitted electronically, and within 30 calendar days for claims submitted otherwise. Requires payment of interest, also, if a payment is not issued, mailed, or otherwise transmitted within the applicable number of calendar days.
  
  Makes it unlawful for a PDP sponsor to display on any explanatory prescription drug information and enrollee cards the name, brand, or trademark (co-branding) of any pharmacy.
feat_title: To amend title XVIII of the Social Security Act to require the sponsor of a prescription drug plan or an organization offering an MA-PD plan to promptly pay claims submitted under part D and to prohibit the inclusion of certain identifying information of pharmacies on explanatory prescription drug information and cards distributed by prescription drug plan sponsors.