Medicare Enhancements for Needed Drugs Act of 2005

Medicare Enhancements for Needed Drugs Act of 2005 - Directs the Comptroller General to review and report to Congress on the retail cost of prescription drugs in the United States during 2000 and 2003, and through April 1, 2006, with an emphasis on the prescription drugs most utilized for individuals age 65 or older.

Requires the Comptroller General to conduct an ongoing study that compares the average retail cost in the United States for each of the 20 most utilized prescription drugs for individuals age 65 or older with: (1) the average prices at which private health plans, the Department of Defense under the Defense Health Program, and the Department of Veterans Affairs acquire each such drug; and (2) the average negotiated price for each such drug that eligible beneficiaries have access to under a Medicare prescription drug plan providing only basic prescription drug coverage.

Amends title XVIII (Medicare) of the Social Security Act (SSA) to include in the comparative plan information for beneficiaries under new Medicare part D (Voluntary Prescription Drug Benefit Program) a comparison of average aggregate prescription drug plan beneficiary costs and savings with such costs for a beneficiary with no prescription drug plan.

Repeals the prohibition against interference by the Secretary with the negotiations between drug manufacturers and pharmacies and prescription drug plan sponsors, as well as the requirement of a particular formulary to institute a price structure for the reimbursement of Medicare part D covered drugs. Authorizes the Secretary instead, like other Federal entities that purchase prescription drugs in bulk, to negotiate contracts with manufacturers of covered part D drugs.