Medicare Prescription Drug Price Reduction Act of 2005 - Amends title XVIII (Medicare) of the Social Security Act to repeal provisions prohibiting the Secretary of Health and Human Services from: (1) interfering with the negotiations between drug manufacturers and pharmacies and prescription drug plan sponsors; and (2) requiring a particular formulary to institute a price structure for the reimbursement of covered Medicare part D (Voluntary Prescription Drug Benefit Program) drugs.
Grants the Secretary instead, in order to ensure that each part D eligible individual who is enrolled under a prescription drug plan or a Medicare Advantage prescription drug plan pays the lowest possible price, authority similar to that of other Federal entities that purchase prescription drugs in bulk to negotiate contracts with manufacturers of covered Medicare part D drugs, consistent with the requirements and in furtherance of the goals of providing quality care and containing costs under such part.