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<dc:title>116 HR 3 RH: To establish a fair price negotiation program, protect the Medicare program from excessive price increases, and establish an out-of-pocket maximum for Medicare part D enrollees, and for other purposes.</dc:title>
<dc:type>House Bill</dc:type>
<docNumber>3</docNumber>
<citableAs>116 HR 3 RH</citableAs>
<citableAs>116hr3rh</citableAs>
<citableAs>116 H. R. 3 RH</citableAs>
<docStage>Reported in House</docStage>
<currentChamber>HOUSE</currentChamber>
<dc:creator>United States House of Representatives</dc:creator>
<processedBy>GPO XPub Bill to USLM Generator, version 0.5 + manual changes</processedBy>
<processedDate>2024-09-09</processedDate>
<dc:publisher>United States Government Publishing Office</dc:publisher>
<dc:format>text/xml</dc:format>
<dc:language>EN</dc:language>
<dc:rights>Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.</dc:rights>
<relatedDocument role="calendar" href="/us/116/hcal/Union/264">Union Calendar No. 264</relatedDocument>
<congress>116</congress>
<session>1</session>
<relatedDocuments>[Report No. 116–324, Parts <relatedDocument role="report" href="/us/hrpt/116/324/pt1" value="CRPT-116hrpt324-pt1">I</relatedDocument>, <relatedDocument role="report" href="/us/hrpt/116/324/pt2" value="CRPT-116hrpt324-pt2">II</relatedDocument> and <relatedDocument role="report" href="/us/hrpt/116/324/pt3" value="CRPT-116hrpt324-pt3">III</relatedDocument>]</relatedDocuments>
<publicPrivate>public</publicPrivate></meta>
<preface>
<slugLine>•HR 3 RH</slugLine>
<distributionCode display="yes">IB</distributionCode>
<relatedDocument role="calendar" href="/us/116/hcal/Union/264">Union Calendar No. 264</relatedDocument>
<congress value="116" class="smallCaps">116th CONGRESS</congress>
<session value="1" class="smallCaps">1st Session</session>
<dc:type>H. R. </dc:type>
<docNumber>3</docNumber>
    <relatedDocuments>[Report No. 116–324, Parts <relatedDocument role="report" href="/us/hrpt/116/324/pt1" value="CRPT-116hrpt324-pt1">I</relatedDocument>, <relatedDocument role="report" href="/us/hrpt/116/324/pt2" value="CRPT-116hrpt324-pt2">II</relatedDocument> and <relatedDocument role="report" href="/us/hrpt/116/324/pt3" value="CRPT-116hrpt324-pt3">III</relatedDocument>]</relatedDocuments>
<dc:title>To establish a fair price negotiation program, protect the Medicare program from excessive price increases, and establish an out-of-pocket maximum for Medicare part D enrollees, and for other purposes.</dc:title>
<p><br verticalSpace="nextPage"/></p>
<currentChamber value="HOUSE">IN THE HOUSE OF REPRESENTATIVES</currentChamber>
<action><date date="2019-09-19"><inline class="smallCaps">September </inline>19, 2019</date><actionDescription><sponsor bioGuideId="P000034">Mr. <inline class="smallCaps">Pallone</inline></sponsor> (for himself, <cosponsor bioGuideId="N000015">Mr. <inline class="smallCaps">Neal</inline></cosponsor>, and <cosponsor bioGuideId="S000185">Mr. <inline class="smallCaps">Scott</inline> of Virginia</cosponsor>) introduced the following bill; which was referred to the <committee addedDisplayStyle="italic" committeeId="HIF00" deletedDisplayStyle="strikethrough">Committee on Energy and Commerce</committee>, and in addition to the Committees on <committee committeeId="HWM00">Ways and Means</committee>, and <committee committeeId="HED00">Education and Labor</committee>, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned</actionDescription></action>
<action><date><inline class="smallCaps">December </inline>6, 2019</date><actionDescription>Reported from the <committee addedDisplayStyle="italic" committeeId="HIF00" deletedDisplayStyle="strikethrough">Committee on Energy and Commerce</committee> with an amendment</actionDescription>
<actionInstruction>[Strike out all after the enacting clause and insert the part printed in italic]</actionInstruction></action>
<action><date><inline class="smallCaps">December </inline>6, 2019</date><actionDescription>Reported from the <committee committeeId="HWM00" addedDisplayStyle="boldRoman">Committee on Ways and Means</committee> with an amendment</actionDescription>
<actionInstruction>[Strike out all after the enacting clause and insert the part printed in boldface roman]</actionInstruction></action>
<action><date><inline class="smallCaps">December </inline>6, 2019</date><actionDescription>Referral to the <committee committeeId="HED00">Committee on Education and Labor</committee> extended for a period ending not later than December 9, 2019</actionDescription></action>
<action><date><inline class="smallCaps">December </inline>9, 2019</date>
<actionDescription>Additional sponsors: <cosponsor bioGuideId="L000557">Mr. <inline class="smallCaps">Larson</inline> of Connecticut</cosponsor>, <cosponsor bioGuideId="K000382">Ms. <inline class="smallCaps">Kuster</inline> of New Hampshire</cosponsor>, <cosponsor bioGuideId="D000197">Ms. <inline class="smallCaps">DeGette</inline></cosponsor>, <cosponsor bioGuideId="R000515">Mr. <inline class="smallCaps">Rush</inline></cosponsor>, <cosponsor bioGuideId="S001206">Ms. <inline class="smallCaps">Shalala</inline></cosponsor>, <cosponsor bioGuideId="R000577">Mr. <inline class="smallCaps">Ryan</inline></cosponsor>, <cosponsor bioGuideId="M001206">Mr. <inline class="smallCaps">Morelle</inline></cosponsor>, <cosponsor bioGuideId="S001177">Mr. <inline class="smallCaps">Sablan</inline></cosponsor>, <cosponsor bioGuideId="C001055">Mr. <inline class="smallCaps">Case</inline></cosponsor>, <cosponsor bioGuideId="E000179">Mr. <inline class="smallCaps">Engel</inline></cosponsor>, <cosponsor bioGuideId="C001066">Ms. <inline class="smallCaps">Castor</inline> of Florida</cosponsor>, <cosponsor bioGuideId="F000462">Ms. <inline class="smallCaps">Frankel</inline></cosponsor>, <cosponsor bioGuideId="E000296">Mr. <inline class="smallCaps">Evans</inline></cosponsor>, <cosponsor bioGuideId="C001069">Mr. <inline class="smallCaps">Courtney</inline></cosponsor>, <cosponsor bioGuideId="N000188">Mr. <inline class="smallCaps">Norcross</inline></cosponsor>, <cosponsor bioGuideId="M001160">Ms. <inline class="smallCaps">Moore</inline></cosponsor>, <cosponsor bioGuideId="K000380">Mr. <inline class="smallCaps">Kildee</inline></cosponsor>, <cosponsor bioGuideId="N000147">Ms. <inline class="smallCaps">Norton</inline></cosponsor>, <cosponsor bioGuideId="M000312">Mr. <inline class="smallCaps">McGovern</inline></cosponsor>, <cosponsor bioGuideId="V000108">Mr. <inline class="smallCaps">Visclosky</inline></cosponsor>, <cosponsor bioGuideId="C001112">Mr. <inline class="smallCaps">Carbajal</inline></cosponsor>, <cosponsor bioGuideId="P000614">Mr. <inline class="smallCaps">Pappas</inline></cosponsor>, <cosponsor bioGuideId="B001278">Ms. <inline class="smallCaps">Bonamici</inline></cosponsor>, <cosponsor bioGuideId="H001087">Ms. <inline class="smallCaps">Hill</inline> of California</cosponsor>, <cosponsor bioGuideId="H001081">Mrs. <inline class="smallCaps">Hayes</inline></cosponsor>, <cosponsor bioGuideId="C001090">Mr. <inline class="smallCaps">Cartwright</inline></cosponsor>, <cosponsor bioGuideId="M001166">Mr. <inline class="smallCaps">McNerney</inline></cosponsor>, <cosponsor bioGuideId="B001303">Ms. <inline class="smallCaps">Blunt Rochester</inline></cosponsor>, <cosponsor bioGuideId="K000394">Mr. <inline class="smallCaps">Kim</inline></cosponsor>, <cosponsor bioGuideId="T000483">Mr. <inline class="smallCaps">Trone</inline></cosponsor>, <cosponsor bioGuideId="A000376">Mr. <inline class="smallCaps">Allred</inline></cosponsor>, <cosponsor bioGuideId="R000613">Mr. <inline class="smallCaps">Rose</inline> of New York</cosponsor>, <cosponsor bioGuideId="T000460">Mr. <inline class="smallCaps">Thompson</inline> of California</cosponsor>, <cosponsor bioGuideId="M001188">Ms. <inline class="smallCaps">Meng</inline></cosponsor>, <cosponsor bioGuideId="C001068">Mr. <inline class="smallCaps">Cohen</inline></cosponsor>, <cosponsor bioGuideId="S001201">Mr. <inline class="smallCaps">Suozzi</inline></cosponsor>, <cosponsor bioGuideId="W000826">Ms. <inline class="smallCaps">Wild</inline></cosponsor>, <cosponsor bioGuideId="E000215">Ms. <inline class="smallCaps">Eshoo</inline></cosponsor>, <cosponsor bioGuideId="S001200">Mr. <inline class="smallCaps">Soto</inline></cosponsor>, <cosponsor bioGuideId="H001066">Mr. <inline class="smallCaps">Horsford</inline></cosponsor>, <cosponsor bioGuideId="V000132">Mr. <inline class="smallCaps">Vela</inline></cosponsor>, <cosponsor bioGuideId="B001281">Mrs. <inline class="smallCaps">Beatty</inline></cosponsor>, <cosponsor bioGuideId="W000797">Ms. <inline class="smallCaps">Wasserman Schultz</inline></cosponsor>, <cosponsor bioGuideId="K000375">Mr. <inline class="smallCaps">Keating</inline></cosponsor>, <cosponsor bioGuideId="G000592">Mr. <inline class="smallCaps">Golden</inline></cosponsor>, <cosponsor bioGuideId="S001150">Mr. <inline class="smallCaps">Schiff</inline></cosponsor>, <cosponsor bioGuideId="C001119">Ms. <inline class="smallCaps">Craig</inline></cosponsor>, <cosponsor bioGuideId="W000800">Mr. <inline class="smallCaps">Welch</inline></cosponsor>, <cosponsor bioGuideId="D000482">Mr. <inline class="smallCaps">Michael F. Doyle</inline> of Pennsylvania</cosponsor>, <cosponsor bioGuideId="G000587">Ms. <inline class="smallCaps">Garcia</inline> of Texas</cosponsor>, <cosponsor bioGuideId="D000096">Mr. <inline class="smallCaps">Danny K. Davis</inline> of Illinois</cosponsor>, <cosponsor bioGuideId="R000599">Mr. <inline class="smallCaps">Ruiz</inline></cosponsor>, <cosponsor bioGuideId="M001163">Ms. <inline class="smallCaps">Matsui</inline></cosponsor>, <cosponsor bioGuideId="S001208">Ms. <inline class="smallCaps">Slotkin</inline></cosponsor>, <cosponsor bioGuideId="W000808">Ms. <inline class="smallCaps">Wilson</inline> of Florida</cosponsor>, <cosponsor bioGuideId="L000565">Mr. <inline class="smallCaps">Loebsack</inline></cosponsor>, <cosponsor bioGuideId="C001111">Mr. <inline class="smallCaps">Crist</inline></cosponsor>, <cosponsor bioGuideId="B001286">Mrs. <inline class="smallCaps">Bustos</inline></cosponsor>, <cosponsor bioGuideId="M001207">Ms. <inline class="smallCaps">Mucarsel-Powell</inline></cosponsor>, <cosponsor bioGuideId="C001117">Mr. <inline class="smallCaps">Casten</inline> of Illinois</cosponsor>, <cosponsor bioGuideId="S001216">Ms. <inline class="smallCaps">Schrier</inline></cosponsor>, <cosponsor bioGuideId="C001063">Mr. <inline class="smallCaps">Cuellar</inline></cosponsor>, <cosponsor bioGuideId="W000825">Ms. <inline class="smallCaps">Wexton</inline></cosponsor>, <cosponsor bioGuideId="C001061">Mr. <inline class="smallCaps">Cleaver</inline></cosponsor>, <cosponsor bioGuideId="S001145">Ms. <inline class="smallCaps">Schakowsky</inline></cosponsor>, <cosponsor bioGuideId="S001168">Mr. <inline class="smallCaps">Sarbanes</inline></cosponsor>, <cosponsor bioGuideId="M001185">Mr. <inline class="smallCaps">Sean Patrick Maloney</inline> of New York</cosponsor>, <cosponsor bioGuideId="L000586">Mr. <inline class="smallCaps">Lawson</inline> of Florida</cosponsor>, <cosponsor bioGuideId="P000616">Mr. <inline class="smallCaps">Phillips</inline></cosponsor>, <cosponsor bioGuideId="S001190">Mr. <inline class="smallCaps">Schneider</inline></cosponsor>, <cosponsor bioGuideId="M001137">Mr. <inline class="smallCaps">Meeks</inline></cosponsor>, <cosponsor bioGuideId="E000297">Mr. <inline class="smallCaps">Espaillat</inline></cosponsor>, <cosponsor bioGuideId="L000562">Mr. <inline class="smallCaps">Lynch</inline></cosponsor>, <cosponsor bioGuideId="H001038">Mr. <inline class="smallCaps">Higgins</inline> of New York</cosponsor>, <cosponsor bioGuideId="L000559">Mr. <inline class="smallCaps">Langevin</inline></cosponsor>, <cosponsor bioGuideId="C001080">Ms. <inline class="smallCaps">Judy Chu</inline> of California</cosponsor>, <cosponsor bioGuideId="S001215">Ms. <inline class="smallCaps">Stevens</inline></cosponsor>, <cosponsor bioGuideId="P000593">Mr. <inline class="smallCaps">Perlmutter</inline></cosponsor>, <cosponsor bioGuideId="D000629">Ms. <inline class="smallCaps">Davids</inline> of Kansas</cosponsor>, <cosponsor bioGuideId="A000378">Mrs. <inline class="smallCaps">Axne</inline></cosponsor>, <cosponsor bioGuideId="H000324">Mr. <inline class="smallCaps">Hastings</inline></cosponsor>, <cosponsor bioGuideId="B001292">Mr. <inline class="smallCaps">Beyer</inline></cosponsor>, <cosponsor bioGuideId="L000480">Mrs. <inline class="smallCaps">Lowey</inline></cosponsor>, <cosponsor bioGuideId="M001200">Mr. <inline class="smallCaps">McEachin</inline></cosponsor>, <cosponsor bioGuideId="T000474">Mrs. <inline class="smallCaps">Torres</inline> of California</cosponsor>, <cosponsor bioGuideId="P000604">Mr. <inline class="smallCaps">Payne</inline></cosponsor>, <cosponsor bioGuideId="S001205">Ms. <inline class="smallCaps">Scanlon</inline></cosponsor>, <cosponsor bioGuideId="D000610">Mr. <inline class="smallCaps">Deutch</inline></cosponsor>, <cosponsor bioGuideId="Y000062">Mr. <inline class="smallCaps">Yarmuth</inline></cosponsor>, <cosponsor bioGuideId="S001209">Ms. <inline class="smallCaps">Spanberger</inline></cosponsor>, <cosponsor bioGuideId="J000294">Mr. <inline class="smallCaps">Jeffries</inline></cosponsor>, <cosponsor bioGuideId="M001208">Mrs. <inline class="smallCaps">McBath</inline></cosponsor>, <cosponsor bioGuideId="D000624">Mrs. <inline class="smallCaps">Dingell</inline></cosponsor>, <cosponsor bioGuideId="F000467">Ms. <inline class="smallCaps">Finkenauer</inline></cosponsor>, <cosponsor bioGuideId="G000559">Mr. <inline class="smallCaps">Garamendi</inline></cosponsor>, <cosponsor bioGuideId="M001143">Ms. <inline class="smallCaps">McCollum</inline></cosponsor>, <cosponsor bioGuideId="V000131">Mr. <inline class="smallCaps">Veasey</inline></cosponsor>, <cosponsor bioGuideId="C001091">Mr. <inline class="smallCaps">Castro</inline> of Texas</cosponsor>, <cosponsor bioGuideId="G000581">Mr. <inline class="smallCaps">Gonzalez</inline> of Texas</cosponsor>, <cosponsor bioGuideId="B001270">Ms. <inline class="smallCaps">Bass</inline></cosponsor>, <cosponsor bioGuideId="B000490">Mr. <inline class="smallCaps">Bishop</inline> of Georgia</cosponsor>, <cosponsor bioGuideId="S000510">Mr. <inline class="smallCaps">Smith</inline> of Washington</cosponsor>, <cosponsor bioGuideId="L000579">Mr. <inline class="smallCaps">Lowenthal</inline></cosponsor>, and <cosponsor bioGuideId="F000468">Mrs. <inline class="smallCaps">Fletcher</inline></cosponsor></actionDescription>
</action>
<action><date><inline class="smallCaps">December </inline>9, 2019</date>
<actionDescription>Reported from the <committee committeeId="HED00" addedDisplayStyle="boldItalic">Committee on Education and Labor</committee> with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed</actionDescription>
<actionInstruction>[Strike out all after the enacting clause and insert the part printed in boldface italic]</actionInstruction>
<actionInstruction>[For text of introduced bill, see copy of bill as introduced on September 19, 2019]</actionInstruction>
</action>
</preface>
<main styleType="OLC"><longTitle><docTitle>A BILL</docTitle><officialTitle>To establish a fair price negotiation program, protect the Medicare program from excessive price increases, and establish an out-of-pocket maximum for Medicare part D enrollees, and for other purposes.</officialTitle></longTitle><enactingFormula><i>Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, </i></enactingFormula>
    <collection>
        <component origin="#HIF00" changed="added">
            <main> 
<section identifier="/us/bill/116/hr/3/s1" id="H493883A1CE5344B48E9A91FE0C3EADF1"><num value="1">SECTION 1. </num>
<heading>SHORT TITLE; TABLE OF CONTENTS.</heading>
<subsection identifier="/us/bill/116/hr/3/s1/a" id="HEE1F43D5677C42DC9F38B6ECCD185985" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>This Act may be cited as the “<shortTitle role="act">Lower Drug Costs Now Act of 2019</shortTitle>”.</content></subsection>
<subsection identifier="/us/bill/116/hr/3/s1/b" id="H25C2C6E98CEA475981E092F1AE0D29CD" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Table of Contents</inline>.—</heading>
<content>The table of contents is as follows:
<toc>
<referenceItem idref="H493883A1CE5344B48E9A91FE0C3EADF1" role="section">
<designator>Sec. 1. </designator>
<label>Short title; table of contents.</label></referenceItem>
<referenceItem role="title" idref="HD5434EF4D9F0424D8F6C80B40012D4FF">
<designator>TITLE I—</designator>
<label>LOWERING PRICES THROUGH FAIR DRUG PRICE NEGOTIATION</label></referenceItem>
<referenceItem role="section" idref="H07B1973A065340C1944D9143767F0963">
<designator>Sec. 101. </designator>
<label>Providing for lower prices for certain high-priced single source drugs.</label></referenceItem>
<referenceItem role="section" idref="HD21D1A9F2F4147FEB764EAA8378188CD">
<designator>Sec. 102. </designator>
<label>Selected drug manufacturer excise tax imposed during noncompliance periods.</label></referenceItem>
<referenceItem role="title" idref="HC44155010E2A4D1083A31609B4A436D7">
<designator>TITLE II—</designator>
<label>MEDICARE PARTS B AND D PRESCRIPTION DRUG INFLATION REBATES</label></referenceItem>
<referenceItem role="section" idref="H6AE65BEBC60246ECBAC83FA289C9320A">
<designator>Sec. 201. </designator>
<label>Medicare part B rebate by manufacturers.</label></referenceItem>
<referenceItem role="section" idref="H0B6EC0DC1D4B41B7A2B565A2C34FC7AA">
<designator>Sec. 202. </designator>
<label>Medicare part D rebate by manufacturers.</label></referenceItem>
<referenceItem role="title" idref="H054FCC869C89433A88C30141C7693CCF">
<designator>TITLE III—</designator>
<label>PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE BENEFICIARIES</label></referenceItem>
<referenceItem role="section" idref="H4A9B4E55BDB84656BDD6B5D154861662">
<designator>Sec. 301. </designator>
<label>Medicare part D benefit redesign.</label></referenceItem>
<referenceItem role="section" idref="H8263B6FEB0B4486A8DB8994B16684AEF">
<designator>Sec. 302. </designator>
<label>Allowing certain enrollees of prescription drugs plans and MA–PD plans under Medicare program to spread out cost-sharing under certain circumstances.</label></referenceItem>
<referenceItem role="section" idref="H21F985F40CF64BDCAC1F84723653C9CA">
<designator>Sec. 303. </designator>
<label>Establishment of pharmacy quality measures under Medicare part D.</label></referenceItem>
<referenceItem role="title" idref="H6710AAF061694EDB863D8A3AC388CADF">
<designator>TITLE IV—</designator>
<label>PRESCRIPTION DRUG POLICIES FOR LOW-INCOME INDIVIDUALS</label></referenceItem>
<referenceItem role="section" idref="H74677EBEB5B14487AE6B261BEBB7FA99">
<designator>Sec. 401. </designator>
<label>Adjustments to Medicare part D cost-sharing reductions for low-income individuals.</label></referenceItem>
<referenceItem role="section" idref="HA59BE9549F754D2F88681EEBA8CD14A8">
<designator>Sec. 402. </designator>
<label>Dissemination to Medicare part D subsidy eligible individuals of information comparing premiums of certain prescription drug plans.</label></referenceItem>
<referenceItem role="section" idref="H5133588938FB4B2FB83645FC73A48820">
<designator>Sec. 403. </designator>
<label>Providing for intelligent assignment of certain subsidy eligible individuals auto-enrolled under Medicare prescription drug plans and MA–PD plans.</label></referenceItem>
<referenceItem role="section" idref="H38A78252380C4E8392ABB83B53E3D096">
<designator>Sec. 404. </designator>
<label>Expanding eligibility for low-income subsidies under part D of the Medicare program.</label></referenceItem>
<referenceItem role="section" idref="H4228CE7AFEE44B898852009E3DF0DB7F">
<designator>Sec. 405. </designator>
<label>Automatic eligibility of certain low-income territorial residents for premium and cost-sharing subsidies under the Medicare program; Sunset of enhanced allotment program.</label></referenceItem>
<referenceItem role="section" idref="HF8E1D2D9CAFE488281AD06BDCC84011F">
<designator>Sec. 406. </designator>
<label>Automatic qualification of certain Medicaid beneficiaries for premium and cost-sharing subsidies under part D of the Medicare program.</label></referenceItem>
<referenceItem role="section" idref="H30B969B7982E461EA69648B971C5078D">
<designator>Sec. 407. </designator>
<label>Eliminating the resource requirement with respect to subsidy eligible individuals under part D of the Medicare program.</label></referenceItem>
<referenceItem role="title" idref="H8CB7016DB80240B8A6F589B91918B63F">
<designator>TITLE V—</designator>
<label>DRUG PRICE TRANSPARENCY</label></referenceItem>
<referenceItem role="section" idref="H7BB2E3533F5142ABA30D96A05C82DB44">
<designator>Sec. 501. </designator>
<label>Drug price transparency.</label></referenceItem>
<referenceItem role="title" idref="H271B3E658EFC407AB52FD1AB519EF242">
<designator>TITLE VI—</designator>
<label>MISCELLANEOUS</label></referenceItem>
<referenceItem role="section" idref="HAD289A24841B4124916CB3F65FF7B2D9">
<designator>Sec. 601. </designator>
<label>Temporary increase in Medicare part B payment for certain biosimilar biological products.</label></referenceItem></toc></content></subsection></section>
<title identifier="/us/bill/116/hr/3/tI" id="HD5434EF4D9F0424D8F6C80B40012D4FF"><num value="I">TITLE I—</num>
<heading class="inline">LOWERING PRICES THROUGH FAIR DRUG PRICE NEGOTIATION</heading> 
<section identifier="/us/bill/116/hr/3/tI/s101" id="H07B1973A065340C1944D9143767F0963" role="subsequent-section"><num value="101">SEC. 101. </num>
<heading>PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-PRICED SINGLE SOURCE DRUGS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tI/s101/a" id="H6AE5750AED3146D0BF877D2EBBAC049E" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">Program To Lower Prices for Certain High-Priced Single Source Drugs</inline>.—</heading>
<content>Title XI of the Social Security Act (<ref href="/us/usc/t42/s1301">42 U.S.C. 1301</ref> et seq.) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new part:<quotedContent meta="committee ID HIF00" id="H6711572835E540C5A6044819218E0B89" styleType="OLC"> <part id="H87031D4F09ED4DC7905A5B04F1A0B926"><num value="E">“PART E—</num>
<heading>FAIR PRICE NEGOTIATION PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-PRICED SINGLE SOURCE DRUGS</heading> 
<section id="H7E9D06768A254CECAEAE1B420B13C538" role="subsequent-section"><num value="1191">“SEC. 1191. </num>
<heading>ESTABLISHMENT OF PROGRAM.</heading>
<subsection id="H9C9F4E49A5AE4256867E57711CF8AA68" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>The Secretary shall establish a Fair Price Negotiation Program (in this part referred to as the ‘program’). Under the program, with respect to each price applicability period, the Secretary shall—</chapeau>
<paragraph id="H13F8CAC4C1A34D9587A8D32374867790" class="indent1"><num value="1">“(1) </num>
<content>publish a list of selected drugs in accordance with section 1192;</content></paragraph>
<paragraph id="HAB31BFDD1B3248A4A596C042C9491201" class="indent1"><num value="2">“(2) </num>
<content>enter into agreements with manufacturers of selected drugs with respect to such period, in accordance with section 1193;</content></paragraph>
<paragraph id="H0713405F491E4311BFE66DBA5C8C5CD3" class="indent1"><num value="3">“(3) </num>
<content>negotiate and, if applicable, renegotiate maximum fair prices for such selected drugs, in accordance with section 1194; and</content></paragraph>
<paragraph id="H42D1E18FBBDC48FAB254A97C80C15722" class="indent1"><num value="4">“(4) </num>
<content>carry out the administrative duties described in section 1196.</content></paragraph></subsection>
<subsection id="H62C0C0F15DA94E81A3A2237D4D60AA43" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Definitions Relating to Timing</inline>.—</heading>
<chapeau>For purposes of this part:</chapeau>
<paragraph role="definitions" id="H11FF107A3CCD4374BFFB723E61C2E899" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Initial price applicability year</inline>.—</heading>
<content>The term ‘<term>initial price applicability year</term>’ means a plan year (beginning with plan year 2023) or, if agreed to in an agreement under section 1193 by the Secretary and manufacturer involved, a period of more than one plan year (beginning on or after January 1, 2023).</content></paragraph>
<paragraph role="definitions" id="HE1264C9396C64AAC974394BE736C550D" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Price applicability period</inline>.—</heading>
<content>The term ‘<term>price applicability period</term>’ means, with respect to a drug, the period beginning with the initial price applicability year with respect to which such drug is a selected drug and ending with the last plan year during which the drug is a selected drug.</content></paragraph>
<paragraph role="definitions" id="H3E1B49A929D045489C2F35D6CA7C2CA3" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Selected drug publication date</inline>.—</heading>
<content>The term ‘<term>selected drug publication date</term>’ means, with respect to each initial price applicability year, April 15 of the plan year that begins 2 years prior to such year.</content></paragraph>
<paragraph role="definitions" id="H08D8A643B63F4CC189D952918378B20A" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Voluntary negotiation period</inline>.—</heading>
<chapeau>The term ‘<term>voluntary negotiation period</term>’ means, with respect to an initial price applicability year with respect to a selected drug, the period—</chapeau>
<subparagraph id="H3CDAF7D3EA0B471686553817F73409B5" class="indent2"><num value="A">“(A) </num>
<chapeau>beginning on the sooner of—</chapeau>
<clause id="HFDC189771B5A4FDFB684EF6FFC3737D9" class="indent3"><num value="i">“(i) </num>
<content>the date on which the manufacturer of the drug and the Secretary enter into an agreement under section 1193 with respect to such drug; or</content></clause>
<clause id="HCB75211169FA4D74B303CF696EBAA47A" class="indent3"><num value="ii">“(ii) </num>
<content>June 15 following the selected drug publication date with respect to such selected drug; and</content></clause></subparagraph>
<subparagraph id="HA9E2A634DF154494A7B2F65D0B4872B1" class="indent2"><num value="B">“(B) </num>
<content>ending on March 31 of the year that begins one year prior to the initial price applicability year.</content></subparagraph></paragraph></subsection>
<subsection id="HAE9B92495349405C8026ECD5005FE559" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Other Definitions</inline>.—</heading>
<chapeau>For purposes of this part:</chapeau>
<paragraph role="definitions" id="HE43FD15944224CC0A8211CF99E6CD291" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Fair price eligible individual</inline>.—</heading>
<chapeau>The term ‘<term>fair price eligible individual</term>’ means, with respect to a selected drug—</chapeau>
<subparagraph id="HF9E3C5D0D25047C68DFCFCCEC0C0C9AE" class="indent2"><num value="A">“(A) </num>
<chapeau>in the case such drug is furnished or dispensed to the individual at a pharmacy or by a mail order service—</chapeau>
<clause id="H5EE7C54733A54393BF5640843745A6D4" class="indent3"><num value="i">“(i) </num>
<content>an individual who is enrolled under a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title under which coverage is provided for such drug; and</content></clause>
<clause id="H33142C6D469D4B3583960FA36DB5ADE8" class="indent3"><num value="ii">“(ii) </num>
<content>an individual who is enrolled under a group health plan or health insurance coverage offered in the group or individual market (as such terms are defined in section 2791 of the Public Health Service Act) with respect to which there is in effect an agreement with the Secretary under section 1197 with respect to such selected drug as so furnished or dispensed; and</content></clause></subparagraph>
<subparagraph id="H7F02E8859F004BD89B7E4706B3BBA5C3" class="indent2"><num value="B">“(B) </num>
<chapeau>in the case such drug is furnished or administered to the individual by a hospital, physician, or other provider of services or supplier—</chapeau>
<clause id="H9EE0B5855156468DA4FED47FA0029C9E" class="indent3"><num value="i">“(i) </num>
<content>an individual who is entitled to benefits under part A of title XVIII or enrolled under part B of such title if such selected drug is covered under the respective part; and</content></clause>
<clause id="HB42B6AB62C164D8C8BE7077685DD7980" class="indent3"><num value="ii">“(ii) </num>
<content>an individual who is enrolled under a group health plan or health insurance coverage offered in the group or individual market (as such terms are defined in section 2791 of the Public Health Service Act) with respect to which there is in effect an agreement with the Secretary under section 1197 with respect to such selected drug as so furnished or administered.</content></clause></subparagraph></paragraph>
<paragraph role="definitions" id="HF7C8935F52394F7CAD64C5DA6BCC375B" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Maximum fair price</inline>.—</heading>
<content>The term ‘<term>maximum fair price</term>’ means, with respect to a plan year during a price applicability period and with respect to a selected drug (as defined in section 1192(c)) with respect to such period, the price published pursuant to section 1195 in the Federal Register for such drug and year.</content></paragraph>
<paragraph id="H52E5AD548D2D4FCAB21D3502C1AF0D7C" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Average international market price defined</inline>.—</heading>
<subparagraph id="H440CD303BE064DE582067FB615BAE7E4" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The terms ‘average international market price’ and ‘AIM price’ mean, with respect to a drug, the average price (which shall be the net average price, if practicable, and volume-weighted, if practicable) for a unit (as defined in paragraph (4)) of the drug for sales of such drug (calculated across different dosage forms and strengths of the drug and not based on the specific formulation or package size or package type), as computed (as of the date of publication of such drug as a selected drug under section 1192(a)) in all countries described in clause (ii) of subparagraph (B) that are applicable countries (as described in clause (i) of such subparagraph) with respect to such drug.</content></subparagraph>
<subparagraph id="H85E3A605D0B74D5D95BE5FE4EAC1E2E3" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Applicable countries</inline>.—</heading>
<clause id="H3BE0A679DA0B42D88E321B4A469823CC" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>For purposes of subparagraph (A), a country described in clause (ii) is an applicable country described in this clause with respect to a drug if there is available an average price for any unit for the drug for sales of such drug in such country.</content></clause>
<clause id="H983F1777C27C4DD9BB553204E8A127AF" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Countries described</inline>.—</heading>
<chapeau>For purposes of this paragraph, the following are countries described in this clause:</chapeau>
<subclause id="HBAC335DF0E81497ABD4E0F59BF0E2FAF" class="indent4"><num value="I">“(I) </num>
<content>Australia.</content></subclause>
<subclause id="HD08AB9716E6F4CA4A6ED908613A44FDE" class="indent4"><num value="II">“(II) </num>
<content>Canada.</content></subclause>
<subclause id="H6DBC2232B79945C2B8AD50EEB61D9B12" class="indent4"><num value="III">“(III) </num>
<content>France.</content></subclause>
<subclause id="HC1D87C7E808D426CA81C7471BBCD9A7D" class="indent4"><num value="IV">“(IV) </num>
<content>Germany.</content></subclause>
<subclause id="H6E0AA8DE28CD425493A32D64B0EE5D40" class="indent4"><num value="V">“(V) </num>
<content>Japan.</content></subclause>
<subclause id="H383E649D41B04239BEE30D904DD8F3D3" class="indent4"><num value="VI">“(VI) </num>
<content>The United Kingdom.</content></subclause></clause></subparagraph></paragraph>
<paragraph role="definitions" id="H08549D9D705A4A4A90126CC0B5EB5C74" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Unit</inline>.—</heading>
<content>The term ‘<term>unit</term>’ means, with respect to a drug, the lowest identifiable quantity (such as a capsule or tablet, milligram of molecules, or grams) of the drug that is dispensed.</content></paragraph></subsection></section> 
<section id="HC1AC1D6DACCA44379A287F0E9AE3ACF3" role="subsequent-section"><num value="1192">“SEC. 1192. </num>
<heading>SELECTION OF NEGOTIATION-ELIGIBLE DRUGS AS SELECTED DRUGS.</heading>
<subsection id="H9E671B7C826842DD9196CD641E0C05AD" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>Not later than the selected drug publication date with respect to an initial price applicability year, the Secretary shall select and publish in the Federal Register a list of—</chapeau>
<paragraph id="HAB9572D7D47D4CFA9F0242FA7B249F31" class="indent1"><num value="1">“(1)</num>
<subparagraph id="H73693BF183F0440BB59AF707C17C4825" class="inline"><num value="A">(A) </num>
<content>with respect to an initial price applicability year during the period beginning with 2023 and ending with 2027, at least 25 negotiation-eligible drugs described in subparagraphs (A) and (B), but not subparagraph (C), of subsection (d)(1) (or, with respect to an initial price applicability year during such period beginning after 2023, the maximum number (if such number is less than 25) of such negotiation-eligible drugs for the year) with respect to such year;</content></subparagraph>
<subparagraph meta="committee ID HIF00" id="HB2A69897D1504E6AA1E7DF1DF6D9226C" class="indent1"><num value="B">“(B) </num>
<content>with respect to an initial price applicability year during the period beginning with 2028 and ending with 2032, at least 30 negotiation-eligible drugs described in subparagraphs (A) and (B), but not subparagraph (C), of subsection (d)(1) (or, with respect to an initial price applicability year during such period, the maximum number (if such number is less than 30) of such negotiation-eligible drugs for the year) with respect to such year; and</content></subparagraph>
<subparagraph meta="committee ID HIF00" id="H7271EA421D6C4D14BCF3DA335FD3F3FE" class="indent1"><num value="C">“(C) </num>
<content>with respect to an initial price applicability year beginning after 2032, at least 35 negotiation-eligible drugs described in subparagraphs (A) and (B), but not subparagraph (C), of subsection (d)(1) (or, with respect to an initial price applicability year during such period, the maximum number (if such number is less than 35) of such negotiation-eligible drugs for the year) with respect to such year;</content></subparagraph></paragraph>
<paragraph id="H7D4E8BDE0B4845CE8EEDEB7168495F2D" class="indent1"><num value="2">“(2) </num>
<content>all negotiation-eligible drugs described in subparagraph (C) of such subsection with respect to such year; and</content></paragraph>
<paragraph id="H0266BCC3E7EF431E803B81767EB9E104" class="indent1"><num value="3">“(3) </num>
<content>all new-entrant negotiation-eligible drugs (as defined in subsection (g)(1)) with respect to such year.</content></paragraph>
<continuation class="indent0">Each drug published on the list pursuant to the previous sentence shall be subject to the negotiation process under section 1194 for the voluntary negotiation period with respect to such initial price applicability year (and the renegotiation process under such section as applicable for any subsequent year during the applicable price applicability period). In applying this subsection, any negotiation-eligible drug that is selected under this subsection for an initial price applicability year shall not count toward the required minimum amount of drugs to be selected under paragraph (1) for any subsequent year, including such a drug so selected that is subject to renegotiation under section 1194.</continuation></subsection>
<subsection id="HB951C84E42B84D12AB4895A63DF361C2" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Selection of Drugs</inline>.—</heading>
<content>In carrying out subsection (a)(1) the Secretary shall select for inclusion on the published list described in subsection (a) with respect to a price applicability period, the negotiation-eligible drugs that the Secretary projects will result in the greatest savings to the Federal Government or fair price eligible individuals during the price applicability period. In making this projection of savings for drugs for which there is an AIM price for a price applicability period, the savings shall be projected across different dosage forms and strengths of the drugs and not based on the specific formulation or package size or package type of the drugs, taking into consideration both the volume of drugs for which payment is made, to the extent such data is available, and the amount by which the net price for the drugs exceeds the AIM price for the drugs.</content></subsection>
<subsection id="H979B62A99443465DA370DF2F9256F98F" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Selected Drug</inline>.—</heading>
<chapeau>For purposes of this part, each drug included on the list published under subsection (a) with respect to an initial price applicability year shall be referred to as a ‘selected drug’ with respect to such year and each subsequent plan year beginning before the first plan year beginning after the date on which the Secretary determines two or more drug products—</chapeau>
<paragraph id="H0AC255E26BCA46F688AA2AA7CAC07AA8" class="indent1"><num value="1">“(1) </num>
<chapeau>are approved or licensed (as applicable)—</chapeau>
<subparagraph id="HFA88FC4453304A1594A8D413A0691558" class="indent2"><num value="A">“(A) </num>
<content>under section 505(j) of the Federal Food, Drug, and Cosmetic Act using such drug as the listed drug; or</content></subparagraph>
<subparagraph id="H8BC0C963069D430B85D21A61D9072904" class="indent2"><num value="B">“(B) </num>
<content>under section 351(k) of the Public Health Service Act using such drug as the reference product; and</content></subparagraph></paragraph>
<paragraph id="H71A6D2056939418B895A5DE04119292A" class="indent1"><num value="2">“(2) </num>
<content>continue to be marketed.</content></paragraph></subsection>
<subsection id="HF4D5C413F0BB4900BC189598A2ED04F6" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Negotiation-Eligible Drug</inline>.—</heading>
<paragraph role="definitions" id="HF2A6C6A1D8E54F9991C50857CD9A4034" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of this part, the term ‘<term>negotiation-eligible drug</term>’ means, with respect to the selected drug publication date with respect to an initial price applicability year, a qualifying single source drug, as defined in subsection (e), that meets any of the following criteria:</chapeau>
<subparagraph id="HDAEB07F9559B4311940DF25B40F6496C" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Covered part d drugs</inline>.—</heading>
<content>The drug is among the 125 covered part D drugs (as defined in section 1860D–2(e)) for which there was an estimated greatest net spending under parts C and D of title XVIII, as determined by the Secretary, during the most recent plan year prior to such drug publication date for which data are available.</content></subparagraph>
<subparagraph id="HEB7777A063BA40E4A2A3D0C22B863EEE" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Other drugs</inline>.—</heading>
<content>The drug is among the 125 drugs for which there was an estimated greatest net spending in the United States (including the 50 States, the District of Columbia, and the territories of the United States), as determined by the Secretary, during the most recent plan year prior to such drug publication date for which data are available.</content></subparagraph>
<subparagraph id="HFB94266F72ED4E2AABE5AF4F9C7E7B39" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Insulin</inline>.—</heading>
<content>The drug is a qualifying single source drug described in subsection (e)(3).</content></subparagraph></paragraph>
<paragraph id="H83A91E94A5064D2D939BCD5B836AAD32" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Clarification</inline>.—</heading>
<content>In determining whether a qualifying single source drug satisfies any of the criteria described in paragraph (1), the Secretary shall, to the extent practicable, use data that is aggregated across dosage forms and strengths of the drug and not based on the specific formulation or package size or package type of the drug.</content></paragraph>
<paragraph id="H5AD8018BCC714CFFAB56D0261A7B0B41" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Publication</inline>.—</heading>
<content>Not later than the selected drug publication date with respect to an initial price applicability year, the Secretary shall publish in the Federal Register a list of negotiation-eligible drugs with respect to such selected drug publication date.</content></paragraph></subsection>
<subsection role="definitions" id="H651D1DF732E54E17BB4EB82E38FB47FC" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Qualifying Single Source Drug</inline>.—</heading>
<chapeau>For purposes of this part, the term ‘<term>qualifying single source drug</term>’ means any of the following:</chapeau>
<paragraph id="H2252EB8A9AD94ABFA479301C7C310EB5" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Drug products</inline>.—</heading>
<chapeau>A drug that—</chapeau>
<subparagraph id="HFDBE60F0CCDA4DFC8DF85A1B8288BBBD" class="indent2"><num value="A">“(A) </num>
<content>is approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act and continues to be marketed pursuant to such approval; and</content></subparagraph>
<subparagraph id="H32454A39981E49BDBE46603C8231A83F" class="indent2"><num value="B">“(B) </num>
<content>is not the listed drug for any drug that is approved and continues to be marketed under section 505(j) of such Act.</content></subparagraph></paragraph>
<paragraph id="HEF6E8738260845E8883896AD693854A8" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Biological products</inline>.—</heading>
<chapeau>A biological product that—</chapeau>
<subparagraph id="H331D7837CB314A1CBA52C3A307321C90" class="indent2"><num value="A">“(A) </num>
<content>is licensed under section 351(a) of the Public Health Service Act, including any product that has been deemed to be licensed under section 351 of such Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009, and continues to be marketed under section 351 of such Act; and</content></subparagraph>
<subparagraph id="H95BF0C19394F4809AD8DC35D70801DE3" class="indent2"><num value="B">“(B) </num>
<content>is not the reference product for any biological product that is licensed and continues to be marketed under section 351(k) of such Act.</content></subparagraph></paragraph>
<paragraph id="HBE1E963D0C3A4C2AB7B7A53071503734" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Insulin product</inline>.—</heading>
<content>Notwithstanding paragraphs (1) and (2), any insulin product that is approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under subsection (a) or (k) of section 351 of the Public Health Service Act and continues to be marketed under such section 505 or 351, including any insulin product that has been deemed to be licensed under section 351(a) of the Public Health Service Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 and continues to be marketed pursuant to such licensure.</content></paragraph>
<continuation class="indent0">For purposes of applying paragraphs (1) and (2), a drug or biological product that is marketed by the same sponsor or manufacturer (or an affiliate thereof or a cross-licensed producer or distributor) as the listed drug or reference product described in such respective paragraph shall not be taken into consideration.</continuation></subsection>
<subsection id="HF7BE82F8AC254FBF9AEE1B7B4AFBF66E" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Information on International Drug Prices</inline>.—</heading>
<content>For purposes of determining which negotiation-eligible drugs to select under subsection (a) and, in the case of such drugs that are selected drugs, to determine the maximum fair price for such a drug and whether such maximum fair price should be renegotiated under section 1194, the Secretary shall use data relating to the AIM price with respect to such drug as available or provided to the Secretary and shall on an ongoing basis request from manufacturers of selected drugs information on the AIM price of such a drug.</content></subsection>
<subsection id="HD209492023B74DDBAC638A5BAD4F22CA" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">New-entrant Negotiation-eligible Drugs</inline>.—</heading>
<paragraph role="definitions" id="H17853F1D56104F9B9D4C87F7B33AB7A7" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of this part, the term ‘<term>new-entrant negotiation-eligible drug</term>’ means, with respect to the selected drug publication date with respect to an initial price applicability year, a qualifying single source drug—</chapeau>
<subparagraph id="H70FE431E191D4A45A9FAC2F7C51C60CF" class="indent2"><num value="A">“(A) </num>
<content>that is first approved or licensed, as described in paragraph (1), (2), or (3) of subsection (e), as applicable, during the year preceding such selected drug publication date; and</content></subparagraph>
<subparagraph id="H29E22E9DF2F54E55A45FE7E45C2CEB82" class="indent2"><num value="B">“(B) </num>
<content>that the Secretary determines under paragraph (2) is likely to be a negotiation-eligible drug with respect to the subsequent selected drug publication date.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H084D17F0E16A45B7B7C87C40CEE7C063" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Determination</inline>.—</heading>
<content>In the case of a qualifying single source drug that meets the criteria described in subparagraphs (A) and (B) of paragraph (1), with respect to an initial price applicability year, if the wholesale acquisition cost at which such drug is first marketed in the United States is equal to or greater than the median household income (as determined according to the most recent data collected by the United States Census Bureau), the Secretary shall determine before the selected drug publication date with respect to the initial price applicability year, if the drug is likely to be included as a negotiation-eligible drug with respect to the subsequent selected drug publication date, based on the projected spending under title XVIII or in the United States on such drug. For purposes of this paragraph the term ‘<term>United States</term>’ includes the 50 States, the District of Columbia, and the territories of the United States.</content></paragraph></subsection></section> 
<section id="H1B4773EEA693485A82560231274A3F8A" role="subsequent-section"><num value="1193">“SEC. 1193. </num>
<heading>MANUFACTURER AGREEMENTS.</heading>
<subsection id="HFAAA4349805B4FFC8178C0F598BBFB52" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>For purposes of section 1191(a)(2), the Secretary shall enter into agreements with manufacturers of selected drugs with respect to a price applicability period, by not later than June 15 following the selected drug publication date with respect to such selected drug, under which—</chapeau>
<paragraph id="H724CC4DFDAD645AF9075C7849D50DF81" class="indent1"><num value="1">“(1) </num>
<chapeau>during the voluntary negotiation period for the initial price applicability year for the selected drug, the Secretary and manufacturer, in accordance with section 1194, negotiate to determine (and, by not later than the last date of such period and in accordance with subsection (c), agree to) a maximum fair price for such selected drug of the manufacturer in order to provide access to such price—</chapeau>
<subparagraph id="H41F5B4B55F7C409898A4200F82BBF3B1" class="indent2"><num value="A">“(A) </num>
<content>to fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(1) and are furnished or dispensed such drug during, subject to subparagraph (2), the price applicability period; and</content></subparagraph>
<subparagraph id="HB481ADE5DE4E45918B5CACEF8F48F174" class="indent2"><num value="B">“(B) </num>
<content>to hospitals, physicians, and other providers of services and suppliers with respect to fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during, subject to subparagraph (2), the price applicability period;</content></subparagraph></paragraph>
<paragraph id="H09AB1DAE2EA3463E9212FC6B78D2CAC5" class="indent1"><num value="2">“(2) </num>
<chapeau>the Secretary and the manufacturer shall, in accordance with a process and during a period specified by the Secretary pursuant to rulemaking, renegotiate (and, by not later than the last date of such period and in accordance with subsection (c), agree to) the maximum fair price for such drug if the Secretary determines that there is a material change in any of the factors described in section 1194(d) relating to the drug, including changes in the AIM price for such drug, in order to provide access to such maximum fair price (as so renegotiated)—</chapeau>
<subparagraph id="HA087B51E7B564F85BFC214D9870EFD37" class="indent2"><num value="A">“(A) </num>
<content>to fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(1) and are furnished or dispensed such drug during any year during the price applicability period (beginning after such renegotiation) with respect to such selected drug; and</content></subparagraph>
<subparagraph id="H9DBA1A1CDDD742A28539ACC4C035B667" class="indent2"><num value="B">“(B) </num>
<content>to hospitals, physicians, and other providers of services and suppliers with respect to fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during any year described in subparagraph (A);</content></subparagraph></paragraph>
<paragraph id="H3CC7C56E7843483B9910BB3C5125202F" class="indent1"><num value="3">“(3) </num>
<content>the maximum fair price (including as renegotiated pursuant to paragraph (2)), with respect to such a selected drug, shall be provided to fair price eligible individuals, who with respect to such drug are described in subparagraph (A) of section 1191(c)(1), at the pharmacy or by a mail order service at the point-of-sale of such drug;</content></paragraph>
<paragraph id="H81FDDF6AD3DA408BBE38DA5992A6A30F" class="indent1"><num value="4">“(4) </num>
<chapeau>the manufacturer, subject to subsection (d), submits to the Secretary, in a form and manner specified by the Secretary—</chapeau>
<subparagraph id="HA60232CCAF8F4B9E8A0C854487921AA8" class="indent2"><num value="A">“(A) </num>
<content>for the voluntary negotiation period for the price applicability period (and, if applicable, before any period of renegotiation specified pursuant to paragraph (2)) with respect to such drug all information that the Secretary requires to carry out the negotiation (or renegotiation process) under this part, including information described in section 1192(f) and section 1194(d)(1); and</content></subparagraph>
<subparagraph id="H70043465671B4075AE5141430A7A0C22" class="indent2"><num value="B">“(B) </num>
<content>on an ongoing basis, information on changes in prices for such drug that would affect the AIM price for such drug or otherwise provide a basis for renegotiation of the maximum fair price for such drug pursuant to paragraph (2);</content></subparagraph></paragraph>
<paragraph id="HC5E8A70EC8344D0C865D657D133475EE" class="indent1"><num value="5">“(5) </num>
<content>the manufacturer agrees that in the case the selected drug of a manufacturer is a drug described in subsection (c), the manufacturer will, in accordance with such subsection, make any payment required under such subsection with respect to such drug; and</content></paragraph>
<paragraph id="H5F980F1909F74328B87295770545A94A" class="indent1"><num value="6">“(6) </num>
<content>the manufacturer complies with requirements imposed by the Secretary for purposes of administering the program, including with respect to the duties described in section 1196.</content></paragraph></subsection>
<subsection id="HCD855E0F7A144B7CB67FDEC401F630A1" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Agreement in Effect Until Drug Is No Longer a Selected Drug</inline>.—</heading>
<content>An agreement entered into under this section shall be effective, with respect to a drug, until such drug is no longer considered a selected drug under section 1192(c).</content></subsection>
<subsection id="H0482B4A43C664B97ACCF4ADC4B9182F7" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Special Rule for Certain Selected Drugs Without AIM Price</inline>.—</heading>
<paragraph id="H193B76A2BE74456C97E43357113D69B0" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>In the case of a selected drug for which there is no AIM price available with respect to the initial price applicability year for such drug and for which an AIM price becomes available beginning with respect to a subsequent plan year during the price applicability period for such drug, if the Secretary determines that the amount described in paragraph (2)(A) for a unit of such drug is greater than the amount described in paragraph (2)(B) for a unit of such drug, then by not later than one year after the date of such determination, the manufacturer of such selected drug shall pay to the Treasury an amount equal to the product of—</chapeau>
<subparagraph id="H5BC3E7C89D7B4DD9A785E91184A860DB" class="indent2"><num value="A">“(A) </num>
<content>the difference between such amount described in paragraph (2)(A) for a unit of such drug and such amount described in paragraph (2)(B) for a unit of such drug; and</content></subparagraph>
<subparagraph id="HDD0FC392394E43E69E58B54C39BDA1B5" class="indent2"><num value="B">“(B) </num>
<content>the number of units of such drug sold in the United States, including the 50 States, the District of Columbia, and the territories of the United States, during the period described in paragraph (2)(B).</content></subparagraph></paragraph>
<paragraph id="H3461E86AF9BA4DDAAA1E606A1702D84C" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Amounts described</inline>.—</heading>
<subparagraph id="H9CF571F951214776ABCA3CFD7C25AD2A" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Weighted average price before aim price available</inline>.—</heading>
<content>For purposes of paragraph (1), the amount described in this subparagraph for a selected drug described in such paragraph, is the amount equal to the weighted average manufacturer price (as defined in section 1927(k)(1)) for such dosage strength and form for the drug during the period beginning with the first plan year for which the drug is included on the list of negotiation-eligible drugs published under section 1192(d) and ending with the last plan year during the price applicability period for such drug with respect to which there is no AIM price available for such drug.</content></subparagraph>
<subparagraph id="H2A8B5A89BE534346A7FC5AE1B54B1E10" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Amount multiplier after aim price available</inline>.—</heading>
<content>For purposes of paragraph (1), the amount described in this subparagraph for a selected drug described in such paragraph, is the amount equal to 200 percent of the AIM price for such drug with respect to the first plan year during the price applicability period for such drug with respect to which there is an AIM price available for such drug.</content></subparagraph></paragraph></subsection>
<subsection id="HCE90F333306340F7844A5F2D10515500" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Confidentiality of Information</inline>.—</heading>
<content>Information submitted to the Secretary under this part by a manufacturer of a selected drug that is proprietary information of such manufacturer (as determined by the Secretary) may be used only by the Secretary or disclosed to and used by the Comptroller General of the United States or the Medicare Payment Advisory Commission for purposes of carrying out this part.</content></subsection>
<subsection id="H23998C6D5B3F492E8712C7115985925E" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Regulations</inline>.—</heading>
<paragraph id="HDD2C2724C592435293B5729BAA55C7FC" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall, pursuant to rulemaking, specify, in accordance with paragraph (2), the information that must be submitted under subsection (a)(4).</content></paragraph>
<paragraph id="H6BEF857CDC104FAEB2C9013F62E46C12" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Information specified</inline>.—</heading>
<content>Information described in paragraph (1), with respect to a selected drug, shall include information on sales of the drug (by the manufacturer of the drug or by another entity under license or other agreement with the manufacturer, with respect to the sales of such drug, regardless of the name under which the drug is sold) in any foreign country that is part of the AIM price. The Secretary shall verify, to the extent practicable, such sales from appropriate officials of the government of the foreign country involved.</content></paragraph></subsection>
<subsection id="HEE4509375839405FBF742C840E197B3D" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Compliance With Requirements for Administration of Program</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall comply with requirements imposed by the Secretary or a third party with a contract under section 1196(c)(1), as applicable, for purposes of administering the program.</content></subsection></section> 
<section id="H4F5ACBD7A28B40F9BD429894DE2C0E0B" role="subsequent-section"><num value="1194">“SEC. 1194. </num>
<heading>NEGOTIATION AND RENEGOTIATION PROCESS.</heading>
<subsection id="H7F1430DCF01949AABBA9EC36954029AE" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>For purposes of this part, under an agreement under section 1193 between the Secretary and a manufacturer of a selected drug, with respect to the period for which such agreement is in effect and in accordance with subsections (b) and (c), the Secretary and the manufacturer—</chapeau>
<paragraph id="H3BC89CE862014B8A89F3FA0B98E32B78" class="indent1"><num value="1">“(1) </num>
<content>shall during the voluntary negotiation period with respect to the initial price applicability year for such drug, in accordance with this section, negotiate a maximum fair price for such drug for the purpose described in section 1193(a)(1); and</content></paragraph>
<paragraph id="H919F6D756FA24A4DA888631D4D61AC63" class="indent1"><num value="2">“(2) </num>
<content>as applicable pursuant to section 1193(a)(2) and in accordance with the process specified pursuant to such section, renegotiate such maximum fair price for such drug for the purpose described in such section.</content></paragraph></subsection>
<subsection id="H679C92B35D5D4BD28D1C6C8AFC72E5D3" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Negotiating Methodology and Objective</inline>.—</heading>
<paragraph id="HC99D84A7CF854450BFE50F4E64FFED61" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall develop and use a consistent methodology for negotiations under subsection (a) that, in accordance with paragraph (2) and subject to paragraph (3), achieves the lowest maximum fair price for each selected drug while appropriately rewarding innovation.</content></paragraph>
<paragraph id="HEAAAA63801C847F58D64FECDA3A4F2E7" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Prioritizing factors</inline>.—</heading>
<chapeau>In considering the factors described in subsection (d) in negotiating (and, as applicable, renegotiating) the maximum fair price for a selected drug, the Secretary shall, to the extent practicable, consider all of the available factors listed but shall prioritize the following factors:</chapeau>
<subparagraph id="H03211FBD90C643DF9BFE0E1797529E6B" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Research and development costs</inline>.—</heading>
<content>The factor described in paragraph (1)(A) of subsection (d).</content></subparagraph>
<subparagraph id="H6A276A28E1E649D6AE8EA9AE151FC226" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Market data</inline>.—</heading>
<content>The factor described in paragraph (1)(B) of such subsection.</content></subparagraph>
<subparagraph id="HB23A923B724141A79A90F68D5422B381" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Unit costs of production and distribution</inline>.—</heading>
<content>The factor described in paragraph (1)(C) of such subsection.</content></subparagraph>
<subparagraph id="H97FCE9E0BB144E41B4C86A4072B1947C" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Comparison to existing therapeutic alternatives</inline>.—</heading>
<content>The factor described in paragraph (2)(A) of such subsection.</content></subparagraph></paragraph>
<paragraph id="H91CC251CF9784C44B94646C7908D3E1A" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Requirement</inline>.—</heading>
<subparagraph id="H2C91D5BB29A64CC5A029BE2C934B7BA5" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>In negotiating the maximum fair price of a selected drug, with respect to an initial price applicability year for the selected drug, and, as applicable, in renegotiating the maximum fair price for such drug, with respect to a subsequent year during the price applicability period for such drug, in the case that the manufacturer of the selected drug offers under the negotiation or renegotiation, as applicable, a price for such drug that is not more than the target price described in subparagraph (B) for such drug for the respective year, the Secretary shall agree under such negotiation or renegotiation, respectively, to such offered price as the maximum fair price.</content></subparagraph>
<subparagraph id="H0CC489837213492C8B138F95CEEA1370" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Target price</inline>.—</heading>
<clause id="H5B26E23513F54F8284D51B41CD22D197" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to clause (ii), the target price described in this subparagraph for a selected drug with respect to a year, is the average price (which shall be the net average price, if practicable, and volume-weighted, if practicable) for a unit of such drug for sales of such drug, as computed (across different dosage forms and strengths of the drug and not based on the specific formulation or package size or package type of the drug) in the applicable country described in section 1191(c)(3)(B) with respect to such drug that, with respect to such year, has the lowest average price for such drug as compared to the average prices (as so computed) of such drug with respect to such year in the other applicable countries described in such section with respect to such drug.</content></clause>
<clause id="H7DED6A069BE646428A820FB163B7D7E1" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Selected drugs without aim price</inline>.—</heading>
<content>In applying this paragraph in the case of negotiating the maximum fair price of a selected drug for which there is no AIM price available with respect to the initial price applicability year for such drug, or, as applicable, renegotiating the maximum fair price for such drug with respect to a subsequent year during the price applicability period for such drug before the first plan year for which there is an AIM price available for such drug, the target price described in this subparagraph for such drug and respective year is the amount that is 80 percent of the average manufacturer price (as defined in section 1927(k)(1)) for such drug and year.</content></clause></subparagraph></paragraph>
<paragraph id="H3370FEDF4C5F4AE3932E0EF62CC1CB6D" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Annual report</inline>.—</heading>
<content>After the completion of each voluntary negotiation period, the Secretary shall submit to Congress a report on the maximum fair prices negotiated (or, as applicable, renegotiated) for such period. Such report shall include information on how such prices so negotiated (or renegotiated) meet the requirements of this part, including the requirements of this subsection.</content></paragraph></subsection>
<subsection id="H6742B5A3161E4F27913F78EFC3E1382B" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Limitation</inline>.—</heading>
<paragraph id="HDD5FDBEEC5CA4752B9741A395A7586D6" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to paragraph (2), the maximum fair price negotiated (including as renegotiated) under this section for a selected drug, with respect to each plan year during a price applicability period for such drug, shall not exceed 120 percent of the AIM price applicable to such drug with respect to such year.</content></paragraph>
<paragraph id="H0E13A9C7BCC54539AC36FD21B9777801" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Selected drugs without aim price</inline>.—</heading>
<content>In the case of a selected drug for which there is no AIM price available with respect to the initial price applicability year for such drug, for each plan year during the price applicability period before the first plan year for which there is an AIM price available for such drug, the maximum fair price negotiated (including as renegotiated) under this section for the selected drug shall not exceed the amount equal to 85 percent of the average manufacturer price for the drug with respect to such year.</content></paragraph></subsection>
<subsection id="H19007036CACF4C7996D7965F29CACC68" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Considerations</inline>.—</heading>
<chapeau>For purposes of negotiating and, as applicable, renegotiating (including for purposes of determining whether to renegotiate) the maximum fair price of a selected drug under this part with the manufacturer of the drug, the Secretary shall, consistent with subsection (b)(2), take into consideration the following factors:</chapeau>
<paragraph id="H81F4833FDED64A7A8BF6DA12A53EBE7E" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Manufacturer-specific information</inline>.—</heading>
<chapeau>The following information, including as submitted by the manufacturer:</chapeau>
<subparagraph id="H4BDD5BD038CE4E86A9B6B077B7BDBCD3" class="indent2"><num value="A">“(A) </num>
<content>Research and development costs of the manufacturer for the drug and the extent to which the manufacturer has recouped research and development costs.</content></subparagraph>
<subparagraph id="HF22EFBD76457463BB0E5D9C0A5DB3817" class="indent2"><num value="B">“(B) </num>
<content>Market data for the drug, including the distribution of sales across different programs and purchasers and projected future revenues for the drug.</content></subparagraph>
<subparagraph id="HA9A1BF72B7744BFEBE138A0C80DAC584" class="indent2"><num value="C">“(C) </num>
<content>Unit costs of production and distribution of the drug.</content></subparagraph>
<subparagraph id="HA779FCA6B568427AA0A3E61B60B46D82" class="indent2"><num value="D">“(D) </num>
<content>Prior Federal financial support for novel therapeutic discovery and development with respect to the drug.</content></subparagraph>
<subparagraph id="H66F0D1CBC1C74158AC9EC85A573B2550" class="indent2"><num value="E">“(E) </num>
<content>Data on patents and on existing and pending exclusivity for the drug.</content></subparagraph>
<subparagraph id="HB8D7298D5F3E4F0A9D483BBC96E17E38" class="indent2"><num value="F">“(F) </num>
<content>National sales data for the drug.</content></subparagraph>
<subparagraph id="H64C0BA83744A41C782AFB1F262EA0CCB" class="indent2"><num value="G">“(G) </num>
<content>Information on clinical trials for the drug in the United States or in applicable countries described in section 1191(c)(3)(B).</content></subparagraph></paragraph>
<paragraph id="HF47A28F606CB4AE198B1E9B8A740AB44" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Information on alternative products</inline>.—</heading>
<chapeau>The following information:</chapeau>
<subparagraph id="H42366047B62B469AA9F54CEB3F4CF203" class="indent2"><num value="A">“(A) </num>
<content>The extent to which the drug represents a therapeutic advance as compared to existing therapeutic alternatives and, to the extent such information is available, the costs of such existing therapeutic alternatives.</content></subparagraph>
<subparagraph id="H25DB0FA8A0C74E73A23AA824C1ADBB85" class="indent2"><num value="B">“(B) </num>
<content>Information on approval by the Food and Drug Administration of alternative drug products.</content></subparagraph>
<subparagraph id="HA3AD771CA7044D6791E1C7C085D12AA2" class="indent2"><num value="C">“(C) </num>
<content>Information on comparative effectiveness analysis for such products, taking into consideration the effects of such products on specific populations, such as individuals with disabilities, the elderly, terminally ill, children, and other patient populations.</content></subparagraph>
<continuation class="indent0">In considering information described in subparagraph (C), the Secretary shall not use evidence or findings from comparative clinical effectiveness research in a manner that treats extending the life of an elderly, disabled, or terminally ill individual as of lower value than extending the life of an individual who is younger, nondisabled, or not terminally ill. Nothing in the previous sentence shall affect the application or consideration of an AIM price for a selected drug.</continuation></paragraph>
<paragraph id="HB3208F631ED6444B9E2FD7C71763CAC7" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Foreign sales information</inline>.—</heading>
<content>To the extent available on a timely basis, including as provided by a manufacturer of the selected drug or otherwise, information on sales of the selected drug in each of the countries described in section 1191(c)(3)(B).</content></paragraph>
<paragraph id="HB21022F3F456417CB45D282D26130794" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Additional information</inline>.—</heading>
<content>Information submitted to the Secretary, in accordance with a process specified by the Secretary, by other parties that are affected by the establishment of a maximum fair price for the selected drug.</content></paragraph></subsection>
<subsection id="H2E19B343BA82499BA64CFD9C5C7E9BE5" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Request for Information</inline>.—</heading>
<chapeau>For purposes of negotiating and, as applicable, renegotiating (including for purposes of determining whether to renegotiate) the maximum fair price of a selected drug under this part with the manufacturer of the drug, with respect to a price applicability period, and other relevant data for purposes of this section—</chapeau>
<paragraph id="H2DACE0E98AD04B3A91791134586B0988" class="indent1"><num value="1">“(1) </num>
<content>the Secretary shall, not later than the selected drug publication date with respect to the initial price applicability year of such period, request drug pricing information from the manufacturer of such selected drug, including information described in subsection (d)(1); and</content></paragraph>
<paragraph id="HDDE8A0AFD28040869EA3504DE0FEC861" class="indent1"><num value="2">“(2) </num>
<content>by not later than October 1 following the selected drug publication date, the manufacturer of such selected drug shall submit to the Secretary such requested information in such form and manner as the Secretary may require.</content></paragraph>
<continuation class="indent0">The Secretary shall request, from the manufacturer or others, such additional information as may be needed to carry out the negotiation and renegotiation process under this section.</continuation></subsection></section> 
<section id="H552AB54E3BDE4C9B9ADA874640B40934" role="subsequent-section"><num value="1195">“SEC. 1195. </num>
<heading>PUBLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="HF7DCCB8F8E9E4B1CB89CB28775E5AB36" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>With respect to an initial price applicability year and selected drug with respect to such year, not later than April 1 of the plan year prior to such initial price applicability year, the Secretary shall publish in the Federal Register the maximum fair price for such drug negotiated under this part with the manufacturer of such drug.</content></subsection>
<subsection id="H20DA91F1E518450586D84645EFF416EF" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Updates</inline>.—</heading>
<paragraph id="H5F17176608DE4A1E845DEA05085A63E6" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Subsequent year maximum fair prices</inline>.—</heading>
<chapeau>For a selected drug, for each plan year subsequent to the initial price applicability year for such drug with respect to which an agreement for such drug is in effect under section 1193, the Secretary shall publish in the Federal Register—</chapeau>
<subparagraph id="H30B02EE68E6943FE99ACEB280414C6E3" class="indent2"><num value="A">“(A) </num>
<content>subject to subparagraph (B), the amount equal to the maximum fair price published for such drug for the previous year, increased by the annual percentage increase in the consumer price index for all urban consumers (all items; U.S. city average) as of September of such previous year; or</content></subparagraph>
<subparagraph id="HCD244EA48C5548A392B1120C5AAEF557" class="indent2"><num value="B">“(B) </num>
<content>in the case the maximum fair price for such drug was renegotiated, for the first year for which such price as so renegotiated applies, such renegotiated maximum fair price.</content></subparagraph></paragraph>
<paragraph id="H5175423E79DF4A1C825A518B636DAD7A" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Prices negotiated after deadline</inline>.—</heading>
<content>In the case of a selected drug with respect to an initial price applicability year for which the maximum fair price is determined under this part after the date of publication under this section, the Secretary shall publish such maximum fair price in the Federal Register by not later than 30 days after the date such maximum price is so determined.</content></paragraph></subsection></section> 
<section id="H5E6B87CBA2FE4164A5B0284EA846D813" role="subsequent-section"><num value="1196">“SEC. 1196. </num>
<heading>ADMINISTRATIVE DUTIES; COORDINATION PROVISIONS.</heading>
<subsection id="HA97706ADFBCE44A68BC0702B0E8D9419" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Administrative Duties</inline>.—</heading>
<paragraph id="H731B22C8627649448A63C8554A6D7A9A" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of section 1191, the administrative duties described in this section are the following:</chapeau>
<subparagraph id="H95106E7957AC41BB978ECCAE4EBFB6FA" class="indent2"><num value="A">“(A) </num>
<content>The establishment of procedures (including through agreements with manufacturers under this part, contracts with prescription drug plans under part D of title XVIII and MA–PD plans under part C of such title, and agreements under section 1197 with group health plans and health insurance issuers of health insurance coverage offered in the individual or group market) under which the maximum fair price for a selected drug is provided to fair price eligible individuals, who with respect to such drug are described in subparagraph (A) of section 1191(c)(1), at pharmacies or by mail order service at the point-of-sale of the drug for the applicable price period for such drug and providing that such maximum fair price is used for determining cost-sharing under such plans or coverage for the selected drug.</content></subparagraph>
<subparagraph id="H73BD394841F649DFA1612E2E4D495E57" class="indent2"><num value="B">“(B) </num>
<content>The establishment of procedures (including through agreements with manufacturers under this part and contracts with hospitals, physicians, and other providers of services and suppliers and agreements under section 1197 with group health plans and health insurance issuers of health insurance coverage offered in the individual or group market) under which, in the case of a selected drug furnished or administered by such a hospital, physician, or other provider of services or supplier to fair price eligible individuals (who with respect to such drug are described in subparagraph (B) of section 1191(c)(1)), the maximum fair price for the selected drug is provided to such hospitals, physicians, and other providers of services and suppliers (as applicable) with respect to such individuals and providing that such maximum fair price is used for determining cost-sharing under the respective part, plan, or coverage for the selected drug.</content></subparagraph>
<subparagraph id="HE7B6187B08ED49F9928DD45C648871F8" class="indent2"><num value="C">“(C) </num>
<chapeau>The establishment of procedures (including through agreements and contracts described in subparagraphs (A) and (B)) to ensure that, not later than 90 days after the dispensing of a selected drug to a fair price eligible individual by a pharmacy or mail order service, the pharmacy or mail order service is reimbursed for an amount equal to the difference between—</chapeau>
<clause id="H540722481DA348F6BE81C6983DA3FB5F" class="indent3"><num value="i">“(i) </num>
<chapeau>the lesser of—</chapeau>
<subclause id="H796C596D5F8A43F3958DACC99D5CB61D" class="indent4"><num value="I">“(I) </num>
<content>the wholesale acquisition cost of the drug;</content></subclause>
<subclause id="H66F65E771F9D44849107FB6FAFDD89FD" class="indent4"><num value="II">“(II) </num>
<content>the national average drug acquisition cost of the drug; and</content></subclause>
<subclause id="H0E1B5CFF0E2548F4812B3AD9FDFBD31C" class="indent4"><num value="III">“(III) </num>
<content>any other similar determination of pharmacy acquisition costs of the drug, as determined by the Secretary; and</content></subclause></clause>
<clause id="HF27AF267C127475A9D5D295645A6DB88" class="indent3"><num value="ii">“(ii) </num>
<content>the maximum fair price for the drug.</content></clause></subparagraph>
<subparagraph id="H9BB36E97EDEB4B24B0E4EB2F564A2596" class="indent2"><num value="D">“(D) </num>
<chapeau>The establishment of procedures to ensure that the maximum fair price for a selected drug is applied before—</chapeau>
<clause id="H06573F7B802640A58FF7EC66B609FFAF" class="indent3"><num value="i">“(i) </num>
<content>any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of fair price eligible individuals as the Secretary may specify; and</content></clause>
<clause id="H3FC43FAC906344ADB210B61162FD3308" class="indent3"><num value="ii">“(ii) </num>
<content>any other discounts.</content></clause></subparagraph>
<subparagraph id="H1F3DC1BDFA8D48A29447FB498F108D92" class="indent2"><num value="E">“(E) </num>
<content>The establishment of procedures to enter into appropriate agreements and protocols for the ongoing computation of AIM prices for selected drugs, including, to the extent possible, to compute the AIM price for selected drugs and including by providing that the manufacturer of such a selected drug should provide information for such computation not later than 3 months after the first date of the voluntary negotiation period for such selected drug.</content></subparagraph>
<subparagraph id="H9D103374EE0E48668B1461C01C2DCB7A" class="indent2"><num value="F">“(F) </num>
<content>The establishment of procedures to compute and apply the maximum fair price across different strengths and dosage forms of a selected drug and not based on the specific formulation or package size or package type of the drug.</content></subparagraph>
<subparagraph id="H66B07DB40309445DB6081368C586C348" class="indent2"><num value="G">“(G) </num>
<content>The establishment of procedures to negotiate and apply the maximum fair price in a manner that does not include any dispensing or similar fee.</content></subparagraph>
<subparagraph id="H47EB239DD8A14CFBA8740F6BEC42FBED" class="indent2"><num value="H">“(H) </num>
<chapeau>The establishment of procedures to carry out the provisions of this part, as applicable, with respect to—</chapeau>
<clause id="H8A0D57881DAF4851BE961F5BFDFE87F5" class="indent3"><num value="i">“(i) </num>
<content>fair price eligible individuals who are enrolled under a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title;</content></clause>
<clause id="HB33A6515B60241E98D21256A5E50A214" class="indent3"><num value="ii">“(ii) </num>
<content>fair price eligible individuals who are enrolled under a group health plan or health insurance coverage offered by a health insurance issuer in the individual or group market with respect to which there is an agreement in effect under section 1197; and</content></clause>
<clause id="H70FF1D7C0E3F4ABCA54DAB7BE489E2A8" class="indent3"><num value="iii">“(iii) </num>
<content>fair price eligible individuals who are entitled to benefits under part A of title XVIII or enrolled under part B of such title.</content></clause></subparagraph>
<subparagraph id="HA54AC3239F654D2FAE93127815002B72" class="indent2"><num value="I">“(I) </num>
<content>The establishment of a negotiation process and renegotiation process in accordance with section 1194, including a process for acquiring information described in subsection (d) of such section and determining amounts described in subsection (b) of such section.</content></subparagraph>
<subparagraph id="H52E11B70FD0B4BFF9003E966D2CF0E21" class="indent2"><num value="J">“(J) </num>
<content>The provision of a reasonable dispute resolution mechanism to resolve disagreements between manufacturers, fair price eligible individuals, and the third party with a contract under subsection (c)(1).</content></subparagraph></paragraph>
<paragraph id="H4F409D7AF03047E99C96E32677BB6DC1" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Monitoring compliance</inline>.—</heading>
<subparagraph id="H597A69070D8D4AEAAEC3B782D592B694" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under section 1193, including by establishing a mechanism through which violations of such terms may be reported.</content></subparagraph>
<subparagraph id="H9B47597821724340BF71BF55FA2AEC77" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Notification</inline>.—</heading>
<content>If a third party with a contract under subsection (c)(1) determines that the manufacturer is not in compliance with such agreement, the third party shall notify the Secretary of such noncompliance for appropriate enforcement under section 4192 of the Internal Revenue Code of 1986 or section 1198, as applicable.</content></subparagraph></paragraph></subsection>
<subsection id="H53F991F52CE9437B970727491E9B943B" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Collection of Data</inline>.—</heading>
<paragraph id="HD232C6389A0B407B83478855E91D130B" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">From prescription drug plans and ma–pd plans</inline>.—</heading>
<content>The Secretary may collect appropriate data from prescription drug plans under part D of title XVIII and MA–PD plans under part C of such title in a timeframe that allows for maximum fair prices to be provided under this part for selected drugs.</content></paragraph>
<paragraph id="HBC55896293474FE4B31E5185BB008044" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">From health plans</inline>.—</heading>
<content>The Secretary may collect appropriate data from group health plans or health insurance issuers offering group or individual health insurance coverage in a timeframe that allows for maximum fair prices to be provided under this part for selected drugs.</content></paragraph></subsection>
<subsection id="HC3217EB0EED94667B87BF6CCD1F715C8" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Contract With Third Parties</inline>.—</heading>
<paragraph id="H4B47FB543DBC4EE5AAB57E94EC122F23" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>The Secretary may enter into a contract with 1 or more third parties to administer the requirements established by the Secretary in order to carry out this part. At a minimum, the contract with a third party under the preceding sentence shall require that the third party—</chapeau>
<subparagraph id="HF68AE6A27FAD4784A591841E8CE9D52F" class="indent2"><num value="A">“(A) </num>
<content>receive and transmit information between the Secretary, manufacturers, and other individuals or entities the Secretary determines appropriate;</content></subparagraph>
<subparagraph id="HCB4117ABDDF74177A92140A98B9EC01C" class="indent2"><num value="B">“(B) </num>
<content>receive, distribute, or facilitate the distribution of funds of manufacturers to appropriate individuals or entities in order to meet the obligations of manufacturers under agreements under this part;</content></subparagraph>
<subparagraph id="H4728724407874711A038767D60D6D5B2" class="indent2"><num value="C">“(C) </num>
<content>provide adequate and timely information to manufacturers, consistent with the agreement with the manufacturer under this part, as necessary for the manufacturer to fulfill its obligations under this part; and</content></subparagraph>
<subparagraph id="H63A1C481FD3049CA9C5B67DA4151496A" class="indent2"><num value="D">“(D) </num>
<content>permit manufacturers to conduct periodic audits, directly or through contracts, of the data and information used by the third party to determine discounts for applicable drugs of the manufacturer under the program.</content></subparagraph></paragraph>
<paragraph id="H39B609524D104AAD9F89D6D028892503" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Performance requirements</inline>.—</heading>
<content>The Secretary shall establish performance requirements for a third party with a contract under paragraph (1) and safeguards to protect the independence and integrity of the activities carried out by the third party under the program under this part.</content></paragraph></subsection></section> 
<section id="HCACA05FA5F8A40919C98B2EDD56076D1" role="subsequent-section"><num value="1197">“SEC. 1197. </num>
<heading>VOLUNTARY PARTICIPATION BY OTHER HEALTH PLANS.</heading>
<subsection id="H0D2CC199EB564BCEA138603A1C2D16A8" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Agreement to Participate Under Program</inline>.—</heading>
<chapeau/>
<paragraph id="HB8DB858B64CB4FD18AD191819434FA9A" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>Subject to paragraph (2), under the program under this part the Secretary shall be treated as having in effect an agreement with a group health plan or health insurance issuer offering health insurance coverage (as such terms are defined in section 2791 of the Public Health Service Act), with respect to a price applicability period and a selected drug with respect to such period—</chapeau>
<subparagraph id="HB438CD9738B041D99C03E391EECAD0A6" class="indent2"><num value="A">“(A) </num>
<content>with respect to such selected drug furnished or dispensed at a pharmacy or by mail order service if coverage is provided under such plan or coverage during such period for such selected drug as so furnished or dispensed; and</content></subparagraph>
<subparagraph id="H6172F7EAA843426DA269A3C57006089C" class="indent2"><num value="B">“(B) </num>
<content>with respect to such selected drug furnished or administered by a hospital, physician, or other provider of services or supplier if coverage is provided under such plan or coverage during such period for such selected drug as so furnished or administered.</content></subparagraph></paragraph>
<paragraph id="H7C8D1DB1607C44DABEBD7ECF23C95241" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Opting out of agreement</inline>.—</heading>
<content>The Secretary shall not be treated as having in effect an agreement under the program under this part with a group health plan or health insurance issuer offering health insurance coverage with respect to a price applicability period and a selected drug with respect to such period if such a plan or issuer affirmatively elects, through a process specified by the Secretary, not to participate under the program with respect to such period and drug.</content></paragraph></subsection>
<subsection id="HF5832CF0E24E43E49857E326CF401AE6" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Publication of Election</inline>.—</heading>
<content>With respect to each price applicability period and each selected drug with respect to such period, the Secretary and the Secretary of Labor and the Secretary of the Treasury, as applicable, shall make public a list of each group health plan and each issuer of health insurance coverage, with respect to which coverage is provided under such plan or coverage for such drug, that has elected under subsection (a) not to participate under the program with respect to such period and drug.</content></subsection></section> 
<section id="HD684317B85204030AD7FAB537AB0C59A" role="subsequent-section"><num value="1198">“SEC. 1198. </num>
<heading>CIVIL MONETARY PENALTY.</heading>
<subsection id="H15C83003678C4F45A3EB3136863DF7D5" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Violations Relating To Offering of Maximum Fair Price</inline>.—</heading>
<chapeau>Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a plan year during the price applicability period for such drug, that does not provide access to a price that is not more than the maximum fair price (or a lesser price) for such drug for such year—</chapeau>
<paragraph id="HAA46F7CE08FA4E8BB2A9D0DA176D2A0C" class="indent1"><num value="1">“(1) </num>
<content>to a fair price eligible individual who with respect to such drug is described in subparagraph (A) of section 1191(c)(1) and who is furnished or dispensed such drug during such year; or</content></paragraph>
<paragraph id="H7FB08867AEEB4AB5A80CDB0C347210D7" class="indent1"><num value="2">“(2) </num>
<content>to a hospital, physician, or other provider of services or supplier with respect to fair price eligible individuals who with respect to such drug is described in subparagraph (B) of such section and is furnished or administered such drug by such hospital, physician, or provider or supplier during such year;</content></paragraph>
<continuation class="indent0" role="subsection">shall be subject to a civil monetary penalty equal to ten times the amount equal to the difference between the price for such drug made available for such year by such manufacturer with respect to such individual or hospital, physician, provider, or supplier and the maximum fair price for such drug for such year.</continuation></subsection>
<subsection id="HF01E344F31E54E3CBB6B7F7A5291CCB7" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Violations of Certain Terms of Agreement</inline>.—</heading>
<content>Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a plan year during the price applicability period for such drug, that is in violation of a requirement imposed pursuant to section 1193(a)(6) shall be subject to a civil monetary penalty of not more than $1,000,000 for each such violation.</content></subsection>
<subsection id="HC5C96DAE38014BA59E5C0B32381E5B34" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Application</inline>.—</heading>
<content>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil monetary penalty under this section in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></subsection></section> 
<section id="H661B74AF821E43ED888CFA25274F4ABC" role="subsequent-section"><num value="1199">“SEC. 1199. </num>
<heading>MISCELLANEOUS PROVISIONS.</heading>
<subsection id="H12903628B4884F64BCA0A05FAEBFEA49" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Paperwork Reduction Act</inline>.—</heading>
<content><ref href="/us/usc/t44/ch35">Chapter 35 of title 44, United States Code</ref>, shall not apply to data collected under this part.</content></subsection>
<subsection id="HE85E0094460D4AAE8C2E523A0A4B042F" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">National Academy of Medicine Study</inline>.—</heading>
<content>Not later than December 31, 2025, the National Academy of Medicine shall conduct a study, and submit to Congress a report, on recommendations for improvements to the program under this part, including the determination of the limits applied under section 1194(c).</content></subsection>
<subsection id="H15F700A61C6247F0AE348B7CE734F97D" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">MedPAC Study</inline>.—</heading>
<content>Not later than December 31, 2025, the Medicare Payment Advisory Commission shall conduct a study, and submit to Congress a report, on the program under this part with respect to the Medicare program under title XVIII, including with respect to the effect of the program on individuals entitled to benefits or enrolled under such title.</content></subsection>
<subsection id="HD278F929845F4A68963C455020CF356C" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Limitation on Judicial Review</inline>.—</heading>
<chapeau>The following shall not be subject to judicial review:</chapeau>
<paragraph id="HEAC954855372400DA0B36C29A4A3F76F" class="indent1"><num value="1">“(1) </num>
<content>The selection of drugs for publication under section 1192(a).</content></paragraph>
<paragraph id="H60FC8F9E32AE44FF8DBFC1E7DBAF906D" class="indent1"><num value="2">“(2) </num>
<content>The determination of whether a drug is a negotiation-eligible drug under section 1192(d).</content></paragraph>
<paragraph id="H7DCDCD16720C4A469CAA68AA585E2948" class="indent1"><num value="3">“(3) </num>
<content>The determination of the maximum fair price of a selected drug under section 1194.</content></paragraph>
<paragraph id="HAA2C2B637D1640A784A0CFF1B781CEAD" class="indent1"><num value="4">“(4) </num>
<content>The determination of units of a drug for purposes of section 1191(c)(3).</content></paragraph></subsection>
<subsection id="H8F09FD5F5E8445F5A9686BF6FD8C52A7" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Coordination</inline>.—</heading>
<content>In carrying out this part with respect to group health plans or health insurance coverage offered in the group market that are subject to oversight by the Secretary of Labor or the Secretary of the Treasury, the Secretary of Health and Human Services shall coordinate with such respective Secretary.</content></subsection>
<subsection id="H3C203B6D52144B9585E40A94DA6D19E6" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Data Sharing</inline>.—</heading>
<content>The Secretary shall share with the Secretary of the Treasury such information as is necessary to determine the tax imposed by <ref href="usc/26/4192">section 4192</ref> of the Internal Revenue Code of 1986.”.</content></subsection></section></part></quotedContent></content></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s101/b" id="H420AD961EE384F4D9A88C123CA992772" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Application of Maximum Fair Prices and Conforming Amendments</inline>.—</heading>
<paragraph identifier="/us/bill/116/hr/3/tI/s101/b/1" id="H87EAF6D111C64758B3B9B119FA4824AC" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">Under medicare</inline>.—</heading>
<chapeau/>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/A" id="HF9557C12DD2F433F9A5298B2EE3C7DCE" class="indent2"><num value="A">(A) </num>
<heading><inline class="smallCaps">Application to payments under part b</inline>.—</heading>
<content>Section 1847A(b)(1)(B) of the Social Security Act (<ref href="/us/usc/t42/s1395w–3a/b/1/B">42 U.S.C. 1395w–3a(b)(1)(B)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or in the case of such a drug or biological that is a selected drug (as defined in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), 106 percent of the maximum fair price (as defined in section 1191(c)(2) applicable for such drug and a plan year during such period</quotedText>” after “<quotedText>paragraph (4)</quotedText>”.</content></subparagraph>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/B" id="HC398830FF0E54214AC9F7C0E5F4FCA71" class="indent2"><num value="B">(B) </num>
<heading><inline class="smallCaps">Exception to part d non-interference</inline>.—</heading>
<content>Section 1860D–11(i) of the Social Security Act (<ref href="/us/usc/t42/s1395w–111/i">42 U.S.C. 1395w–111(i)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>, except as provided under part E of title XI</quotedText>” after “<quotedText>the Secretary</quotedText>”.</content></subparagraph>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/C" id="HCE070E84EDC14157B7E92CF7D2FE2D62" class="indent2"><num value="C">(C) </num>
<heading><inline class="smallCaps">Application as negotiated price under part d</inline>.—</heading>
<chapeau>Section 1860D–2(d)(1) of the Social Security Act (<ref href="/us/usc/t42/s1395w–102/d/1">42 U.S.C. 1395w–102(d)(1)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<clause identifier="/us/bill/116/hr/3/tI/s101/b/1/C/i" id="H836FCE33E3EB4F1B8B976F9A23666E66" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (B), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>, subject to subparagraph (D),</quotedText>” after “<quotedText>negotiated prices</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tI/s101/b/1/C/ii" id="H5B826DCA4E16419A981DE0474DC995A2" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HIF00" id="HF895A40995744DFC889A459B406EED70" styleType="OLC"> <subparagraph id="HE66090D103224C34988D9EA6E518754D" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Application of maximum fair price for selected drugs</inline>.—</heading>
<content>In applying this section, in the case of a covered part D drug that is a selected drug (as defined in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), the negotiated prices used for payment (as described in this subsection) shall be the maximum fair price (as defined in section 1191(c)(2)) for such drug and for each plan year during such period.”.</content></subparagraph></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tI/s101/b/1/D" id="H89C69E3FEC3C4589BFDA43668DD5765C" class="indent2"><num value="D">(D) </num>
<heading><inline class="smallCaps">Information from prescription drug plans and ma–pd plans required</inline>.—</heading>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/D/i" id="HBC7F747ED3C94D0BB382B2799D034CB4" class="indent3"><num value="i">(i) </num>
<heading><inline class="smallCaps">Prescription drug plans</inline>.—</heading>
<content>Section 1860D–12(b) of the Social Security Act (<ref href="/us/usc/t42/s1395w–112/b">42 U.S.C. 1395w–112(b)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent meta="committee ID HIF00" id="H04FB433F9E4440A789FEDEAAD27963E3" styleType="OLC"> <paragraph id="HAB9A2AB8D7E845CFA5F0B0222AC9FD9B" class="indent1"><num value="8">“(8) </num>
<heading><inline class="smallCaps">Provision of information related to maximum fair prices</inline>.—</heading>
<content>Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall require the sponsor to provide information to the Secretary as requested by the Secretary in accordance with section 1196(b).”.</content></paragraph></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/D/ii" id="HBD289B3BBC9041BCB899D9E935565EA7" class="indent3"><num value="ii">(ii) </num>
<heading><inline class="smallCaps">MA–PD plans</inline>.—</heading>
<content>Section 1857(f)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–27/f/3">42 U.S.C. 1395w–27(f)(3)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HIF00" id="H07F7D4A8BE0D4FC0B7D53D628E8B1A9C" styleType="OLC"> <subparagraph id="H7694B337231247DEB683929E372B9283" class="indent2"><num value="E">“(E) </num>
<heading><inline class="smallCaps">Provision of information related to maximum fair prices</inline>.—</heading>
<content>Section 1860D–12(b)(8).”.</content></subparagraph></quotedContent></content></clause></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tI/s101/b/2" id="H113828FAA8954990AF7EEC28CE1A3C33" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Under group health plans and health insurance coverage</inline>.—</heading>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/A" id="HDA7B71358C9E4B8FA7F48098229CE75F" class="indent2"><num value="A">(A) </num>
<heading><inline class="smallCaps">PHSA</inline>.—</heading>
<content>Part A of title XXVII of the Public Health Service Act <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after section 2729 the following new section:<quotedContent meta="committee ID HIF00" id="H3C99B7E531AF4E1F8A4D033B88001B60" styleType="OLC"> 
<section id="HB1CB8747BB3B46F797AA2FEF021C092E" role="subsequent-section"><num value="2729A">“SEC. 2729A. </num>
<heading>FAIR PRICE DRUG NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="HC835291EC3EE4C328EE77F46A7286F36" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>In the case of a group health plan or health insurance issuer offering health insurance coverage that is treated under section 1197 of the Social Security Act as having in effect an agreement with the Secretary under the Fair Price Drug Negotiation Program under part E of title XI of such Act, with respect to a price applicability period (as defined in section 1191(b) of such Act) and a selected drug (as defined in section 1192(c) of such Act) with respect to such period with respect to which coverage is provided under such plan or coverage—</chapeau>
<paragraph id="H15BB177EF6C14D1EA1A892C78C88A293" class="indent1"><num value="1">“(1) </num>
<chapeau>the provisions of such part shall apply—</chapeau>
<subparagraph id="H5B09B671107040B698A426A27D3D4037" class="indent2"><num value="A">“(A) </num>
<content>if coverage of such selected drug is provided under such plan or coverage if the drug is furnished or dispensed at a pharmacy or by a mail order service, to the plans or coverage offered by such plan or issuer, and to the individuals enrolled under such plans or coverage, during such period, with respect to such selected drug, in the same manner as such provisions apply to prescription drug plans and MA–PD plans, and to individuals enrolled under such prescription drug plans and MA–PD plans during such period; and</content></subparagraph>
<subparagraph id="HD5D6BD0E0182465AB93F69C8D1358136" class="indent2"><num value="B">“(B) </num>
<content>if coverage of such selected drug is provided under such plan or coverage if the drug is furnished or administered by a hospital, physician, or other provider of services or supplier, to the plans or coverage offered by such plan or issuers, to the individuals enrolled under such plans or coverage, and to hospitals, physicians, and other providers of services and suppliers during such period, with respect to such drug in the same manner as such provisions apply to the Secretary, to individuals entitled to benefits under part A of title XVIII or enrolled under part B of such title, and to hospitals, physicians, and other providers and suppliers participating under title XVIII during such period;</content></subparagraph></paragraph>
<paragraph id="HFA25A2FBA0414486A5653287AB0A977E" class="indent1"><num value="2">“(2) </num>
<content>the plan or issuer shall apply any cost-sharing responsibilities under such plan or coverage, with respect to such selected drug, by substituting an amount not more than the maximum fair price negotiated under such part E of title XI for such drug in lieu of the drug price upon which the cost-sharing would have otherwise applied; and</content></paragraph>
<paragraph id="H6C30113FDE674E74902E19D7D79ADBB0" class="indent1"><num value="3">“(3) </num>
<content>the Secretary shall apply the provisions of such part E to such plan, issuer, and coverage, such individuals so enrolled in such plans and coverage, and such hospitals, physicians, and other providers and suppliers participating in such plans and coverage.</content></paragraph></subsection>
<subsection id="H82614079C5BB4BAF893E2781427D0E6D" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Notification Regarding Nonparticipation in Fair Drug Price Negotiation Program</inline>.—</heading>
<content>A group health plan or a health insurance issuer offering group or individual health insurance coverage shall publicly disclose in a manner and in accordance with a process specified by the Secretary any election made under section 1197 of the Social Security Act by the plan or issuer to not participate in the Fair Drug Price Negotiation Program under part E of title XI of such Act with respect to a selected drug (as defined in section 1192(c) of such Act) for which coverage is provided under such plan or coverage before the beginning of the plan year for which such election was made.”.</content></subsection></section></quotedContent></content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tI/s101/b/2/B" id="HDF592F00E46E41A3AD85679EF1C6EE66" class="indent2"><num value="B">(B) </num>
<heading><inline class="smallCaps">ERISA</inline>.—</heading>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/B/i" id="H7EB243B6AD1040519BB4D11838729273" class="indent3"><num value="i">(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1181">29 U.S.C. 1181</ref> et. seq.) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent meta="committee ID HIF00" id="H7B1405F856694980B2A279D08FE80F1C" styleType="OLC"> 
<section id="H954813D8BDC14959AD0D8A77D4146A14" role="subsequent-section"><num value="716">“SEC. 716. </num>
<heading>FAIR PRICE DRUG NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="H6B4D75B666AC4B06B1769282A63323CF" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>In the case of a group health plan or health insurance issuer offering group health insurance coverage that is treated under section 1197 of the Social Security Act as having in effect an agreement with the Secretary under the Fair Price Drug Negotiation Program under part E of title XI of such Act, with respect to a price applicability period (as defined in section 1191(b) of such Act) and a selected drug (as defined in section 1192(c) of such Act) with respect to such period with respect to which coverage is provided under such plan or coverage—</chapeau>
<paragraph id="H0AAF087C8EF541218064F760F4B9FD13" class="indent1"><num value="1">“(1) </num>
<content>the provisions of such part shall apply to the plans or coverage offered by such plan or issuer, and to the individuals enrolled under such plans or coverage, during such period, with respect to such selected drug, in the same manner as such provisions apply to prescription drug plans and MA–PD plans, and to individuals enrolled under such prescription drug plans and MA–PD plans;</content></paragraph>
<paragraph id="HCCAA0619ECEF4008892074B0AC567918" class="indent1"><num value="2">“(2) </num>
<content>the plan or issuer shall apply any cost-sharing responsibilities under such plan or coverage, with respect to such selected drug, by substituting the maximum fair price negotiated under such part for such drug in lieu of the contracted rate under such plan or coverage for such selected drug; and</content></paragraph>
<paragraph id="H852E80E1635E402C92D45EF0DF878145" class="indent1"><num value="3">“(3) </num>
<content>the Secretary shall apply the provisions of such part to such plan, issuer, and coverage, and such individuals so enrolled in such plans.</content></paragraph></subsection>
<subsection id="H85C5E6890E3C4B27BEC7DE6E7558A8D7" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Notification Regarding Nonparticipation in Fair Drug Price Negotiation Program</inline>.—</heading>
<content>A group health plan or a health insurance issuer offering group health insurance coverage shall publicly disclose in a manner and in accordance with a process specified by the Secretary any election made under section 1197 of the Social Security Act by the plan or issuer to not participate in the Fair Drug Price Negotiation Program under part E of title XI of such Act with respect to a selected drug (as defined in section 1192(c) of such Act) for which coverage is provided under such plan or coverage before the beginning of the plan year for which such election was made.”.</content></subsection></section></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/B/ii" id="H8499C60C5BC94DF69E4CD9805467183D" class="indent3"><num value="ii">(ii) </num>
<heading><inline class="smallCaps">Clerical amendment</inline>.—</heading>
<content>The table of sections for subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HIF00" id="H8D78AF8831F44F008CC498FE6399781C" styleType="OLC"> <toc meta="committee ID HIF00"> <referenceItem role="section">
<designator>“Sec. 716. </designator>
<label>Fair Price Drug Negotiation Program and application of maximum fair prices.”.</label></referenceItem></toc></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tI/s101/b/2/C" id="HA7EE7A44CBA34F74BB1D37539D810C46" class="indent2"><num value="C">(C) </num>
<heading><inline class="smallCaps">IRC</inline>.—</heading>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/C/i" id="HC074C45DDBDC42E9BAFCB6A18D990CFE" class="indent3"><num value="i">(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subchapter B of <ref href="usc-chapter/26/100">chapter 100</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent meta="committee ID HIF00" id="H51A36B4EB0784731B18488270CB4B3BB" styleType="OLC"> 
<section id="H43BCBAA7B93F4518885329ADE44D7449" role="subsequent-section"><num value="9816">“SEC. 9816. </num>
<heading>FAIR PRICE DRUG NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="HC06D001FB5DD4C8CBE64B6E7DFB0CE8C" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>In the case of a group health plan that is treated under section 1197 of the Social Security Act as having in effect an agreement with the Secretary under the Fair Price Drug Negotiation Program under part E of title XI of such Act, with respect to a price applicability period (as defined in section 1191(b) of such Act) and a selected drug (as defined in section 1192(c) of such Act) with respect to such period with respect to which coverage is provided under such plan—</chapeau>
<paragraph id="H4E5FAA1988514F44A65332E8E981006B" class="indent1"><num value="1">“(1) </num>
<content>the provisions of such part shall apply to the plans offered by such plan, and to the individuals enrolled under such plans, during such period, with respect to such selected drug, in the same manner as such provisions apply to prescription drug plans and MA–PD plans, and to individuals enrolled under such prescription drug plans and MA–PD plans;</content></paragraph>
<paragraph id="H9F6F70BDEA4542F7A78C16EA09D23C8D" class="indent1"><num value="2">“(2) </num>
<content>the plan shall apply any cost-sharing responsibilities under such plan, with respect to such selected drug, by substituting the maximum fair price negotiated under such part for such drug in lieu of the contracted rate under such plan for such selected drug; and</content></paragraph>
<paragraph id="H487CA43508B74E939352B8C90A16E640" class="indent1"><num value="3">“(3) </num>
<content>the Secretary shall apply the provisions of such part to such plan and such individuals so enrolled in such plan.</content></paragraph></subsection>
<subsection id="H6091703896954CDF87281CB45806006E" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Notification Regarding Nonparticipation in Fair Drug Price Negotiation Program</inline>.—</heading>
<content>A group health plan shall publicly disclose in a manner and in accordance with a process specified by the Secretary any election made under section 1197 of the Social Security Act by the plan to not participate in the Fair Drug Price Negotiation Program under part E of title XI of such Act with respect to a selected drug (as defined in section 1192(c) of such Act) for which coverage is provided under such plan before the beginning of the plan year for which such election was made.”.</content></subsection></section></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/C/ii" id="H0C1FCDCF0608427998DD28D5048F3061" class="indent3"><num value="ii">(ii) </num>
<heading><inline class="smallCaps">Clerical amendment</inline>.—</heading>
<content>The table of sections for subchapter B of chapter 100 of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new item:<quotedContent meta="committee ID HIF00" id="H87DABDF23BE949ABB7C007E93276BC00" styleType="OLC"> <toc meta="committee ID HIF00"> <referenceItem role="section">
<designator>“Sec. 9816. </designator>
<label>Fair Price Drug Negotiation Program and application of maximum fair prices.”.</label></referenceItem></toc></quotedContent></content></clause></subparagraph></paragraph></subsection></section> 
<section identifier="/us/bill/116/hr/3/tI/s102" id="HD21D1A9F2F4147FEB764EAA8378188CD" role="subsequent-section"><num value="102">SEC. 102. </num>
<heading>SELECTED DRUG MANUFACTURER EXCISE TAX IMPOSED DURING NONCOMPLIANCE PERIODS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tI/s102/a" id="H2CC3CB9B56DC4C2CA3EFC2E1492801FA" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>Subchapter E of <ref href="usc-chapter/26/32">chapter 32</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent meta="committee ID HIF00" id="H1CE3A6B43FDB45B4ABCB1C519CF69E08" styleType="OLC"> 
<section id="HDF360E555D114B5EA5C09F7F15F61D32" role="subsequent-section"><num value="4192">“SEC. 4192. </num>
<heading>SELECTED DRUGS DURING NONCOMPLIANCE PERIODS.</heading>
<subsection id="H4263FD19B40D47EE835DC2473C71202A" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>There is hereby imposed on the sale by the manufacturer, producer, or importer of any selected drug during a day described in subsection (b) a tax in an amount such that the applicable percentage is equal to the ratio of—</chapeau>
<paragraph id="H7B6FABE0F4D04E70A0FCE5FF4364F955" class="indent1"><num value="1">“(1) </num>
<content>such tax, divided by</content></paragraph>
<paragraph id="H1D5CD21B0C634A3C89877D5738A4CCF3" class="indent1"><num value="2">“(2) </num>
<content>the sum of such tax and the price for which so sold.</content></paragraph></subsection>
<subsection id="H88441F8ECA874675A96224DDC4606C79" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Noncompliance Periods</inline>.—</heading>
<chapeau>A day is described in this subsection with respect to a selected drug if it is a day during one of the following periods:</chapeau>
<paragraph id="HFDA45D3351D54C4393BA8E42577BCF95" class="indent1"><num value="1">“(1) </num>
<content>The period beginning on the June 16th immediately following the selected drug publication date and ending on the first date during which the manufacturer of the drug has in place an agreement described in subsection (a) of section 1193 of the Social Security Act with respect to such drug.</content></paragraph>
<paragraph id="HE27FB108F80F464698CD9C84467FA232" class="indent1"><num value="2">“(2) </num>
<content>The period beginning on the April 1st immediately following the June 16th described in paragraph (1) and ending on the first date during which the manufacturer of the drug has agreed to a maximum fair price under such agreement.</content></paragraph>
<paragraph id="H31073033A2064E4C88F85C24434CDA22" class="indent1"><num value="3">“(3) </num>
<content>In the case of a selected drug with respect to which the Secretary of Health and Human Services has specified a renegotiation period under such agreement, the period beginning on the first date after the last date of such renegotiation period and ending on the first date during which the manufacturer of the drug has agreed to a renegotiated maximum fair price under such agreement.</content></paragraph>
<paragraph id="H7B2F8E776C37406CA5B6F3814390B985" class="indent1"><num value="4">“(4) </num>
<content>With respect to information that is required to be submitted to the Secretary of Health and Human Services under such agreement, the period beginning on the date on which such Secretary certifies that such information is overdue and ending on the date that such information is so submitted.</content></paragraph>
<paragraph id="H19AD32A00E714A6CAD0E44D967106677" class="indent1"><num value="5">“(5) </num>
<content>In the case of a selected drug with respect to which a payment is due under subsection (c) of such section 1193, the period beginning on the date on which the Secretary of Health and Human Services certifies that such payment is overdue and ending on the date that such payment is made in full.</content></paragraph></subsection>
<subsection role="definitions" id="H85C0175BBE0B469B87A78B962335366D" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Applicable Percentage</inline>.—</heading>
<chapeau>The term ‘<term>applicable percentage</term>’ means—</chapeau>
<paragraph id="H9F8ABB5A3B4D46F2A32D1C0F36CF61B0" class="indent1"><num value="1">“(1) </num>
<content>in the case of sales of a selected drug during the first 90 days described in subsection (b) with respect to such drug, 65 percent,</content></paragraph>
<paragraph id="H5061DA4FABB94F0680AE51FC0AE031FE" class="indent1"><num value="2">“(2) </num>
<content>in the case of sales of such drug during the 91st day through the 180th day described in subsection (b) with respect to such drug, 75 percent,</content></paragraph>
<paragraph id="HFA54EE67E09F4A059F1D84F5EE31F3DB" class="indent1"><num value="3">“(3) </num>
<content>in the case of sales of such drug during the 181st day through the 270th day described in subsection (b) with respect to such drug, 85 percent, and</content></paragraph>
<paragraph id="HB573E31E8F2B491781836022712A3559" class="indent1"><num value="4">“(4) </num>
<content>in the case of sales of such drug during any subsequent day, 95 percent.</content></paragraph></subsection>
<subsection role="definitions" id="H29A5119E64654CB4BEE3FDC911F2BC41" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<content>The terms ‘selected drug publication date’ and ‘maximum fair price’ have the meaning given such terms in section 1191 of the Social Security Act and the term ‘<term>selected drug</term>’ has the meaning given such term in section 1192 of such Act.</content></subsection>
<subsection id="H1810A01A78CE489DBEA124EFAB58B8B9" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Anti-Abuse Rule</inline>.—</heading>
<content>In the case of a sale which was timed for the purpose of avoiding the tax imposed by this section, the Secretary may treat such sale as occurring during a day described in subsection (b).”.</content></subsection></section></quotedContent></content></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tI/s102/b" id="H28E555B5382E4D619328D65D856701F4" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">No Deduction for Excise Tax Payments</inline>.—</heading>
<content><ref href="usc/26/275">Section 275</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> “<quotedText>or by section 4192</quotedText>” before the period at the end of subsection (a)(6).</content></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s102/c" id="H4F396417132545538F1A87E3BDB8FD6B" class="indent0"><num value="c">(c) </num>
<heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/c/1" id="HA5A6DA558E814BFDA1304F4CDD3D79B2" class="indent1"><num value="1">(1) </num>
<content><ref href="usc/26/4221">Section 4221(a)</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or 4192</quotedText>” after “<quotedText>section 4191</quotedText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/c/2" id="H1F1780F8883B4CCC9EE9F1DA40444510" class="indent1"><num value="2">(2) </num>
<content>Section 6416(b)(2) of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or 4192</quotedText>” after “<quotedText>section 4191</quotedText>”.</content></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s102/d" id="H85EB0DD9DEFF4A1DAD749B89B2099ABB" class="indent0"><num value="d">(d) </num>
<heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/d/1" id="H129612C6A4A541B59546A70F880AE576" class="indent1"><num value="1">(1) </num>
<content>The heading of subchapter E of <ref href="usc-chapter/26/32">chapter 32</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<headingText role="subchapter">Medical Devices</headingText>” and <amendingAction type="insert">inserting</amendingAction> “<headingText role="subchapter">Other Medical Products</headingText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/d/2" id="HBB168B221FEE41C18D484C1DD070E9DA" class="indent1"><num value="2">(2) </num>
<content>The table of subchapters for chapter 32 of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> the item relating to subchapter E and <amendingAction type="insert">inserting</amendingAction> the following new item:<quotedContent meta="committee ID HIF00" id="HE9AF659E95D74987A8046674D5A74BF1" styleType="OLC"> <toc meta="committee ID HIF00"> <referenceItem role="subchapter">
<designator>“Subchapter E. </designator>
<label>Other medical products”.</label></referenceItem></toc></quotedContent></content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/d/3" id="H95A4AE0C53814AB8B487E95A6B68AB16" class="indent1"><num value="3">(3) </num>
<content>The table of sections for subchapter E of chapter 32 of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new item:<quotedContent meta="committee ID HIF00" id="H24851B92BDFC4CA2BAF43334CD5FA2EC" styleType="OLC"> <toc meta="committee ID HIF00"> <referenceItem role="section" idref="HDF360E555D114B5EA5C09F7F15F61D32">
<designator>“Sec. 4192. </designator>
<label>Selected drugs during noncompliance periods.”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s102/e" id="H04396D4F6CD24713BD9453EB0CBBA9C7" class="indent0"><num value="e">(e) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>The amendments made by this section shall apply to sales after the date of the enactment of this Act.</content></subsection></section></title>
<title identifier="/us/bill/116/hr/3/tII" id="HC44155010E2A4D1083A31609B4A436D7"><num value="II">TITLE II—</num>
<heading class="inline">MEDICARE PARTS B AND D PRESCRIPTION DRUG INFLATION REBATES</heading> 
<section identifier="/us/bill/116/hr/3/tII/s201" id="H6AE65BEBC60246ECBAC83FA289C9320A" role="subsequent-section"><num value="201">SEC. 201. </num>
<heading>MEDICARE PART B REBATE BY MANUFACTURERS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s201/a" id="HEAF0C94216F34C20A0E2EE9C70C5EC8B" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>Section 1834 of the Social Security Act (<ref href="/us/usc/t42/s1395m">42 U.S.C. 1395m</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent meta="committee ID HIF00" id="H32AE4E8E78D740FBA79B0C33FCA1529D" styleType="OLC"> <subsection id="H5D6C50D9105E45FAA999050EE8A804FE" class="indent0"><num value="x">“(x) </num>
<heading><inline class="smallCaps">Rebate by Manufacturers for Single Source Drugs With Prices Increasing Faster Than Inflation</inline>.—</heading>
<paragraph id="H21FA32EAE405415C8C21EA511693254A" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Requirements</inline>.—</heading>
<subparagraph id="H82DEAE8AFEDE4C13B2517A41B2152976" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Secretarial provision of information</inline>.—</heading>
<chapeau>Not later than 6 months after the end of each calendar quarter beginning on or after July 1, 2021, the Secretary shall, for each part B rebatable drug, report to each manufacturer of such part B rebatable drug the following for such calendar quarter:</chapeau>
<clause id="H5D86FC1314684A798D6B5FDBFAAA28FB" class="indent3"><num value="i">“(i) </num>
<content>Information on the total number of units of the billing and payment code described in subparagraph (A)(i) of paragraph (3) with respect to such drug and calendar quarter.</content></clause>
<clause id="H21D35D199AE54098BBAB4EC9E57351F6" class="indent3"><num value="ii">“(ii) </num>
<content>Information on the amount (if any) of the excess average sales price increase described in subparagraph (A)(ii) of such paragraph for such drug and calendar quarter.</content></clause>
<clause id="H1BD27D7E2E7F4E0DB00361A85D9FC3EF" class="indent3"><num value="iii">“(iii) </num>
<content>The rebate amount specified under such paragraph for such part B rebatable drug and calendar quarter.</content></clause></subparagraph>
<subparagraph id="H5077F9D824B549EDAD1759C278895A1A" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Manufacturer requirement</inline>.—</heading>
<content>For each calendar quarter beginning on or after July 1, 2021, the manufacturer of a part B rebatable drug shall, for such drug, not later than 30 days after the date of receipt from the Secretary of the information described in subparagraph (A) for such calendar quarter, provide to the Secretary a rebate that is equal to the amount specified in paragraph (3) for such drug for such calendar quarter.</content></subparagraph></paragraph>
<paragraph id="H87BF02E942484852A834F2F573050158" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Part b rebatable drug defined</inline>.—</heading>
<subparagraph role="definitions" id="H96B6E23D2D4445098CB79DD556B8A449" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>In this subsection, the term ‘<term>part B rebatable drug</term>’ means a single source drug or biological (as defined in subparagraph (D) of section 1847A(c)(6)), including a biosimilar biological product (as defined in subparagraph (H) of such section), paid for under this part, except such term shall not include such a drug or biological—</chapeau>
<clause id="H4D14B918F4E048198022CCCE38BCE9DA" class="indent3"><num value="i">“(i) </num>
<content>if the average total allowed charges for a year per individual that uses such a drug or biological, as determined by the Secretary, are less than, subject to subparagraph (B), $100; or</content></clause>
<clause id="H41C093D6DEE74966A706B2335CA2D357" class="indent3"><num value="ii">“(ii) </num>
<content>that is a vaccine described in subparagraph (A) or (B) of section 1861(s)(10).</content></clause></subparagraph>
<subparagraph id="H15B7C99CDF1E47D691357A5B8BFB9E2D" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Increase</inline>.—</heading>
<chapeau>The dollar amount applied under subparagraph (A)(i)—</chapeau>
<clause id="H6705878257714C7CA5842B7D23025862" class="indent3"><num value="i">“(i) </num>
<content>for 2022, shall be the dollar amount specified under such subparagraph for 2021, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12 month period ending with June of the previous year; and</content></clause>
<clause id="H21E1C6B19A7D4D0886F533F6636BEAD7" class="indent3"><num value="ii">“(ii) </num>
<content>for a subsequent year, shall be the dollar amount specified in this clause (or clause (i)) for the previous year, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12 month period ending with June of the previous year.</content></clause>
<continuation class="indent0">Any dollar amount specified under this subparagraph that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</continuation></subparagraph></paragraph>
<paragraph id="HF1C6F5F78934431B99BBA551A790C6BE" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Rebate amount</inline>.—</heading>
<subparagraph id="H14F34249E9524D549280400EFEAEFBD7" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of paragraph (1), the amount specified in this paragraph for a part B rebatable drug assigned to a billing and payment code for a calendar quarter is, subject to paragraph (4), the amount equal to the product of—</chapeau>
<clause id="HCE747F447E7F4CFFAC031396957CAD81" class="indent3"><num value="i">“(i) </num>
<content>subject to subparagraph (B), the total number of units of the billing and payment code for such part B rebatable drug furnished under this part during the calendar quarter; and</content></clause>
<clause id="H69462088E991463795089DEA30B8F671" class="indent3"><num value="ii">“(ii) </num>
<chapeau>the amount (if any) by which—</chapeau>
<subclause id="HD0B6793D5F6D46E1BBC84E263ED1E056" class="indent4"><num value="I">“(I) </num>
<content>the payment amount under subparagraph (B) or (C) of section 1847A(b)(1), as applicable, for such part B rebatable drug during the calendar quarter; exceeds</content></subclause>
<subclause id="H65B1589909B34B8A8BE90B8CF41B7069" class="indent4"><num value="II">“(II) </num>
<content>the inflation-adjusted payment amount determined under subparagraph (C) for such part B rebatable drug during the calendar quarter.</content></subclause></clause></subparagraph>
<subparagraph id="HA5432B5B0DC645829D18C0AD2E6312DA" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Excluded units</inline>.—</heading>
<chapeau>For purposes of subparagraph (A)(i), the total number of units of the billing and payment code for each part B rebatable drug furnished during a calendar quarter shall not include—</chapeau>
<clause id="H5A99A71D79A2470D9587DE86E049715A" class="indent3"><num value="i">“(i) </num>
<content>units packaged into the payment for a procedure or service under section 1833(t) or under section 1833(i) (instead of separately payable under such respective section);</content></clause>
<clause id="HF708F0F661BE41209013672575ACA9E0" class="indent3"><num value="ii">“(ii) </num>
<content>units included under the single payment system for renal dialysis services under section 1881(b)(14); or</content></clause>
<clause id="H0C0F5AD2AA6C4939B03138FF0EBBA5DA" class="indent3"><num value="iii">“(iii) </num>
<content>units of a part B rebatable drug of a manufacturer furnished to an individual, if such manufacturer, with respect to the furnishing of such units of such drug, provides for discounts under section 340B of the Public Health Service Act or for rebates under section 1927.</content></clause></subparagraph>
<subparagraph id="H9F1D8A9E02984FF18244A95340824D6F" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Determination of inflation-adjusted payment amount</inline>.—</heading>
<chapeau>The inflation-adjusted payment amount determined under this subparagraph for a part B rebatable drug for a calendar quarter is—</chapeau>
<clause id="HB4B8C8A58DB14145B843668E6623E546" class="indent3"><num value="i">“(i) </num>
<content>the payment amount for the billing and payment code for such drug in the payment amount benchmark quarter (as defined in subparagraph (D)); increased by</content></clause>
<clause id="H6DAF11E7B0764561995E014F0557D68A" class="indent3"><num value="ii">“(ii) </num>
<content>the percentage by which the rebate period CPI–U (as defined in subparagraph (F)) for the calendar quarter exceeds the benchmark period CPI–U (as defined in subparagraph (E)).</content></clause></subparagraph>
<subparagraph role="definitions" id="H1B00AE15C571452BB5CB3B442E2B8FEA" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Payment amount benchmark quarter</inline>.—</heading>
<content>The term ‘<term>payment amount benchmark quarter</term>’ means the calendar quarter beginning January 1, 2016.</content></subparagraph>
<subparagraph role="definitions" id="HB4E8CE8CD6F14429866FC034BC451DD6" class="indent2"><num value="E">“(E) </num>
<heading><inline class="smallCaps">Benchmark period cpi–u</inline>.—</heading>
<content>The term ‘<term>benchmark period CPI–U</term>’ means the consumer price index for all urban consumers (United States city average) for July 2015.</content></subparagraph>
<subparagraph role="definitions" id="H8CB031E4154C4E368D6CAF5BA6FC2022" class="indent2"><num value="F">“(F) </num>
<heading><inline class="smallCaps">Rebate period cpi–u</inline>.—</heading>
<content>The term ‘<term>rebate period CPI–U</term>’ means, with respect to a calendar quarter described in subparagraph (C), the greater of the benchmark period CPI–U and the consumer price index for all urban consumers (United States city average) for the first month of the calendar quarter that is two calendar quarters prior to such described calendar quarter.</content></subparagraph></paragraph>
<paragraph id="H5FD143EB6EA247E2975C4449507519B1" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Special treatment of certain drugs and exemption</inline>.—</heading>
<subparagraph role="definitions" id="H00328F4936654FC3A03AC2DCC88E6E16" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Subsequently approved drugs</inline>.—</heading>
<content>Subject to subparagraph (B), in the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after July 1, 2015, clause (i) of paragraph (3)(C) shall be applied as if the term ‘<term>payment amount benchmark quarter</term>’ were defined under paragraph (3)(D) as the third full calendar quarter after the day on which the drug was first marketed and clause (ii) of paragraph (3)(C) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under paragraph (3)(E) as if the reference to ‘July 2015’ under such paragraph were a reference to ‘the first month of the first full calendar quarter after the day on which the drug was first marketed’.</content></subparagraph>
<subparagraph id="H7993E3C39FF644368213A2261E609BA1" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Timeline for provision of rebates for subsequently approved drugs</inline>.—</heading>
<content>In the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after July 1, 2015, paragraph (1)(B) shall be applied as if the reference to ‘July 1, 2021’ under such paragraph were a reference to the later of the 6th full calendar quarter after the day on which the drug was first marketed or July 1, 2021.</content></subparagraph>
<subparagraph id="HC1E1B64A18894B2DA2BE8109556152C2" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Exemption for shortages</inline>.—</heading>
<content>The Secretary may reduce or waive the rebate amount under paragraph (1)(B) with respect to a part B rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act or in the case of other exigent circumstances, as determined by the Secretary.</content></subparagraph>
<subparagraph role="definitions" id="H8E3C0B7D23F441C59D0C60FCEB95C8F1" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Selected drugs</inline>.—</heading>
<content>In the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c)) for a price applicability period (as defined in section 1191(b)(2)) and is determined (pursuant to such section 1192(c)) to no longer be a selected drug, for each applicable year beginning after the price applicability period with respect to such drug, clause (i) of paragraph (3)(C) shall be applied as if the term ‘<term>payment amount benchmark quarter</term>’ were defined under paragraph (3)(D) as the calendar quarter beginning January 1 of the last year beginning during such price applicability period with respect to such selected drug and clause (ii) of paragraph (3)(C) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under paragraph (3)(E) as if the reference to ‘July 2015’ under such paragraph were a reference to the July of the year preceding such last year.</content></subparagraph></paragraph>
<paragraph id="H51728C25753F42DDB17094FAE59B0E19" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Application to beneficiary coinsurance</inline>.—</heading>
<chapeau>In the case of a part B rebatable drug, if the payment amount for a quarter exceeds the inflation adjusted payment for such quarter—</chapeau>
<subparagraph id="HFDE3827A1F924A7CB0EAD8D227E2EF32" class="indent2"><num value="A">“(A) </num>
<content>in computing the amount of any coinsurance applicable under this title to an individual with respect to such drug, the computation of such coinsurance shall be based on the inflation-adjusted payment amount determined under paragraph (3)(C) for such part B rebatable drug; and</content></subparagraph>
<subparagraph id="HDFAB70015E164601A8279F09B8C04E46" class="indent2"><num value="B">“(B) </num>
<content>the amount of such coinsurance is equal to 20 percent of such inflation-adjusted payment amount so determined.</content></subparagraph></paragraph>
<paragraph id="HD9C93DEEA9434A8F860ED33090872317" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Rebate deposits</inline>.—</heading>
<content>Amounts paid as rebates under paragraph (1)(B) shall be deposited into the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</content></paragraph>
<paragraph id="H067C93207F7648449BBF573E72AAB6EC" class="indent1"><num value="7">“(7) </num>
<heading><inline class="smallCaps">Civil money penalty</inline>.—</heading>
<content>If a manufacturer of a part B rebatable drug has failed to comply with the requirements under paragraph (1)(B) for such drug for a calendar quarter, the manufacturer shall be subject to, in accordance with a process established by the Secretary pursuant to regulations, a civil money penalty in an amount equal to at least 125 percent of the amount specified in paragraph (3) for such drug for such calendar quarter. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></paragraph>
<paragraph id="H035F64E1EB134854A96947C2931923DA" class="indent1"><num value="8">“(8) </num>
<heading><inline class="smallCaps">Study and report</inline>.—</heading>
<subparagraph id="H731E5E21FED74A788535BF9469BB1F7B" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Study</inline>.—</heading>
<chapeau>The Secretary shall conduct a study of the feasibility of and operational issues involved with the following:</chapeau>
<clause id="HD1608A587AD3496C9CDC77987CE5EC2E" class="indent3"><num value="i">“(i) </num>
<content>Including multiple source drugs (as defined in section 1847A(c)(6)(C)) in the rebate system under this subsection.</content></clause>
<clause id="H623E525FAE4549C893E14FE56100516E" class="indent3"><num value="ii">“(ii) </num>
<content>Including drugs and biologicals paid for under MA plans under part C in the rebate system under this subsection.</content></clause>
<clause id="H8197B5AADDD94D53A84FB775303F48EF" class="indent3"><num value="iii">“(iii) </num>
<content>Including drugs excluded under paragraph (2)(A) and units of the billing and payment code of the drugs excluded under paragraph (3)(B) in the rebate system under this subsection.</content></clause></subparagraph>
<subparagraph id="HC59707655AA043F08419E35CDF907E80" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Report</inline>.—</heading>
<content>Not later than 3 years after the date of the enactment of this subsection, the Secretary shall submit to Congress a report on the study conducted under subparagraph (A).</content></subparagraph></paragraph>
<paragraph id="H158702DD360443B2BC0C41342ECB7CF0" class="indent1"><num value="9">“(9) </num>
<heading><inline class="smallCaps">Application to multiple source drugs</inline>.—</heading>
<content>The Secretary may, based on the report submitted under paragraph (8) and pursuant to rulemaking, apply the provisions of this subsection to multiple source drugs (as defined in section 1847A(c)(6)(C)), including, for purposes of determining the rebate amount under paragraph (3), by calculating manufacturer-specific average sales prices for the benchmark period and the rebate period.”.</content></paragraph></subsection></quotedContent></content></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s201/b" id="H19FDA0C4D03D418485A97ECA828385F5" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Amounts Payable; Cost-Sharing</inline>.—</heading>
<chapeau>Section 1833 of the Social Security Act (<ref href="/us/usc/t42/s1395l">42 U.S.C. 1395l</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tII/s201/b/1" id="H69AEBA426FC64A04BB7082EE26FDF98C" class="indent1"><num value="1">(1) </num>
<chapeau>in subsection (a)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tII/s201/b/1/A" id="H4C2E896AA93644F787E249CAC9803D5C" class="indent2"><num value="A">(A) </num>
<chapeau>in paragraph (1)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tII/s201/b/1/A/i" id="HEE6625CCD9F94E45B7B3669B5FCC3E22" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (S), by <amendingAction type="delete">striking</amendingAction> “<quotedText>with respect to</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>subject to subparagraph (DD), with respect to</quotedText>”;</content></clause>
<clause identifier="/us/bill/116/hr/3/tII/s201/b/1/A/ii" id="H04AA20364D8B43AC9D0A3A17170A2DF7" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>and (CC)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>(CC)</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tII/s201/b/1/A/iii" id="H6E7F74AF0528472D8EE08DB9C0C241B2" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> before the semicolon at the end the following: “<quotedText>, and (DD) with respect to a part B rebatable drug (as defined in paragraph (2) of section 1834(x)) for which the payment amount for a calendar quarter under paragraph (3)(A)(ii)(I) of such section for such quarter exceeds the inflation adjusted payment under paragraph (3)(A)(ii)(II) of such section for such quarter, the amounts paid shall be the difference between (i) the payment amount under paragraph (3)(A)(ii)(I) of such section for such drug, and (ii) 20 percent of the inflation-adjusted payment amount under paragraph (3)(A)(ii)(II) of such section for such drug</quotedText>”;</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tII/s201/b/1/B" id="H5473F738CCF2468698F7DCEE39F4A222" class="indent2"><num value="B">(B) </num>
<content>in paragraph (4), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>subject to paragraph (1)(DD),</quotedText>” before “<quotedText>the applicable amount</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tII/s201/b/1/C" id="HBBA5047AE06049B09F48B4A436EB40CF" class="indent2"><num value="C">(C) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end of the flush left matter following paragraph (9), the following:<quotedContent meta="committee ID HIF00" id="H9601DD531B1F4FB991CF42C136531111" styleType="OLC"> <continuation class="indent0">“For purposes of applying paragraph (1)(DD), subsection (t)(23), and section 1834(x)(5), the Secretary shall make such estimates and use such data as the Secretary determines appropriate, and notwithstanding any other provision of law, may do so by program instruction or otherwise.”</continuation></quotedContent>;</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tII/s201/b/2" id="HB09A4DA832234682820C4E48DAD4745E" class="indent1"><num value="2">(2) </num>
<content>in subsection (t), by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent meta="committee ID HIF00" id="H50455B50644244B99A503B293B97C62D" styleType="OLC"> <paragraph id="H5874B49E4DB84B0390D3C2F50AA68433" class="indent1"><num value="23">“(23) </num>
<heading><inline class="smallCaps">Part b rebatable drugs</inline>.—</heading>
<chapeau>The amount of payment under this subsection for a part B rebatable drug (as defined in paragraph (2) of section 1834(x)) for which the payment amount for a calendar quarter under paragraph (3)(A)(ii)(I) of such section for such quarter exceeds the inflation adjusted payment under paragraph (3)(A)(ii)(II) of such section for such quarter and that is furnished as part of a covered OPD service (or group of services), shall be the difference between—</chapeau>
<subparagraph id="H490F597A1DB645D4A19AA65D3FAB8371" class="indent2"><num value="A">“(A) </num>
<content>the payment under paragraph (3)(A)(ii)(I) of such section for such drug; and</content></subparagraph>
<subparagraph id="HC1436835CF524B46B3B568A15CDBF47A" class="indent2"><num value="B">“(B) </num>
<content>20 percent of the inflation-adjusted payment amount under paragraph (3)(A)(ii)(II) of such section for such drug.”.</content></subparagraph></paragraph></quotedContent></content></paragraph></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s201/c" id="HEC92C33AE9024D1F9DB7DAF02DC1AA57" class="indent0"><num value="c">(c) </num>
<heading><inline class="smallCaps">Conforming Amendment to Part B ASP Calculation</inline>.—</heading>
<content>Section 1847A(c)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–3a/c/3">42 U.S.C. 1395w–3a(c)(3)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or section 1834(x)</quotedText>” after “<quotedText>section 1927</quotedText>”.</content></subsection></section> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tII/s202" id="H0B6EC0DC1D4B41B7A2B565A2C34FC7AA"><num value="202">SEC. 202. </num>
<heading>MEDICARE PART D REBATE BY MANUFACTURERS.</heading>
<content>Part D of title XVIII of the Social Security Act <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after section 1860D–14A (<ref href="/us/usc/t42/s1395w–114a">42 U.S.C. 1395w–114a</ref>) the following new section:<quotedContent meta="committee ID HIF00" id="HB8073F71E7F14AF286865052E9D4D767" styleType="OLC"> 
<section id="H704EC67F3B20470B8C37F07949DAD14A" role="subsequent-section"><num value="1860D14B">“SEC. 1860D–14B. </num>
<heading>MANUFACTURER REBATE FOR CERTAIN DRUGS WITH PRICES INCREASING FASTER THAN INFLATION.</heading>
<subsection id="H27A9DB876B7D430FA9BBCC8BBF52AC76" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<paragraph id="HD671674A6AFD4C8594E85913D2050679" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to the provisions of this section, in order for coverage to be available under this part for a part D rebatable drug (as defined in subsection (h)(1)) of a manufacturer (as defined in section 1927(k)(5)) dispensed during an applicable year, the manufacturer must have entered into and have in effect an agreement described in subsection (b).</content></paragraph>
<paragraph id="H6CFB2F034A8547F5B9213C42F8C4D4CD" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps"> Authorizing coverage for drugs not covered under agreements</inline>.—</heading>
<chapeau>Paragraph (1) shall not apply to the dispensing of a covered part D drug if—</chapeau>
<subparagraph id="HBD9BCB32FDB346E0ABF4DD568781718A" class="indent2"><num value="A">“(A) </num>
<content>the Secretary has made a determination that the availability of the drug is essential to the health of beneficiaries under this part; or</content></subparagraph>
<subparagraph id="H4D8ED85CFB55474FB007DD3DC818A8B7" class="indent2"><num value="B">“(B) </num>
<content>the Secretary determines that in a specified period (as specified by the Secretary), there were extenuating circumstances.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H371357E5BCD14F89A76D3506773A8809" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Applicable year</inline>.—</heading>
<content>For purposes of this section the term ‘<term>applicable year</term>’ means a year beginning with 2022.</content></paragraph></subsection>
<subsection id="H45320D34C60749A499EFF3C770AA81CA" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Agreements</inline>.—</heading>
<paragraph id="H398709C36FC445529A4177232CD1EC03" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Terms of agreement</inline>.—</heading>
<chapeau>An agreement described in this subsection, with respect to a manufacturer of a part D rebatable drug, is an agreement under which the following shall apply:</chapeau>
<subparagraph id="H3CDDD66A626E4F5097B3AF2464F6FD2F" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Secretarial provision of information</inline>.—</heading>
<chapeau>Not later than 9 months after the end of each applicable year with respect to which the agreement is in effect, the Secretary, for each part D rebatable drug of the manufacturer, shall report to the manufacturer the following for such year:</chapeau>
<clause id="HF18BF9AECC96419B8EA13E70FCDE3D80" class="indent3"><num value="i">“(i) </num>
<content>Information on the total number of units (as defined in subsection (h)(2)) for each dosage form and strength with respect to such part D rebatable drug and year.</content></clause>
<clause id="HAE09700EE1274E2684DB4360B82AEDFE" class="indent3"><num value="ii">“(ii) </num>
<content>Information on the amount (if any) of the excess average manufacturer price increase described in subsection (c)(1)(B) for each dosage form and strength with respect to such drug and year.</content></clause>
<clause id="HCFC30B1E8F8947E1BEF0B6284CD1EADB" class="indent3"><num value="iii">“(iii) </num>
<content>The rebate amount specified under subsection (c) for each dosage form and strength with respect to such drug and year.</content></clause></subparagraph>
<subparagraph id="H2D8E4EA6401646A9B5B4B9361CDE9EB2" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Manufacturer requirements</inline>.—</heading>
<content>For each applicable year with respect to which the agreement is in effect, the manufacturer of the part D rebatable drug, for each dosage form and strength with respect to such drug, not later than 30 days after the date of receipt from the Secretary of the information described in subparagraph (A) for such year, shall provide to the Secretary a rebate that is equal to the amount specified in subsection (c) for such dosage form and strength with respect to such drug for such year.</content></subparagraph></paragraph>
<paragraph id="HFF0210153BA641009CD281FCF7F937F8" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Length of agreement</inline>.—</heading>
<subparagraph id="HDC5099331ACF445B8CFC328811966BAC" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>An agreement under this section, with respect to a part D rebatable drug, shall be effective for an initial period of not less than one year and shall be automatically renewed for a period of not less than one year unless terminated under subparagraph (B).</content></subparagraph>
<subparagraph id="H1AC056965BCB41F692B14EA7D978C930" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Termination</inline>.—</heading>
<clause id="HBE870807784D4766BB32D53199908A38" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">By secretary</inline>.—</heading>
<content>The Secretary may provide for termination of an agreement under this section for violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 30 days after the date of notice of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, but such hearing shall not delay the effective date of the termination.</content></clause>
<clause id="H39AD6DE2EBE54D39A85152BCD716F407" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">By a manufacturer</inline>.—</heading>
<chapeau>A manufacturer may terminate an agreement under this section for any reason. Any such termination shall be effective, with respect to a plan year—</chapeau>
<subclause id="HA68960B45D7C49EB99BBC042824011F2" class="indent4"><num value="I">“(I) </num>
<content>if the termination occurs before January 30 of the plan year, as of the day after the end of the plan year; and</content></subclause>
<subclause id="H03AECCA4BFF742CB8D2722ACD259D7EC" class="indent4"><num value="II">“(II) </num>
<content>if the termination occurs on or after January 30 of the plan year, as of the day after the end of the succeeding plan year.</content></subclause></clause></subparagraph>
<subparagraph id="HC519FF0847214CC0BD601AC1E24C580A" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Effectiveness of termination</inline>.—</heading>
<content>Any termination under this paragraph shall not affect rebates due under the agreement under this section before the effective date of its termination.</content></subparagraph>
<subparagraph id="H6D59DA8D89B74E6E8B1088233817535B" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Delay before reentry</inline>.—</heading>
<content>In the case of any agreement under this section with a manufacturer that is terminated in a plan year, the Secretary may not enter into another such agreement with the manufacturer (or a successor manufacturer) before the subsequent plan year, unless the Secretary finds good cause for an earlier reinstatement of such an agreement.</content></subparagraph></paragraph></subsection>
<subsection id="H6E80EFD0B75B47E08E2C821C88B3DB71" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Rebate Amount</inline>.—</heading>
<paragraph id="H83CE636DD6BC4BFE9973F3A68F5E5229" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of this section, the amount specified in this subsection for a dosage form and strength with respect to a part D rebatable drug and applicable year is, subject to subparagraphs (B) and (C) of paragraph (5), the amount equal to the product of—</chapeau>
<subparagraph id="H6BE2354396EF49D9A9025CA200E1B9C9" class="indent2"><num value="A">“(A) </num>
<content>the total number of units of such dosage form and strength with respect to such part D rebatable drug and year; and</content></subparagraph>
<subparagraph id="HDD003146B8474AFDB3E05B9916C8D58E" class="indent2"><num value="B">“(B) </num>
<chapeau>the amount (if any) by which—</chapeau>
<clause id="HAEED7E73C9B24069AF012AF410958BAD" class="indent3"><num value="i">“(i) </num>
<content>the annual manufacturer price (as determined in paragraph (2)) paid for such dosage form and strength with respect to such part D rebatable drug for the year; exceeds</content></clause>
<clause id="H86D2EA6A84EB442AABBECD9300D210F2" class="indent3"><num value="ii">“(ii) </num>
<content>the inflation-adjusted payment amount determined under paragraph (3) for such dosage form and strength with respect to such part D rebatable drug for the year.</content></clause></subparagraph></paragraph>
<paragraph id="H65F3C1E0CC3C45429A99589B53B27EAB" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Determination of annual manufacturer price</inline>.—</heading>
<chapeau>The annual manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable year, is the sum of the products of—</chapeau>
<subparagraph id="H0448855356EB4177B7F97E707C17485F" class="indent2"><num value="A">“(A) </num>
<content>the average manufacturer price (as defined in subsection (h)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each of the calendar quarters of such year; and</content></subparagraph>
<subparagraph id="HD0C69236FA454C7E93AF13BB7DA1956E" class="indent2"><num value="B">“(B) </num>
<chapeau>the ratio of—</chapeau>
<clause id="H57514234CBFE46C5A349331E63D28240" class="indent3"><num value="i">“(i) </num>
<content>the total number of units of such dosage form and strength dispensed during each such calendar quarter of such year; to</content></clause>
<clause id="HFDF48ECDA2EF406CA6AC3F62E052333A" class="indent3"><num value="ii">“(ii) </num>
<content>the total number of units of such dosage form and strength dispensed during such year.</content></clause></subparagraph></paragraph>
<paragraph id="HC1703ED276F24905BFD723A271A35BE2" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Determination of inflation-adjusted payment amount</inline>.—</heading>
<chapeau>The inflation-adjusted payment amount determined under this paragraph for a dosage form and strength with respect to a part D rebatable drug for an applicable year, subject to subparagraphs (A) and (D) of paragraph (5), is—</chapeau>
<subparagraph id="H518AD5F6902E4677B8A913084DAFDD80" class="indent2"><num value="A">“(A) </num>
<content>the benchmark year manufacturer price determined under paragraph (4) for such dosage form and strength with respect to such drug and an applicable year; increased by</content></subparagraph>
<subparagraph id="H23AA676AA7BF43BCBAD17AB99F6C05B8" class="indent2"><num value="B">“(B) </num>
<content>the percentage by which the applicable year CPI–U (as defined in subsection (h)(5)) for the applicable year exceeds the benchmark period CPI–U (as defined in subsection (h)(4)).</content></subparagraph></paragraph>
<paragraph id="HDF5F0D0F105747CEA8EAF610F0B0360E" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Determination of benchmark year manufacturer price</inline>.—</heading>
<chapeau>The benchmark year manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable year, is the sum of the products of—</chapeau>
<subparagraph id="HDCA79084D19D46C2A694A0B670080C33" class="indent2"><num value="A">“(A) </num>
<content>the average manufacturer price (as defined in subsection (h)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each calendar quarter of the payment amount benchmark year (as defined in subsection (h)(3)); and</content></subparagraph>
<subparagraph id="H505B4A1D556545A1B2BB9331B581D0D7" class="indent2"><num value="B">“(B) </num>
<chapeau>the ratio of—</chapeau>
<clause id="H694A4A0DF2F74454A11A2AED4456CC9F" class="indent3"><num value="i">“(i) </num>
<content>the total number of units of such dosage form and strength dispensed during such calendar quarter of the payment amount benchmark year; to</content></clause>
<clause id="HE82C78BEAC5049ACBCF5002CA07AA738" class="indent3"><num value="ii">“(ii) </num>
<content>the total number of units of such dosage form and strength dispensed during the payment amount benchmark year.</content></clause></subparagraph></paragraph>
<paragraph id="HE37FFE916AE448FC99BB71AB9D07497E" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Special treatment of certain drugs and exemption</inline>.—</heading>
<subparagraph role="definitions" id="HA7779B7644224717AFC64FE28CA79EB3" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Subsequently approved drugs</inline>.—</heading>
<content>In the case of a part D rebatable drug first approved or licensed by the Food and Drug Administration after January 1, 2016, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term ‘<term>payment amount benchmark year</term>’ were defined under subsection (h)(3) as the first calendar year beginning after the day on which the drug was first marketed by any manufacturer and subparagraph (B) of paragraph (3) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under subsection (h)(4) as if the reference to ‘January 2016’ under such subsection were a reference to ‘January of the first year beginning after the date on which the drug was first marketed by any manufacturer’.</content></subparagraph>
<subparagraph id="HCF2AB2C595A0422A9B4BB2742788053A" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Exemption for shortages</inline>.—</heading>
<content>The Secretary may reduce or waive the rebate under paragraph (1) with respect to a part D rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act or in the case of other exigent circumstances, as determined by the Secretary.</content></subparagraph>
<subparagraph id="HF5E5B4B75EA14B589C438C3FEEA47080" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Treatment of new formulations</inline>.—</heading>
<clause id="H3969F41D3AB040A09C1300D12534439A" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>In the case of a part D rebatable drug that is a line extension of a part D rebatable drug that is an oral solid dosage form, the Secretary shall establish a formula for determining the amount specified in this subsection with respect to such part D rebatable drug and an applicable year with consideration of the original part D rebatable drug.</content></clause>
<clause role="definitions" id="HC64FFFCE14454BF386E79AAC1FB4D5E4" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Line extension defined</inline>.—</heading>
<content>In this subparagraph, the term ‘<term>line extension</term>’ means, with respect to a part D rebatable drug, a new formulation of the drug (as determined by the Secretary), such as an extended release formulation, but does not include an abuse-deterrent formulation of the drug (as determined by the Secretary), regardless of whether such abuse-deterrent formulation is an extended release formulation.</content></clause></subparagraph>
<subparagraph role="definitions" id="H9F20A0F6866E49AB9D562AF8075D2660" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Selected drugs</inline>.—</heading>
<content>In the case of a part D rebatable drug that is a selected drug (as defined in section 1192(c)) for a price applicability period (as defined in section 1191(b)(2)) and is determined (pursuant to such section 1192(c)) to no longer be a selected drug, for each applicable year beginning after the price applicability period with respect to such drug, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term ‘<term>payment amount benchmark year</term>’ were defined under subsection (h)(3) as the last year beginning during such price applicability period with respect to such selected drug and subparagraph (B) of paragraph (3) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under subsection (h)(4) as if the reference to ‘January 2016’ under such subsection were a reference to January of the last year beginning during such price applicability period with respect to such drug.</content></subparagraph></paragraph></subsection>
<subsection id="H9E90E030D61146D4830E2123C2E78A42" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Rebate Deposits</inline>.—</heading>
<content>Amounts paid as rebates under subsection (c) shall be deposited into the Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</content></subsection>
<subsection id="H484996B066B6456384016D6CE732BB7A" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Information</inline>.—</heading>
<content>For purposes of carrying out this section, the Secretary shall use information submitted by manufacturers under section 1927(b)(3).</content></subsection>
<subsection id="HE7631B82853E428EA1891BEA64651D35" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Civil Money Penalty</inline>.—</heading>
<content>In the case of a manufacturer of a part D rebatable drug with an agreement in effect under this section who has failed to comply with the terms of the agreement under subsection (b)(1)(B) with respect to such drug for an applicable year, the Secretary may impose a civil money penalty on such manufacturer in an amount equal to 125 percent of the amount specified in subsection (c) for such drug for such year. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></subsection>
<subsection id="HE5E89A1A401E40C6BD37917B83A861C8" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">Judicial Review</inline>.—</heading>
<chapeau>There shall be no judicial review of the following:</chapeau>
<paragraph id="H85496796435243F8B56332EA3A6C9107" class="indent1"><num value="1">“(1) </num>
<content>The determination of units under this section.</content></paragraph>
<paragraph id="H136F6A2C0E4F4ABC9890A10FB36B8965" class="indent1"><num value="2">“(2) </num>
<content>The determination of whether a drug is a part D rebatable drug under this section.</content></paragraph>
<paragraph id="H584DCFCDB2DC4D9FA8C17296FAFBDC18" class="indent1"><num value="3">“(3) </num>
<content>The calculation of the rebate amount under this section.</content></paragraph></subsection>
<subsection id="H6D02FCF123434539BBF59EE272D7BA72" class="indent0"><num value="h">“(h) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<chapeau>In this section:</chapeau>
<paragraph id="H38DC4B5166C7405A9D57A02E83FE788D" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Part d rebatable drug defined</inline>.—</heading>
<subparagraph role="definitions" id="H75B6025ED4004749846BE738B0424167" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The term ‘<term>part D rebatable drug</term>’ means a drug or biological that would (without application of this section) be a covered part D drug, except such term shall, with respect to an applicable year, not include such a drug or biological if the average annual total cost under this part for such year per individual who uses such a drug or biological, as determined by the Secretary, is less than, subject to subparagraph (B), $100, as determined by the Secretary using the most recent data available or, if data is not available, as estimated by the Secretary.</content></subparagraph>
<subparagraph id="HFDB45DF964C1424B82997540CE5944AA" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Increase</inline>.—</heading>
<chapeau>The dollar amount applied under subparagraph (A)—</chapeau>
<clause id="HD065E902C53044E194FC86FB38D108F1" class="indent3"><num value="i">“(i) </num>
<content>for 2023, shall be the dollar amount specified under such subparagraph for 2022, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with January of 2022; and</content></clause>
<clause id="HEBA178E42B78498A96B7B7491CB93EBF" class="indent3"><num value="ii">“(ii) </num>
<content>for a subsequent year, shall be the dollar amount specified in this subparagraph (or subparagraph (A)) for the previous year, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with January of the previous year.</content></clause>
<continuation class="indent0">Any dollar amount specified under this subparagraph that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</continuation></subparagraph></paragraph>
<paragraph role="definitions" id="H6592812080F6430C8A44C012820B9EFB" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Unit defined</inline>.—</heading>
<content>The term ‘<term>unit</term>’ means, with respect to a part D rebatable drug, the lowest identifiable quantity (such as a capsule or tablet, milligram of molecules, or grams) of the part D rebatable drug that is dispensed to individuals under this part.</content></paragraph>
<paragraph role="definitions" id="H59034E7E799043C58AABCD0E2B8AD6EB" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Payment amount benchmark year</inline>.—</heading>
<content>The term ‘<term>payment amount benchmark year</term>’ means the year beginning January 1, 2016.</content></paragraph>
<paragraph role="definitions" id="HC3BFFCB5CDF14A2E96528E41B9C3B883" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Benchmark period cpi–u</inline>.—</heading>
<content>The term ‘<term>benchmark period CPI–U</term>’ means the consumer price index for all urban consumers (United States city average) for January 2016.</content></paragraph>
<paragraph role="definitions" id="H9EBB501A5F6F425A80F3F109D9318A74" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Applicable year cpi–u</inline>.—</heading>
<content>The term ‘<term>applicable year CPI–U</term>’ means, with respect to an applicable year, the consumer price index for all urban consumers (United States city average) for January of such year.</content></paragraph>
<paragraph role="definitions" id="HC83A62F94C18431CBE432E80A38123EE" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Average manufacturer price</inline>.—</heading>
<content>The term ‘<term>average manufacturer price</term>’ has the meaning, with respect to a part D rebatable drug of a manufacturer, given such term in section 1927(k)(1), with respect to a covered outpatient drug of a manufacturer for a rebate period under section 1927.”.</content></paragraph></subsection></section></quotedContent></content></section></title>
<title identifier="/us/bill/116/hr/3/tIII" id="H054FCC869C89433A88C30141C7693CCF"><num value="III">TITLE III—</num>
<heading class="inline">PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE BENEFICIARIES</heading> 
<section identifier="/us/bill/116/hr/3/tIII/s301" id="H4A9B4E55BDB84656BDD6B5D154861662" role="subsequent-section"><num value="301">SEC. 301. </num>
<heading>MEDICARE PART D BENEFIT REDESIGN.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/a" id="H9DB4C0ABD609485481A1FE09E08A3E65" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">Benefit Structure Redesign</inline>.—</heading>
<chapeau>Section 1860D–2(b) of the Social Security Act (<ref href="/us/usc/t42/s1395w–102/b">42 U.S.C. 1395w–102(b)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tIII/s301/a/1" id="HE67375946C394857B71ED9E9AD075000" class="indent1"><num value="1">(1) </num>
<chapeau>in paragraph (2)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/1/A" id="H2803AEAE2998489D8333407D108ACE42" class="indent2"><num value="A">(A) </num>
<content>in subparagraph (A), in the matter preceding clause (i), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022 and for costs above the annual deductible specified in paragraph (1) and up to the annual out-of-pocket threshold specified in paragraph (4)(B) for 2022 and each subsequent year</quotedText>” after “<quotedText>paragraph (3)</quotedText>”;</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/1/B" id="H8802602640EB480AB3700EDCCFFE6B4D" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (C)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/B/i" id="HE2F7338E1E0547B3A423E6C125733EFD" class="indent3"><num value="i">(i) </num>
<content>in clause (i), in the matter preceding subclause (I), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>paragraph (4),</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/B/ii" id="HFC2053CF3BD849BCA17915E4C192459D" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii)(III), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and each subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>and 2021</quotedText>”; and</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/1/C" id="H15D4844965364C8993FE47C4EC88F1C2" class="indent2"><num value="C">(C) </num>
<chapeau>in subparagraph (D)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/i" id="H807B114F84A8423D99D4B544A4229238" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (i)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/i/I" id="H0050888A685242858D8DBC74E9FE2598" class="indent4"><num value="I">(I) </num>
<content>in the matter preceding subclause (I), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>paragraph (4),</quotedText>”; and</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/i/II" id="HC2BEBFB1045A4A4B9EA2F848C6230AD5" class="indent4"><num value="II">(II) </num>
<content>in subclause (I)(bb), by <amendingAction type="delete">striking</amendingAction> “<quotedText>a year after 2018</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>each of years 2018 through 2021</quotedText>”; and</content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/ii" id="HE64156A3CC4341A89CFE57106DEC3853" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii)(V), by <amendingAction type="delete">striking</amendingAction> “<quotedText>2019 and each subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>each of years 2019 through 2021</quotedText>”;</content></clause></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIII/s301/a/2" id="HC33BCFCCC17F4AF4A37A31F58D5CF687" class="indent1"><num value="2">(2) </num>
<chapeau>in paragraph (3)(A)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/2/A" id="H1A9D1E930BE54AB58C3F86C9DC6EBB8F" class="indent2"><num value="A">(A) </num>
<content>in the matter preceding clause (i), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>and (4),</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/2/B" id="H2DBA417957FD439BB59AC6D675987546" class="indent2"><num value="B">(B) </num>
<content>in clause (ii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>for a subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for each of years 2007 through 2021</quotedText>”; and</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIII/s301/a/3" id="HD4D57CF123B8449EB1811361DB4D2569" class="indent1"><num value="3">(3) </num>
<chapeau>in paragraph (4)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/A" id="HD76528524187473CAF4BA67614ADC84C" class="indent2"><num value="A">(A) </num>
<chapeau>in subparagraph (A)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i" id="H3864BA314A064AD492987891D10E8E23" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (i)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/I" id="H60A33E919AAC4EED885C7DFF04E5C020" class="indent4"><num value="I">(I) </num>
<content>by <amendingAction type="redesignate">redesignating</amendingAction> subclauses (I) and (II) as items (aa) and (bb), respectively, and moving the margin of each such redesignated item 2 ems to the right;</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/II" id="H86A07110B67346F588D740868042B749" class="indent4"><num value="II">(II) </num>
<content>in the matter preceding item (aa), as redesignated by subclause (I), by <amendingAction type="delete">striking</amendingAction> “<quotedText>is equal to the greater of—</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent>“is equal to— <subclause id="HE3649F3681D74B55A557FDED33C1A821" class="indent4"><num value="I">“(I) </num>
<content>for a year preceding 2022, the greater of—”;</content></subclause></quotedContent></content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/III" id="H5982CCF77E424D0C9A6E8F22F15AF47D" class="indent4"><num value="III">(III) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end of item (bb), as redesignated by subclause (I), and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/IV" id="H18982C808A4E45D9B2CA7FE2C10F8061" class="indent4"><num value="IV">(IV) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HIF00" id="H162E373C03AC4C719627BF415EFE3EEA" styleType="OLC"> <subclause id="H8AFFB271B29048748CF8A32181D791A4" class="indent4"><num value="II">“(II) </num>
<content>for 2022 and each succeeding year, $0.”; and</content></subclause></quotedContent></content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/ii" id="H32088EF411DC49209FCD556CEEF99CD6" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>clause (i)(I)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>clause (i)(I)(aa)</quotedText>”;</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/B" id="H67F95716DFED4DE9B3621FB1748E360A" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (B)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i" id="H8C147CC8218F4457B1C4E8017CE7E035" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (i)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/I" id="H3E5FCF0B05164317973A2637C5DF25AC" class="indent4"><num value="I">(I) </num>
<content>in subclause (V), by <amendingAction type="delete">striking</amendingAction> “<quotedText>or</quotedText>” at the end;</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/II" id="H49E648A5D2634F42BCD9EA15F13AACAE" class="indent4"><num value="II">(II) </num>
<chapeau>in subclause (VI)—</chapeau><item identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/II/aa" id="H0FB4E5FF21B043CEBA49AFE4E2FDCED7" class="indent5"><num value="aa">(aa) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>for a subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for 2021</quotedText>”; and</content></item><item identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/II/bb" id="H4A2F2ECB381C45A097BFD9ABA7716F5D" class="indent5"><num value="bb">(bb) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> a semicolon; and</content></item></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/III" id="HD8CE58984B5F412FABA6117692A28FFB" class="indent4"><num value="III">(III) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subclauses:<quotedContent meta="committee ID HIF00" id="HB6117249222A40418FEE7A7991BD753E" styleType="OLC"> <subclause id="HCFF007F5C45C491D93C843E054DA7FDC" class="indent4"><num value="VII">“(VII) </num>
<content>for 2022, is equal to $2,000; or</content></subclause>
<subclause id="H22951E29A87B4E33BA60200CBD611EC6" class="indent4"><num value="VIII">“(VIII) </num>
<content>for a subsequent year, is equal to the amount specified in this subparagraph for the previous year, increased by the annual percentage increase described in paragraph (6) for the year involved.”; and</content></subclause></quotedContent></content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/ii" id="H9F341BAB414F40EE8059BBFC9683A17D" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>clause (i)(II)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>clause (i)</quotedText>”;</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/C" id="H27C5D06D30BE41489A46044DB8E74D15" class="indent2"><num value="C">(C) </num>
<content>in subparagraph (C)(i), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and for amounts</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>and, for a year preceding 2022, for amounts</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/D" id="H32E1A136FE3A41A88FFF50CDE7BA4CD7" class="indent2"><num value="D">(D) </num>
<content>in subparagraph (E), by <amendingAction type="delete">striking</amendingAction> “<quotedText>In applying</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For each of years 2011 through 2021, in applying</quotedText>”.</content></subparagraph></paragraph></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/b" id="H804310D042D24CD2B431B495D02D27F3" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Decreasing Reinsurance Payment Amount</inline>.—</heading>
<content>Section 1860D–15(b)(1) of the Social Security Act (<ref href="/us/usc/t42/s1395w–115/b/1">42 U.S.C. 1395w–115(b)(1)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>80 percent</quotedText>” the following: “<quotedText>(or, with respect to a coverage year after 2021, 20 percent)</quotedText>”.</content></subsection>
<subsection identifier="/us/bill/116/hr/3/tIII/s301/c" id="H8C01D1B11F2C441FAF7851505860FBDB" class="indent0"><num value="c">(c) </num>
<heading><inline class="smallCaps">Manufacturer Discount Program</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/c/1" id="H3D262D716A2845A7B63E01ADE90AAA50" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Part D of title XVIII of the Social Security Act (<ref href="/us/usc/t42/s1395w–101">42 U.S.C. 1395w–101</ref> et seq.), as amended by section 202, is further amended by <amendingAction type="insert">inserting</amendingAction> after section 1860D–14B the following new section:<quotedContent meta="committee ID HIF00" id="H87EF7CEC8B804BD7B86B8A42D832FA64" styleType="OLC"> 
<section id="H344B35159B04447F9D965A4ABEA01983" role="subsequent-section"><num value="1860D14C">“SEC. 1860D–14C. </num>
<heading>MANUFACTURER DISCOUNT PROGRAM.</heading>
<subsection id="H744DD6302C8148AD93B7E4D3E49281F6" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Establishment</inline>.—</heading>
<content>The Secretary shall establish a manufacturer discount program (in this section referred to as the ‘program’). Under the program, the Secretary shall enter into agreements described in subsection (b) with manufacturers and provide for the performance of the duties described in subsection (c). The Secretary shall establish a model agreement for use under the program by not later than January 1, 2021, in consultation with manufacturers, and allow for comment on such model agreement.</content></subsection>
<subsection id="HE0EEF931B2CE48359403683D7A2F2CB6" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Terms of Agreement</inline>.—</heading>
<paragraph id="HB7F2F8C405F2497094F217E2FC409AA7" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<subparagraph id="H153FE5EA19EE4EA18684911A65F5E4A4" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Agreement</inline>.—</heading>
<content>An agreement under this section shall require the manufacturer to provide applicable beneficiaries access to discounted prices for applicable drugs of the manufacturer that are dispensed on or after January 1, 2022.</content></subparagraph>
<subparagraph id="H10803365C3974E9DAB29338DE35F384A" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Provision of discounted prices at the point-of-sale</inline>.—</heading>
<content>The discounted prices described in subparagraph (A) shall be provided to the applicable beneficiary at the pharmacy or by the mail order service at the point-of-sale of an applicable drug.</content></subparagraph>
<subparagraph id="H5E54A8E8982E4E38990AC1C077D58FB3" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Timing of agreement</inline>.—</heading>
<clause id="HC6CD9E0B2DBE4F44BA11046DF79F5A47" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">Special rule for 2022</inline>.—</heading>
<content>In order for an agreement with a manufacturer to be in effect under this section with respect to the period beginning on January 1, 2022, and ending on December 31, 2022, the manufacturer shall enter into such agreement not later than 30 days after the date of the establishment of a model agreement under subsection (a).</content></clause>
<clause id="H5BE802B30CF14CD7A8EAC86750A93401" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">2023 and subsequent years</inline>.—</heading>
<content>In order for an agreement with a manufacturer to be in effect under this section with respect to plan year 2023 or a subsequent plan year, the manufacturer shall enter into such agreement (or such agreement shall be renewed under paragraph (4)(A)) not later than January 30 of the preceding year.</content></clause></subparagraph></paragraph>
<paragraph id="H9B57EB1A3DFA4EC5B1252E048EF9E86D" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Provision of appropriate data</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall collect and have available appropriate data, as determined by the Secretary, to ensure that it can demonstrate to the Secretary compliance with the requirements under the program.</content></paragraph>
<paragraph id="H8D40222494DF45C199DBBD6F99604674" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Compliance with requirements for administration of program</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall comply with requirements imposed by the Secretary or a third party with a contract under subsection (d)(3), as applicable, for purposes of administering the program, including any determination under subparagraph (A) of subsection (c)(1) or procedures established under such subsection (c)(1).</content></paragraph>
<paragraph id="H5FAFB0E69C154FD3A569F22CE8159596" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Length of agreement</inline>.—</heading>
<subparagraph id="H87C5D310758A4414AE6C0C75A0305490" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>An agreement under this section shall be effective for an initial period of not less than 12 months and shall be automatically renewed for a period of not less than 1 year unless terminated under subparagraph (B).</content></subparagraph>
<subparagraph id="HE4DAA125250E49DBB7108F16A2E80114" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Termination</inline>.—</heading>
<clause id="HF5FC31DD7A0D4A7CA9F6483D5318350A" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">By the secretary</inline>.—</heading>
<content>The Secretary may provide for termination of an agreement under this section for a knowing and willful violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 30 days after the date of notice to the manufacturer of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, and such hearing shall take place prior to the effective date of the termination with sufficient time for such effective date to be repealed if the Secretary determines appropriate.</content></clause>
<clause id="H4693E784C3E4405AA643822A223E3FE1" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">By a manufacturer</inline>.—</heading>
<chapeau>A manufacturer may terminate an agreement under this section for any reason. Any such termination shall be effective, with respect to a plan year—</chapeau>
<subclause id="HC6422358AFC7413AABB8686917F841EC" class="indent4"><num value="I">“(I) </num>
<content>if the termination occurs before January 30 of a plan year, as of the day after the end of the plan year; and</content></subclause>
<subclause id="HFD1EF6C2F90140EF8ED30B60BCD4C852" class="indent4"><num value="II">“(II) </num>
<content>if the termination occurs on or after January 30 of a plan year, as of the day after the end of the succeeding plan year.</content></subclause></clause>
<clause id="H9C5F0050E157442AA0F3F18CDDEC8860" class="indent3"><num value="iii">“(iii) </num>
<heading><inline class="smallCaps">Effectiveness of termination</inline>.—</heading>
<content>Any termination under this subparagraph shall not affect discounts for applicable drugs of the manufacturer that are due under the agreement before the effective date of its termination.</content></clause>
<clause id="H33697BBAF2424A33BB12CF059AB3394E" class="indent3"><num value="iv">“(iv) </num>
<heading><inline class="smallCaps">Notice to third party</inline>.—</heading>
<content>The Secretary shall provide notice of such termination to a third party with a contract under subsection (d)(3) within not less than 30 days before the effective date of such termination.</content></clause></subparagraph></paragraph></subsection>
<subsection id="HFC7393E6F93745318FE5D3690E18A220" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Duties Described</inline>.—</heading>
<chapeau>The duties described in this subsection are the following:</chapeau>
<paragraph id="H698A04A484DD4ACF9032B18828ADDF42" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Administration of program</inline>.—</heading>
<chapeau>Administering the program, including—</chapeau>
<subparagraph id="H874A97AF55FF4BF39D91349533892446" class="indent2"><num value="A">“(A) </num>
<content>the determination of the amount of the discounted price of an applicable drug of a manufacturer;</content></subparagraph>
<subparagraph id="H09B49791F69141AC9480FAE7DBE05F4D" class="indent2"><num value="B">“(B) </num>
<content>the establishment of procedures under which discounted prices are provided to applicable beneficiaries at pharmacies or by mail order service at the point-of-sale of an applicable drug;</content></subparagraph>
<subparagraph id="HE5110218F6EA41EAB29D5B7050888FE3" class="indent2"><num value="C">“(C) </num>
<chapeau>the establishment of procedures to ensure that, not later than the applicable number of calendar days after the dispensing of an applicable drug by a pharmacy or mail order service, the pharmacy or mail order service is reimbursed for an amount equal to the difference between—</chapeau>
<clause id="H5A270D9BA93F4D03A5181BA622C155FB" class="indent3"><num value="i">“(i) </num>
<content>the negotiated price of the applicable drug; and</content></clause>
<clause id="HF5B66D2EDE174974BC694317D35E2027" class="indent3"><num value="ii">“(ii) </num>
<content>the discounted price of the applicable drug;</content></clause></subparagraph>
<subparagraph id="HE27B996AECB54D86B25CDE4E1BDADE01" class="indent2"><num value="D">“(D) </num>
<content>the establishment of procedures to ensure that the discounted price for an applicable drug under this section is applied before any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of applicable beneficiaries as the Secretary may specify; and</content></subparagraph>
<subparagraph id="H635E24671DE04509860660CF062161C1" class="indent2"><num value="E">“(E) </num>
<content>providing a reasonable dispute resolution mechanism to resolve disagreements between manufacturers, applicable beneficiaries, and the third party with a contract under subsection (d)(3).</content></subparagraph></paragraph>
<paragraph id="HB9B3FA22C5E2486D9369D909BF755B91" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Monitoring compliance</inline>.—</heading>
<subparagraph id="HDA395AF86BE24AB3954DC1031D742EB6" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under this section.</content></subparagraph>
<subparagraph id="HDF7B0391CE9B4AB0A973E8EBC81224DC" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Notification</inline>.—</heading>
<content>If a third party with a contract under subsection (d)(3) determines that the manufacturer is not in compliance with such agreement, the third party shall notify the Secretary of such noncompliance for appropriate enforcement under subsection (e).</content></subparagraph></paragraph>
<paragraph id="H8E1208044DD34490A8A92E12A7B6E8B1" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Collection of data from prescription drug plans and ma–pd plans</inline>.—</heading>
<content>The Secretary may collect appropriate data from prescription drug plans and MA–PD plans in a timeframe that allows for discounted prices to be provided for applicable drugs under this section.</content></paragraph></subsection>
<subsection id="H4FBCB9305A47462EA09BD9EEB6814D7D" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Administration</inline>.—</heading>
<paragraph id="HD2EBD62096994BE5B16A34521CB3D61D" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to paragraph (2), the Secretary shall provide for the implementation of this section, including the performance of the duties described in subsection (c).</content></paragraph>
<paragraph id="H2825D8B032BE471683B1C95BFCE95F76" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Limitation</inline>.—</heading>
<content>In providing for the implementation of this section, the Secretary shall not receive or distribute any funds of a manufacturer under the program.</content></paragraph>
<paragraph id="H19660AFFAFEC4B0198BCDCA00FD66E26" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Contract with third parties</inline>.—</heading>
<chapeau>The Secretary shall enter into a contract with 1 or more third parties to administer the requirements established by the Secretary in order to carry out this section. At a minimum, the contract with a third party under the preceding sentence shall require that the third party—</chapeau>
<subparagraph id="H6DEE9E5F669D4A4097292139706B00BC" class="indent2"><num value="A">“(A) </num>
<content>receive and transmit information between the Secretary, manufacturers, and other individuals or entities the Secretary determines appropriate;</content></subparagraph>
<subparagraph id="H954C748AEDD54E5FBDF42EC4FEDB4B07" class="indent2"><num value="B">“(B) </num>
<content>receive, distribute, or facilitate the distribution of funds of manufacturers to appropriate individuals or entities in order to meet the obligations of manufacturers under agreements under this section;</content></subparagraph>
<subparagraph id="H94BB3E04A47A452A99B588FB1FE3AAB9" class="indent2"><num value="C">“(C) </num>
<content>provide adequate and timely information to manufacturers, consistent with the agreement with the manufacturer under this section, as necessary for the manufacturer to fulfill its obligations under this section; and</content></subparagraph>
<subparagraph id="HECF8276F8D0744A6A64386576B1BD469" class="indent2"><num value="D">“(D) </num>
<content>permit manufacturers to conduct periodic audits, directly or through contracts, of the data and information used by the third party to determine discounts for applicable drugs of the manufacturer under the program.</content></subparagraph></paragraph>
<paragraph id="H8AC9D2F58BA147CBBE7877A7EE6DFAF0" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Performance requirements</inline>.—</heading>
<content>The Secretary shall establish performance requirements for a third party with a contract under paragraph (3) and safeguards to protect the independence and integrity of the activities carried out by the third party under the program under this section.</content></paragraph>
<paragraph id="H0141C7BDFE8148239B216E36C8981B94" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Implementation</inline>.—</heading>
<content>Notwithstanding any other provision of law, the Secretary may implement the program under this section by program instruction or otherwise.</content></paragraph>
<paragraph id="HFDCB5011CAB447B68C3FE096AD404E16" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Administration</inline>.—</heading>
<content><ref href="usc-chapter/44/35">Chapter 35</ref> of <ref href="/us/usc/t44">title 44, United States Code</ref>, shall not apply to the program under this section.</content></paragraph></subsection>
<subsection id="H4906339B6C304BEB8E08A593611840D3" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Enforcement</inline>.—</heading>
<paragraph id="HCCA5D97273E44EE896DF169D6FFE5274" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Audits</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall be subject to periodic audit by the Secretary.</content></paragraph>
<paragraph id="H1B567EDA83E544D680A8FBCF7BDDE30F" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Civil money penalty</inline>.—</heading>
<subparagraph id="H2BE436FD4C3D48009479C25DC4026BB1" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>The Secretary may impose a civil money penalty on a manufacturer that fails to provide applicable beneficiaries discounts for applicable drugs of the manufacturer in accordance with such agreement for each such failure in an amount the Secretary determines is equal to the sum of—</chapeau>
<clause id="HDDE1DD5147AF45C380E5B1DBC2340D12" class="indent3"><num value="i">“(i) </num>
<content>the amount that the manufacturer would have paid with respect to such discounts under the agreement, which will then be used to pay the discounts which the manufacturer had failed to provide; and</content></clause>
<clause id="H5E3DE7ED1A23401494C8526BA53CD9A8" class="indent3"><num value="ii">“(ii) </num>
<content>25 percent of such amount.</content></clause></subparagraph>
<subparagraph id="HC7056248C77644F0916F2C930A250B62" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Application</inline>.—</heading>
<content>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></subparagraph></paragraph></subsection>
<subsection id="H7E5529B57688497FB3130641ABD3D197" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Clarification Regarding Availability of Other Covered Part D Drugs</inline>.—</heading>
<content>Nothing in this section shall prevent an applicable beneficiary from purchasing a covered part D drug that is not an applicable drug (including a generic drug or a drug that is not on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in).</content></subsection>
<subsection id="HFFF9AE977E50488C841B3F7213F0ABDE" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<chapeau>In this section:</chapeau>
<paragraph role="definitions" id="HBF6C06C446164C3685991BD5696C5845" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Applicable beneficiary</inline>.—</heading>
<chapeau>The term ‘<term>applicable beneficiary</term>’ means an individual who, on the date of dispensing a covered part D drug—</chapeau>
<subparagraph id="H59CFE5525DBD4DC38B7AC85D253BC9CD" class="indent2"><num value="A">“(A) </num>
<content>is enrolled in a prescription drug plan or an MA–PD plan;</content></subparagraph>
<subparagraph id="HEB450131A4A94FF6A76DA1ECB6D194E0" class="indent2"><num value="B">“(B) </num>
<content>is not enrolled in a qualified retiree prescription drug plan; and</content></subparagraph>
<subparagraph id="HF55F9A3448B64A9F8D9C703769E91013" class="indent2"><num value="C">“(C) </num>
<content>has incurred costs for covered part D drugs in the year that are equal to or exceed the annual deductible specified in section 1860D–2(b)(1) for such year.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H33969F887B9648F18FBF455D3DBBA6A6" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Applicable drug</inline>.—</heading>
<chapeau>The term ‘<term>applicable drug</term>’, with respect to an applicable beneficiary—</chapeau>
<subparagraph id="HC5AFED28F3C2414E9114A7D860C9E3B3" class="indent2"><num value="A">“(A) </num>
<chapeau>means a covered part D drug—</chapeau>
<clause id="HA1AFA7DD312244EE95520D3E64153DD4" class="indent3"><num value="i">“(i) </num>
<content>approved under a new drug application under section 505(c) of the Federal Food, Drug, and Cosmetic Act or, in the case of a biologic product, licensed under section 351 of the Public Health Service Act; and</content></clause>
<clause id="HF3206F685B0D45328363DCD16F4C78D2" class="indent3"><num value="ii">“(ii)</num>
<subclause id="H7A5E3D76494E44FF9BBDFF70776AB7D8" class="inline"><num value="I">(I) </num>
<content>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan uses a formulary, which is on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in;</content></subclause>
<subclause meta="committee ID HIF00" id="HC48C611D224F4DD3901BAC86BE8DC0F5" class="indent3"><num value="II">“(II) </num>
<content>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan does not use a formulary, for which benefits are available under the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in; or</content></subclause>
<subclause meta="committee ID HIF00" id="H60AFFF08268345B1AED812C1423AC190" class="indent3"><num value="III">“(III) </num>
<content>is provided through an exception or appeal; and</content></subclause></clause></subparagraph>
<subparagraph id="H29475A3559C24D3D89A0AE336F53E64D" class="indent2"><num value="B">“(B) </num>
<content>does not include a selected drug (as defined in section 1192(c)) during a price applicability period (as defined in section 1191(b)(2)) with respect to such drug.</content></subparagraph></paragraph>
<paragraph role="definitions" id="HC308BFF444F6490585879D4B582BD48E" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Applicable number of calendar days</inline>.—</heading>
<chapeau>The term ‘<term>applicable number of calendar days</term>’ means—</chapeau>
<subparagraph id="H54CF8F12601A480E95334950712F00D3" class="indent2"><num value="A">“(A) </num>
<content>with respect to claims for reimbursement submitted electronically, 14 days; and</content></subparagraph>
<subparagraph id="HE29F15B60FA443829583F3E31CA4633C" class="indent2"><num value="B">“(B) </num>
<content>with respect to claims for reimbursement submitted otherwise, 30 days.</content></subparagraph></paragraph>
<paragraph id="H6ACF2EA1355E4B76A2CD02E69047D7B5" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Discounted price</inline>.—</heading>
<subparagraph role="definitions" id="H2032B2A33B624DA8BFED2D2F6AA5180D" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>The term ‘<term>discounted price</term>’ means, with respect to an applicable drug of a manufacturer furnished during a year to an applicable beneficiary—</chapeau>
<clause id="H971B1DEF4E144A8281D7827E142D8C6C" class="indent3"><num value="i">“(i) </num>
<content>who has not incurred costs for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, 90 percent of the negotiated price of such drug; and</content></clause>
<clause id="H88C0F0A0D42D486A9B69FD822E11A703" class="indent3"><num value="ii">“(ii) </num>
<content>who has incurred such costs in the year that are equal to or exceed such threshold for the year, 70 percent of the negotiated price of such drug.</content></clause></subparagraph>
<subparagraph id="HE0974409B7994B86B9B316122581D1E8" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Clarification</inline>.—</heading>
<content>Nothing in this section shall be construed as affecting the responsibility of an applicable beneficiary for payment of a dispensing fee for an applicable drug.</content></subparagraph>
<subparagraph id="H7F4E6276FE2A466C861C06AA14D152AA" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Special case for certain claims</inline>.—</heading>
<clause id="HB6BFB3A818444131ACFEF5326C0C7BE1" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">Claims spanning deductible</inline>.—</heading>
<content>In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall at or above the annual deductible specified in section 1860D–2(b)(1) for the year, the manufacturer of the applicable drug shall provide the discounted price under this section on only the portion of the negotiated price of the applicable drug that falls at or above such annual deductible.</content></clause>
<clause id="H0225114DD69841B88DF5882DCD317E50" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Claims spanning out-of-pocket threshold</inline>.—</heading>
<chapeau>In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall entirely below or entirely above the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, the manufacturer of the applicable drug shall provide the discounted price—</chapeau>
<subclause id="H2085BD84AC944C40BF6AF43D7EC3A2D1" class="indent4"><num value="I">“(I) </num>
<content>in accordance with subparagraph (A)(i) on the portion of the negotiated price of the applicable drug that falls below such threshold; and</content></subclause>
<subclause id="HA0B94127823D4692B2879D6EDA2428C0" class="indent4"><num value="II">“(II) </num>
<content>in accordance with subparagraph (A)(ii) on the portion of such price of such drug that falls at or above such threshold.</content></subclause></clause></subparagraph></paragraph>
<paragraph role="definitions" id="H8175B4EEF14D4CEA8EFE3030CBA22FD1" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Manufacturer</inline>.—</heading>
<content>The term ‘<term>manufacturer</term>’ means any entity which is engaged in the production, preparation, propagation, compounding, conversion, or processing of prescription drug products, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. Such term does not include a wholesale distributor of drugs or a retail pharmacy licensed under State law.</content></paragraph>
<paragraph role="definitions" id="HCF07A57784C448109A17D7DCBFDC59A2" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Negotiated price</inline>.—</heading>
<content>The term ‘<term>negotiated price</term>’ has the meaning given such term in <ref href="/us/cfr/t42/s423.100">section 423.100 of title 42, Code of Federal Regulations</ref> (or any successor regulation), except that such negotiated price shall not include any dispensing fee for the applicable drug.</content></paragraph>
<paragraph role="definitions" id="H8DD54C1470F6485280218F7A76181CBC" class="indent1"><num value="7">“(7) </num>
<heading><inline class="smallCaps">Qualified retiree prescription drug plan</inline>.—</heading>
<content>The term ‘<term>qualified retiree prescription drug plan</term>’ has the meaning given such term in section 1860D–22(a)(2).”.</content></paragraph></subsection></section></quotedContent></content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/c/2" id="H3CBE20A8DA4744F89E6FF7C42BC4830F" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Sunset of medicare coverage gap discount program</inline>.—</heading>
<chapeau>Section 1860D–14A of the Social Security Act (<ref href="/us/usc/t42/s1395–114a">42 U.S.C. 1395–114a</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/2/A" id="HF820927F0BB44228937FC0B59C4E4827" class="indent2"><num value="A">(A) </num>
<content>in subsection (a), in the first sentence, by <amendingAction type="delete">striking</amendingAction> “<quotedText>The Secretary</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>Subject to subsection (h), the Secretary</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/2/B" id="H0A2260A05F044C0F882099B247A5F3FA" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent meta="committee ID HIF00" id="H414420FD494040A7B98893BDB800F1EC" styleType="OLC"> <subsection id="H8051A33430704299A19A96AF306D1C95" class="indent0"><num value="h">“(h) </num>
<heading><inline class="smallCaps">Sunset of Program</inline>.—</heading>
<paragraph id="HF8D3E80ECF7D4772A69BCAA8130EEEED" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The program shall not apply with respect to applicable drugs dispensed on or after January 1, 2022, and, subject to paragraph (2), agreements under this section shall be terminated as of such date.</content></paragraph>
<paragraph id="H4D14F2788AF043D0B80DF2F618A4BC2C" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Continued application for applicable drugs dispensed prior to sunset</inline>.—</heading>
<content>The provisions of this section (including all responsibilities and duties) shall continue to apply after January 1, 2022, with respect to applicable drugs dispensed prior to such date.”.</content></paragraph></subsection></quotedContent></content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/c/3" id="H5C61DDF06E024CFF996867219A237E58" class="indent1"><num value="3">(3) </num>
<heading><inline class="smallCaps">Inclusion of actuarial value of manufacturer discounts in bids</inline>.—</heading>
<chapeau>Section 1860D–11 of the Social Security Act (<ref href="/us/usc/t42/s1395w–111">42 U.S.C. 1395w–111</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/3/A" id="H008357B90EE2435BB097875A60404D86" class="indent2"><num value="A">(A) </num>
<chapeau>in subsection (b)(2)(C)(iii)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/A/i" id="H28033A93F59C4E87B5A6733DE0A4DA3E" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>assumptions regarding the reinsurance</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent>“assumptions regarding— <subclause id="HA4BAAE111C154FBC87BD0C398E36BC4A" class="indent4"><num value="I">“(I) </num>
<content>the reinsurance”; and</content></subclause></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/A/ii" id="HB69B68D0B7D24A8C97444581175F91CC" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HIF00" id="H5F0135EE2D124190A1429DC7B0DA57C2" styleType="OLC"> <subclause id="H12B85B9C4F6A4F3DAD90ABFC758DF88E" class="indent4"><num value="II">“(II) </num>
<content>for 2022 and each subsequent year, the manufacturer discounts provided under section 1860D–14C subtracted from the actuarial value to produce such bid; and”; and</content></subclause></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/3/B" id="H20D571B6F8304DC0A7CC936A66465C90" class="indent2"><num value="B">(B) </num>
<chapeau>in subsection (c)(1)(C)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/B/i" id="HBA205179C7884F0AB72997A78DDEF751" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>an actuarial valuation of the reinsurance</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent>“an actuarial valuation of— <clause id="H85257071B7DD4540A3FB71B5A78E9112" class="indent3"><num value="i">“(i) </num>
<content>the reinsurance”;</content></clause></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/B/ii" id="HB596934F51124107B7DCC6E1071AAF1F" class="indent3"><num value="ii">(ii) </num>
<content>in clause (i), as inserted by clause (i) of this subparagraph, by <amendingAction type="add">adding</amendingAction> “<quotedText>and</quotedText>” at the end; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/B/iii" id="H3BEE5DCF15024C46BC3F3FF72EEBF77F" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HIF00" id="H62528E1D946F4531A5CEFC8FD0CE0D3B" styleType="OLC"> <clause id="H097381FEB0E4464D8732C78862BBA694" class="indent3"><num value="ii">“(ii) </num>
<content>for 2022 and each subsequent year, the manufacturer discounts provided under section 1860D–14C;”.</content></clause></quotedContent></content></clause></subparagraph></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIII/s301/d" id="H4317D55267A14B539BC7B2C6D7D27567" class="indent0"><num value="d">(d) </num>
<heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/1" id="H15E4EBA5875E4329AD36336E83DA9823" class="indent1"><num value="1">(1) </num>
<chapeau>Section 1860D–2 of the Social Security Act (<ref href="/us/usc/t42/s1395w–102">42 U.S.C. 1395w–102</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/1/A" id="H2D4DB148841F44CFA26936CCA460EA70" class="indent2"><num value="A">(A) </num>
<content>in subsection (a)(2)(A)(i)(I), by <amendingAction type="delete">striking</amendingAction> “<quotedText>, or an increase in the initial</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>or, for a year preceding 2022, an increase in the initial</quotedText>”;</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/1/B" id="HD31CD4507130403DB4321A139CC4D921" class="indent2"><num value="B">(B) </num>
<chapeau>in subsection (c)(1)(C)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/1/B/i" id="H262D7A446E4741A18910CB0947BEE0A4" class="indent3"><num value="i">(i) </num>
<content>in the subparagraph heading, by <amendingAction type="delete">striking</amendingAction> “<headingText role="subparagraph" class="smallCaps">at initial coverage limit</headingText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/1/B/ii" id="HF0786AAC7E844E289A77142E55687B37" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022 or the annual out-of-pocket threshold specified in subsection (b)(4)(B) for the year for 2022 and each subsequent year</quotedText>” after “<quotedText>subsection (b)(3) for the year</quotedText>” each place it appears; and</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/1/C" id="H5B9CF15F74FC4398A0A80DBBE7A5F913" class="indent2"><num value="C">(C) </num>
<content>in subsection (d)(1)(A), by <amendingAction type="delete">striking</amendingAction> “<quotedText>or an initial</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>or, for a year preceding 2022, an initial</quotedText>”.</content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/2" id="H03E68596C9D14A4DA158748B0CEA758A" class="indent1"><num value="2">(2) </num>
<content>Section 1860D–4(a)(4)(B)(i) of the Social Security Act (<ref href="/us/usc/t42/s1395w–104/a/4/B/i">42 U.S.C. 1395w–104(a)(4)(B)(i)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>the initial</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022, the initial</quotedText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/3" id="H225D7F47902C4061B6060C7A449DC750" class="indent1"><num value="3">(3) </num>
<chapeau>Section 1860D–14(a) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a">42 U.S.C. 1395w–114(a)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/3/A" id="H183DBEC7672D4F9F9718DE372230E11E" class="indent2"><num value="A">(A) </num>
<chapeau>in paragraph (1)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/A/i" id="H7294BFDB23D64862A1184A0D7FDAAF89" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (C), by <amendingAction type="delete">striking</amendingAction> “<quotedText>The continuation</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For a year preceding 2022, the continuation</quotedText>”;</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/A/ii" id="H19D8D7284AC1452892E85366E6BDC2AD" class="indent3"><num value="ii">(ii) </num>
<content>in subparagraph (D)(iii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)(aa)</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/A/iii" id="HEAC25EC83F1A49D0ABE88EE7A729EBEA" class="indent3"><num value="iii">(iii) </num>
<content>in subparagraph (E), by <amendingAction type="delete">striking</amendingAction> “<quotedText>The elimination</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For a year preceding 2022, the elimination</quotedText>”; and</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/3/B" id="H76FE0B3183BC4B0F9F8B2955B2855B62" class="indent2"><num value="B">(B) </num>
<chapeau>in paragraph (2)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/B/i" id="H3798FB71F0F04054AF21C5C4889CE981" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (C), by <amendingAction type="delete">striking</amendingAction> “<quotedText>The continuation</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For a year preceding 2022, the continuation</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/B/ii" id="H4C7A9BE493304CD9996F117CD005388B" class="indent3"><num value="ii">(ii) </num>
<content>in subparagraph (E), by <amendingAction type="delete">striking</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)(aa)</quotedText>”.</content></clause></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/4" id="H41F0B7C0CBAD4D8A8AEB65DC595320A1" class="indent1"><num value="4">(4) </num>
<content>Section 1860D–21(d)(7) of the Social Security Act (<ref href="/us/usc/t42/s1395w–131/d/7">42 U.S.C. 1395w–131(d)(7)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 1860D–2(b)(4)(B)(i)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>section 1860D–2(b)(4)(C)(i)</quotedText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/5" id="H0B97C09A23DB4E2EA6D884174D2B83DE" class="indent1"><num value="5">(5) </num>
<chapeau>Section 1860D–22(a)(2)(A) of the Social Security Act (<ref href="/us/usc/t42/s1395w–132/a/2/A">42 U.S.C. 1395w–132(a)(2)(A)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/5/A" id="H44B06E68EC854CB7919B2783512226A1" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>the value of any discount</quotedText>” and <amendingAction type="insert">inserting</amendingAction> the following: <quotedContent meta="committee ID HIF00" id="H1A368E17EDC24AFC9DC2307DDF32F39B" styleType="OLC"> “the value of—<clause id="H2FAEB05DB72B43A987D7347EDE3B90F8" class="indent3"><num value="i">“(i) </num>
<content>for years prior to 2022, any discount”;</content></clause></quotedContent></content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/5/B" id="H4912E066D6C9456B8CA5315401DCB026" class="indent2"><num value="B">(B) </num>
<content>in clause (i), as inserted by subparagraph (A) of this paragraph, by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/5/C" id="H49AEEEF04B134836BC9F84A3A2A805EF" class="indent2"><num value="C">(C) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new clause:<quotedContent meta="committee ID HIF00" id="H5A00B498F3264C58A469EACA1A4F44AF" styleType="OLC"> <clause id="H7701B46722334225BEB59F2E0C399F4E" class="indent3"><num value="ii">“(ii) </num>
<content>for 2022 and each subsequent year, any discount provided pursuant to section 1860D–14C.”.</content></clause></quotedContent></content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/6" id="H6773501B85AF45A8BFE85B84A572EFF7" class="indent1"><num value="6">(6) </num>
<chapeau>Section 1860D–41(a)(6) of the Social Security Act (<ref href="/us/usc/t42/s1395w–151/a/6">42 U.S.C. 1395w–151(a)(6)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/6/A" id="H022D823C6E5C458FADF7C3620EDD3F29" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year before 2022</quotedText>” after “<quotedText>1860D–2(b)(3)</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/6/B" id="H6F28A809FABC427BA977770965CB2BF1" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for such year</quotedText>” before the period.</content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/7" id="H2D1F95D4BD184B9C9A8D3BDCFA2ABF06" class="indent1"><num value="7">(7) </num>
<chapeau>Section 1860D–43 of the Social Security Act (<ref href="/us/usc/t42/s1395w–153">42 U.S.C. 1395w–153</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/7/A" id="H2262E7931EDB447A95C2F1374D59DCC8" class="indent2"><num value="A">(A) </num>
<chapeau>in subsection (a)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/7/A/i" id="HF442F6714E904D04B9AD119E626BF4ED" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> paragraph (1) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent meta="committee ID HIF00" id="H6AF3C6E0E7774695A3A06F6099DD0EC7" styleType="OLC"> <paragraph id="HA2A52A22C423438986A9FCB29DEB2DC9" class="indent1"><num value="1">“(1) </num>
<chapeau>participate in—</chapeau>
<subparagraph id="H70B4BACBCEA942CE81C830215970D27B" class="indent2"><num value="A">“(A) </num>
<content>for 2011 through 2021, the Medicare coverage gap discount program under section 1860D–14A; and</content></subparagraph>
<subparagraph id="H0D1768D511A14520B85B89E2D280B537" class="indent2"><num value="B">“(B) </num>
<content>for 2022 and each subsequent year, the manufacturer discount program under section 1860D–14C;”;</content></subparagraph></paragraph></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/7/A/ii" id="H64ECCB8E77A44D6D9F9F72651739E8B3" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> paragraph (2) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent meta="committee ID HIF00" id="H0D0B9E3AEE96463FAA3907E5AA6A8CED" styleType="OLC"> <paragraph id="HF2EAB6B7BA5148B3B73AFED7534CD382" class="indent1"><num value="2">“(2) </num>
<chapeau>have entered into and have in effect—</chapeau>
<subparagraph id="H37350E87525048128F3AD17F010041AE" class="indent2"><num value="A">“(A) </num>
<content>for 2011 through 2021, an agreement described in subsection (b) of section 1860D–14A with the Secretary; and</content></subparagraph>
<subparagraph id="H22389FA1E80C43659AD4FF6DB7809B6A" class="indent2"><num value="B">“(B) </num>
<content>for 2022 and each subsequent year, an agreement described in subsection (b) of section 1860D–14C with the Secretary; and”; and</content></subparagraph></paragraph></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/7/A/iii" id="H125648881EB141F3B4F97E4DB3E39F3A" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> paragraph (3) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent meta="committee ID HIF00" id="HF5FA72E9C25A49CABE7AED2E896B858D" styleType="OLC"> <paragraph id="HD2631D0E441E4EF7B92A2CE362FEB618" class="indent1"><num value="3">“(3) </num>
<chapeau>have entered into and have in effect, under terms and conditions specified by the Secretary—</chapeau>
<subparagraph id="H287EBE99C79649F69D2BEFC7D52EB790" class="indent2"><num value="A">“(A) </num>
<content>for 2011 through 2021, a contract with a third party that the Secretary has entered into a contract with under subsection (d)(3) of section 1860D–14A; and</content></subparagraph>
<subparagraph id="HB4622E04756248CE950F5E50CABD53E3" class="indent2"><num value="B">“(B) </num>
<content>for 2022 and each subsequent year, a contract with a third party that the Secretary has entered into a contract with under subsection (d)(3) of section 1860D–14C.”; and</content></subparagraph></paragraph></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/7/B" id="H95F09B35A35C4681921D46A37FF88E4B" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="delete">striking</amendingAction> subsection (b) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent meta="committee ID HIF00" id="H8EA5E2765E6144EE86A253F018776C91" styleType="OLC"> <subsection id="H4ED920C1236B4FD495E8BA821432E832" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>Paragraphs (1)(A), (2)(A), and (3)(A) of subsection (a) shall apply to covered part D drugs dispensed under this part on or after January 1, 2011, and before January 1, 2022, and paragraphs (1)(B), (2)(B), and (3)(B) of such subsection shall apply to covered part D drugs dispensed under this part on or after January 1, 2022.”.</content></subsection></quotedContent></content></subparagraph></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIII/s301/e" id="H3AB740F59D0E4F13AACB3C9D58717FA9" class="indent0"><num value="e">(e) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>The amendments made by this section shall apply with respect to plan year 2022 and subsequent plan years.</content></subsection></section> 
<section identifier="/us/bill/116/hr/3/tIII/s302" id="H8263B6FEB0B4486A8DB8994B16684AEF" role="subsequent-section"><num value="302">SEC. 302. </num>
<heading>ALLOWING CERTAIN ENROLLEES OF PRESCRIPTION DRUGS PLANS AND MA–PD PLANS UNDER MEDICARE PROGRAM TO SPREAD OUT COST-SHARING UNDER CERTAIN CIRCUMSTANCES.</heading>
<chapeau class="indent0">Section 1860D–2(b)(2) of the Social Security Act (<ref href="/us/usc/t42/s1395w–102/b/2">42 U.S.C. 1395w–102(b)(2)</ref>), as amended by section 301, is further amended—</chapeau>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s302/1" id="H0EFB654868424DD0909C395696F65BA2" class="indent1"><num value="1">(1) </num>
<content>in subparagraph (A), by <amendingAction type="delete">striking</amendingAction> “<quotedText>Subject to subparagraphs (C) and (D)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>Subject to subparagraphs (C), (D), and (E)</quotedText>”; and</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s302/2" id="H9122DC3790254E4D9B4136D5CD85E4E6" class="indent1"><num value="2">(2) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HIF00" id="HA79D4DD0C33947FF850E56D75E4303CE" styleType="OLC"> <subparagraph id="H68D1CB13AED94F88AB4FE6620C17ABCE" class="indent2"><num value="E">“(E) </num>
<heading><inline class="smallCaps">Enrollee option regarding spreading cost-sharing</inline>.—</heading>
<content>The Secretary shall establish by regulation a process under which, with respect to plan year 2022 and subsequent plan years, a prescription drug plan or an MA–PD plan shall, in the case of a part D eligible individual enrolled with such plan for such plan year who is not a subsidy eligible individual (as defined in section 1860D–14(a)(3)) and with respect to whom the plan projects that the dispensing of the first fill of a covered part D drug to such individual will result in the individual incurring costs that are equal to or above the annual out-of-pocket threshold specified in paragraph (4)(B) for such plan year, provide such individual with the option to make the coinsurance payment required under subparagraph (A) (for the portion of such costs that are not above such annual out-of-pocket threshold) in the form of periodic installments over the remainder of such plan year.”.</content></subparagraph></quotedContent></content></paragraph></section> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tIII/s303" id="H21F985F40CF64BDCAC1F84723653C9CA"><num value="303">SEC. 303. </num>
<heading>ESTABLISHMENT OF PHARMACY QUALITY MEASURES UNDER MEDICARE PART D.</heading>
<chapeau class="indent0">Section 1860D–4(c) of the Social Security Act (<ref href="/us/usc/t42/s1395w–104/c">42 U.S.C. 1395w–104(c)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tIII/s303/1" id="HADCE8B21321248A085C6C779FDA29285" class="indent1"><num value="1">(1) </num>
<content>by <amendingAction type="redesignate">redesignating</amendingAction> the paragraph (6), as added by section 50354 of division E of the Bipartisan Budget Act of 2018 (<ref href="/us/pl/115/123">Public Law 115–123</ref>), as paragraph (7); and</content></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIII/s303/2" id="HFF3E1B29ECC44293AC6FFC7CA8617D6F" class="indent1"><num value="2">(2) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent meta="committee ID HIF00" id="HD6BE5C81BBF243EB9DF85B33F5956620" styleType="OLC"> <paragraph id="HEBDA66E6D01E40FC94ACB367F8C5078C" class="indent1"><num value="8">“(8) </num>
<heading><inline class="smallCaps">Application of pharmacy quality measures</inline>.—</heading>
<subparagraph id="H521BF9D1C5684E87AEC9BA2CF7DEF3B4" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>A PDP sponsor that implements incentive payments to a pharmacy or price concessions paid by a pharmacy based on quality measures shall use measures established or approved by the Secretary under subparagraph (B) with respect to payment for covered part D drugs dispensed by such pharmacy.</content></subparagraph>
<subparagraph id="H69E5D347038E4EEDBAD65AC43079B2C4" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Standard pharmacy quality measures</inline>.—</heading>
<content>The Secretary shall establish or approve standard quality measures from a consensus and evidence-based organization for payments described in subparagraph (A). Such measures shall focus on patient health outcomes and be based on proven criteria measuring pharmacy performance.</content></subparagraph>
<subparagraph id="HC23D5EB935074302B030AB50C02D96C5" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Effective date</inline>.—</heading>
<content>The requirement under subparagraph (A) shall take effect for plan years beginning on or after January 1, 2021, or such earlier date specified by the Secretary if the Secretary determines there are sufficient measures established or approved under subparagraph (B) to meet the requirement under subparagraph (A).”.</content></subparagraph></paragraph></quotedContent></content></paragraph></section></title>
<title identifier="/us/bill/116/hr/3/tIV" id="H6710AAF061694EDB863D8A3AC388CADF"><num value="IV">TITLE IV—</num>
<heading class="inline">PRESCRIPTION DRUG POLICIES FOR LOW-INCOME INDIVIDUALS</heading> 
<section identifier="/us/bill/116/hr/3/tIV/s401" id="H74677EBEB5B14487AE6B261BEBB7FA99" role="subsequent-section"><num value="401">SEC. 401. </num>
<heading>ADJUSTMENTS TO MEDICARE PART D COST-SHARING REDUCTIONS FOR LOW-INCOME INDIVIDUALS.</heading>
<chapeau class="indent0">Section 1860D–14(a) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a">42 U.S.C. 1395w–114(a)</ref>), as amended by section 301(d), is further amended—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tIV/s401/1" id="HF8C99A35390A48CABA2682BC6A94F811" class="indent1"><num value="1">(1) </num>
<chapeau>in paragraph (1)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s401/1/A" id="H2B95363A567246EFB768642105BC91DD" class="indent2"><num value="A">(A) </num>
<chapeau>in subparagraph (D)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIV/s401/1/A/i" id="HA310F54A667346E18AF9D8A4BC5ED667" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (ii)—</chapeau>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/i/I" id="H14FE64062AE84648ACEB27CEC4E274FE" class="indent4"><num value="I">(I) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>that does not exceed $1 for</quotedText>” and all that follows through the period at the end and <amendingAction type="insert">inserting</amendingAction> <quotedContent meta="committee ID HIF00" id="H5D74392047BE46888181E26C8457FF9A" styleType="OLC"> “that does not exceed—<subclause id="H32A2A858B7FA457E98085A11DD0BE4E4" class="indent4"><num value="I">“(I) </num>
<chapeau>for plan years before plan year 2021—</chapeau><item id="H1D919C253B344B4A90BD607C8BA86BA6" class="indent5"><num value="aa">“(aa) </num>
<content>for a generic drug or a preferred drug that is a multiple source drug (as defined in section 1927(k)(7)(A)(i)), $1 or, if less, the copayment amount applicable to an individual under clause (iii); and</content></item><item id="HFDF6206A9A6047D88A057B1DF088FD42" class="indent5"><num value="bb">“(bb) </num>
<content>for any other drug, $3 or, if less, the copayment amount applicable to an individual under clause (iii); and”; and</content></item></subclause></quotedContent></content></subclause>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/i/II" id="H0CDF01F0F1B64CE181A92E2A511BE310" class="indent4"><num value="II">(II) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subclauses:<quotedContent meta="committee ID HIF00" id="HDA7FD0A2EB814C288CC407345130CD2C" styleType="OLC"> <subclause id="H9A0729B0BC3B478F88D7551AB77BB0A8" class="indent4"><num value="II">“(II) </num>
<chapeau>for plan year 2021—</chapeau><item id="H35BB09EC31A748148E32391D3E2D5DA2" class="indent5"><num value="aa">“(aa) </num>
<content>for a generic drug, $0; and</content></item><item id="HF6F6F65E09554CF491B9B729E08E8774" class="indent5"><num value="bb">“(bb) </num>
<content>for any other drug, the dollar amount applied under this clause (after application of paragraph (4)(A)) for plan year 2020 for a drug described in subclause (I)(bb); and</content></item></subclause>
<subclause id="HE21DB622FAD646D1B05341A24F72DF16" class="indent4"><num value="III">“(III) </num>
<content>for a subsequent year, the dollar amount applied under this clause for the previous year for the drug, increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year.”; and</content></subclause></quotedContent></content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIV/s401/1/A/ii" id="H8E3A0605FDBC42938F3AAA9E00F4FE8F" class="indent3"><num value="ii">(ii) </num>
<chapeau>in clause (iii)—</chapeau>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/ii/I" id="H296F3899BBCF4F8E93BC0D5455FBCBDE" class="indent4"><num value="I">(I) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>does not exceed the copayment amount specified under</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent meta="committee ID HIF00" id="H5DEABF443E8E403AA6D6BD450A86BC7F" styleType="OLC"> “does not exceed—<subclause id="H5AECD4DA26294E4ABC8118108A347FFC" class="indent4"><num value="I">“(I) </num>
<content>for plan years beginning before plan year 2021, the copayment amount specified under”;</content></subclause></quotedContent></content></subclause>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/ii/II" id="H7E2E3D89F274463E88D115962AB1F5F2" class="indent4"><num value="II">(II) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></subclause>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/ii/III" id="H407D4101FA194366BD5B93740EA1E0D6" class="indent4"><num value="III">(III) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subclause:<quotedContent meta="committee ID HIF00" id="H308CE7F337EA41AB8EACEE65938DBE2B" styleType="OLC"> <subclause id="HB7A029B6A3BD4876AA503AAB86DE7A5B" class="indent4"><num value="II">“(II) </num>
<content>for plan year 2021 and each subsequent plan year, the copayment amount applied under clause (ii) for the drug and year involved.”; and</content></subclause></quotedContent></content></subclause></clause></subparagraph>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/B" id="HE9FFE7CDDCE24B9B87F4FBA70A9C5812" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HIF00" id="H01A8F210F55449E1A96A01A6E462DF9A" styleType="OLC"> <subparagraph id="H2F18167DE28F4C19BB763B92BDEF62EC" class="indent2"><num value="F">“(F) </num>
<heading><inline class="smallCaps">Rounding</inline>.—</heading>
<content>Any amount established under clause (ii) of subparagraph (D), including as applied under clause (iii) of such subparagraph or paragraph (2)(D), that is based on an increase of $3, that is not a multiple of 5 cents or 10 cents, respectively, shall be rounded to the nearest multiple of 5 cents or 10 cents, respectively.”;</content></subparagraph></quotedContent></content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIV/s401/2" id="H64AE631D2B7042CBA23D4B81DF710F62" class="indent1"><num value="2">(2) </num>
<chapeau>in paragraph (2)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s401/2/A" id="H363495DA628C4008A659B06BFBF6AAA1" class="indent2"><num value="A">(A) </num>
<chapeau>in subparagraph (D)—</chapeau>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/A/i" id="H8211AFC7B5C4419F8211F58134242DDC" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>of coinsurance of</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent meta="committee ID HIF00" id="HF1F2281C6C47499EA85F153A76AA94A5" styleType="OLC"> “of—<clause id="HF997A00C6D9F4BD8969DA549CA5772E5" class="indent3"><num value="i">“(i) </num>
<content>for plan years before plan year 2021, coinsurance of”;</content></clause></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/A/ii" id="H02C18031969A427F81A80E7CAF19BBDC" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/A/iii" id="H3C70F9244B6241128756ED77B139E757" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new clause:<quotedContent meta="committee ID HIF00" id="H7683DE56681E4C419EC53754947D5067" styleType="OLC"> <clause id="H3DBBAB7E42E446158784F410F71B4323" class="indent3"><num value="ii">“(ii) </num>
<content>for plan year 2021 and each subsequent plan year, a copayment amount that does not exceed the copayment amount applied under paragraph (1)(D)(ii) for the drug and year involved.”; and</content></clause></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s401/2/B" id="H34A5CAA84CF342AC87111343BF72E535" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (E)—</chapeau>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/B/i" id="HDA067F48B32D46CA97B53C24C1AE8E92" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>subsection (c), the substitution for</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent meta="committee ID HIF00" id="H418C64DF7B264D809E73A53636EEB63D" styleType="OLC"> “subsection (c)—<clause id="H4223AC292F4E4F1CA6BEE483AE4A255D" class="indent3"><num value="i">“(i) </num>
<content>for plan years before plan year 2021, the substitution for”;</content></clause></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/B/ii" id="HCA68BDAD7B1F427F8C6ABF55330292B9" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/B/iii" id="HD4A0DA2D99AC4D63861341445165F679" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new clause:<quotedContent meta="committee ID HIF00" id="H8090EEAD4D6740C99A43613CB3A37457" styleType="OLC"> <clause id="H2A5C93556A9C431B92BD6EC9DB5B61C8" class="indent3"><num value="ii">“(ii) </num>
<content>for plan year 2021, the elimination of any cost-sharing imposed under section 1860D–2(b)(4)(A).”; and</content></clause></quotedContent></content></clause></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/3" id="H24CBCC16B5FB48AA8EB1DBADF9571BD6" class="indent1"><num value="3">(3) </num>
<content>in paragraph (4)(A)(ii), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(before 2021)</quotedText>” after “<quotedText>subsequent year</quotedText>”.</content></paragraph></section> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tIV/s402" id="HA59BE9549F754D2F88681EEBA8CD14A8"><num value="402">SEC. 402. </num>
<heading>DISSEMINATION TO MEDICARE PART D SUBSIDY ELIGIBLE INDIVIDUALS OF INFORMATION COMPARING PREMIUMS OF CERTAIN PRESCRIPTION DRUG PLANS.</heading>
<content>Section 1860D–1(c)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–101/c/3">42 U.S.C. 1395w–101(c)(3)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HIF00" id="H1990CADB5F9C4000B9E32B450A0703E0" styleType="OLC"> <subparagraph id="H79867444387A443CABC9806B3175039C" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Information on premiums for subsidy eligible individuals</inline>.—</heading>
<clause id="H476F1B083ADA4C57A513896CC39438EF" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>For plan year 2022 and each subsequent plan year, the Secretary shall disseminate to each subsidy eligible individual (as defined in section 1860D–14(a)(3)) information under this paragraph comparing premiums that would apply to such individual for prescription drug coverage under LIS benchmark plans, including, in the case of an individual enrolled in a prescription drug plan under this part, information that compares the premium that would apply if such individual were to remain enrolled in such plan to premiums that would apply if the individual were to enroll in other LIS benchmark plans.</content></clause>
<clause role="definitions" id="H483FF6346C744AE28B67E430574E78DD" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">LIS benchmark plan</inline>.—</heading>
<chapeau>For purposes of clause (i), the term ‘<term>LIS benchmark plan</term>’ means, with respect to an individual, a prescription drug plan under this part that is offered in the region in which the individual resides and—</chapeau>
<subclause id="H28FD31031B09400FA8F8603494E6CBB5" class="indent4"><num value="I">“(I) </num>
<content>that provides for a premium that is not more than the low-income benchmark premium amount (as defined in section 1860D–14(b)(2)) for such region; or</content></subclause>
<subclause id="HF1C1CDEAB33A496D846215381F3A4715" class="indent4"><num value="II">“(II) </num>
<content>with respect to which the premium would be waived as de minimis pursuant to section 1860D–14(a)(5) for such individual.”.</content></subclause></clause></subparagraph></quotedContent></content></section> 
<section identifier="/us/bill/116/hr/3/tIV/s403" id="H5133588938FB4B2FB83645FC73A48820" role="subsequent-section"><num value="403">SEC. 403. </num>
<heading>PROVIDING FOR INTELLIGENT ASSIGNMENT OF CERTAIN SUBSIDY ELIGIBLE INDIVIDUALS AUTO-ENROLLED UNDER MEDICARE PRESCRIPTION DRUG PLANS AND MA–PD PLANS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tIV/s403/a" id="H1F550F5D23F747019E8FC815C5070045" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>Section 1860D–1(b)(1) of the Social Security Act (<ref href="/us/usc/t42/s1395w–101/b/1">42 U.S.C. 1395w–101(b)(1)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tIV/s403/a/1" id="H04B95A69F9254708B43222D3DB46F89E" class="indent1"><num value="1">(1) </num>
<chapeau>in subparagraph (C)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s403/a/1/A" id="H2F4F84B5B1764B10BED5E1F4623B9105" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>PDP region</quotedText>” the following: “<quotedText>or through use of an intelligent assignment process that is designed to maximize the access of such individual to necessary prescription drugs while minimizing costs to such individual and to the program under this part to the greatest extent possible. In the case the Secretary enrolls such individuals through use of an intelligent assignment process, such process shall take into account the extent to which prescription drugs necessary for the individual are covered in the case of a PDP sponsor of a prescription drug plan that uses a formulary, the use of prior authorization or other restrictions on access to coverage of such prescription drugs by such a sponsor, and the overall quality of a prescription drug plan as measured by quality ratings established by the Secretary</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s403/a/1/B" id="H51267A4291E54848AE0C9333032562EC" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>Nothing in the previous sentence</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>Nothing in this subparagraph</quotedText>”; and</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIV/s403/a/2" id="HCBE9B303815049ABAD0CB9BFD9AE4C5B" class="indent1"><num value="2">(2) </num>
<chapeau>in subparagraph (D)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s403/a/2/A" id="H2D2A84190FAA4B79B869FF2403113A1A" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>PDP region</quotedText>” the following: “<quotedText>or through use of an intelligent assignment process that is designed to maximize the access of such individual to necessary prescription drugs while minimizing costs to such individual and to the program under this part to the greatest extent possible. In the case the Secretary enrolls such individuals through use of an intelligent assignment process, such process shall take into account the extent to which prescription drugs necessary for the individual are covered in the case of a PDP sponsor of a prescription drug plan that uses a formulary, the use of prior authorization or other restrictions on access to coverage of such prescription drugs by such a sponsor, and the overall quality of a prescription drug plan as measured by quality ratings established by the Secretary</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s403/a/2/B" id="HBC7E3C8010CA4E73914AE401AF2AB591" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>Nothing in the previous sentence</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>Nothing in this subparagraph</quotedText>”.</content></subparagraph></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIV/s403/b" id="HA5DCCAD8B0AC4F21A72953B1E2F91253" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>The amendments made by subsection (a) shall apply with respect to plan years beginning with plan year 2022.</content></subsection></section> 
<section identifier="/us/bill/116/hr/3/tIV/s404" id="H38A78252380C4E8392ABB83B53E3D096" role="subsequent-section"><num value="404">SEC. 404. </num>
<heading>EXPANDING ELIGIBILITY FOR LOW-INCOME SUBSIDIES UNDER PART D OF THE MEDICARE PROGRAM.</heading>
<chapeau class="indent0">Section 1860D–14(a) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a">42 U.S.C. 1395w–114(a)</ref>), as amended by sections 301(d) and 401, is further amended—</chapeau>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/1" id="HE83F73EDA4884802818F6F155C1363C2" class="indent1"><num value="1">(1) </num>
<content>in the subsection heading, by <amendingAction type="delete">striking</amendingAction> “<headingText role="subsection" class="smallCaps">Individuals</headingText>” and all that follows through “<headingText role="subsection" class="smallCaps">Line</headingText>” and <amendingAction type="insert">inserting</amendingAction> “<headingText role="subsection" class="smallCaps">Certain Individuals</headingText>”;</content></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIV/s404/2" id="HF0392A58CC1646DB87908A5324FD927D" class="indent1"><num value="2">(2) </num>
<chapeau>in paragraph (1)—</chapeau>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/2/A" id="HE1FB46B685FD4CF29731FB98BFF4BD4E" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the paragraph heading and <amendingAction type="insert">inserting</amendingAction> “<headingText role="paragraph" class="smallCaps">Individuals with certain low incomes</headingText>”; and</content></subparagraph>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/2/B" id="HF923BC7B89BF4A86910220BED50FBF43" class="indent2"><num value="B">(B) </num>
<content>in the matter preceding subparagraph (A), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(or, with respect to a plan year beginning on or after January 1, 2022, 150 percent)</quotedText>” after “<quotedText>135 percent</quotedText>”;</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIV/s404/3" id="H9A26CF1F5056467A8D4E88DC2E230ACB" class="indent1"><num value="3">(3) </num>
<chapeau>in paragraph (2)—</chapeau>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/3/A" id="HCDAA78D938204F7184BDC7346ACD09CE" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the paragraph heading and <amendingAction type="insert">inserting</amendingAction> “<headingText role="paragraph" class="smallCaps">Other low-income individuals</headingText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s404/3/B" id="HAF0A9D6381FE4718865659CEEABA0CAE" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (A)—</chapeau>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/3/B/i" id="H4CDF5EB6FAD243C9B99CA16A30FF2975" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(or, with respect to a plan year beginning on or after January 1, 2022, 150 percent)</quotedText>” after “<quotedText>135 percent</quotedText>”; and</content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/3/B/ii" id="HE29A3EA9C15A4743985A01174D1B96F5" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(or, with respect to a plan year beginning on or after January 1, 2022, 200 percent)</quotedText>” after “<quotedText>150 percent</quotedText>”; and</content></clause></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/4" id="H0D6254EE761C4A0A9E7C67F9EE01D42A" class="indent1"><num value="4">(4) </num>
<content>in paragraph (3)(A)(ii), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(or, with respect to a plan year beginning on or after January 1, 2022, 200 percent)</quotedText>” after “<quotedText>150 percent</quotedText>”.</content></paragraph></section> 
<section identifier="/us/bill/116/hr/3/tIV/s405" id="H4228CE7AFEE44B898852009E3DF0DB7F" role="subsequent-section"><num value="405">SEC. 405. </num>
<heading>AUTOMATIC ELIGIBILITY OF CERTAIN LOW-INCOME TERRITORIAL RESIDENTS FOR PREMIUM AND COST-SHARING SUBSIDIES UNDER THE MEDICARE PROGRAM; SUNSET OF ENHANCED ALLOTMENT PROGRAM.</heading>
<subsection identifier="/us/bill/116/hr/3/tIV/s405/a" id="H6FD5A8441F0F40C59411984515BC3A5D" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">Automatic Eligibility of Certain Low-Income Territorial Residents for Premium and Cost-Sharing Subsidies Under the Medicare Program</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s405/a/1" id="H68BA0ECD14FF4557AFD46F58A0509922" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>Section 1860D–14(a)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a/3">42 U.S.C. 1395w–114(a)(3)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s405/a/1/A" id="HD6AEC62CF0604BC5892F44A90F258E7B" class="indent2"><num value="A">(A) </num>
<chapeau>in subparagraph (B)(v)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIV/s405/a/1/A/i" id="HAF1B14EE1F5B48D7ABEE1F8FA6BC48D4" class="indent3"><num value="i">(i) </num>
<content>in subclause (I), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end;</content></clause>
<clause identifier="/us/bill/116/hr/3/tIV/s405/a/1/A/ii" id="H816A07DF33BF4AD8975EFF79A8B23C6E" class="indent3"><num value="ii">(ii) </num>
<content>in subclause (II), by <amendingAction type="delete">striking</amendingAction> the period and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIV/s405/a/1/A/iii" id="HA9B9D41F14DE420187D7CAAC8140FD02" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> after subclause (II) the following new subclause:<quotedContent meta="committee ID HIF00" id="HE2D0D92CBD0F455A969D1A124EFCE410" styleType="OLC"> <subclause id="H8141734CE51A4346941AAD50D6F5A2F0" class="indent4"><num value="III">“(III) </num>
<content>with respect to plan years beginning on or after January 1, 2021, shall provide that any part D eligible individual who is enrolled for medical assistance under the State Medicaid plan of a territory (as defined in section 1935(f)) under title XIX (or a waiver of such a plan) shall be treated as a subsidy eligible individual described in paragraph (1).”; and</content></subclause></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s405/a/1/B" id="H9AA9C94A44A74FF4B116D648996BB28E" class="indent2"><num value="B">(B) </num>
<content>in subparagraph (F), by <amendingAction type="add">adding</amendingAction> at the end the following new sentence: “<quotedText>The previous sentence shall not apply with respect to eligibility determinations for premium and cost-sharing subsidies under this section made on or after January 1, 2021.</quotedText>”.</content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s405/a/2" id="H9FCBF45659724A13997064BC5FBB0331" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Conforming amendment</inline>.—</heading>
<content>Section 1860D–31(j)(2)(D) of the Social Security Act (<ref href="/us/usc/t42/s1395w–141/j/2/D">42 U.S.C. 1395w–141(j)(2)(D)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new sentence: “<quotedText>The previous sentence shall not apply with respect to amounts made available to a State under this paragraph on or after January 1, 2021.</quotedText>”.</content></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIV/s405/b" id="H37ED17C93E9B4E29BB4B2C6BDDE5233B" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Sunset of Enhanced Allotment Program</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s405/b/1" id="HE90198E49E6D4E7D882F9B661715968B" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>Section 1935(e) of the Social Security Act (<ref href="/us/usc/t42/s1396u–5/e">42 U.S.C. 1396u–5(e)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s405/b/1/A" id="HFDFC84EE51BF4E9CB3B09090365B8998" class="indent2"><num value="A">(A) </num>
<content>in paragraph (1)(A), by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>such State</quotedText>” the following: “<quotedText>before January 1, 2021</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s405/b/1/B" id="HEEE2DBF93AB34CAA82FB8959EC5ACC49" class="indent2"><num value="B">(B) </num>
<chapeau>in paragraph (3)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIV/s405/b/1/B/i" id="HABD17D2FB43F44BEBED360436164FF65" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (A), in the matter preceding clause (i), by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>a year</quotedText>” the following: “<quotedText>(before 2021)</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIV/s405/b/1/B/ii" id="HBD0704DBA17A430AB1852004A8F49EC9" class="indent3"><num value="ii">(ii) </num>
<content>in subparagraph (B)(iii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>a subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>each of fiscal years 2008 through 2020</quotedText>”.</content></clause></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s405/b/2" id="HB862B44AD1C2417F8F98281D71964E22" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Territory defined</inline>.—</heading>
<content>Section 1935 of the Social Security Act (<ref href="/us/usc/t42/s1396u–5">42 U.S.C. 1396u–5</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent meta="committee ID HIF00" id="H0AD7EC7BA4FF4074A0FF98549CF74368" styleType="OLC"> <subsection role="definitions" id="HD258AC00094346E48DBC1AE417B8AAB5" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Territory Defined</inline>.—</heading>
<content>In this section, the term ‘<term>territory</term>’ means Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa.”.</content></subsection></quotedContent></content></paragraph></subsection></section> 
<section identifier="/us/bill/116/hr/3/tIV/s406" id="HF8E1D2D9CAFE488281AD06BDCC84011F" role="subsequent-section"><num value="406">SEC. 406. </num>
<heading>AUTOMATIC QUALIFICATION OF CERTAIN MEDICAID BENEFICIARIES FOR PREMIUM AND COST-SHARING SUBSIDIES UNDER PART D OF THE MEDICARE PROGRAM.</heading>
<chapeau class="indent0">Clause (v) of section 1860D–14(a)(3)(B) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a/3/B">42 U.S.C. 1395w–114(a)(3)(B)</ref>), as amended by section 405, is further amended—</chapeau>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s406/1" id="H801D226C06214199B2D5D195AD750315" class="indent1"><num value="1">(1) </num>
<content>in subclause (II), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end;</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s406/2" id="HD383019DDB0443A1B26C6477B2076E10" class="indent1"><num value="2">(2) </num>
<content>in subclause (III), by <amendingAction type="delete">striking</amendingAction> the period and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s406/3" id="H189BBC7A613F489BBF1C5043B67C8EB5" class="indent1"><num value="3">(3) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> after subclause (III) the following new subclause:<quotedContent meta="committee ID HIF00" id="H263FE961FDA24950B84D2650A27D1ED6" styleType="OLC"> <subclause id="HC50E3BFA132B46869389F10E09E96164" class="indent4"><num value="IV">“(IV) </num>
<content>with respect to plan years beginning on or after January 1, 2022, shall, notwithstanding the preceding clauses of this subparagraph, provide that any part D eligible individual not described in subclause (I), (II), or (III) who is enrolled, as of the day before the date on which such individual attains the age of 65, for medical assistance under a State plan under title XIX (or a waiver of such plan) pursuant to clause (i)(VIII) or (ii)(XX) of section 1902(a)(10)(A), and who has income below 200 percent of the poverty line applicable to a family of the size involved, shall be treated as a subsidy eligible individual described in paragraph (1) for a limited period of time, as specified by the Secretary.”.</content></subclause></quotedContent></content></paragraph></section> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tIV/s407" id="H30B969B7982E461EA69648B971C5078D"><num value="407">SEC. 407. </num>
<heading>ELIMINATING THE RESOURCE REQUIREMENT WITH RESPECT TO SUBSIDY ELIGIBLE INDIVIDUALS UNDER PART D OF THE MEDICARE PROGRAM.</heading>
<content>Section 1860D–14(a)(3)(A)(iii) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a/3/A/iii">42 U.S.C. 1395w–114(a)(3)(A)(iii)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>in the case of a plan year beginning before January 1, 2022,</quotedText>” before “<quotedText>meets</quotedText>”.</content></section></title>
<title identifier="/us/bill/116/hr/3/tV" id="H8CB7016DB80240B8A6F589B91918B63F"><num value="V">TITLE V—</num>
<heading class="inline">DRUG PRICE TRANSPARENCY</heading> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tV/s501" id="H7BB2E3533F5142ABA30D96A05C82DB44"><num value="501">SEC. 501. </num>
<heading>DRUG PRICE TRANSPARENCY.</heading>
<content>Part A of title XI of the Social Security Act <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new sections:<quotedContent meta="committee ID HIF00" id="H71235126FB4B4BF8B7681837057DD0D8" styleType="OLC"> 
<section id="H34F58FD95DAD4D71B4B5565692A938DD" role="subsequent-section"><num value="1150C">“SEC. 1150C. </num>
<heading>REPORTING ON DRUG PRICES.</heading>
<subsection id="H94EC16D23AE64E0DBE4C381236816351" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<chapeau>In this section:</chapeau>
<paragraph role="definitions" id="H3499C75EB64C47BC95ECFB4431BF9276" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Manufacturer</inline>.—</heading>
<chapeau>The term ‘<term>manufacturer</term>’ means the person—</chapeau>
<subparagraph id="HF023C3344719450D8BC3D8B71F7DBBF2" class="indent2"><num value="A">“(A) </num>
<content>that holds the application for a drug approved under section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under section 351 of the Public Health Service Act; or</content></subparagraph>
<subparagraph id="H7CFD42207350438C97E4FA500BF87A41" class="indent2"><num value="B">“(B) </num>
<content>who is responsible for setting the wholesale acquisition cost for the drug.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H2E2307F84AEC4C8E8ECCF6F0E319C9A4" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Qualifying drug</inline>.—</heading>
<chapeau>The term ‘<term>qualifying drug</term>’ means any drug that is approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under subsection (a) or (k) of section 351 of the Public Health Service Act—</chapeau>
<subparagraph id="H6EBE6F88FB674E4BA267F901EF074385" class="indent2"><num value="A">“(A) </num>
<chapeau>that has a wholesale acquisition cost of $100 or more, adjusted for inflation occurring after the date of enactment of this section, for a month’s supply or a typical course of treatment that lasts less than a month, and is—</chapeau>
<clause id="HB9EBF0BF90814177B1FA27CC6B2DDA39" class="indent3"><num value="i">“(i) </num>
<content>subject to section 503(b)(1) of the Federal Food, Drug, and Cosmetic Act; and</content></clause>
<clause id="HF1A1BEA926E14A31B622C9B72A9DCE64" class="indent3"><num value="ii">“(ii) </num>
<content>not a preventative vaccine; and</content></clause></subparagraph>
<subparagraph id="H289A092F1B854ED6B7F29D73F59A9147" class="indent2"><num value="B">“(B) </num>
<content>for which, during the previous calendar year, at least 1 dollar of the total amount of sales were for individuals enrolled under the Medicare program under title XVIII or under a State Medicaid plan under title XIX or under a waiver of such plan.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H6AA2D093DFF044C8A009B4E0FBA613F2" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Wholesale acquisition cost</inline>.—</heading>
<content>The term ‘<term>wholesale acquisition cost</term>’ has the meaning given that term in section 1847A(c)(6)(B).</content></paragraph></subsection>
<subsection id="H91D782F18C314E0D810AD63A751218FF" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Report</inline>.—</heading>
<paragraph id="H1A139EC06FBE40D49EE275553206A7FB" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Report required</inline>.—</heading>
<chapeau>The manufacturer of a qualifying drug shall submit a report to the Secretary if, with respect to the qualifying drug—</chapeau>
<subparagraph id="HCCC832E6A2344FE7B4129107FCD4D952" class="indent2"><num value="A">“(A) </num>
<chapeau>there is an increase in the price of the qualifying drug that results in an increase in the wholesale acquisition cost of that drug that is equal to—</chapeau>
<clause id="H6A7D78DAA3374DE096741EAB62C8F850" class="indent3"><num value="i">“(i) </num>
<content>10 percent or more within a 12-month period beginning on or after January 1, 2019; or</content></clause>
<clause id="H2B37CFFAD27A426981DB4D71553E57B2" class="indent3"><num value="ii">“(ii) </num>
<content>25 percent or more within a 36-month period beginning on or after January 1, 2019; or</content></clause></subparagraph>
<subparagraph id="HD98556F7143440929C0E84B198FD584A" class="indent2"><num value="B">“(B) </num>
<content>the estimated price of the qualifying drug or spending per individual or per user of such drug (as estimated by the Secretary) for the applicable year (or per course of treatment in such applicable year as determined by the Secretary) is at least $26,000 beginning on or after January 1, 2021.</content></subparagraph></paragraph>
<paragraph id="HE1AE0B8C37BB41269FD11D3922DCD26A" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Report deadline</inline>.—</heading>
<chapeau>Each report described in paragraph (1) shall be submitted to the Secretary—</chapeau>
<subparagraph id="H5A972C5038894671A23CF606B249D25E" class="indent2"><num value="A">“(A) </num>
<content>in the case of a report with respect to an increase in the price of a qualifying drug that occurs during the period beginning on January 1, 2019, and ending on the day that is 60 days after the date of the enactment of this section, not later than 90 days after such date of enactment;</content></subparagraph>
<subparagraph id="H2B6AF505C05044A0B69C2715AAF43C50" class="indent2"><num value="B">“(B) </num>
<content>in the case of a report with respect to an increase in the price of a qualifying drug that occurs after the period described in subparagraph (A), not later than 30 days prior to the planned effective date of such price increase for such qualifying drug; and</content></subparagraph>
<subparagraph id="HDE95A0DF0AAF4E0196E35181025CE17A" class="indent2"><num value="C">“(C) </num>
<content>in the case of a report with respect to a qualifying drug that meets the criteria under paragraph (1)(B), not later than 30 days after such drug meets such criteria.</content></subparagraph></paragraph></subsection>
<subsection id="H4042352CC3E642E8AFDC01A69C60BD5A" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Contents</inline>.—</heading>
<chapeau>A report under subsection (b), consistent with the standard for disclosures described in <ref href="/us/cfr/t12/s213.3/d">section 213.3(d) of title 12, Code of Federal Regulations</ref> (as in effect on the date of enactment of this section), shall, at a minimum, include—</chapeau>
<paragraph id="H85CDE0D62E374ED6A92A75686044C45B" class="indent1"><num value="1">“(1) </num>
<chapeau>with respect to the qualifying drug—</chapeau>
<subparagraph id="HE83437ED275C4890850F535F08127A8B" class="indent2"><num value="A">“(A) </num>
<content>the percentage by which the manufacturer will raise the wholesale acquisition cost of the drug within the 12-month period or 36-month period as described in subsection (b)(1)(A)(i) or (b)(1)(A)(ii), and the effective date of such price increase or the cost associated with a qualifying drug if such drug meets the criteria under subsection (b)(1)(B) and the effective date at which such drug meets such criteria;</content></subparagraph>
<subparagraph id="HCEDB3570E02D4E10B9C385EE65E8981F" class="indent2"><num value="B">“(B) </num>
<content>an explanation for, and description of, each price increase for such drug that will occur during the 12-month period or the 36-month period described in subsection (b)(1)(A)(i) or (b)(1)(A)(ii), as applicable;</content></subparagraph>
<subparagraph id="HFB8522FBEB0840F1B83DFB215729E108" class="indent2"><num value="C">“(C) </num>
<content>an explanation for, and description of, the cost associated with a qualifying drug if such drug meets the criteria under subsection (b)(1)(B), as applicable;</content></subparagraph>
<subparagraph id="HCB6D1CD01A0844DB8696803478557FBC" class="indent2"><num value="D">“(D) </num>
<chapeau>if known and different from the manufacturer of the qualifying drug, the identity of—</chapeau>
<clause id="HB56A766BC2074AD79A6750EEAA82E823" class="indent3"><num value="i">“(i) </num>
<chapeau>the sponsor or sponsors of any investigational new drug applications under section 505(i) of the Federal Food, Drug, and Cosmetic Act for clinical investigations with respect to such drug, for which the full reports are submitted as part of the application—</chapeau>
<subclause id="H34F1A34EE441473BB5AB9FD153B94792" class="indent4"><num value="I">“(I) </num>
<content>for approval of the drug under section 505 of such Act; or</content></subclause>
<subclause id="H6130188EF1984D4EADC099C1CE745940" class="indent4"><num value="II">“(II) </num>
<content>for licensure of the drug under section 351 of the Pubic Health Service Act; and</content></subclause></clause>
<clause id="HA3967ADC3B5248388B2C03470039AB3E" class="indent3"><num value="ii">“(ii) </num>
<content>the sponsor of an application for the drug approved under such section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under section 351 of the Public Health Service Act;</content></clause></subparagraph>
<subparagraph id="H52025CE41DD048358D114BBC2E153DA7" class="indent2"><num value="E">“(E) </num>
<content>a description of the history of the manufacturer’s price increases for the drug since the approval of the application for the drug under section 505 of the Federal Food, Drug, and Cosmetic Act or the issuance of the license for the drug under section 351 of the Public Health Service Act, or since the manufacturer acquired such approved application or license, if applicable;</content></subparagraph>
<subparagraph id="HCF8FD3ED1A104531AADDB0925965706C" class="indent2"><num value="F">“(F) </num>
<content>the current wholesale acquisition cost of the drug;</content></subparagraph>
<subparagraph id="HF5BF6A01770B428CAE53F3FC9C93E0BE" class="indent2"><num value="G">“(G) </num>
<chapeau>the total expenditures of the manufacturer on—</chapeau>
<clause id="H2A397D360ED146E1B701AE77BFF6F3FA" class="indent3"><num value="i">“(i) </num>
<content>materials and manufacturing for such drug;</content></clause>
<clause id="HBC24ED349E3849F0A9F74B6647B40DE1" class="indent3"><num value="ii">“(ii) </num>
<content>acquiring patents and licensing for such drug; and</content></clause>
<clause id="H473C3878B394492FA78E574984FA94B5" class="indent3"><num value="iii">“(iii) </num>
<content>purchasing or acquiring such drug from another manufacturer, if applicable;</content></clause></subparagraph>
<subparagraph id="HC49B4F562AD3447392A51C73F31079D3" class="indent2"><num value="H">“(H) </num>
<content>the percentage of total expenditures of the manufacturer on research and development for such drug that was derived from Federal funds;</content></subparagraph>
<subparagraph id="H98EBC8500635447EA791169B867B281C" class="indent2"><num value="I">“(I) </num>
<content>the total expenditures of the manufacturer on research and development for such drug that is necessary to demonstrate that it meets applicable statutory standards for approval under section 505 of the Federal Food, Drug, and Cosmetic Act or licensure under section 351 of the Public Health Service Act, as applicable;</content></subparagraph>
<subparagraph id="H1101817839014C8E9E7802DBC60988CC" class="indent2"><num value="J">“(J) </num>
<content>the total expenditures of the manufacturer on pursuing new or expanded indications or dosage changes for such drug under section 505 of the Federal Food, Drug, and Cosmetic Act or section 351 of the Public Health Service Act;</content></subparagraph>
<subparagraph id="H1D8B0629ED75422C89252659DF5B2CF0" class="indent2"><num value="K">“(K) </num>
<content>the total expenditures of the manufacturer on carrying out postmarket requirements related to such drug, including under section 505(o)(3) of the Federal Food, Drug, and Cosmetic Act;</content></subparagraph>
<subparagraph id="H37BD11E12B1C4DFCBE0E31F347B1F25D" class="indent2"><num value="L">“(L) </num>
<content>the total revenue and the net profit generated from the qualifying drug for each calendar year since the approval of the application for the drug under section 505 of the Federal Food, Drug, and Cosmetic Act or the issuance of the license for the drug under section 351 of the Public Health Service Act, or since the manufacturer acquired such approved application or license; and</content></subparagraph>
<subparagraph id="H1B61EB9FD8AA45F9A1C56E255578FD4B" class="indent2"><num value="M">“(M) </num>
<content>the total costs associated with marketing and advertising for the qualifying drug;</content></subparagraph></paragraph>
<paragraph id="HAEDB67E49AD24B33B845AC9A07C3CE8B" class="indent1"><num value="2">“(2) </num>
<chapeau>with respect to the manufacturer—</chapeau>
<subparagraph id="HAE7EDD1FC55E4368942BCB9586DF04A0" class="indent2"><num value="A">“(A) </num>
<content>the total revenue and the net profit of the manufacturer for each of the 12-month period described in subsection (b)(1)(A)(i) or the 36-month period described in subsection (b)(1)(A)(ii), as applicable;</content></subparagraph>
<subparagraph id="H18E0AB4895B94C52B448EE82E7680802" class="indent2"><num value="B">“(B) </num>
<content>all stock-based performance metrics used by the manufacturer to determine executive compensation for each of the 12-month periods described in subsection (b)(1)(A)(i) or the 36-month periods described in subsection (b)(1)(A)(ii), as applicable; and</content></subparagraph>
<subparagraph id="HA64B6AE6B73D441E986625429C39BF07" class="indent2"><num value="C">“(C) </num>
<chapeau>any additional information the manufacturer chooses to provide related to drug pricing decisions, such as total expenditures on—</chapeau>
<clause id="H01EC0025D73547F2925B06B514149042" class="indent3"><num value="i">“(i) </num>
<content>drug research and development; or</content></clause>
<clause id="H8DF0E1CB5C644384A9465A5DEAB4B699" class="indent3"><num value="ii">“(ii) </num>
<content>clinical trials, including on drugs that failed to receive approval by the Food and Drug Administration; and</content></clause></subparagraph></paragraph>
<paragraph id="HAC2433B6F31C473CA789CB62BD374BC1" class="indent1"><num value="3">“(3) </num>
<content>such other related information as the Secretary considers appropriate and as specified by the Secretary.</content></paragraph></subsection>
<subsection id="H3F52F694342D4A51A15552006BFEA370" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Information Provided</inline>.—</heading>
<content>The manufacturer of a qualifying drug that is required to submit a report under subsection (b), shall ensure that such report and any explanation for, and description of, each price increase described in subsection (c)(1) shall be truthful, not misleading, and accurate.</content></subsection>
<subsection id="HF55F22ABA08A4C109006D3FAF1684BCD" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Civil Monetary Penalty</inline>.—</heading>
<content>Any manufacturer of a qualifying drug that fails to submit a report for the drug as required by this section, following notification by the Secretary to the manufacturer that the manufacturer is not in compliance with this section, shall be subject to a civil monetary penalty of $75,000 for each day on which the violation continues.</content></subsection>
<subsection id="HC5935EE99B994F74963031D45FA6CD1D" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">False Information</inline>.—</heading>
<content>Any manufacturer that submits a report for a drug as required by this section that knowingly provides false information in such report is subject to a civil monetary penalty in an amount not to exceed $100,000 for each item of false information.</content></subsection>
<subsection id="H4767715E545E4A1B8B7092B63BEAA546" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">Public Posting</inline>.—</heading>
<paragraph id="H147FA2D09AE942F89D7CDCCC07B32162" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to paragraph (4), the Secretary shall post each report submitted under subsection (b) on the public website of the Department of Health and Human Services the day the price increase of a qualifying drug is scheduled to go into effect.</content></paragraph>
<paragraph id="HBC7B3808DAB94C5F980D40571D51D253" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Format</inline>.—</heading>
<chapeau>In developing the format in which reports will be publicly posted under paragraph (1), the Secretary shall consult with stakeholders, including beneficiary groups, and shall seek feedback from consumer advocates and readability experts on the format and presentation of the content of such reports to ensure that such reports are—</chapeau>
<subparagraph id="H3E4F8469AD054D659D83E65ED0FC7394" class="indent2"><num value="A">“(A) </num>
<content>user-friendly to the public; and</content></subparagraph>
<subparagraph id="H76DA08D57FDB4731ACDDFB9C917E5BA9" class="indent2"><num value="B">“(B) </num>
<content>written in plain language that consumers can readily understand.</content></subparagraph></paragraph>
<paragraph id="HED107B26B76D47E6B895CF019030BDD8" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">List</inline>.—</heading>
<content>In addition to the reports submitted under subsection (b), the Secretary shall also post a list of each qualifying drug with respect to which the manufacturer was required to submit such a report in the preceding year and whether such manufacturer was required to submit such report based on a qualifying price increase or whether such drug meets the criteria under subsection (b)(1)(B).</content></paragraph>
<paragraph id="H4A0B874006B94461B3816C0E2211A042" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Protected information</inline>.—</heading>
<content>In carrying out this section, the Secretary shall enforce applicable law concerning the protection of confidential commercial information and trade secrets.</content></paragraph></subsection></section> 
<section id="HCF1D3B95CC2A458D9E287E8BEB0FDB37" role="subsequent-section"><num value="1150D">“SEC. 1150D. </num>
<heading>ANNUAL REPORT TO CONGRESS.</heading>
<subsection id="H1AFA51E38E864F35AF34B929D4186807" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>Subject to subsection (b), the Secretary shall submit to the Committees on Energy and Commerce and Ways and Means of the House of Representatives and the Committees on Health, Education, Labor, and Pensions and Finance of the Senate, and post on the public website of the Department of Health and Human Services in a way that is user-friendly to the public and written in plain language that consumers can readily understand, an annual report—</chapeau>
<paragraph id="H0D7ECF9132C14B419FDADF535064D896" class="indent1"><num value="1">“(1) </num>
<content>summarizing the information reported pursuant to section 1150C;</content></paragraph>
<paragraph id="H48A5830C21AD452C8D3332ADA21C6743" class="indent1"><num value="2">“(2) </num>
<content>including copies of the reports and supporting detailed economic analyses submitted pursuant to such section;</content></paragraph>
<paragraph id="HBD7C1698A77C480692CD5DD89D38DFF8" class="indent1"><num value="3">“(3) </num>
<content>detailing the costs and expenditures incurred by the Department of Health and Human Services in carrying out section 1150C; and</content></paragraph>
<paragraph id="H1F460E49E0194B06978FDA4DDBD90687" class="indent1"><num value="4">“(4) </num>
<content>explaining how the Department of Health and Human Services is improving consumer and provider information about drug value and drug price transparency.</content></paragraph></subsection>
<subsection id="H023E5794B26B4BB480CD81E883F28A13" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Protected Information</inline>.—</heading>
<content>In carrying out this section, the Secretary shall enforce applicable law concerning the protection of confidential commercial information and trade secrets.”.</content></subsection></section></quotedContent></content></section></title>
<title identifier="/us/bill/116/hr/3/tVI" id="H271B3E658EFC407AB52FD1AB519EF242"><num value="VI">TITLE VI—</num>
<heading class="inline">MISCELLANEOUS</heading> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tVI/s601" id="HAD289A24841B4124916CB3F65FF7B2D9"><num value="601">SEC. 601. </num>
<heading>TEMPORARY INCREASE IN MEDICARE PART B PAYMENT FOR CERTAIN BIOSIMILAR BIOLOGICAL PRODUCTS.</heading>
<chapeau class="indent0">Section 1847A(b)(8) of the Social Security Act (<ref href="/us/usc/t42/s1395w–3a/b/8">42 U.S.C. 1395w–3a(b)(8)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tVI/s601/1" id="H4631219503234E29AB1E7D5B0E2D32BE" class="indent1"><num value="1">(1) </num>
<content>by <amendingAction type="redesignate">redesignating</amendingAction> subparagraphs (A) and (B) as clauses (i) and (ii), respectively, and moving the margin of each such redesignated clause 2 ems to the right;</content></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tVI/s601/2" id="H2C433C3766C8419C9EFD9A27E6ACC6C3" class="indent1"><num value="2">(2) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>
<headingText role="paragraph" class="smallCaps">product</headingText>.—The amount</quotedText>” and <amendingAction type="insert">inserting</amendingAction> the following: <quotedContent>“<headingText role="paragraph" class="smallCaps">product</headingText>.— <subparagraph id="H2F07BACD4C154EC6860C2D7517393C14" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to subparagraph (B), the amount”; and</content></subparagraph></quotedContent></content></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tVI/s601/3" id="H689BC6631C854F2F885351AAF4C472CA" class="indent1"><num value="3">(3) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HIF00" id="HCDBBA9E941E449F39EC33EAAB387F76C" styleType="OLC"> <subparagraph id="H81115B8EBC0C4B5BAF5A22451B65042E" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Temporary payment increase</inline>.—</heading>
<clause id="HDF65BA77C413463F98D50AC538AA01F1" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>In the case of a qualifying biosimilar biological product that is furnished during the applicable 5-year period for such product, the amount specified in this paragraph for such product with respect to such period is the sum determined under subparagraph (A), except that clause (ii) of such subparagraph shall be applied by substituting ‘8 percent’ for ‘6 percent’.</content></clause>
<clause id="H998425E43FAA4E3A901CC4C1F91DF73F" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Applicable 5-year period</inline>.—</heading>
<chapeau>For purposes of clause (i), the applicable 5-year period for a biosimilar biological product is—</chapeau>
<subclause id="H243741FE97F946B286F2057EE4FF50A1" class="indent4"><num value="I">“(I) </num>
<content>in the case of such a product for which payment was made under this paragraph as of December 31, 2019, the 5-year period beginning on January 1, 2020; and</content></subclause>
<subclause id="H83EA8A7FDC924F9B87089F79F869CA4B" class="indent4"><num value="II">“(II) </num>
<content>in the case of such a product for which payment is first made under this paragraph during a calendar quarter during the period beginning January 1, 2020, and ending December 31, 2024, the 5-year period beginning on the first day of such calendar quarter during which such payment is first made.</content></subclause></clause>
<clause role="definitions" id="HE8F8955EAED04751B23EFE2377F1463B" class="indent3"><num value="iii">“(iii) </num>
<heading><inline class="smallCaps">Qualifying biosimilar biological product defined</inline>.—</heading>
<chapeau>For purposes of this subparagraph, the term ‘<term>qualifying biosimilar biological product</term>’ means a biosimilar biological product described in paragraph (1)(C) with respect to which—</chapeau>
<subclause id="H321B9731BD114B13984AF9AB88611B7C" class="indent4"><num value="I">“(I) </num>
<content>in the case of a product described in clause (ii)(I), the average sales price is not more than the average sales price for the reference biological product; and</content></subclause>
<subclause id="HBE5AC55130D6494EA58F7C9F6330285C" class="indent4"><num value="II">“(II) </num>
<content>in the case of a product described in clause (ii)(II), the wholesale acquisition cost is not more than the wholesale acquisition cost for the reference biological product.”.</content></subclause></clause></subparagraph></quotedContent></content></paragraph></section></title>
</main>
        </component>
        <component origin="#HWM00" changed="added">
            <main> 
<section identifier="/us/bill/116/hr/3/s1" id="H4123E60D1BF44346AE4B2FDB1D8464F5"><num value="1">SECTION 1. </num>
<heading>SHORT TITLE; TABLE OF CONTENTS.</heading>
<subsection identifier="/us/bill/116/hr/3/s1/a" id="HEE4B81BFC1CF4EDBB7BE6C504E20EE4B" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">Short Title</inline>.—</heading>
<content>This Act may be cited as the “<shortTitle role="act">Elijah E. Cummings Lower Drug Costs Now Act</shortTitle>”.</content></subsection>
<subsection identifier="/us/bill/116/hr/3/s1/b" id="H29E1BAD638FD4875BC9DFC176CE9ACCD" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Table of Contents</inline>.—</heading>
<content>The table of contents is as follows:<toc meta="committee ID HWM00"> <referenceItem role="section" idref="H4123E60D1BF44346AE4B2FDB1D8464F5">
<designator>Sec. 1. </designator>
<label>Short title; table of contents.</label></referenceItem>
<referenceItem role="title" idref="H52810C464088425B956F3EECEF12F1C0">
<designator>TITLE I—</designator>
<label>LOWERING PRICES THROUGH FAIR DRUG PRICE NEGOTIATION</label></referenceItem>
<referenceItem role="section" idref="H099D7E00B6234B7FB8249C9E79159857">
<designator>Sec. 101. </designator>
<label>Providing for lower prices for certain high-priced single source drugs.</label></referenceItem>
<referenceItem role="section" idref="HE1B119E5AA9F4C83B31F87774BA05297">
<designator>Sec. 102. </designator>
<label>Selected drug manufacturer excise tax imposed during noncompliance periods.</label></referenceItem>
<referenceItem role="title" idref="HF8BC312FDF8441A18E4AB8547D69F833">
<designator>TITLE II—</designator>
<label>MEDICARE PARTS B AND D PRESCRIPTION DRUG INFLATION REBATES</label></referenceItem>
<referenceItem role="section" idref="H31DD46F1DC0B438F8DFE5315F4349AAA">
<designator>Sec. 201. </designator>
<label>Medicare part B rebate by manufacturers.</label></referenceItem>
<referenceItem role="section" idref="H385C3046B0204D3199036A4B339305D5">
<designator>Sec. 202. </designator>
<label>Medicare part D rebate by manufacturers.</label></referenceItem>
<referenceItem role="title" idref="HC643FE2403BB48C99ABD7A401F38813E">
<designator>TITLE III—</designator>
<label>PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE BENEFICIARIES</label></referenceItem>
<referenceItem role="section" idref="HF48FD097EFEB418FB05EBDC7C5F0EA65">
<designator>Sec. 301. </designator>
<label>Medicare part D benefit redesign.</label></referenceItem>
<referenceItem role="section" idref="H45EFD6AF24D04BA4BF60318AA7DDC1B7">
<designator>Sec. 302. </designator>
<label>Allowing certain enrollees of prescription drugs plans and MA–PD plans under Medicare program to spread out cost-sharing under certain circumstances.</label></referenceItem>
<referenceItem role="section" idref="H6BC68F1D6FF148E7B444BB6F6D66E145">
<designator>Sec. 303. </designator>
<label>Establishment of pharmacy quality measures under Medicare part D.</label></referenceItem>
<referenceItem role="title" idref="H74F2C973C8D349F79DB1D834F66A0C57">
<designator>TITLE IV—</designator>
<label>PRESCRIPTION DRUG POLICIES FOR LOW-INCOME INDIVIDUALS</label></referenceItem>
<referenceItem role="section" idref="HAB9632123A9A4C35BE0A8C00A9011FFA">
<designator>Sec. 401. </designator>
<label>Adjustments to Medicare part D cost-sharing reductions for low-income individuals.</label></referenceItem>
<referenceItem role="section" idref="H52B1B0F009D3427395EAC421584C4E86">
<designator>Sec. 402. </designator>
<label>Dissemination to Medicare part D subsidy eligible individuals of information comparing premiums of certain prescription drug plans.</label></referenceItem>
<referenceItem role="section" idref="HB91AFD1F85C04EB6B53D3C724281A18A">
<designator>Sec. 403. </designator>
<label>Providing for intelligent assignment of certain subsidy eligible individuals auto-enrolled under Medicare prescription drug plans and MA–PD plans.</label></referenceItem>
<referenceItem role="section" idref="HC52A3A1137054A668BFDA6A8D7BAFDB0">
<designator>Sec. 404. </designator>
<label>Expanding eligibility for low-income subsidies under part D of the Medicare program.</label></referenceItem>
<referenceItem role="section" idref="H1128DC6D95694216B5F6B472AE6CD2AA">
<designator>Sec. 405. </designator>
<label>Automatic eligibility of certain low-income territorial residents for premium and cost-sharing subsidies under the Medicare program; Sunset of enhanced allotment program.</label></referenceItem>
<referenceItem role="section" idref="H2110BEDA657845BCB61AB531AC3ED64A">
<designator>Sec. 406. </designator>
<label>Automatic qualification of certain Medicaid beneficiaries for premium and cost-sharing subsidies under part D of the Medicare program.</label></referenceItem>
<referenceItem role="section" idref="HD3FDB817E6F242B88B5910EB4F2A2BBB">
<designator>Sec. 407. </designator>
<label>Eliminating the resource requirement with respect to subsidy eligible individuals under part D of the Medicare program.</label></referenceItem>
<referenceItem role="section" idref="H6D88438D06DE451FA4D1C1077F81B3F6">
<designator>Sec. 408. </designator>
<label>Providing for certain rules regarding the treatment of eligible retirement plans in determining the eligibility of individuals for premium and cost-sharing subsidies under part D of the Medicare program.</label></referenceItem>
<referenceItem role="title" idref="H684E0FF4C43E45FE977DE520450BDECF">
<designator>TITLE V—</designator>
<label>DRUG PRICE TRANSPARENCY</label></referenceItem>
<referenceItem role="section" idref="H0CC439A184AD4337B739E64C72DA0343">
<designator>Sec. 501. </designator>
<label>Drug price transparency.</label></referenceItem></toc></content></subsection></section>
<title identifier="/us/bill/116/hr/3/tI" id="H52810C464088425B956F3EECEF12F1C0"><num value="I">TITLE I—</num>
<heading class="inline">LOWERING PRICES THROUGH FAIR DRUG PRICE NEGOTIATION</heading> 
<section identifier="/us/bill/116/hr/3/tI/s101" id="H099D7E00B6234B7FB8249C9E79159857" role="subsequent-section"><num value="101">SEC. 101. </num>
<heading>PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-PRICED SINGLE SOURCE DRUGS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tI/s101/a" id="H5B78BE1FA54C4264A861E3BD3FAB9B5A" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">Program To Lower Prices for Certain High-Priced Single Source Drugs</inline>.—</heading>
<content>Title XI of the Social Security Act (<ref href="/us/usc/t42/s1301">42 U.S.C. 1301</ref> et seq.) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new part:<quotedContent meta="committee ID HWM00" id="H7C9E12F440A14D8583C3CCD39D4E3518" styleType="OLC"> <part id="H0ED478E80C484EDBBEA33E3FC9E6ADC9"><num value="E">“PART E—</num>
<heading>FAIR PRICE NEGOTIATION PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-PRICED SINGLE SOURCE DRUGS</heading> 
<section id="H6626799C00084A219269E0CA580E1568" role="subsequent-section"><num value="1191">“SEC. 1191. </num>
<heading>ESTABLISHMENT OF PROGRAM.</heading>
<subsection id="HEC6BC1286BF3441ABD26BAD38992447D" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>The Secretary shall establish a Fair Price Negotiation Program (in this part referred to as the ‘program’). Under the program, with respect to each price applicability period, the Secretary shall—</chapeau>
<paragraph id="H233EA858674E4DDD813B05C28D378F67" class="indent1"><num value="1">“(1) </num>
<content>publish a list of selected drugs in accordance with section 1192;</content></paragraph>
<paragraph id="H9DAD97EAB28C4EACB4B2F741F90C78F5" class="indent1"><num value="2">“(2) </num>
<content>enter into agreements with manufacturers of selected drugs with respect to such period, in accordance with section 1193;</content></paragraph>
<paragraph id="H62300B6E376545B3B8679FBDCEBABEA3" class="indent1"><num value="3">“(3) </num>
<content>negotiate and, if applicable, renegotiate maximum fair prices for such selected drugs, in accordance with section 1194; and</content></paragraph>
<paragraph id="H13CB53570C774D298505810C6CC956B6" class="indent1"><num value="4">“(4) </num>
<content>carry out the administrative duties described in section 1196.</content></paragraph></subsection>
<subsection id="HEACC6FC882924A77B77389B18FA4BB95" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Definitions Relating to Timing</inline>.—</heading>
<chapeau>For purposes of this part:</chapeau>
<paragraph role="definitions" id="HB43E6470499B45F5B163E803DFBD0058" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Initial price applicability year</inline>.—</heading>
<content>The term ‘<term>initial price applicability year</term>’ means a plan year (beginning with plan year 2023) or, if agreed to in an agreement under section 1193 by the Secretary and manufacturer involved, a period of more than one plan year (beginning on or after January 1, 2023).</content></paragraph>
<paragraph role="definitions" id="H517A8176A0F044C6ADD2534FF62EEC16" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Price applicability period</inline>.—</heading>
<content>The term ‘<term>price applicability period</term>’ means, with respect to a drug, the period beginning with the initial price applicability year with respect to which such drug is a selected drug and ending with the last plan year during which the drug is a selected drug.</content></paragraph>
<paragraph role="definitions" id="H4ED2A5F0D92C40E99FE2751B230E25A3" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Selected drug publication date</inline>.—</heading>
<content>The term ‘<term>selected drug publication date</term>’ means, with respect to each initial price applicability year, April 15 of the plan year that begins 2 years prior to such year.</content></paragraph>
<paragraph role="definitions" id="H23ACE0617CFE47F386F724814B0B6EFC" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Voluntary negotiation period</inline>.—</heading>
<chapeau>The term ‘<term>voluntary negotiation period</term>’ means, with respect to an initial price applicability year with respect to a selected drug, the period—</chapeau>
<subparagraph id="HDED19915A02B4017BCF026A158CCC4E2" class="indent2"><num value="A">“(A) </num>
<chapeau>beginning on the sooner of—</chapeau>
<clause id="H41C6EA3C8FF840FF8A7B2F37B77A1142" class="indent3"><num value="i">“(i) </num>
<content>the date on which the manufacturer of the drug and the Secretary enter into an agreement under section 1193 with respect to such drug; or</content></clause>
<clause id="HF22E4ADBD760494BB980A3D6E2293A1C" class="indent3"><num value="ii">“(ii) </num>
<content>June 15 following the selected drug publication date with respect to such selected drug; and</content></clause></subparagraph>
<subparagraph id="H04A84E75787546C6B4B3F915C8C7FA10" class="indent2"><num value="B">“(B) </num>
<content>ending on March 31 of the year that begins one year prior to the initial price applicability year.</content></subparagraph></paragraph></subsection>
<subsection id="H7D5B4DC99E9B406387A8BBA3C7D313B6" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Other Definitions</inline>.—</heading>
<chapeau>For purposes of this part:</chapeau>
<paragraph role="definitions" id="H96119ABD16FA4026BA50D66B458FFDA6" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Fair price eligible individual</inline>.—</heading>
<chapeau>The term ‘<term>fair price eligible individual</term>’ means, with respect to a selected drug—</chapeau>
<subparagraph id="H656C8342F58D4B84BDA563BF7F40FEF3" class="indent2"><num value="A">“(A) </num>
<chapeau>in the case such drug is furnished or dispensed to the individual at a pharmacy or by a mail order service—</chapeau>
<clause id="H2000A8479EC64E7EBFEDD18BB5CFA816" class="indent3"><num value="i">“(i) </num>
<content>an individual who is enrolled under a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title under which coverage is provided for such drug; and</content></clause>
<clause id="H853971CC3BB64A128EEBCBB160DCD330" class="indent3"><num value="ii">“(ii) </num>
<content>an individual who is enrolled under a group health plan or health insurance coverage offered in the group or individual market (as such terms are defined in section 2791 of the Public Health Service Act) with respect to which there is in effect an agreement with the Secretary under section 1197 with respect to such selected drug as so furnished or dispensed; and</content></clause></subparagraph>
<subparagraph id="HC2D9F589746643C6847EF98D5A031085" class="indent2"><num value="B">“(B) </num>
<chapeau>in the case such drug is furnished or administered to the individual by a hospital, physician, or other provider of services or supplier—</chapeau>
<clause id="H59A6850C119642C994B78F4A4F270906" class="indent3"><num value="i">“(i) </num>
<content>an individual who is entitled to benefits under part A of title XVIII or enrolled under part B of such title if such selected drug is covered under the respective part; and</content></clause>
<clause id="HBDE25D2538594023B07432641C55331B" class="indent3"><num value="ii">“(ii) </num>
<content>an individual who is enrolled under a group health plan or health insurance coverage offered in the group or individual market (as such terms are defined in section 2791 of the Public Health Service Act) with respect to which there is in effect an agreement with the Secretary under section 1197 with respect to such selected drug as so furnished or administered.</content></clause></subparagraph></paragraph>
<paragraph role="definitions" id="H17A969D9E4FA4EF79ABAB1F931E8B301" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Maximum fair price</inline>.—</heading>
<content>The term ‘<term>maximum fair price</term>’ means, with respect to a plan year during a price applicability period and with respect to a selected drug (as defined in section 1192(c)) with respect to such period, the price published pursuant to section 1195 in the Federal Register for such drug and year.</content></paragraph>
<paragraph id="HDCB01BCF15524CD7B152C1CDE1599C3C" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Average international market price defined</inline>.—</heading>
<subparagraph id="H0C3E15E8B139405C826E73C8E5B95B35" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The terms ‘average international market price’ and ‘AIM price’ mean, with respect to a drug, the average price (which shall be the net average price, if practicable, and volume-weighted, if practicable) for a unit (as defined in paragraph (4)) of the drug for sales of such drug (calculated across different dosage forms and strengths of the drug and not based on the specific formulation or package size or package type), as computed (as of the date of publication of such drug as a selected drug under section 1192(a)) in all countries described in clause (ii) of subparagraph (B) that are applicable countries (as described in clause (i) of such subparagraph) with respect to such drug.</content></subparagraph>
<subparagraph id="HB416A9E7C8E54BC8873292DAEA1BBD22" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Applicable countries</inline>.—</heading>
<clause id="H8479B83BF51B42E4B6B667FB0E9B5444" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>For purposes of subparagraph (A), a country described in clause (ii) is an applicable country described in this clause with respect to a drug if there is available an average price for any unit for the drug for sales of such drug in such country.</content></clause>
<clause id="H959332B83FD14F94963BCAC62D423EA5" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Countries described</inline>.—</heading>
<chapeau>For purposes of this paragraph, the following are countries described in this clause:</chapeau>
<subclause id="H45EAFE1CB450421FAE9DA6C3E25405A8" class="indent4"><num value="I">“(I) </num>
<content>Australia.</content></subclause>
<subclause id="H8523F3F60ED7497BB1EEE6BD1DCB08EB" class="indent4"><num value="II">“(II) </num>
<content>Canada.</content></subclause>
<subclause id="H0B63778AEF3B466B89058E2DF6395E26" class="indent4"><num value="III">“(III) </num>
<content>France.</content></subclause>
<subclause id="H0D7C4EA47C254D249F07C5A960FB76D2" class="indent4"><num value="IV">“(IV) </num>
<content>Germany.</content></subclause>
<subclause id="HD3E28E92E605479B89685A144DB851EC" class="indent4"><num value="V">“(V) </num>
<content>Japan.</content></subclause>
<subclause id="HB46D1678B32449BBBD150C2D01602BB4" class="indent4"><num value="VI">“(VI) </num>
<content>The United Kingdom.</content></subclause></clause></subparagraph></paragraph>
<paragraph role="definitions" id="H3AEABD4719444A42AC0720C1451910C2" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Unit</inline>.—</heading>
<content>The term ‘<term>unit</term>’ means, with respect to a drug, the lowest identifiable quantity (such as a capsule or tablet, milligram of molecules, or grams) of the drug that is dispensed.</content></paragraph></subsection></section> 
<section id="H3B135C8370E24EF8B18ABEE3FD000EB0" role="subsequent-section"><num value="1192">“SEC. 1192. </num>
<heading>SELECTION OF NEGOTIATION-ELIGIBLE DRUGS AS SELECTED DRUGS.</heading>
<subsection id="H3D1EAA26D42044428884A24457B7EA5A" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>Not later than the selected drug publication date with respect to an initial price applicability year, the Secretary shall select and publish in the Federal Register a list of—</chapeau>
<paragraph id="HB92188553EE949BD8F4D6126B2A97FA6" class="indent1"><num value="1">“(1)</num>
<subparagraph id="H766BFE67F73842F1B2052B102F358115" class="inline"><num value="A">(A) </num>
<content>with respect to an initial price applicability year during the period beginning with 2023 and ending with 2027, at least 25 negotiation-eligible drugs described in subparagraphs (A) and (B), but not subparagraph (C), of subsection (d)(1) (or, with respect to an initial price applicability year during such period beginning after 2023, the maximum number (if such number is less than 25) of such negotiation-eligible drugs for the year) with respect to such year;</content></subparagraph>
<subparagraph meta="committee ID HWM00" id="H66C2D7AE79E64E0C9A2A1DDC32BBAB9D" class="indent1"><num value="B">“(B) </num>
<content>with respect to an initial price applicability year during the period beginning with 2028 and ending with 2032, at least 30 negotiation-eligible drugs described in subparagraphs (A) and (B), but not subparagraph (C), of subsection (d)(1) (or, with respect to an initial price applicability year during such period, the maximum number (if such number is less than 30) of such negotiation-eligible drugs for the year) with respect to such year; and</content></subparagraph>
<subparagraph meta="committee ID HWM00" id="H3C53767C0D3B403A8094FEBA57C1574A" class="indent1"><num value="C">“(C) </num>
<content>with respect to an initial price applicability year beginning after 2032, at least 35 negotiation-eligible drugs described in subparagraphs (A) and (B), but not subparagraph (C), of subsection (d)(1) (or, with respect to an initial price applicability year during such period, the maximum number (if such number is less than 35) of such negotiation-eligible drugs for the year) with respect to such year;</content></subparagraph></paragraph>
<paragraph id="HD228D9A3CB6343FCADCDE1F4644FB83F" class="indent1"><num value="2">“(2) </num>
<content>all negotiation-eligible drugs described in subparagraph (C) of such subsection with respect to such year; and</content></paragraph>
<paragraph id="HEAAD57D2894B4FE797384E745E7468DD" class="indent1"><num value="3">“(3) </num>
<content>all new-entrant negotiation-eligible drugs (as defined in subsection (g)(1)) with respect to such year.</content></paragraph>
<continuation class="indent0">Each drug published on the list pursuant to the previous sentence shall be subject to the negotiation process under section 1194 for the voluntary negotiation period with respect to such initial price applicability year (and the renegotiation process under such section as applicable for any subsequent year during the applicable price applicability period). In applying this subsection, any negotiation-eligible drug that is selected under this subsection for an initial price applicability year shall not count toward the required minimum amount of drugs to be selected under paragraph (1) for any subsequent year, including such a drug so selected that is subject to renegotiation under section 1194.</continuation></subsection>
<subsection id="H9197BB47721847B08729E20D8EC8A8E8" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Selection of Drugs</inline>.—</heading>
<content>In carrying out subsection (a)(1) the Secretary shall select for inclusion on the published list described in subsection (a) with respect to a price applicability period, the negotiation-eligible drugs that the Secretary projects will result in the greatest savings to the Federal Government or fair price eligible individuals during the price applicability period. In making this projection of savings for drugs for which there is an AIM price for a price applicability period, the savings shall be projected across different dosage forms and strengths of the drugs and not based on the specific formulation or package size or package type of the drugs, taking into consideration both the volume of drugs for which payment is made, to the extent such data is available, and the amount by which the net price for the drugs exceeds the AIM price for the drugs.</content></subsection>
<subsection id="HE9EFA96DEF9149FBA3ABA6847261FDE6" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Selected Drug</inline>.—</heading>
<chapeau>For purposes of this part, each drug included on the list published under subsection (a) with respect to an initial price applicability year shall be referred to as a ‘selected drug’ with respect to such year and each subsequent plan year beginning before the first plan year beginning after the date on which the Secretary determines two or more drug products—</chapeau>
<paragraph id="H00CD9BF930AC47B5B57000B1CD54D87D" class="indent1"><num value="1">“(1) </num>
<chapeau>are approved or licensed (as applicable)—</chapeau>
<subparagraph id="H0C1948494FFE4465BD132D5F5716167A" class="indent2"><num value="A">“(A) </num>
<content>under section 505(j) of the Federal Food, Drug, and Cosmetic Act using such drug as the listed drug; or</content></subparagraph>
<subparagraph id="H36E64610030D43C98CFCE6807DE5B65B" class="indent2"><num value="B">“(B) </num>
<content>under section 351(k) of the Public Health Service Act using such drug as the reference product; and</content></subparagraph></paragraph>
<paragraph id="H0228F233A08F4E61933E23C5126DA5BA" class="indent1"><num value="2">“(2) </num>
<content>continue to be marketed.</content></paragraph></subsection>
<subsection id="HFB2320056C1F43D0B319051683E21618" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Negotiation-Eligible Drug</inline>.—</heading>
<paragraph role="definitions" id="H022282FFB99140F5A7D4A0A6F8F5EEA3" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of this part, the term ‘<term>negotiation-eligible drug</term>’ means, with respect to the selected drug publication date with respect to an initial price applicability year, a qualifying single source drug, as defined in subsection (e), that meets any of the following criteria:</chapeau>
<subparagraph id="HF83A2511693141CDB2A37A84B010A0DB" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Covered part d drugs</inline>.—</heading>
<content>The drug is among the 125 covered part D drugs (as defined in section 1860D–2(e)) for which there was an estimated greatest net spending under parts C and D of title XVIII, as determined by the Secretary, during the most recent plan year prior to such drug publication date for which data are available.</content></subparagraph>
<subparagraph id="H9E096D0D9F5446B3982F1A139EB10A0B" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Other drugs</inline>.—</heading>
<content>The drug is among the 125 drugs for which there was an estimated greatest net spending in the United States (including the 50 States, the District of Columbia, and the territories of the United States), as determined by the Secretary, during the most recent plan year prior to such drug publication date for which data are available.</content></subparagraph>
<subparagraph id="H99BA00D8CE674C6AB1A226DCEE8594D5" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Insulin</inline>.—</heading>
<content>The drug is a qualifying single source drug described in subsection (e)(3).</content></subparagraph></paragraph>
<paragraph id="H15704DC4A2BA45D3AE2BD66FB8F46776" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Clarification</inline>.—</heading>
<content>In determining whether a qualifying single source drug satisfies any of the criteria described in paragraph (1), the Secretary shall, to the extent practicable, use data that is aggregated across dosage forms and strengths of the drug and not based on the specific formulation or package size or package type of the drug.</content></paragraph>
<paragraph id="HCBEA8D98FCA546E1A752B6498B4C08B5" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Publication</inline>.—</heading>
<content>Not later than the selected drug publication date with respect to an initial price applicability year, the Secretary shall publish in the Federal Register a list of negotiation-eligible drugs with respect to such selected drug publication date.</content></paragraph></subsection>
<subsection role="definitions" id="HD8BE3DE8626547B3A423E33323D3CF31" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Qualifying Single Source Drug</inline>.—</heading>
<chapeau>For purposes of this part, the term ‘<term>qualifying single source drug</term>’ means any of the following:</chapeau>
<paragraph id="HD7394B35B95448289DE0F4034245AFBA" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Drug products</inline>.—</heading>
<chapeau>A drug that—</chapeau>
<subparagraph id="H85C97844C9564A399B894330F8123347" class="indent2"><num value="A">“(A) </num>
<content>is approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act and continues to be marketed pursuant to such approval; and</content></subparagraph>
<subparagraph id="HF17D8D7B21094B73A30B9209166490DA" class="indent2"><num value="B">“(B) </num>
<content>is not the listed drug for any drug that is approved and continues to be marketed under section 505(j) of such Act.</content></subparagraph></paragraph>
<paragraph id="H3C63F9FE205F4BA0886C093603520FDE" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Biological products</inline>.—</heading>
<chapeau>A biological product that—</chapeau>
<subparagraph id="H7BE6287AF80A4AD0908CD2B430446D2B" class="indent2"><num value="A">“(A) </num>
<content>is licensed under section 351(a) of the Public Health Service Act, including any product that has been deemed to be licensed under section 351 of such Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009, and continues to be marketed under section 351 of such Act; and</content></subparagraph>
<subparagraph id="H9B7CDF6DB6EB45DFA930C1A20D598E7A" class="indent2"><num value="B">“(B) </num>
<content>is not the reference product for any biological product that is licensed and continues to be marketed under section 351(k) of such Act.</content></subparagraph></paragraph>
<paragraph id="HCED957F22E4B488AAA2CC3561886B5DC" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Insulin product</inline>.—</heading>
<content>Notwithstanding paragraphs (1) and (2), any insulin product that is approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under subsection (a) or (k) of section 351 of the Public Health Service Act and continues to be marketed under such section 505 or 351, including any insulin product that has been deemed to be licensed under section 351(a) of the Public Health Service Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 and continues to be marketed pursuant to such licensure.</content></paragraph>
<continuation class="indent0">For purposes of applying paragraphs (1) and (2), a drug or biological product that is marketed by the same sponsor or manufacturer (or an affiliate thereof or a cross-licensed producer or distributor) as the listed drug or reference product described in such respective paragraph shall not be taken into consideration.</continuation></subsection>
<subsection id="HA8A76820D89249D48A36640A15FD83BF" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Information on International Drug Prices</inline>.—</heading>
<content>For purposes of determining which negotiation-eligible drugs to select under subsection (a) and, in the case of such drugs that are selected drugs, to determine the maximum fair price for such a drug and whether such maximum fair price should be renegotiated under section 1194, the Secretary shall use data relating to the AIM price with respect to such drug as available or provided to the Secretary and shall on an ongoing basis request from manufacturers of selected drugs information on the AIM price of such a drug.</content></subsection>
<subsection id="H17C34772E19D4CC99B7673963150C889" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">New-entrant Negotiation-eligible Drugs</inline>.—</heading>
<paragraph role="definitions" id="HA4C4E52EE2ED4807BE8B33C0DF3277C0" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of this part, the term ‘<term>new-entrant negotiation-eligible drug</term>’ means, with respect to the selected drug publication date with respect to an initial price applicability year, a qualifying single source drug—</chapeau>
<subparagraph id="HF8D7EB1358EE4825B0E87C0141ADB7A4" class="indent2"><num value="A">“(A) </num>
<content>that is first approved or licensed, as described in paragraph (1), (2), or (3) of subsection (e), as applicable, during the year preceding such selected drug publication date; and</content></subparagraph>
<subparagraph id="HE473CCDE3BDC4DFCBA8B7E5A3E9AB7DE" class="indent2"><num value="B">“(B) </num>
<content>that the Secretary determines under paragraph (2) is likely to be included as a negotiation-eligible drug with respect to the subsequent selected drug publication date.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H14D1DE3A404F43759DC5A5C5A9042997" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Determination</inline>.—</heading>
<content>In the case of a qualifying single source drug that meets the criteria described in subparagraph (A) of paragraph (1), with respect to an initial price applicability year, if the wholesale acquisition cost at which such drug is first marketed in the United States is equal to or greater than the median household income (as determined according to the most recent data collected by the United States Census Bureau), the Secretary shall determine before the selected drug publication date with respect to the initial price applicability year, if the drug is likely to be included as a negotiation-eligible drug with respect to the subsequent selected drug publication date, based on the projected spending under title XVIII or in the United States on such drug. For purposes of this paragraph the term ‘<term>United States</term>’ includes the 50 States, the District of Columbia, and the territories of the United States.</content></paragraph></subsection></section> 
<section id="HFFEF7A3E985246FEAA337BE528B70BB6" role="subsequent-section"><num value="1193">“SEC. 1193. </num>
<heading>MANUFACTURER AGREEMENTS.</heading>
<subsection id="HBC693C0139A645F79CA8C0B2612CC1F0" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>For purposes of section 1191(a)(2), the Secretary shall enter into agreements with manufacturers of selected drugs with respect to a price applicability period, by not later than June 15 following the selected drug publication date with respect to such selected drug, under which—</chapeau>
<paragraph id="H8E05C6B7DE5E4B8EA3C71D0429A1D79B" class="indent1"><num value="1">“(1) </num>
<chapeau>during the voluntary negotiation period for the initial price applicability year for the selected drug, the Secretary and manufacturer, in accordance with section 1194, negotiate to determine (and, by not later than the last date of such period and in accordance with subsection (c), agree to) a maximum fair price for such selected drug of the manufacturer in order to provide access to such price—</chapeau>
<subparagraph id="H680FCBEE76FC4AF69FAA4727971A72EE" class="indent2"><num value="A">“(A) </num>
<content>to fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(1) and are furnished or dispensed such drug during, subject to subparagraph (2), the price applicability period; and</content></subparagraph>
<subparagraph id="H78C138FFDB5F421284C54297E1A48B89" class="indent2"><num value="B">“(B) </num>
<content>to hospitals, physicians, and other providers of services and suppliers with respect to fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during, subject to subparagraph (2), the price applicability period;</content></subparagraph></paragraph>
<paragraph id="HD44D1DA49212489CA297DBCFCCECDF92" class="indent1"><num value="2">“(2) </num>
<chapeau>the Secretary and the manufacturer shall, in accordance with a process and during a period specified by the Secretary pursuant to rulemaking, renegotiate (and, by not later than the last date of such period and in accordance with subsection (c), agree to) the maximum fair price for such drug if the Secretary determines that there is a material change in any of the factors described in section 1194(d) relating to the drug, including changes in the AIM price for such drug, in order to provide access to such maximum fair price (as so renegotiated)—</chapeau>
<subparagraph id="HF6C33F40616C4E3EB833F3FDCEA3BFEA" class="indent2"><num value="A">“(A) </num>
<content>to fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(1) and are furnished or dispensed such drug during any year during the price applicability period (beginning after such renegotiation) with respect to such selected drug; and</content></subparagraph>
<subparagraph id="H36AB196EB35141E39E11E339F28643E1" class="indent2"><num value="B">“(B) </num>
<content>to hospitals, physicians, and other providers of services and suppliers with respect to fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during any year described in subparagraph (A);</content></subparagraph></paragraph>
<paragraph id="HC1A2E577663F44989DD7E389DEB94EEA" class="indent1"><num value="3">“(3) </num>
<content>the maximum fair price (including as renegotiated pursuant to paragraph (2)), with respect to such a selected drug, shall be provided to fair price eligible individuals, who with respect to such drug are described in subparagraph (A) of section 1191(c)(1), at the pharmacy or by a mail order service at the point-of-sale of such drug;</content></paragraph>
<paragraph id="H9CEB9041DF804F2296F29530045FB6F6" class="indent1"><num value="4">“(4) </num>
<chapeau>the manufacturer, subject to subsection (d), submits to the Secretary, in a form and manner specified by the Secretary—</chapeau>
<subparagraph id="H2E3C608DD7FD4BB1926913D80556FDDC" class="indent2"><num value="A">“(A) </num>
<content>for the voluntary negotiation period for the price applicability period (and, if applicable, before any period of renegotiation specified pursuant to paragraph (2)) with respect to such drug all information that the Secretary requires to carry out the negotiation (or renegotiation process) under this part, including information described in section 1192(f) and section 1194(d)(1); and</content></subparagraph>
<subparagraph id="H82AAA44291FA4EA695EDD63D2928D7F9" class="indent2"><num value="B">“(B) </num>
<content>on an ongoing basis, information on changes in prices for such drug that would affect the AIM price for such drug or otherwise provide a basis for renegotiation of the maximum fair price for such drug pursuant to paragraph (2);</content></subparagraph></paragraph>
<paragraph id="H8EE97CC0A2654F78802989E928956399" class="indent1"><num value="5">“(5) </num>
<content>the manufacturer agrees that in the case the selected drug of a manufacturer is a drug described in subsection (c), the manufacturer will, in accordance with such subsection, make any payment required under such subsection with respect to such drug; and</content></paragraph>
<paragraph id="H8DA420F83DF7451488CA2C3EEADEF601" class="indent1"><num value="6">“(6) </num>
<content>the manufacturer complies with requirements imposed by the Secretary for purposes of administering the program, including with respect to the duties described in section 1196.</content></paragraph></subsection>
<subsection id="H93446332C5F949D797C0282C6C62E156" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Agreement in Effect Until Drug Is No Longer a Selected Drug</inline>.—</heading>
<content>An agreement entered into under this section shall be effective, with respect to a drug, until such drug is no longer considered a selected drug under section 1192(c).</content></subsection>
<subsection id="HD7AA72141DE445C3AC148A492E69F5EB" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Special Rule for Certain Selected Drugs Without AIM Price</inline>.—</heading>
<paragraph id="H2E61135F482949C1B27668E981AE8214" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>In the case of a selected drug for which there is no AIM price available with respect to the initial price applicability year for such drug and for which an AIM price becomes available beginning with respect to a subsequent plan year during the price applicability period for such drug, if the Secretary determines that the amount described in paragraph (2)(A) for a unit of such drug is greater than the amount described in paragraph (2)(B) for a unit of such drug, then by not later than one year after the date of such determination, the manufacturer of such selected drug shall pay to the Treasury an amount equal to the product of—</chapeau>
<subparagraph id="H68EAE07E49304642ADDE9151606BD9B7" class="indent2"><num value="A">“(A) </num>
<content>the difference between such amount described in paragraph (2)(A) for a unit of such drug and such amount described in paragraph (2)(B) for a unit of such drug; and</content></subparagraph>
<subparagraph id="H2CCB1B79EE484C258637C7E240D3AAA7" class="indent2"><num value="B">“(B) </num>
<content>the number of units of such drug sold in the United States, including the 50 States, the District of Columbia, and the territories of the United States, during the period described in paragraph (2)(B).</content></subparagraph></paragraph>
<paragraph id="H84E45DCC5BBC45A6BE4A52A695F82D0F" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Amounts described</inline>.—</heading>
<subparagraph id="H2289C62C24C646CEA3D62E2C7DA622FE" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Weighted average price before aim price available</inline>.—</heading>
<content>For purposes of paragraph (1), the amount described in this subparagraph for a selected drug described in such paragraph, is the amount equal to the weighted average manufacturer price (as defined in section 1927(k)(1)) for such dosage strength and form for the drug during the period beginning with the first plan year for which the drug is included on the list of negotiation-eligible drugs published under section 1192(d) and ending with the last plan year during the price applicability period for such drug with respect to which there is no AIM price available for such drug.</content></subparagraph>
<subparagraph id="H34323DFEA532462AA761179DE1B45CF5" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Amount multiplier after aim price available</inline>.—</heading>
<content>For purposes of paragraph (1), the amount described in this subparagraph for a selected drug described in such paragraph, is the amount equal to 200 percent of the AIM price for such drug with respect to the first plan year during the price applicability period for such drug with respect to which there is an AIM price available for such drug.</content></subparagraph></paragraph></subsection>
<subsection id="H738C7A30C5514D1884B2B1849122601A" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Confidentiality of Information</inline>.—</heading>
<content>Information submitted to the Secretary under this part by a manufacturer of a selected drug that is proprietary information of such manufacturer (as determined by the Secretary) may be used only by the Secretary or disclosed to and used by the Comptroller General of the United States or the Medicare Payment Advisory Commission for purposes of carrying out this part.</content></subsection>
<subsection id="H73B81E2C368540219742D1D4D0793E71" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Regulations</inline>.—</heading>
<paragraph id="H13BE8E50CBB84D6CB631E0565221AA48" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall, pursuant to rulemaking, specify, in accordance with paragraph (2), the information that must be submitted under subsection (a)(4).</content></paragraph>
<paragraph id="H273BE240EF6F42288A6EABD05F3DB956" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Information specified</inline>.—</heading>
<content>Information described in paragraph (1), with respect to a selected drug, shall include information on sales of the drug (by the manufacturer of the drug or by another entity under license or other agreement with the manufacturer, with respect to the sales of such drug, regardless of the name under which the drug is sold) in any foreign country that is part of the AIM price. The Secretary shall verify, to the extent practicable, such sales from appropriate officials of the government of the foreign country involved.</content></paragraph></subsection>
<subsection id="H6D93B68DE168411BB949BE7C86A56709" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Compliance With Requirements for Administration of Program</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall comply with requirements imposed by the Secretary or a third party with a contract under section 1196(c)(1), as applicable, for purposes of administering the program.</content></subsection></section> 
<section id="HF860BD49E9814A4B9A5109F1007CEED9" role="subsequent-section"><num value="1194">“SEC. 1194. </num>
<heading>NEGOTIATION AND RENEGOTIATION PROCESS.</heading>
<subsection id="H1E1B867BA9164E08BEF23CC69FCF0FA4" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>For purposes of this part, under an agreement under section 1193 between the Secretary and a manufacturer of a selected drug, with respect to the period for which such agreement is in effect and in accordance with subsections (b) and (c), the Secretary and the manufacturer—</chapeau>
<paragraph id="H42F4CDC660254CF4A99365CA86C2B6C1" class="indent1"><num value="1">“(1) </num>
<content>shall during the voluntary negotiation period with respect to the initial price applicability year for such drug, in accordance with this section, negotiate a maximum fair price for such drug for the purpose described in section 1193(a)(1); and</content></paragraph>
<paragraph id="H62BC9B7415F44690A34133504876579B" class="indent1"><num value="2">“(2) </num>
<content>as applicable pursuant to section 1193(a)(2) and in accordance with the process specified pursuant to such section, renegotiate such maximum fair price for such drug for the purpose described in such section.</content></paragraph></subsection>
<subsection id="H0D5FF0E720E5419FB6B11BB2E7C6C09B" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Negotiating Methodology and Objective</inline>.—</heading>
<paragraph id="HE197583AB6F44E0086A1FC9243E198A9" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall develop and use a consistent methodology for negotiations under subsection (a) that, in accordance with paragraph (2) and subject to paragraph (3), achieves the lowest maximum fair price for each selected drug while appropriately rewarding innovation.</content></paragraph>
<paragraph id="H1C9CD1D0566445DBBE779703962EF2EA" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Prioritizing factors</inline>.—</heading>
<chapeau>In considering the factors described in subsection (d) in negotiating (and, as applicable, renegotiating) the maximum fair price for a selected drug, the Secretary shall, to the extent practicable, consider all of the available factors listed but shall prioritize the following factors:</chapeau>
<subparagraph id="H4C47916242C9411E994351E0101790F5" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Research and development costs</inline>.—</heading>
<content>The factor described in paragraph (1)(A) of subsection (d).</content></subparagraph>
<subparagraph id="H78B06E847BFE4E1694EC7E20998777C7" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Market data</inline>.—</heading>
<content>The factor described in paragraph (1)(B) of such subsection.</content></subparagraph>
<subparagraph id="H8E3559925C2D476DADC087D00FC580F4" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Unit costs of production and distribution</inline>.—</heading>
<content>The factor described in paragraph (1)(C) of such subsection.</content></subparagraph>
<subparagraph id="H37428BC41EC749DD9437C34855D6190F" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Comparison to existing therapeutic alternatives</inline>.—</heading>
<content>The factor described in paragraph (2)(A) of such subsection.</content></subparagraph></paragraph>
<paragraph id="H135846C766BD4502B1089862B6746310" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Requirement</inline>.—</heading>
<subparagraph id="H829CED9122CA475BAFF4C05F0A7E958A" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>In negotiating the maximum fair price of a selected drug, with respect to an initial price applicability year for the selected drug, and, as applicable, in renegotiating the maximum fair price for such drug, with respect to a subsequent year during the price applicability period for such drug, in the case that the manufacturer of the selected drug offers under the negotiation or renegotiation, as applicable, a price for such drug that is not more than the target price described in subparagraph (B) for such drug for the respective year, the Secretary shall agree under such negotiation or renegotiation, respectively, to such offered price as the maximum fair price.</content></subparagraph>
<subparagraph id="HF8B6616444054C3084CC56C7890076AA" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Target price</inline>.—</heading>
<clause id="HB5B90F8B9FB645E283451375828BAB7A" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to clause (ii), the target price described in this subparagraph for a selected drug with respect to a year, is the average price (which shall be the net average price, if practicable, and volume-weighted, if practicable) for a unit of such drug for sales of such drug, as computed (across different dosage forms and strengths of the drug and not based on the specific formulation or package size or package type of the drug) in the applicable country described in section 1191(c)(3)(B) with respect to such drug that, with respect to such year, has the lowest average price for such drug as compared to the average prices (as so computed) of such drug with respect to such year in the other applicable countries described in such section with respect to such drug.</content></clause>
<clause id="H9FACC0A8FA3F4E689D01449108A01DCF" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Selected drugs without aim price</inline>.—</heading>
<content>In applying this paragraph in the case of negotiating the maximum fair price of a selected drug for which there is no AIM price available with respect to the initial price applicability year for such drug, or, as applicable, renegotiating the maximum fair price for such drug with respect to a subsequent year during the price applicability period for such drug before the first plan year for which there is an AIM price available for such drug, the target price described in this subparagraph for such drug and respective year is the amount that is 80 percent of the average manufacturer price (as defined in section 1927(k)(1)) for such drug and year.</content></clause></subparagraph></paragraph>
<paragraph id="HC62B3119B4F846B6AB85DD789AC75ECF" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Annual report</inline>.—</heading>
<content>After the completion of each voluntary negotiation period, the Secretary shall submit to Congress a report on the maximum fair prices negotiated (or, as applicable, renegotiated) for such period. Such report shall include information on how such prices so negotiated (or renegotiated) meet the requirements of this part, including the requirements of this subsection.</content></paragraph></subsection>
<subsection id="H981C0C47558748508916F4ABEC793F8D" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Limitation</inline>.—</heading>
<paragraph id="H9E75C29FE6F640049ACAB457251BBFEA" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to paragraph (2), the maximum fair price negotiated (including as renegotiated) under this section for a selected drug, with respect to each plan year during a price applicability period for such drug, shall not exceed 120 percent of the AIM price applicable to such drug with respect to such year.</content></paragraph>
<paragraph id="HCA47BBF9BAB6454EA41D5C1308FB862B" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Selected drugs without aim price</inline>.—</heading>
<content>In the case of a selected drug for which there is no AIM price available with respect to the initial price applicability year for such drug, for each plan year during the price applicability period before the first plan year for which there is an AIM price available for such drug, the maximum fair price negotiated (including as renegotiated) under this section for the selected drug shall not exceed the amount equal to 85 percent of the average manufacturer price for the drug with respect to such year.</content></paragraph></subsection>
<subsection id="HB1B4F63AFCDA49E4A9B6BB46882F4FBF" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Considerations</inline>.—</heading>
<chapeau>For purposes of negotiating and, as applicable, renegotiating (including for purposes of determining whether to renegotiate) the maximum fair price of a selected drug under this part with the manufacturer of the drug, the Secretary shall, consistent with subsection (b)(2), take into consideration the following factors:</chapeau>
<paragraph id="HB2606BAA91C54F17AA5FA0138F7C9B28" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Manufacturer-specific information</inline>.—</heading>
<chapeau>The following information, including as submitted by the manufacturer:</chapeau>
<subparagraph id="H2A101B005F13405B803929A5C069B4BF" class="indent2"><num value="A">“(A) </num>
<content>Research and development costs of the manufacturer for the drug and the extent to which the manufacturer has recouped research and development costs.</content></subparagraph>
<subparagraph id="H886EF01B743641C0AF082B1821307E8D" class="indent2"><num value="B">“(B) </num>
<content>Market data for the drug, including the distribution of sales across different programs and purchasers and projected future revenues for the drug.</content></subparagraph>
<subparagraph id="H6F9A719635A144EFB057F431D0E34CDE" class="indent2"><num value="C">“(C) </num>
<content>Unit costs of production and distribution of the drug.</content></subparagraph>
<subparagraph id="H52D3320E50394FE195C00E7E2B9783DC" class="indent2"><num value="D">“(D) </num>
<content>Prior Federal financial support for novel therapeutic discovery and development with respect to the drug.</content></subparagraph>
<subparagraph id="H430A451EC76E4C60BB9E7D39BE64E1B1" class="indent2"><num value="E">“(E) </num>
<content>Data on patents and on existing and pending exclusivity for the drug.</content></subparagraph>
<subparagraph id="HFC274FD3B4374339B35BC4982AD71DC5" class="indent2"><num value="F">“(F) </num>
<content>National sales data for the drug.</content></subparagraph>
<subparagraph id="H7A458FA2A6364807A9922D39957BD854" class="indent2"><num value="G">“(G) </num>
<content>Information on clinical trials for the drug in the United States or in applicable countries described in section 1191(c)(3)(B).</content></subparagraph></paragraph>
<paragraph id="HEF61FB7A0A4D4C01AA9BCE144CFC48ED" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Information on alternative products</inline>.—</heading>
<chapeau>The following information:</chapeau>
<subparagraph id="H75F017BC52524D13B0B69529023D9C33" class="indent2"><num value="A">“(A) </num>
<content>The extent to which the drug represents a therapeutic advance as compared to existing therapeutic alternatives and, to the extent such information is available, the costs of such existing therapeutic alternatives.</content></subparagraph>
<subparagraph id="H95D8BCF8D25A42C693594B87EA8F7AC8" class="indent2"><num value="B">“(B) </num>
<content>Information on approval by the Food and Drug Administration of alternative drug products.</content></subparagraph>
<subparagraph id="H04D937F7B245483493C570922BAF4A54" class="indent2"><num value="C">“(C) </num>
<content>Information on comparative effectiveness analysis for such products, taking into consideration the effects of such products on specific populations, such as individuals with disabilities, the elderly, terminally ill, children, and other patient populations.</content></subparagraph>
<continuation class="indent0">In considering information described in subparagraph (C), the Secretary shall not use evidence or findings from comparative clinical effectiveness research in a manner that treats extending the life of an elderly, disabled, or terminally ill individual as of lower value than extending the life of an individual who is younger, nondisabled, or not terminally ill. Nothing in the previous sentence shall affect the application or consideration of an AIM price for a selected drug.</continuation></paragraph>
<paragraph id="HA8F852B44EA94ADBBDF1FEF87DBDE1BD" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Foreign sales information</inline>.—</heading>
<content>To the extent available on a timely basis, including as provided by a manufacturer of the selected drug or otherwise, information on sales of the selected drug in each of the countries described in section 1191(c)(3)(B).</content></paragraph>
<paragraph id="H87EB8E750FC74684B97E9333978EA05A" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Additional information</inline>.—</heading>
<content>Information submitted to the Secretary, in accordance with a process specified by the Secretary, by other parties that are affected by the establishment of a maximum fair price for the selected drug.</content></paragraph></subsection>
<subsection id="HD4B6ECF7187A4B6B82B94A34971823AD" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Request for Information</inline>.—</heading>
<chapeau>For purposes of negotiating and, as applicable, renegotiating (including for purposes of determining whether to renegotiate) the maximum fair price of a selected drug under this part with the manufacturer of the drug, with respect to a price applicability period, and other relevant data for purposes of this section—</chapeau>
<paragraph id="HC3FFDEA645BA4E8C9C5699132930F35F" class="indent1"><num value="1">“(1) </num>
<content>the Secretary shall, not later than the selected drug publication date with respect to the initial price applicability year of such period, request drug pricing information from the manufacturer of such selected drug, including information described in subsection (d)(1); and</content></paragraph>
<paragraph id="H954AB310119148D7B81F301DDF3FCC20" class="indent1"><num value="2">“(2) </num>
<content>by not later than October 1 following the selected drug publication date, the manufacturer of such selected drug shall submit to the Secretary such requested information in such form and manner as the Secretary may require.</content></paragraph>
<continuation class="indent0">The Secretary shall request, from the manufacturer or others, such additional information as may be needed to carry out the negotiation and renegotiation process under this section.</continuation></subsection></section> 
<section id="HA6AE0DD30BF74DB6907A1B5A51269DD6" role="subsequent-section"><num value="1195">“SEC. 1195. </num>
<heading>PUBLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="HF19702CB138A4AD8BC9663577EFA1F27" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>With respect to an initial price applicability year and selected drug with respect to such year, not later than April 1 of the plan year prior to such initial price applicability year, the Secretary shall publish in the Federal Register the maximum fair price for such drug negotiated under this part with the manufacturer of such drug.</content></subsection>
<subsection id="H4EC1B2C5BFB04B38B5A97201266611AB" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Updates</inline>.—</heading>
<paragraph id="HCB7524427DDA43B195D0341B788183F6" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Subsequent year maximum fair prices</inline>.—</heading>
<chapeau>For a selected drug, for each plan year subsequent to the initial price applicability year for such drug with respect to which an agreement for such drug is in effect under section 1193, the Secretary shall publish in the Federal Register—</chapeau>
<subparagraph id="H6916459DC1A949A3B53CF3FDDBA2D877" class="indent2"><num value="A">“(A) </num>
<content>subject to subparagraph (B), the amount equal to the maximum fair price published for such drug for the previous year, increased by the annual percentage increase in the consumer price index for all urban consumers (all items; U.S. city average) as of September of such previous year; or</content></subparagraph>
<subparagraph id="HC6285D23D9494494BFEEF1DED5226592" class="indent2"><num value="B">“(B) </num>
<content>in the case the maximum fair price for such drug was renegotiated, for the first year for which such price as so renegotiated applies, such renegotiated maximum fair price.</content></subparagraph></paragraph>
<paragraph id="H5E35345EC8A64CF9A2C23C578B856390" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Prices negotiated after deadline</inline>.—</heading>
<content>In the case of a selected drug with respect to an initial price applicability year for which the maximum fair price is determined under this part after the date of publication under this section, the Secretary shall publish such maximum fair price in the Federal Register by not later than 30 days after the date such maximum price is so determined.</content></paragraph></subsection></section> 
<section id="H1F90F95ADE644063B2FCA20190B1CC5B" role="subsequent-section"><num value="1196">“SEC. 1196. </num>
<heading>ADMINISTRATIVE DUTIES; COORDINATION PROVISIONS.</heading>
<subsection id="HE48C35679D8A4E5981608239BCE13099" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Administrative Duties</inline>.—</heading>
<paragraph id="H42C671171C2648BAA71184AA1D702DFD" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of section 1191, the administrative duties described in this section are the following:</chapeau>
<subparagraph id="HD5345B329B71420688C48F7DC47D4186" class="indent2"><num value="A">“(A) </num>
<content>The establishment of procedures (including through agreements with manufacturers under this part, contracts with prescription drug plans under part D of title XVIII and MA–PD plans under part C of such title, and agreements under section 1197 with group health plans and health insurance issuers of health insurance coverage offered in the individual or group market) under which the maximum fair price for a selected drug is provided to fair price eligible individuals, who with respect to such drug are described in subparagraph (A) of section 1191(c)(1), at pharmacies or by mail order service at the point-of-sale of the drug for the applicable price period for such drug and providing that such maximum fair price is used for determining cost-sharing under such plans or coverage for the selected drug.</content></subparagraph>
<subparagraph id="H2DB67A89D9164023863B518691EB219E" class="indent2"><num value="B">“(B) </num>
<content>The establishment of procedures (including through agreements with manufacturers under this part and contracts with hospitals, physicians, and other providers of services and suppliers and agreements under section 1197 with group health plans and health insurance issuers of health insurance coverage offered in the individual or group market) under which, in the case of a selected drug furnished or administered by such a hospital, physician, or other provider of services or supplier to fair price eligible individuals (who with respect to such drug are described in subparagraph (B) of section 1191(c)(1)), the maximum fair price for the selected drug is provided to such hospitals, physicians, and other providers of services and suppliers (as applicable) with respect to such individuals and providing that such maximum fair price is used for determining cost-sharing under the respective part, plan, or coverage for the selected drug.</content></subparagraph>
<subparagraph id="H5B6778FF6E7740DCB9E1AC9E8303A277" class="indent2"><num value="C">“(C) </num>
<chapeau>The establishment of procedures (including through agreements and contracts described in subparagraphs (A) and (B)) to ensure that, not later than 90 days after the dispensing of a selected drug to a fair price eligible individual by a pharmacy or mail order service, the pharmacy or mail order service is reimbursed for an amount equal to the difference between—</chapeau>
<clause id="HA731799FF50040168C496B64D19BBDB6" class="indent3"><num value="i">“(i) </num>
<chapeau>the lesser of—</chapeau>
<subclause id="H832306AB6645418E9DBF9D8DC9698F6A" class="indent4"><num value="I">“(I) </num>
<content>the wholesale acquisition cost of the drug;</content></subclause>
<subclause id="HFA667FB7B73746D18AD698F9B3D995A9" class="indent4"><num value="II">“(II) </num>
<content>the national average drug acquisition cost of the drug; and</content></subclause>
<subclause id="H0E935D9BE7004E518BFC7949BBF340AA" class="indent4"><num value="III">“(III) </num>
<content>any other similar determination of pharmacy acquisition costs of the drug, as determined by the Secretary; and</content></subclause></clause>
<clause id="HA71C4FD238E84C2EBFCC9FF6F8BB1D67" class="indent3"><num value="ii">“(ii) </num>
<content>the maximum fair price for the drug.</content></clause></subparagraph>
<subparagraph id="H93DD2609995546CB8055D7A39112EAD1" class="indent2"><num value="D">“(D) </num>
<chapeau>The establishment of procedures to ensure that the maximum fair price for a selected drug is applied before—</chapeau>
<clause id="HE754BAFBC139450DBD7DCE820912782C" class="indent3"><num value="i">“(i) </num>
<content>any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of fair price eligible individuals as the Secretary may specify; and</content></clause>
<clause id="HA4951D5A3AF74885B50DFA8666C07559" class="indent3"><num value="ii">“(ii) </num>
<content>any other discounts.</content></clause></subparagraph>
<subparagraph id="H82FE15A0898344138E4B5C1F28C3B86B" class="indent2"><num value="E">“(E) </num>
<content>The establishment of procedures to enter into appropriate agreements and protocols for the ongoing computation of AIM prices for selected drugs, including, to the extent possible, to compute the AIM price for selected drugs and including by providing that the manufacturer of such a selected drug should provide information for such computation not later than 3 months after the first date of the voluntary negotiation period for such selected drug.</content></subparagraph>
<subparagraph id="H48543708536747D292C24C6DB4D915A8" class="indent2"><num value="F">“(F) </num>
<content>The establishment of procedures to compute and apply the maximum fair price across different strengths and dosage forms of a selected drug and not based on the specific formulation or package size or package type of the drug.</content></subparagraph>
<subparagraph id="HD6DF678B50B343E8A0DA4D7D468BCA9B" class="indent2"><num value="G">“(G) </num>
<content>The establishment of procedures to negotiate and apply the maximum fair price in a manner that does not include any dispensing or similar fee.</content></subparagraph>
<subparagraph id="HDDDDB368CC9C4D918A639E59F0A909F5" class="indent2"><num value="H">“(H) </num>
<chapeau>The establishment of procedures to carry out the provisions of this part, as applicable, with respect to—</chapeau>
<clause id="H42127555A38E4C9995FAF75FB1A6D245" class="indent3"><num value="i">“(i) </num>
<content>fair price eligible individuals who are enrolled under a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title;</content></clause>
<clause id="HBD191356272A484BAFFF2803B2350CC7" class="indent3"><num value="ii">“(ii) </num>
<content>fair price eligible individuals who are enrolled under a group health plan or health insurance coverage offered by a health insurance issuer in the individual or group market with respect to which there is an agreement in effect under section 1197; and</content></clause>
<clause id="H9813E03C6B894E19BE8779C746E8F3C1" class="indent3"><num value="iii">“(iii) </num>
<content>fair price eligible individuals who are entitled to benefits under part A of title XVIII or enrolled under part B of such title.</content></clause></subparagraph>
<subparagraph id="H7ABD81764C894BC09798F3915328FC11" class="indent2"><num value="I">“(I) </num>
<content>The establishment of a negotiation process and renegotiation process in accordance with section 1194, including a process for acquiring information described in subsection (d) of such section and determining amounts described in subsection (b) of such section.</content></subparagraph>
<subparagraph id="H9A417DECD5B146A08EC4BB160FC15E3F" class="indent2"><num value="J">“(J) </num>
<content>The provision of a reasonable dispute resolution mechanism to resolve disagreements between manufacturers, fair price eligible individuals, and the third party with a contract under subsection (c)(1).</content></subparagraph></paragraph>
<paragraph id="HDDA77A333AE74C3BBD63940A92CB8CE8" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Monitoring compliance</inline>.—</heading>
<subparagraph id="HBD4F9E4433C7479AAC514416DE60EA82" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under section 1193, including by establishing a mechanism through which violations of such terms may be reported.</content></subparagraph>
<subparagraph id="H2113413E313540C69A3D907643EC6A09" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Notification</inline>.—</heading>
<content>If a third party with a contract under subsection (c)(1) determines that the manufacturer is not in compliance with such agreement, the third party shall notify the Secretary of such noncompliance for appropriate enforcement under <ref href="usc/26/4192">section 4192</ref> of the Internal Revenue Code of 1986 or section 1198, as applicable.</content></subparagraph></paragraph></subsection>
<subsection id="H458AA112F678452CA939EF4F48171A90" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Collection of Data</inline>.—</heading>
<paragraph id="H5E70A05BC438471FB2740AC9D321FD76" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">From prescription drug plans and ma–pd plans</inline>.—</heading>
<content>The Secretary may collect appropriate data from prescription drug plans under part D of title XVIII and MA–PD plans under part C of such title in a timeframe that allows for maximum fair prices to be provided under this part for selected drugs.</content></paragraph>
<paragraph id="H551E833AB3624280A79216427C4658F3" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">From health plans</inline>.—</heading>
<content>The Secretary may collect appropriate data from group health plans or health insurance issuers offering group or individual health insurance coverage in a timeframe that allows for maximum fair prices to be provided under this part for selected drugs.</content></paragraph></subsection>
<subsection id="HFEA65CEF13544907A61A0A87437900B6" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Contract With Third Parties</inline>.—</heading>
<paragraph id="H891FD2BED27740189A8FB82C97ED52E5" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>The Secretary may enter into a contract with 1 or more third parties to administer the requirements established by the Secretary in order to carry out this part. At a minimum, the contract with a third party under the preceding sentence shall require that the third party—</chapeau>
<subparagraph id="HED83590E78E7492BA9102F991E3FFEB7" class="indent2"><num value="A">“(A) </num>
<content>receive and transmit information between the Secretary, manufacturers, and other individuals or entities the Secretary determines appropriate;</content></subparagraph>
<subparagraph id="H89FB79EF604E4EDE93825DCB370BF667" class="indent2"><num value="B">“(B) </num>
<content>receive, distribute, or facilitate the distribution of funds of manufacturers to appropriate individuals or entities in order to meet the obligations of manufacturers under agreements under this part;</content></subparagraph>
<subparagraph id="HD2147CC2559A455FBEA735705EA44165" class="indent2"><num value="C">“(C) </num>
<content>provide adequate and timely information to manufacturers, consistent with the agreement with the manufacturer under this part, as necessary for the manufacturer to fulfill its obligations under this part; and</content></subparagraph>
<subparagraph id="H64852285DFFE4826B0210924D4DCBE1A" class="indent2"><num value="D">“(D) </num>
<content>permit manufacturers to conduct periodic audits, directly or through contracts, of the data and information used by the third party to determine discounts for applicable drugs of the manufacturer under the program.</content></subparagraph></paragraph>
<paragraph id="HAFC6845B53364F20943662D2B8994F04" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Performance requirements</inline>.—</heading>
<content>The Secretary shall establish performance requirements for a third party with a contract under paragraph (1) and safeguards to protect the independence and integrity of the activities carried out by the third party under the program under this part.</content></paragraph></subsection></section> 
<section id="H0C2250EBA4FA4BB7A340C52E0DF9EBD1" role="subsequent-section"><num value="1197">“SEC. 1197. </num>
<heading>VOLUNTARY PARTICIPATION BY OTHER HEALTH PLANS.</heading>
<subsection id="H1F7417F803524600B87CB5D68A9F41DC" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Agreement to Participate Under Program</inline>.—</heading>
<chapeau/>
<paragraph id="H771E5F8DBBE94589873ACA3EBB2605D4" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>Subject to paragraph (2), under the program under this part the Secretary shall be treated as having in effect an agreement with a group health plan or health insurance issuer offering health insurance coverage (as such terms are defined in section 2791 of the Public Health Service Act), with respect to a price applicability period and a selected drug with respect to such period—</chapeau>
<subparagraph id="HBBF67CF250684B6D85CA3F3C487697E2" class="indent2"><num value="A">“(A) </num>
<content>with respect to such selected drug furnished or dispensed at a pharmacy or by mail order service if coverage is provided under such plan or coverage during such period for such selected drug as so furnished or dispensed; and</content></subparagraph>
<subparagraph id="HD709605410E342209E716245D342DD40" class="indent2"><num value="B">“(B) </num>
<content>with respect to such selected drug furnished or administered by a hospital, physician, or other provider of services or supplier if coverage is provided under such plan or coverage during such period for such selected drug as so furnished or administered.</content></subparagraph></paragraph>
<paragraph id="H4166BBB5CD604EB79523E61FDAF08ECC" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Opting out of agreement</inline>.—</heading>
<content>The Secretary shall not be treated as having in effect an agreement under the program under this part with a group health plan or health insurance issuer offering health insurance coverage with respect to a price applicability period and a selected drug with respect to such period if such a plan or issuer affirmatively elects, through a process specified by the Secretary, not to participate under the program with respect to such period and drug.</content></paragraph></subsection>
<subsection id="HDF95636B82CF491298D14B78844052AF" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Publication of Election</inline>.—</heading>
<content>With respect to each price applicability period and each selected drug with respect to such period, the Secretary and the Secretary of Labor and the Secretary of the Treasury, as applicable, shall make public a list of each group health plan and each issuer of health insurance coverage, with respect to which coverage is provided under such plan or coverage for such drug, that has elected under subsection (a) not to participate under the program with respect to such period and drug.</content></subsection></section> 
<section id="H96F188CA53A54D5F852AFA1D36C1ADB4" role="subsequent-section"><num value="1198">“SEC. 1198. </num>
<heading>CIVIL MONETARY PENALTY.</heading>
<subsection id="H9186A7B1B88F4141A991D818542E3E1F" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Violations Relating To Offering of Maximum Fair Price</inline>.—</heading>
<chapeau>Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a plan year during the price applicability period for such drug, that does not provide access to a price that is not more than the maximum fair price (or a lesser price) for such drug for such year—</chapeau>
<paragraph id="HBAD1E20699974DC798904EFD3BB3E710" class="indent1"><num value="1">“(1) </num>
<content>to a fair price eligible individual who with respect to such drug is described in subparagraph (A) of section 1191(c)(1) and who is furnished or dispensed such drug during such year; or</content></paragraph>
<paragraph id="H19DBFBC738784767A507B58307EFF08E" class="indent1"><num value="2">“(2) </num>
<content>to a hospital, physician, or other provider of services or supplier with respect to fair price eligible individuals who with respect to such drug is described in subparagraph (B) of such section and is furnished or administered such drug by such hospital, physician, or provider or supplier during such year;</content></paragraph>
<continuation class="indent0">shall be subject to a civil monetary penalty equal to ten times the amount equal to the difference between the price for such drug made available for such year by such manufacturer with respect to such individual or hospital, physician, provider, or supplier and the maximum fair price for such drug for such year.</continuation></subsection>
<subsection id="HB2E7DCD199484DB6AB1931DEA3962EAD" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Violations of Certain Terms of Agreement</inline>.—</heading>
<content>Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a plan year during the price applicability period for such drug, that is in violation of a requirement imposed pursuant to section 1193(a)(6) shall be subject to a civil monetary penalty of not more than $1,000,000 for each such violation.</content></subsection>
<subsection id="H293D0655EA98434FB3446AD1C72A5BAE" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Application</inline>.—</heading>
<content>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil monetary penalty under this section in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></subsection></section> 
<section id="H4C55FAEF3DF7478BB493FABA9C8E4E6B" role="subsequent-section"><num value="1199">“SEC. 1199. </num>
<heading>MISCELLANEOUS PROVISIONS.</heading>
<subsection id="H00A56F6147624AC78D4D64A3018954A0" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Paperwork Reduction Act</inline>.—</heading>
<content><ref href="usc-chapter/44/35">Chapter 35</ref> of <ref href="/us/usc/t44">title 44, United States Code</ref>, shall not apply to data collected under this part.</content></subsection>
<subsection id="H7C2A58C80035475081656F70A5018BD0" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">National Academy of Medicine Study</inline>.—</heading>
<content>Not later than December 31, 2025, the National Academy of Medicine shall conduct a study, and submit to Congress a report, on recommendations for improvements to the program under this part, including the determination of the limits applied under section 1194(c).</content></subsection>
<subsection id="H1DDC9B9E3C1E4824829D0A289FBDADC5" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">MedPAC Study</inline>.—</heading>
<content>Not later than December 31, 2025, the Medicare Payment Advisory Commission shall conduct a study, and submit to Congress a report, on the program under this part with respect to the Medicare program under title XVIII, including with respect to the effect of the program on individuals entitled to benefits or enrolled under such title.</content></subsection>
<subsection id="HA21BAFC572A241A89BA1E95E1EA5B951" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Limitation on Judicial Review</inline>.—</heading>
<chapeau>The following shall not be subject to judicial review:</chapeau>
<paragraph id="HCBA13D7F085E4FDAAA80F138413C287F" class="indent1"><num value="1">“(1) </num>
<content>The selection of drugs for publication under section 1192(a).</content></paragraph>
<paragraph id="H788B7CB5C1E649DBB173773E9711444E" class="indent1"><num value="2">“(2) </num>
<content>The determination of whether a drug is a negotiation-eligible drug under section 1192(d).</content></paragraph>
<paragraph id="HEF38DF83B3D54A3E85DCC3BEBC420FDB" class="indent1"><num value="3">“(3) </num>
<content>The determination of the maximum fair price of a selected drug under section 1194.</content></paragraph>
<paragraph id="HF418104DFECD4825911739912DEF9BF2" class="indent1"><num value="4">“(4) </num>
<content>The determination of units of a drug for purposes of section 1191(c)(3).</content></paragraph></subsection>
<subsection id="HDA9EE653E3FB482781B7C5D77E195245" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Coordination</inline>.—</heading>
<content>In carrying out this part with respect to group health plans or health insurance coverage offered in the group market that are subject to oversight by the Secretary of Labor or the Secretary of the Treasury, the Secretary of Health and Human Services shall coordinate with such respective Secretary.</content></subsection>
<subsection id="H3B7412AC48C74931B10FF6E311C3EE6B" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Data Sharing</inline>.—</heading>
<content>The Secretary shall share with the Secretary of the Treasury such information as is necessary to determine the tax imposed by <ref href="usc/26/4192">section 4192</ref> of the Internal Revenue Code of 1986.”.</content></subsection></section></part></quotedContent></content></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s101/b" id="H17F6B2F9E82843EB8E93A3D3466581A9" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Application of Maximum Fair Prices and Conforming Amendments</inline>.—</heading>
<paragraph identifier="/us/bill/116/hr/3/tI/s101/b/1" id="H4654F8E3B098446CABBF8D87E3D9224C" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">Under medicare</inline>.—</heading>
<chapeau/>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/A" id="HF066F58C16734B61AE5E4A656CB3A3BB" class="indent2"><num value="A">(A) </num>
<heading><inline class="smallCaps">Application to payments under part b</inline>.—</heading>
<content>Section 1847A(b)(1)(B) of the Social Security Act (<ref href="/us/usc/t42/s1395w–3a/b/1/B">42 U.S.C. 1395w–3a(b)(1)(B)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or in the case of such a drug or biological that is a selected drug (as defined in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), 106 percent of the maximum fair price (as defined in section 1191(c)(2) applicable for such drug and a plan year during such period</quotedText>” after “<quotedText>paragraph (4)</quotedText>”.</content></subparagraph>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/B" id="HA4BE5847F90A496796F887C0F79C3741" class="indent2"><num value="B">(B) </num>
<heading><inline class="smallCaps">Exception to part d non-interference</inline>.—</heading>
<content>Section 1860D–11(i) of the Social Security Act (<ref href="/us/usc/t42/s1395w–111/i">42 U.S.C. 1395w–111(i)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>, except as provided under part E of title XI</quotedText>” after “<quotedText>the Secretary</quotedText>”.</content></subparagraph>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/C" id="HEDBD054FD4B74C2294BC39822279097D" class="indent2"><num value="C">(C) </num>
<heading><inline class="smallCaps">Application as negotiated price under part d</inline>.—</heading>
<chapeau>Section 1860D–2(d)(1) of the Social Security Act (<ref href="/us/usc/t42/s1395w–102/d/1">42 U.S.C. 1395w–102(d)(1)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<clause identifier="/us/bill/116/hr/3/tI/s101/b/1/C/i" id="HD47994198E214721B1EE207AD92B25D6" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (B), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>, subject to subparagraph (D),</quotedText>” after “<quotedText>negotiated prices</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tI/s101/b/1/C/ii" id="H6227B16FD2C9496DAE2A0452C5B9B3B6" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HWM00" id="H9EEAC94277F944F6A374448489CA0930" styleType="OLC"> <subparagraph id="H9B6385E189D2443DA6881BC1389FD991" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Application of maximum fair price for selected drugs</inline>.—</heading>
<content>In applying this section, in the case of a covered part D drug that is a selected drug (as defined in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), the negotiated prices used for payment (as described in this subsection) shall be the maximum fair price (as defined in section 1191(c)(2)) for such drug and for each plan year during such period.”.</content></subparagraph></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tI/s101/b/1/D" id="H169D9655C1884F08944B21E8B8A8A63C" class="indent2"><num value="D">(D) </num>
<heading><inline class="smallCaps">Information from prescription drug plans and ma–pd plans required</inline>.—</heading>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/D/i" id="HC95018EC52984D8A841A566FBFAF97F3" class="indent3"><num value="i">(i) </num>
<heading><inline class="smallCaps">Prescription drug plans</inline>.—</heading>
<content>Section 1860D–12(b) of the Social Security Act (<ref href="/us/usc/t42/s1395w–112/b">42 U.S.C. 1395w–112(b)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent meta="committee ID HWM00" id="H662A375C2A4E439E95AC7E0FD36F621F" styleType="OLC"> <paragraph id="HBC85B50A37664CEBB4027BAFD8982B96" class="indent1"><num value="8">“(8) </num>
<heading><inline class="smallCaps">Provision of information related to maximum fair prices</inline>.—</heading>
<content>Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall require the sponsor to provide information to the Secretary as requested by the Secretary in accordance with section 1196(b).”.</content></paragraph></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/D/ii" id="HE5B77108B3364D88BD3EC7139F1D0E79" class="indent3"><num value="ii">(ii) </num>
<heading><inline class="smallCaps">MA–PD plans</inline>.—</heading>
<content>Section 1857(f)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–27/f/3">42 U.S.C. 1395w–27(f)(3)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HWM00" id="H37CA9E906A6F46E4A1B9244ECE32340B" styleType="OLC"> <subparagraph id="H1BA71B4DE6BF4981ABA604FABFE5942C" class="indent2"><num value="E">“(E) </num>
<heading><inline class="smallCaps">Provision of information related to maximum fair prices</inline>.—</heading>
<content>Section 1860D–12(b)(8).”.</content></subparagraph></quotedContent></content></clause></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tI/s101/b/2" id="H5FFCA93DB0714F019E7B17F5E5B4FCF2" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Under group health plans and health insurance coverage</inline>.—</heading>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/A" id="H9D14910A3B764F2BBF1E61A2160287B8" class="indent2"><num value="A">(A) </num>
<heading><inline class="smallCaps">PHSA</inline>.—</heading>
<content>Part A of title XXVII of the Public Health Service Act <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after section 2729 the following new section:<quotedContent meta="committee ID HWM00" id="HBA262807A841437CB8172C178E755D02" styleType="OLC"> 
<section id="H177B68AC482E452CA542CCE000E05B24" role="subsequent-section"><num value="2729A">“SEC. 2729A. </num>
<heading>FAIR PRICE DRUG NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="H71B3398A80DB4831BE4C902C4A025C3B" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>In the case of a group health plan or health insurance issuer offering health insurance coverage that is treated under section 1197 of the Social Security Act as having in effect an agreement with the Secretary under the Fair Price Drug Negotiation Program under part E of title XI of such Act, with respect to a price applicability period (as defined in section 1191(b) of such Act) and a selected drug (as defined in section 1192(c) of such Act) with respect to such period with respect to which coverage is provided under such plan or coverage—</chapeau>
<paragraph id="HC859396E625F48C2828135D3A782CC89" class="indent1"><num value="1">“(1) </num>
<content>the provisions of such part shall apply to the plans or coverage offered by such plan or issuer, and to the individuals enrolled under such plans or coverage, during such period, with respect to such selected drug, in the same manner as such provisions apply to prescription drug plans and MA–PD plans, and to individuals enrolled under such prescription drug plans and MA–PD plans;</content></paragraph>
<paragraph id="HB042723D6D43409695E9A9D41C4D488F" class="indent1"><num value="2">“(2) </num>
<content>the plan or issuer shall apply any cost-sharing responsibilities under such plan or coverage, with respect to such selected drug, by substituting the maximum fair price negotiated under such part for such drug in lieu of the contracted rate under such plan or coverage for such selected drug; and</content></paragraph>
<paragraph id="HDC74D3C3124B4DBFB486D01341896004" class="indent1"><num value="3">“(3) </num>
<content>the Secretary shall apply the provisions of such part to such plan, issuer, and coverage, and such individuals so enrolled in such plans.</content></paragraph></subsection>
<subsection id="H43786AABD7564B2A8F24128C9ABFC6D7" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Notification Regarding Nonparticipation in Fair Drug Price Negotiation Program</inline>.—</heading>
<content>A group health plan or a health insurance issuer offering group or individual health insurance coverage shall publicly disclose in a manner and in accordance with a process specified by the Secretary any election made under section 1197 of the Social Security Act by the plan or issuer to not participate in the Fair Drug Price Negotiation Program under part E of title XI of such Act with respect to a selected drug (as defined in section 1192(c) of such Act) for which coverage is provided under such plan or coverage before the beginning of the plan year for which such election was made.”.</content></subsection></section></quotedContent></content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tI/s101/b/2/B" id="H6BDC5F92B0CF48A4A47D0C754B70E2F9" class="indent2"><num value="B">(B) </num>
<heading><inline class="smallCaps">ERISA</inline>.—</heading>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/B/i" id="HDD80C99CDD854437B41FB983D6E6A82A" class="indent3"><num value="i">(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1181">29 U.S.C. 1181</ref> et. seq.) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent meta="committee ID HWM00" id="HAA1E2E16CF1844C5998841EC6E0DA6D1" styleType="OLC"> 
<section id="H3FFB233B90174295AF238E136A36A7BC" role="subsequent-section"><num value="716">“SEC. 716. </num>
<heading>FAIR PRICE DRUG NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="H5489CCDBDA6F4D309CFD3AF4BC463FD1" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>In the case of a group health plan or health insurance issuer offering group health insurance coverage that is treated under section 1197 of the Social Security Act as having in effect an agreement with the Secretary under the Fair Price Drug Negotiation Program under part E of title XI of such Act, with respect to a price applicability period (as defined in section 1191(b) of such Act) and a selected drug (as defined in section 1192(c) of such Act) with respect to such period with respect to which coverage is provided under such plan or coverage—</chapeau>
<paragraph id="HD86F0F14595D4362B593654C1B49FE7E" class="indent1"><num value="1">“(1) </num>
<content>the provisions of such part shall apply to the plans or coverage offered by such plan or issuer, and to the individuals enrolled under such plans or coverage, during such period, with respect to such selected drug, in the same manner as such provisions apply to prescription drug plans and MA–PD plans, and to individuals enrolled under such prescription drug plans and MA–PD plans;</content></paragraph>
<paragraph id="H3968330D20C34550A56770277C054EE6" class="indent1"><num value="2">“(2) </num>
<content>the plan or issuer shall apply any cost-sharing responsibilities under such plan or coverage, with respect to such selected drug, by substituting the maximum fair price negotiated under such part for such drug in lieu of the contracted rate under such plan or coverage for such selected drug; and</content></paragraph>
<paragraph id="H9263E53D241E413B81FB6C4CE8CFFB41" class="indent1"><num value="3">“(3) </num>
<content>the Secretary shall apply the provisions of such part to such plan, issuer, and coverage, and such individuals so enrolled in such plans.</content></paragraph></subsection>
<subsection id="HCAED7D636CB043FC92B15EE299B014F9" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Notification Regarding Nonparticipation in Fair Drug Price Negotiation Program</inline>.—</heading>
<content>A group health plan or a health insurance issuer offering group health insurance coverage shall publicly disclose in a manner and in accordance with a process specified by the Secretary any election made under section 1197 of the Social Security Act by the plan or issuer to not participate in the Fair Drug Price Negotiation Program under part E of title XI of such Act with respect to a selected drug (as defined in section 1192(c) of such Act) for which coverage is provided under such plan or coverage before the beginning of the plan year for which such election was made.”.</content></subsection></section></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/B/ii" id="H7ABB6C00EF2C4E129270560F8A94A9A5" class="indent3"><num value="ii">(ii) </num>
<heading><inline class="smallCaps">Clerical amendment</inline>.—</heading>
<content>The table of sections for part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HWM00" id="HC2AC5D479DDC481AAD60C611935D9945" styleType="OLC"> <toc meta="committee ID HWM00"> <referenceItem role="section">
<designator>“Sec. 716. </designator>
<label>Fair Price Drug Negotiation Program and application of maximum fair prices.”.</label></referenceItem></toc></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tI/s101/b/2/C" id="HB9D9E31940284A29868B3F09EC43D988" class="indent2"><num value="C">(C) </num>
<heading><inline class="smallCaps">IRC</inline>.—</heading>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/C/i" id="H28238B60D3474B4BBD4844597255121A" class="indent3"><num value="i">(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subchapter B of <ref href="usc-chapter/26/100">chapter 100</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent meta="committee ID HWM00" id="H4B7139A9A9914E2083D392576590368D" styleType="OLC"> 
<section id="H60AFD937BD2D484CADE6D03E816F8E95" role="subsequent-section"><num value="9816">“SEC. 9816. </num>
<heading>FAIR PRICE DRUG NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="H820E4F29178049BE9D17970E3435CFAA" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>In the case of a group health plan that is treated under section 1197 of the Social Security Act as having in effect an agreement with the Secretary under the Fair Price Drug Negotiation Program under part E of title XI of such Act, with respect to a price applicability period (as defined in section 1191(b) of such Act) and a selected drug (as defined in section 1192(c) of such Act) with respect to such period with respect to which coverage is provided under such plan—</chapeau>
<paragraph id="H397A82809B904745859B8A33B08065F4" class="indent1"><num value="1">“(1) </num>
<chapeau>the provisions of such part shall apply, as applicable—</chapeau>
<subparagraph id="H4A27D3E17A4D49F8A249242058BD076D" class="indent2"><num value="A">“(A) </num>
<content>if coverage of such selected drug is provided under such plan if the drug is furnished or dispensed at a pharmacy or by a mail order service, to the plan, and to the individuals enrolled under such plan during such period, with respect to such selected drug, in the same manner as such provisions apply to prescription drug plans and MA–PD plans, and to individuals enrolled under such prescription drug plans and MA–PD plans during such period; and</content></subparagraph>
<subparagraph id="H45593ABD2CE1469D810615383D885574" class="indent2"><num value="B">“(B) </num>
<content>if coverage of such selected drug is provided under such plan if the drug is furnished or administered by a hospital, physician, or other provider of services or supplier, to the plan, to the individuals enrolled under such plan, and to hospitals, physicians, and other providers of services and suppliers during such period, with respect to such drug in the same manner as such provisions apply to the Secretary, to individuals entitled to benefits under part A of title XVIII or enrolled under part B of such title, and to hospitals, physicians, and other providers and suppliers participating under title XVIII during such period;</content></subparagraph></paragraph>
<paragraph id="H3522FA9314F448A3B5505A6A4B477723" class="indent1"><num value="2">“(2) </num>
<content>the plan shall apply any cost-sharing responsibilities under such plan, with respect to such selected drug, by substituting an amount not more than the maximum fair price negotiated under such part E of title XI for such drug in lieu of the drug price upon which the cost-sharing would have otherwise applied; and</content></paragraph>
<paragraph id="HCEE49B1154194116A1741EA57AE862C4" class="indent1"><num value="3">“(3) </num>
<content>the Secretary shall apply the provisions of such part E to such plan and such individuals so enrolled in such plan.</content></paragraph></subsection>
<subsection id="HA1DAD828A69A431286318418FE103E07" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Notification Regarding Nonparticipation in Fair Drug Price Negotiation Program</inline>.—</heading>
<content>A group health plan shall publicly disclose in a manner and in accordance with a process specified by the Secretary any election made under section 1197 of the Social Security Act by the plan to not participate in the Fair Drug Price Negotiation Program under part E of title XI of such Act with respect to a selected drug (as defined in section 1192(c) of such Act) for which coverage is provided under such plan before the beginning of the plan year for which such election was made.”.</content></subsection></section></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/C/ii" id="HC99CDCB575E9441FABF9B8A5778982CF" class="indent3"><num value="ii">(ii) </num>
<heading><inline class="smallCaps">Application to retiree and certain small group health plans</inline>.—</heading>
<content><ref href="usc/26/9831">Section 9831(a)(2)</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>other than with respect to section 9816,</quotedText>” before “<quotedText>any group health plan</quotedText>”.</content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/C/iii" id="HDD1E016D911245ECAB665F428304D4DE" class="indent3"><num value="iii">(iii) </num>
<heading><inline class="smallCaps">Clerical amendment</inline>.—</heading>
<content>The table of sections for subchapter B of chapter 100 of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new item:<quotedContent meta="committee ID HWM00" id="H65042E33F9034306BEA0DB6708F61345" styleType="OLC"> <toc meta="committee ID HWM00"> <referenceItem role="section">
<designator>“Sec. 9816. </designator>
<label>Fair Price Drug Negotiation Program and application of maximum fair prices.”.</label></referenceItem></toc></quotedContent></content></clause></subparagraph></paragraph></subsection></section> 
<section identifier="/us/bill/116/hr/3/tI/s102" id="HE1B119E5AA9F4C83B31F87774BA05297" role="subsequent-section"><num value="102">SEC. 102. </num>
<heading>SELECTED DRUG MANUFACTURER EXCISE TAX IMPOSED DURING NONCOMPLIANCE PERIODS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tI/s102/a" id="HCED8DAEABB1445F69F53A42E1E3B203B" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>Subchapter E of <ref href="usc-chapter/26/32">chapter 32</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent meta="committee ID HWM00" id="HFBD79F80DAB140768B1187CF8FCCEF38" styleType="OLC"> 
<section id="HC37C3D34A3F6438AB77AEE7FD951631A" role="subsequent-section"><num value="4192">“SEC. 4192. </num>
<heading>SELECTED DRUGS DURING NONCOMPLIANCE PERIODS.</heading>
<subsection id="H882C5E7692EE424D9B28948FB72F8A43" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>There is hereby imposed on the sale by the manufacturer, producer, or importer of any selected drug during a day described in subsection (b) a tax in an amount such that the applicable percentage is equal to the ratio of—</chapeau>
<paragraph id="H8703C8E954AE40B1AD67F0D45FD7CFCA" class="indent1"><num value="1">“(1) </num>
<content>such tax, divided by</content></paragraph>
<paragraph id="HDFCACE6850104F8BA50CDA99DC36BD8B" class="indent1"><num value="2">“(2) </num>
<content>the sum of such tax and the price for which so sold.</content></paragraph></subsection>
<subsection id="H888084671D5F4ECC8B641A8A43984481" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Noncompliance Periods</inline>.—</heading>
<chapeau>A day is described in this subsection with respect to a selected drug if it is a day during one of the following periods:</chapeau>
<paragraph id="H01CB84F830514DC098900A1621950E89" class="indent1"><num value="1">“(1) </num>
<content>The period beginning on the June 16th immediately following the selected drug publication date and ending on the first date during which the manufacturer of the drug has in place an agreement described in subsection (a) of section 1193 of the Social Security Act with respect to such drug.</content></paragraph>
<paragraph id="HB1BB6596A72E4EC39EB4E52A23841A9E" class="indent1"><num value="2">“(2) </num>
<content>The period beginning on the April 1st immediately following the June 16th described in paragraph (1) and ending on the first date during which the manufacturer of the drug has agreed to a maximum fair price under such agreement.</content></paragraph>
<paragraph id="H1FF6484398974531876AB9CA2FEFEFD3" class="indent1"><num value="3">“(3) </num>
<content>In the case of a selected drug with respect to which the Secretary of Health and Human Services has specified a renegotiation period under such agreement, the period beginning on the first date after the last date of such renegotiation period and ending on the first date during which the manufacturer of the drug has agreed to a renegotiated maximum fair price under such agreement.</content></paragraph>
<paragraph id="H5B8CEADAEDCD45859DFF640CA4B5FD25" class="indent1"><num value="4">“(4) </num>
<content>With respect to information that is required to be submitted to the Secretary of Health and Human Services under such agreement, the period beginning on the date on which such Secretary certifies that such information is overdue and ending on the date that such information is so submitted.</content></paragraph>
<paragraph id="HC577720CDF42439BA040166A5DD1F68E" class="indent1"><num value="5">“(5) </num>
<content>In the case of a selected drug with respect to which a payment is due under subsection (c) of such section 1193, the period beginning on the date on which the Secretary of Health and Human Services certifies that such payment is overdue and ending on the date that such payment is made in full.</content></paragraph></subsection>
<subsection role="definitions" id="HC850811A87B347F9A4EF7D6D2F77DD29" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Applicable Percentage</inline>.—</heading>
<chapeau>For purposes of this section, the term ‘<term>applicable percentage</term>’ means—</chapeau>
<paragraph id="H2141C02109AD464AAD08B0C0A626EE68" class="indent1"><num value="1">“(1) </num>
<content>in the case of sales of a selected drug during the first 90 days described in subsection (b) with respect to such drug, 65 percent,</content></paragraph>
<paragraph id="HC4ABE056E4B442C9A4CB3F6B0E8A536B" class="indent1"><num value="2">“(2) </num>
<content>in the case of sales of such drug during the 91st day through the 180th day described in subsection (b) with respect to such drug, 75 percent,</content></paragraph>
<paragraph id="H62398957E04A4E14A99EF822C93F9BFE" class="indent1"><num value="3">“(3) </num>
<content>in the case of sales of such drug during the 181st day through the 270th day described in subsection (b) with respect to such drug, 85 percent, and</content></paragraph>
<paragraph id="H096F16023DE546169016EDA740F15674" class="indent1"><num value="4">“(4) </num>
<content>in the case of sales of such drug during any subsequent day, 95 percent.</content></paragraph></subsection>
<subsection id="H1742B9F62F1545288BF6E841C0B5B325" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Selected Drug</inline>.—</heading>
<chapeau>For purposes of this section—</chapeau>
<paragraph role="definitions" id="H2CF53733E78146B0BDE4DEABAD70C416" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The term ‘<term>selected drug</term>’ means any selected drug (within the meaning of section 1192 of the Social Security Act) which is manufactured or produced in the United States or entered into the United States for consumption, use, or warehousing.</content></paragraph>
<paragraph role="definitions" id="H988D4DE1AF4442DA81E32CB946001E36" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">United states</inline>.—</heading>
<content>The term ‘<term>United States</term>’ has the meaning given such term by section 4612(a)(4).</content></paragraph>
<paragraph id="HF6D2C0F50AF44214B48E569067CC723C" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Coordination with rules for possessions of the united states</inline>.—</heading>
<content>Rules similar to the rules of paragraphs (2) and (4) of section 4132(c) shall apply for purposes of this section.</content></paragraph></subsection>
<subsection id="H47BDD4FC9BF24AE88245A8A541284953" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Other Definitions</inline>.—</heading>
<content>For purposes of this section, the terms ‘selected drug publication date’ and ‘maximum fair price’ have the meaning given such terms in section 1191 of the Social Security Act.</content></subsection>
<subsection id="H3E29E63EB70749B8B68534BAA59FC9ED" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Anti-Abuse Rule</inline>.—</heading>
<content>In the case of a sale which was timed for the purpose of avoiding the tax imposed by this section, the Secretary may treat such sale as occurring during a day described in subsection (b).”.</content></subsection></section></quotedContent></content></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tI/s102/b" id="H649C815D7B9C432186586740B9507FA6" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">No Deduction for Excise Tax Payments</inline>.—</heading>
<content><ref href="usc/26/275">Section 275</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> “<quotedText>or by section 4192</quotedText>” before the period at the end of subsection (a)(6).</content></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s102/c" id="HCF7A42ED12AB4499A299A92F2CB661A6" class="indent0"><num value="c">(c) </num>
<heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/c/1" id="HED0AC3F0E5364CEBA85F6EFBD6A4CFB3" class="indent1"><num value="1">(1) </num>
<content><ref href="usc/26/4221">Section 4221(a)</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or 4192</quotedText>” after “<quotedText>section 4191</quotedText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/c/2" id="H67F9A801082B4043949C6FB5695EC8B8" class="indent1"><num value="2">(2) </num>
<content>Section 6416(b)(2) of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or 4192</quotedText>” after “<quotedText>section 4191</quotedText>”.</content></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s102/d" id="H9959730207ED4B11A8A4531F68FC9025" class="indent0"><num value="d">(d) </num>
<heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/d/1" id="HBEFF97B625A34A4BB880D661ADAF6E5B" class="indent1"><num value="1">(1) </num>
<content>The heading of subchapter E of <ref href="usc-chapter/26/32">chapter 32</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<headingText role="subchapter">Medical Devices</headingText>” and <amendingAction type="insert">inserting</amendingAction> “<headingText role="subchapter">Other Medical Products</headingText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/d/2" id="H7BA50CB9B5B34E128EDB5FD98693614A" class="indent1"><num value="2">(2) </num>
<content>The table of subchapters for chapter 32 of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> the item relating to subchapter E and <amendingAction type="insert">inserting</amendingAction> the following new item:<quotedContent meta="committee ID HWM00" id="H81E7EB40D48B4549A63F0E3BC99B3BE4" styleType="OLC"> <toc meta="committee ID HWM00"> <referenceItem role="subchapter">
<designator>“Subchapter E. </designator>
<label>Other medical products”.</label></referenceItem></toc></quotedContent></content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/d/3" id="HD4B9655003C143B38973E34CDD549FF5" class="indent1"><num value="3">(3) </num>
<content>The table of sections for subchapter E of chapter 32 of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new item:<quotedContent meta="committee ID HWM00" id="H32BBD098279E49B69F67E1C9C2EB4313" styleType="OLC"> <toc meta="committee ID HWM00"> <referenceItem role="section" idref="HC37C3D34A3F6438AB77AEE7FD951631A">
<designator>“Sec. 4192. </designator>
<label>Selected drugs during noncompliance periods.”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s102/e" id="HD5FCE48F54E14AD39FAFDA6B2FBEDC5B" class="indent0"><num value="e">(e) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>The amendments made by this section shall apply to sales after the date of the enactment of this Act.</content></subsection></section></title>
<title identifier="/us/bill/116/hr/3/tII" id="HF8BC312FDF8441A18E4AB8547D69F833"><num value="II">TITLE II—</num>
<heading class="inline">MEDICARE PARTS B AND D PRESCRIPTION DRUG INFLATION REBATES</heading> 
<section identifier="/us/bill/116/hr/3/tII/s201" id="H31DD46F1DC0B438F8DFE5315F4349AAA" role="subsequent-section"><num value="201">SEC. 201. </num>
<heading>MEDICARE PART B REBATE BY MANUFACTURERS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s201/a" id="HF69A6BB615384AF5A91C1B869BDBC617" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>Section 1834 of the Social Security Act (<ref href="/us/usc/t42/s1395m">42 U.S.C. 1395m</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent meta="committee ID HWM00" id="HE3EC01CD0774473486DA2C5EEC8B446B" styleType="OLC"> <subsection id="HF33FDE82EB194598AEE0043B7C030C24" class="indent0"><num value="x">“(x) </num>
<heading><inline class="smallCaps">Rebate by Manufacturers for Single Source Drugs With Prices Increasing Faster Than Inflation</inline>.—</heading>
<paragraph id="HC88CE3521C814D8E8B61129F62DFE559" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Requirements</inline>.—</heading>
<subparagraph id="H5A4EBE5C6BF84C4B98D0CA7FB9F5A18C" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Secretarial provision of information</inline>.—</heading>
<chapeau>Not later than 6 months after the end of each calendar quarter beginning on or after July 1, 2021, the Secretary shall, for each part B rebatable drug, report to each manufacturer of such part B rebatable drug the following for such calendar quarter:</chapeau>
<clause id="H8FE820F3494E407EB39843B904573D51" class="indent3"><num value="i">“(i) </num>
<content>Information on the total number of units of the billing and payment code described in subparagraph (A)(i) of paragraph (3) with respect to such drug and calendar quarter.</content></clause>
<clause id="H8D3E48F620F7411F8E3A7FE4308B0CE8" class="indent3"><num value="ii">“(ii) </num>
<content>Information on the amount (if any) of the excess average sales price increase described in subparagraph (A)(ii) of such paragraph for such drug and calendar quarter.</content></clause>
<clause id="H96C73AC47C564DB48247B1B1BD21FDEF" class="indent3"><num value="iii">“(iii) </num>
<content>The rebate amount specified under such paragraph for such part B rebatable drug and calendar quarter.</content></clause></subparagraph>
<subparagraph id="H0CE410937A904326ADD7888DCD22A060" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Manufacturer requirement</inline>.—</heading>
<content>For each calendar quarter beginning on or after July 1, 2021, the manufacturer of a part B rebatable drug shall, for such drug, not later than 30 days after the date of receipt from the Secretary of the information described in subparagraph (A) for such calendar quarter, provide to the Secretary a rebate that is equal to the amount specified in paragraph (3) for such drug for such calendar quarter.</content></subparagraph></paragraph>
<paragraph id="H97D00BE406094346B79FC3A89B9AB3AB" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Part b rebatable drug defined</inline>.—</heading>
<subparagraph role="definitions" id="HFD468AE914684462890352C92817BA82" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>In this subsection, the term ‘<term>part B rebatable drug</term>’ means a single source drug or biological (as defined in subparagraph (D) of section 1847A(c)(6)), including a biosimilar biological product (as defined in subparagraph (H) of such section), paid for under this part, except such term shall not include such a drug or biological—</chapeau>
<clause id="H52AE5074A1AE4DBCA57A5CE6D5A8BBAC" class="indent3"><num value="i">“(i) </num>
<content>if the average total allowed charges for a year per individual that uses such a drug or biological, as determined by the Secretary, are less than, subject to subparagraph (B), $100; or</content></clause>
<clause id="H9B8E552AA643422CBAE52C48B2BAD2BA" class="indent3"><num value="ii">“(ii) </num>
<content>that is a vaccine described in subparagraph (A) or (B) of section 1861(s)(10).</content></clause></subparagraph>
<subparagraph id="HAB7F66FBA58C4E6A9B6A3F17338D1643" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Increase</inline>.—</heading>
<chapeau>The dollar amount applied under subparagraph (A)(i)—</chapeau>
<clause id="H37FB12F7457E4E729413D792555C7E69" class="indent3"><num value="i">“(i) </num>
<content>for 2022, shall be the dollar amount specified under such subparagraph for 2021, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12 month period ending with June of the previous year; and</content></clause>
<clause id="H5914C16FC4DF4B51A45D99DD882785C0" class="indent3"><num value="ii">“(ii) </num>
<content>for a subsequent year, shall be the dollar amount specified in this clause (or clause (i)) for the previous year, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12 month period ending with June of the previous year.</content></clause>
<continuation class="indent0">Any dollar amount specified under this subparagraph that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</continuation></subparagraph></paragraph>
<paragraph id="H31E82F32701D47F7B39A17DCA152A61C" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Rebate amount</inline>.—</heading>
<subparagraph id="HE24C051984DC4641BCD9019869455FB0" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of paragraph (1), the amount specified in this paragraph for a part B rebatable drug assigned to a billing and payment code for a calendar quarter is, subject to paragraph (4), the amount equal to the product of—</chapeau>
<clause id="HA37534D768784C77BB1453A97808BCAE" class="indent3"><num value="i">“(i) </num>
<content>subject to subparagraphs (B) and (G), the total number of units of the billing and payment code for such part B rebatable drug furnished under this part during the calendar quarter; and</content></clause>
<clause id="HDDA20D208B244A6BA90C69E31AF9392C" class="indent3"><num value="ii">“(ii) </num>
<chapeau>the amount (if any) by which—</chapeau>
<subclause id="HF7B5ABF9BAB741608DB9BB53892380A7" class="indent4"><num value="I">“(I) </num>
<content>the payment amount under subparagraph (B) or (C) of section 1847A(b)(1), as applicable, for such part B rebatable drug during the calendar quarter; exceeds</content></subclause>
<subclause id="H8B66F187C3B84BBCA2E67F4E5B0C90B0" class="indent4"><num value="II">“(II) </num>
<content>the inflation-adjusted payment amount determined under subparagraph (C) for such part B rebatable drug during the calendar quarter.</content></subclause></clause></subparagraph>
<subparagraph id="HBBA101A9DE914769AAD6AA04F9B027BC" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Excluded units</inline>.—</heading>
<chapeau>For purposes of subparagraph (A)(i), the total number of units of the billing and payment code for each part B rebatable drug furnished during a calendar quarter shall not include—</chapeau>
<clause id="H4E2E62416DC1434A97E01F61AA96CC64" class="indent3"><num value="i">“(i) </num>
<content>units packaged into the payment for a procedure or service under section 1833(t) or under section 1833(i) (instead of separately payable under such respective section);</content></clause>
<clause id="H2B1C0EC8AE854E9E9F9677AF21BB7AF9" class="indent3"><num value="ii">“(ii) </num>
<content>units included under the single payment system for renal dialysis services under section 1881(b)(14); or</content></clause>
<clause id="H73DE090C730D4C7AB74D5029918CD2A9" class="indent3"><num value="iii">“(iii) </num>
<content>units of a part B rebatable drug of a manufacturer furnished to an individual, if such manufacturer, with respect to the furnishing of such units of such drug, provides for discounts under section 340B of the Public Health Service Act or for rebates under section 1927.</content></clause></subparagraph>
<subparagraph id="HEBA1A68D4123466FB5A05F4ACE6A1B50" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Determination of inflation-adjusted payment amount</inline>.—</heading>
<chapeau>The inflation-adjusted payment amount determined under this subparagraph for a part B rebatable drug for a calendar quarter is—</chapeau>
<clause id="H89ABD584B237481A81FC6D160E8056FB" class="indent3"><num value="i">“(i) </num>
<content>the payment amount for the billing and payment code for such drug in the payment amount benchmark quarter (as defined in subparagraph (D)); increased by</content></clause>
<clause id="H359E791195FE4D72B0860A703DFBF547" class="indent3"><num value="ii">“(ii) </num>
<content>the percentage by which the rebate period CPI–U (as defined in subparagraph (F)) for the calendar quarter exceeds the benchmark period CPI–U (as defined in subparagraph (E)).</content></clause></subparagraph>
<subparagraph role="definitions" id="HDE656F4C7AFE4B8A870A009AD95C66EB" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Payment amount benchmark quarter</inline>.—</heading>
<content>The term ‘<term>payment amount benchmark quarter</term>’ means the calendar quarter beginning January 1, 2016.</content></subparagraph>
<subparagraph role="definitions" id="HF8A2E6679AE14055B51C4C873D2CF2F3" class="indent2"><num value="E">“(E) </num>
<heading><inline class="smallCaps">Benchmark period cpi–u</inline>.—</heading>
<content>The term ‘<term>benchmark period CPI–U</term>’ means the consumer price index for all urban consumers (United States city average) for July 2015.</content></subparagraph>
<subparagraph role="definitions" id="H16EFF4F617AA41DBB800B5ECA0560EDA" class="indent2"><num value="F">“(F) </num>
<heading><inline class="smallCaps">Rebate period cpi–u</inline>.—</heading>
<content>The term ‘<term>rebate period CPI–U</term>’ means, with respect to a calendar quarter described in subparagraph (C), the greater of the benchmark period CPI–U and the consumer price index for all urban consumers (United States city average) for the first month of the calendar quarter that is two calendar quarters prior to such described calendar quarter.</content></subparagraph>
<subparagraph id="H93B0960CC35743F98B931EA3EEE1A417" class="indent2"><num value="G">“(G) </num>
<heading><inline class="smallCaps">Counting units</inline>.—</heading>
<clause id="H2BDA4FEAACE8487FAC7590BF76362A2F" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">Cut-off period to count units</inline>.—</heading>
<content>For purposes of subparagraph (A)(i), subject to clause (ii), to count the total number of billing units for a part B rebatable drug for a quarter, the Secretary may use a cut-off period in order to exclude from such total number of billing units for such quarter claims for services furnished during such quarter that were not processed at an appropriate time prior to the end of the cut-off period.</content></clause>
<clause id="H1C0E0D4772654070B70DDAED85E74872" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Counting units for claims processed after cut-off period</inline>.—</heading>
<content>If the Secretary uses a cut-off period pursuant to clause (i), in the case of units of a part B rebatable drug furnished during a quarter but pursuant to application of such cut-off period excluded for purposes of subparagraph (A)(i) from the total number of billing units for the drug for such quarter, the Secretary shall count such units of such drug so furnished in the total number of billing units for such drug for a subsequent quarter, as the Secretary determines appropriate.</content></clause></subparagraph></paragraph>
<paragraph id="H1643FD5122604F38A753F904A776FCFB" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Special treatment of certain drugs and exemption</inline>.—</heading>
<subparagraph role="definitions" id="HAE477A844E0944929E434BC9FE2E2F28" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Subsequently approved drugs</inline>.—</heading>
<content>Subject to subparagraph (B), in the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after July 1, 2015, clause (i) of paragraph (3)(C) shall be applied as if the term ‘<term>payment amount benchmark quarter</term>’ were defined under paragraph (3)(D) as the third full calendar quarter after the day on which the drug was first marketed and clause (ii) of paragraph (3)(C) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under paragraph (3)(E) as if the reference to ‘July 2015’ under such paragraph were a reference to ‘the first month of the first full calendar quarter after the day on which the drug was first marketed’.</content></subparagraph>
<subparagraph id="H5ECC61B4A641489AA4D75B8A5564DF42" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Timeline for provision of rebates for subsequently approved drugs</inline>.—</heading>
<content>In the case of a part B rebatable drug first approved or licensed by the Food and Drug Administration after July 1, 2015, paragraph (1)(B) shall be applied as if the reference to ‘July 1, 2021’ under such paragraph were a reference to the later of the 6th full calendar quarter after the day on which the drug was first marketed or July 1, 2021.</content></subparagraph>
<subparagraph id="H8534D37609D5400FA28279DFDFD75DE9" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Exemption for shortages</inline>.—</heading>
<content>The Secretary may reduce or waive the rebate amount under paragraph (1)(B) with respect to a part B rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act or in the case of other exigent circumstances, as determined by the Secretary.</content></subparagraph>
<subparagraph role="definitions" id="HA528EF6961D545E2B6172097027CDC90" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Selected drugs</inline>.—</heading>
<content>In the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c)) for a price applicability period (as defined in section 1191(b)(2)) and is determined (pursuant to such section 1192(c)) to no longer be a selected drug, for each applicable year beginning after the price applicability period with respect to such drug, clause (i) of paragraph (3)(C) shall be applied as if the term ‘<term>payment amount benchmark quarter</term>’ were defined under paragraph (3)(D) as the calendar quarter beginning January 1 of the last year beginning during such price applicability period with respect to such selected drug and clause (ii) of paragraph (3)(C) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under paragraph (3)(E) as if the reference to ‘July 2015’ under such paragraph were a reference to the July of the year preceding such last year.</content></subparagraph></paragraph>
<paragraph id="HD5130C28C2BA442799A237F2C55E7ACB" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Application to beneficiary coinsurance</inline>.—</heading>
<chapeau>In the case of a part B rebatable drug, if the payment amount for a quarter exceeds the inflation adjusted payment for such quarter—</chapeau>
<subparagraph id="H55D76BA81FF54261BE1CF528BA55BD3D" class="indent2"><num value="A">“(A) </num>
<content>in computing the amount of any coinsurance applicable under this title to an individual with respect to such drug, the computation of such coinsurance shall be based on the inflation-adjusted payment amount determined under paragraph (3)(C) for such part B rebatable drug; and</content></subparagraph>
<subparagraph id="HBE2F1513C7154200BD6F9536BB765552" class="indent2"><num value="B">“(B) </num>
<content>the amount of such coinsurance is equal to 20 percent of such inflation-adjusted payment amount so determined.</content></subparagraph></paragraph>
<paragraph id="H88EDB7EF60E448EC8F2EBFF29843BB2A" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Rebate deposits</inline>.—</heading>
<content>Amounts paid as rebates under paragraph (1)(B) shall be deposited into the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</content></paragraph>
<paragraph id="H48CDEB97BB3A4163962F90C1120C2A03" class="indent1"><num value="7">“(7) </num>
<heading><inline class="smallCaps">Civil money penalty</inline>.—</heading>
<content>If a manufacturer of a part B rebatable drug has failed to comply with the requirements under paragraph (1)(B) for such drug for a calendar quarter, the manufacturer shall be subject to, in accordance with a process established by the Secretary pursuant to regulations, a civil money penalty in an amount equal to at least 125 percent of the amount specified in paragraph (3) for such drug for such calendar quarter. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></paragraph>
<paragraph id="H2ED2F4A6725148A08B155BFC5ABD3EDB" class="indent1"><num value="8">“(8) </num>
<heading><inline class="smallCaps">Study and report</inline>.—</heading>
<subparagraph id="HA8A9F53C132B47A6A31DF5BA25BB6DA0" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Study</inline>.—</heading>
<chapeau>The Secretary shall conduct a study of the feasibility of and operational issues involved with the following:</chapeau>
<clause id="HC4C4A6DF79C649A3A9FBA692D450943C" class="indent3"><num value="i">“(i) </num>
<content>Including multiple source drugs (as defined in section 1847A(c)(6)(C)) in the rebate system under this subsection.</content></clause>
<clause id="H68D8C383443C42918FBA8E815FF6D34F" class="indent3"><num value="ii">“(ii) </num>
<content>Including drugs and biologicals paid for under MA plans under part C in the rebate system under this subsection.</content></clause>
<clause id="H08A45FAB85904B849F196EBF812E2A62" class="indent3"><num value="iii">“(iii) </num>
<content>Including drugs excluded under paragraph (2)(A) and units of the billing and payment code of the drugs excluded under paragraph (3)(B) in the rebate system under this subsection.</content></clause></subparagraph>
<subparagraph id="HFA645F9EDCE6470AA83D19B0DC0E11A0" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Report</inline>.—</heading>
<content>Not later than 3 years after the date of the enactment of this subsection, the Secretary shall submit to Congress a report on the study conducted under subparagraph (A).</content></subparagraph></paragraph>
<paragraph id="HA06A155A080346F28B162175DF3682A7" class="indent1"><num value="9">“(9) </num>
<heading><inline class="smallCaps">Application to multiple source drugs</inline>.—</heading>
<content>The Secretary may, based on the report submitted under paragraph (8) and pursuant to rulemaking, apply the provisions of this subsection to multiple source drugs (as defined in section 1847A(c)(6)(C)), including, for purposes of determining the rebate amount under paragraph (3), by calculating manufacturer-specific average sales prices for the benchmark period and the rebate period.”.</content></paragraph></subsection></quotedContent></content></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s201/b" id="H135DC73F8E3843BC9E11BDD876FDE205" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Amounts Payable; Cost-Sharing</inline>.—</heading>
<chapeau>Section 1833 of the Social Security Act (<ref href="/us/usc/t42/s1395l">42 U.S.C. 1395l</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tII/s201/b/1" id="H33AE8735CFE5432A89CCFF1E8776EFA7" class="indent1"><num value="1">(1) </num>
<chapeau>in subsection (a)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tII/s201/b/1/A" id="H2FD71A8F567341379B6CDAE3FE9952B1" class="indent2"><num value="A">(A) </num>
<chapeau>in paragraph (1)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tII/s201/b/1/A/i" id="HEEEB47F98A53454A9B3A90950718E783" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (S), by <amendingAction type="delete">striking</amendingAction> “<quotedText>with respect to</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>subject to subparagraph (DD), with respect to</quotedText>”;</content></clause>
<clause identifier="/us/bill/116/hr/3/tII/s201/b/1/A/ii" id="HCE1CC5CA93724358B9D07F262FACB8F1" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>and (CC)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>(CC)</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tII/s201/b/1/A/iii" id="H44D2966BB325449393AE228D7EEC5882" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> before the semicolon at the end the following: “<quotedText>, and (DD) with respect to a part B rebatable drug (as defined in paragraph (2) of section 1834(x)) for which the payment amount for a calendar quarter under paragraph (3)(A)(ii)(I) of such section for such quarter exceeds the inflation-adjusted payment under paragraph (3)(A)(ii)(II) of such section for such quarter, the amounts paid shall be the difference between (i) the payment amount under paragraph (3)(A)(ii)(I) of such section for such drug, and (ii) 20 percent of the inflation-adjusted payment amount under paragraph (3)(A)(ii)(II) of such section for such drug</quotedText>”;</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tII/s201/b/1/B" id="H9203B27A766849AC835FE93204DC0A40" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end of the flush left matter following paragraph (9), the following:<quotedContent meta="committee ID HWM00" id="H4F9A5C30F79D4799B075B2A89A4A35A6" styleType="OLC"> <continuation class="indent0">“For purposes of applying paragraph (1)(DD), subsections (i)(9) and (t)(3)(H), and section 1834(x)(5), the Secretary shall make such estimates and use such data as the Secretary determines appropriate, and notwithstanding any other provision of law, may do so by program instruction or otherwise.”</continuation></quotedContent>;</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tII/s201/b/2" id="H199EA59AC7CA456AAE1CE03985FCA971" class="indent1"><num value="2">(2) </num>
<content>in subsection (i), by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent meta="committee ID HWM00" id="HD7ED5FCEDEC248F5B970A8613E2935DE" styleType="OLC"> <paragraph id="HECCBADDB4EFC478084670825F5DA4812" class="indent0"><num value="9">“(9) </num>
<content>In the case of a part B rebatable drug (as defined in paragraph (2) of section 1834(x)) furnished on or after July 1, 2021, under the system under this subsection, in lieu of calculation of coinsurance and the amount of payment otherwise applicable under this subsection, the provisions of section 1834(x)(5), paragraph (1)(DD) of subsection (a), and the flush left matter following paragraph (9) of subsection (a), shall, as determined appropriate by the Secretary, apply under this subsection in the same manner as such provisions of section 1834(x)(5) and subsection (a) apply under such section and subsection.”; and</content></paragraph></quotedContent></content></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tII/s201/b/3" id="HCA7192C67C354188B562602D814EE429" class="indent1"><num value="3">(3) </num>
<content>in subsection (t)(3), by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HWM00" id="H6B3FE6C47A4945E08F30C495A5F530DD" styleType="OLC"> <subparagraph id="H719B7EF9FACD4037A5DB6F5DC3A918FF" class="indent2"><num value="H">“(H) </num>
<heading><inline class="smallCaps">Part b rebatable drugs</inline>.—</heading>
<content>In the case of a part B rebatable drug (as defined in paragraph (2) of section 1834(x)) furnished on or after July 1, 2021, under the system under this subsection, in lieu of calculation of coinsurance and the amount of payment otherwise applicable under this subsection, the provisions of section 1834(x)(5), paragraph (1)(DD) of subsection (a), and the flush left matter following paragraph (9) of subsection (a), shall, as determined appropriate by the Secretary, apply under this subsection in the same manner as such provisions of section 1834(x)(5) and subsection (a) apply under such section and subsection.”.</content></subparagraph></quotedContent></content></paragraph></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s201/c" id="HC8F72398B2A643ECAA8CFB9E6BD1F262" class="indent0"><num value="c">(c) </num>
<heading><inline class="smallCaps">Conforming Amendment to Part B ASP Calculation</inline>.—</heading>
<content>Section 1847A(c)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–3a/c/3">42 U.S.C. 1395w–3a(c)(3)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or section 1834(x)</quotedText>” after “<quotedText>section 1927</quotedText>”.</content></subsection></section> 
<section identifier="/us/bill/116/hr/3/tII/s202" id="H385C3046B0204D3199036A4B339305D5" role="subsequent-section"><num value="202">SEC. 202. </num>
<heading>MEDICARE PART D REBATE BY MANUFACTURERS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s202/a" id="H52B070DAF9FF4E97A214516029CD6372" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>Part D of title XVIII of the Social Security Act <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after section 1860D–14A (<ref href="/us/usc/t42/s1395w–114a">42 U.S.C. 1395w–114a</ref>) the following new section:<quotedContent meta="committee ID HWM00" id="HAF89AAE3B3C74B64B265B48CC2BC5089" styleType="OLC"> 
<section id="H84227D2C023D4ECCB27695823DBC12C2" role="subsequent-section"><num value="1860D14B">“SEC. 1860D–14B. </num>
<heading>MANUFACTURER REBATE FOR CERTAIN DRUGS WITH PRICES INCREASING FASTER THAN INFLATION.</heading>
<subsection id="HC7FDEF5AADF84155BF1BBC7E86B7193A" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<paragraph id="H869202E3B8294EC9A6DD9F1D566F4291" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to the provisions of this section, in order for coverage to be available under this part for a part D rebatable drug (as defined in subsection (h)(1)) of a manufacturer (as defined in section 1927(k)(5)) dispensed during an applicable year, the manufacturer must have entered into and have in effect an agreement described in subsection (b).</content></paragraph>
<paragraph id="HCC73D7D7A862451489BF63D22C435FF1" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps"> Authorizing coverage for drugs not covered under agreements</inline>.—</heading>
<chapeau>Paragraph (1) shall not apply to the dispensing of a covered part D drug if—</chapeau>
<subparagraph id="HE4C633B37E1140109ED06A01C53C43F2" class="indent2"><num value="A">“(A) </num>
<content>the Secretary has made a determination that the availability of the drug is essential to the health of beneficiaries under this part; or</content></subparagraph>
<subparagraph id="H1D04A5A7178B47F1BD3AE49D9CEACFC1" class="indent2"><num value="B">“(B) </num>
<content>the Secretary determines that in the period beginning on January 1, 2022, and ending on December 31, 2022, there were extenuating circumstances.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H50CD46CA09E24E949564A2140EC6A8B4" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Applicable year</inline>.—</heading>
<content>For purposes of this section the term ‘<term>applicable year</term>’ means a year beginning with 2022.</content></paragraph></subsection>
<subsection id="H57E580B5F57E4781BDD4C51D81DFA956" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Agreements</inline>.—</heading>
<paragraph id="HF179675F960E43DE9A3A8A9E483F9668" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Terms of agreement</inline>.—</heading>
<chapeau>An agreement described in this subsection, with respect to a manufacturer of a part D rebatable drug, is an agreement under which the following shall apply:</chapeau>
<subparagraph id="H982737D6B35C47F29746C7E0500A41FC" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Secretarial provision of information</inline>.—</heading>
<chapeau>Not later than 9 months after the end of each applicable year with respect to which the agreement is in effect, the Secretary, for each part D rebatable drug of the manufacturer, shall report to the manufacturer the following for such year:</chapeau>
<clause id="H75C73B0D14E74337A0D21603954FA111" class="indent3"><num value="i">“(i) </num>
<content>Information on the total number of units (as defined in subsection (h)(2)) for each dosage form and strength with respect to such part D rebatable drug and year.</content></clause>
<clause id="HDE9E03C416CB4E4398F876A8A96DD4EF" class="indent3"><num value="ii">“(ii) </num>
<content>Information on the amount (if any) of the excess average manufacturer price increase described in subsection (c)(1)(B) for each dosage form and strength with respect to such drug and year.</content></clause>
<clause id="HF9793E31E84B4956B032197A62654B82" class="indent3"><num value="iii">“(iii) </num>
<content>The rebate amount specified under subsection (c) for each dosage form and strength with respect to such drug and year.</content></clause></subparagraph>
<subparagraph id="H8546571AC34247AB856D0BC6B4809626" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Manufacturer requirements</inline>.—</heading>
<content>For each applicable year with respect to which the agreement is in effect, the manufacturer of the part D rebatable drug, for each dosage form and strength with respect to such drug, not later than 30 days after the date of receipt from the Secretary of the information described in subparagraph (A) for such year, shall provide to the Secretary a rebate that is equal to the amount specified in subsection (c) for such dosage form and strength with respect to such drug for such year.</content></subparagraph></paragraph>
<paragraph id="HBC5BD0BA44CF47D587F0FD80E388C821" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Length of agreement</inline>.—</heading>
<subparagraph id="H5FD6C491781E4108A9A2916AB3511C4C" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>An agreement under this section, with respect to a part D rebatable drug, shall be effective for an initial period of not less than one year and shall be automatically renewed for a period of not less than one year unless terminated under subparagraph (B).</content></subparagraph>
<subparagraph id="H86E20B4782484E81949FB7DC0B63EB93" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Termination</inline>.—</heading>
<clause id="H91364F8D31AA4E7E9AB70A3B43DBCC92" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">By secretary</inline>.—</heading>
<content>The Secretary may provide for termination of an agreement under this section for violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 30 days after the date of notice of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, but such hearing shall not delay the effective date of the termination.</content></clause>
<clause id="H58FF330583314E9298C98930265F0B72" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">By a manufacturer</inline>.—</heading>
<chapeau>A manufacturer may terminate an agreement under this section for any reason. Any such termination shall be effective, with respect to a plan year—</chapeau>
<subclause id="H7CA7AEA8FF92488F8EDCC292E833FCBB" class="indent4"><num value="I">“(I) </num>
<content>if the termination occurs before January 30 of the plan year, as of the day after the end of the plan year; and</content></subclause>
<subclause id="HC9C7C8DE28AC45A89F7B0B59B2973E9A" class="indent4"><num value="II">“(II) </num>
<content>if the termination occurs on or after January 30 of the plan year, as of the day after the end of the succeeding plan year.</content></subclause></clause></subparagraph>
<subparagraph id="HDB051DCD021649C4B9D6FBC035B55129" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Effectiveness of termination</inline>.—</heading>
<content>Any termination under this paragraph shall not affect rebates due under the agreement under this section before the effective date of its termination.</content></subparagraph>
<subparagraph id="H5167131E865C4C6C99A22B627E6E3FCE" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Delay before reentry</inline>.—</heading>
<content>In the case of any agreement under this section with a manufacturer that is terminated in a plan year, the Secretary may not enter into another such agreement with the manufacturer (or a successor manufacturer) before the subsequent plan year, unless the Secretary finds good cause for an earlier reinstatement of such an agreement.</content></subparagraph></paragraph></subsection>
<subsection id="H17904FD600DC46DE854BB551BA86A042" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Rebate Amount</inline>.—</heading>
<paragraph id="HD3811D5B8FBD4F66B53030AA57F0F108" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of this section, the amount specified in this subsection for a dosage form and strength with respect to a part D rebatable drug and applicable year is, subject to subparagraphs (B) and (C) of paragraph (5), the amount equal to the product of—</chapeau>
<subparagraph id="H6B22895EA3084B92B28CB3F958A5F395" class="indent2"><num value="A">“(A) </num>
<content>the total number of units of such dosage form and strength with respect to such part D rebatable drug and year; and</content></subparagraph>
<subparagraph id="H9A014F0C0A864A70B9C5896233748036" class="indent2"><num value="B">“(B) </num>
<chapeau>the amount (if any) by which—</chapeau>
<clause id="HA8D188E582A74535A72CBA46C8D8CAF3" class="indent3"><num value="i">“(i) </num>
<content>the annual manufacturer price (as determined in paragraph (2)) paid for such dosage form and strength with respect to such part D rebatable drug for the year; exceeds</content></clause>
<clause id="H7571640BB56F4C9BA94E63D5D97F656C" class="indent3"><num value="ii">“(ii) </num>
<content>the inflation-adjusted payment amount determined under paragraph (3) for such dosage form and strength with respect to such part D rebatable drug for the year.</content></clause></subparagraph></paragraph>
<paragraph id="H141E2709BE1644199699919453055C60" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Determination of annual manufacturer price</inline>.—</heading>
<chapeau>The annual manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable year, is the sum of the products of—</chapeau>
<subparagraph id="HD7704544A61E4AAC94FD52C2A3AF0BEB" class="indent2"><num value="A">“(A) </num>
<content>the average manufacturer price (as defined in subsection (h)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each of the calendar quarters of such year; and</content></subparagraph>
<subparagraph id="H7AF6E198EF6F4AA089D38F7D04B469F6" class="indent2"><num value="B">“(B) </num>
<chapeau>the ratio of—</chapeau>
<clause id="H638E904E1D2741B180AE6CB64DD4FD1E" class="indent3"><num value="i">“(i) </num>
<content>the total number of units of such dosage form and strength dispensed during each such calendar quarter of such year; to</content></clause>
<clause id="HAF80A57A34F1432184E75AD19B253CE9" class="indent3"><num value="ii">“(ii) </num>
<content>the total number of units of such dosage form and strength dispensed during such year.</content></clause></subparagraph></paragraph>
<paragraph id="HF2132D2C1D2745088E872D4B6C220E67" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Determination of inflation-adjusted payment amount</inline>.—</heading>
<chapeau>The inflation-adjusted payment amount determined under this paragraph for a dosage form and strength with respect to a part D rebatable drug for an applicable year, subject to subparagraphs (A) and (D) of paragraph (5), is—</chapeau>
<subparagraph id="H52965A9F2C7B48F091111A80CF2F6E6E" class="indent2"><num value="A">“(A) </num>
<content>the benchmark year manufacturer price determined under paragraph (4) for such dosage form and strength with respect to such drug and an applicable year; increased by</content></subparagraph>
<subparagraph id="H2A31C8AE23874D92ADF4D132F1489613" class="indent2"><num value="B">“(B) </num>
<content>the percentage by which the applicable year CPI–U (as defined in subsection (h)(5)) for the applicable year exceeds the benchmark period CPI–U (as defined in subsection (h)(4)).</content></subparagraph></paragraph>
<paragraph id="HAF84F7AA981D4B4E9535804F15830B4E" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Determination of benchmark year manufacturer price</inline>.—</heading>
<chapeau>The benchmark year manufacturer price determined under this paragraph for a dosage form and strength, with respect to a part D rebatable drug and an applicable year, is the sum of the products of—</chapeau>
<subparagraph id="H40AD206FFA2742D8B5A14E6606C4614C" class="indent2"><num value="A">“(A) </num>
<content>the average manufacturer price (as defined in subsection (h)(6)) of such dosage form and strength, as calculated for a unit of such drug, with respect to each calendar quarter of the payment amount benchmark year (as defined in subsection (h)(3)); and</content></subparagraph>
<subparagraph id="H355EF53EB3294AADBB45AB8C9FDF08CF" class="indent2"><num value="B">“(B) </num>
<chapeau>the ratio of—</chapeau>
<clause id="HE2836ECD38024175B02A231C908A4DB3" class="indent3"><num value="i">“(i) </num>
<content>the total number of units of such dosage form and strength dispensed during such calendar quarter of the payment amount benchmark year; to</content></clause>
<clause id="HF1F04E9957A94D2BA26BDB804D7FDE21" class="indent3"><num value="ii">“(ii) </num>
<content>the total number of units of such dosage form and strength dispensed during the payment amount benchmark year.</content></clause></subparagraph></paragraph>
<paragraph id="HA715622A14AD410FBC1CA022CDDF8D52" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Special treatment of certain drugs and exemption</inline>.—</heading>
<subparagraph role="definitions" id="HCB158B7EF4CE442DAD2D8D71C2BC5D12" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Subsequently approved drugs</inline>.—</heading>
<content>In the case of a part D rebatable drug first approved or licensed by the Food and Drug Administration after January 1, 2016, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term ‘<term>payment amount benchmark year</term>’ were defined under subsection (h)(3) as the first calendar year beginning after the day on which the drug was first marketed by any manufacturer and subparagraph (B) of paragraph (3) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under subsection (h)(4) as if the reference to ‘January 2016’ under such subsection were a reference to ‘January of the first year beginning after the date on which the drug was first marketed by any manufacturer’.</content></subparagraph>
<subparagraph id="H0ADC2C7BF0D9450385FFBC4E6B158542" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Exemption for shortages</inline>.—</heading>
<content>The Secretary may reduce or waive the rebate under paragraph (1) with respect to a part D rebatable drug that is described as currently in shortage on the shortage list in effect under section 506E of the Federal Food, Drug, and Cosmetic Act or in the case of other exigent circumstances, as determined by the Secretary.</content></subparagraph>
<subparagraph id="HDF7B661BDBA64FF9AE4B107DD3E11AC4" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Treatment of new formulations</inline>.—</heading>
<clause id="H52F7D46882F7438395FBB0BC77211B49" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>In the case of a part D rebatable drug that is a line extension of a part D rebatable drug that is an oral solid dosage form, the Secretary shall establish a formula for determining the amount specified in this subsection with respect to such part D rebatable drug and an applicable year with consideration of the original part D rebatable drug.</content></clause>
<clause role="definitions" id="H3DF3A013AA194AE6A6D37A3F1340A057" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Line extension defined</inline>.—</heading>
<content>In this subparagraph, the term ‘<term>line extension</term>’ means, with respect to a part D rebatable drug, a new formulation of the drug (as determined by the Secretary), such as an extended release formulation, but does not include an abuse-deterrent formulation of the drug (as determined by the Secretary), regardless of whether such abuse-deterrent formulation is an extended release formulation.</content></clause></subparagraph>
<subparagraph role="definitions" id="H8CE259EDF1D74D02AEF65D5FCBA4BA92" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Selected drugs</inline>.—</heading>
<content>In the case of a part D rebatable drug that is a selected drug (as defined in section 1192(c)) for a price applicability period (as defined in section 1191(b)(2)) and is determined (pursuant to such section 1192(c)) to no longer be a selected drug, for each applicable year beginning after the price applicability period with respect to such drug, subparagraphs (A) and (B) of paragraph (4) shall be applied as if the term ‘<term>payment amount benchmark year</term>’ were defined under subsection (h)(3) as the last year beginning during such price applicability period with respect to such selected drug and subparagraph (B) of paragraph (3) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under subsection (h)(4) as if the reference to ‘January 2016’ under such subsection were a reference to January of the last year beginning during such price applicability period with respect to such drug.</content></subparagraph></paragraph></subsection>
<subsection id="HC3AF5EBE17E94F54B4D1E1F4A0EC2E46" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Rebate Deposits</inline>.—</heading>
<content>Amounts paid as rebates under subsection (c) shall be deposited into the Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</content></subsection>
<subsection id="H35E5988911674C6BB75C325052F3AD30" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Information</inline>.—</heading>
<content>For purposes of carrying out this section, the Secretary shall use information submitted by manufacturers under section 1927(b)(3).</content></subsection>
<subsection id="H86F025599DD7438B9270D4ED6E2D6D9F" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Civil Money Penalty</inline>.—</heading>
<content>In the case of a manufacturer of a part D rebatable drug with an agreement in effect under this section who has failed to comply with the terms of the agreement under subsection (b)(1)(B) with respect to such drug for an applicable year, the Secretary may impose a civil money penalty on such manufacturer in an amount equal to 125 percent of the amount specified in subsection (c) for such drug for such year. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></subsection>
<subsection id="HC49F910CCE6A4B9895F6365109F114C0" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">Judicial Review</inline>.—</heading>
<chapeau>There shall be no judicial review of the following:</chapeau>
<paragraph id="H6A6210477FBB491DA7B6061E51D7FC80" class="indent1"><num value="1">“(1) </num>
<content>The determination of units under this section.</content></paragraph>
<paragraph id="HF763C10B4AC8489280FFC8CA2349644E" class="indent1"><num value="2">“(2) </num>
<content>The determination of whether a drug is a part D rebatable drug under this section.</content></paragraph>
<paragraph id="H6FA637695B13465D82FA3D6E4DF23D50" class="indent1"><num value="3">“(3) </num>
<content>The calculation of the rebate amount under this section.</content></paragraph></subsection>
<subsection id="H8F8D820D44874273B09C2A926C778277" class="indent0"><num value="h">“(h) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<chapeau>In this section:</chapeau>
<paragraph id="H4622D631AE7F4526905DD73B5FCE7404" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Part d rebatable drug defined</inline>.—</heading>
<subparagraph role="definitions" id="H38F4A056D72C48D28F505246412FB7B0" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The term ‘<term>part D rebatable drug</term>’ means a drug or biological that would (without application of this section) be a covered part D drug, except such term shall, with respect to an applicable year, not include such a drug or biological if the average annual total cost under this part for such year per individual who uses such a drug or biological, as determined by the Secretary, is less than, subject to subparagraph (B), $100, as determined by the Secretary using the most recent data available or, if data is not available, as estimated by the Secretary.</content></subparagraph>
<subparagraph id="HAE3AB9B3B34D4034A8ACE62D39DBD817" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Increase</inline>.—</heading>
<chapeau>The dollar amount applied under subparagraph (A)—</chapeau>
<clause id="HB89E8771BB4C4E91AFAD40CD8420081E" class="indent3"><num value="i">“(i) </num>
<content>for 2023, shall be the dollar amount specified under such subparagraph for 2022, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with January of 2022; and</content></clause>
<clause id="H5DAA0E4288E54A9A944CF525677AFF07" class="indent3"><num value="ii">“(ii) </num>
<content>for a subsequent year, shall be the dollar amount specified in this subparagraph for the previous year, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) for the 12-month period beginning with January of the previous year.</content></clause>
<continuation class="indent0">Any dollar amount specified under this subparagraph that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</continuation></subparagraph></paragraph>
<paragraph role="definitions" id="HD3E6ED82F0E54556B50C850C2FFA9F5A" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Unit defined</inline>.—</heading>
<content>The term ‘<term>unit</term>’ means, with respect to a part D rebatable drug, the lowest identifiable quantity (such as a capsule or tablet, milligram of molecules, or grams) of the part D rebatable drug that is dispensed to individuals under this part.</content></paragraph>
<paragraph role="definitions" id="H9617708FCBBF4549A76B6D75B07987E3" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Payment amount benchmark year</inline>.—</heading>
<content>The term ‘<term>payment amount benchmark year</term>’ means the year beginning January 1, 2016.</content></paragraph>
<paragraph role="definitions" id="H9826D05F3FB14C10B7B734CC153EFE61" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Benchmark period cpi–u</inline>.—</heading>
<content>The term ‘<term>benchmark period CPI–U</term>’ means the consumer price index for all urban consumers (United States city average) for January 2016.</content></paragraph>
<paragraph role="definitions" id="H4DD868E531B04A58A2ACED07F71071D3" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Applicable year cpi–u</inline>.—</heading>
<content>The term ‘<term>applicable year CPI–U</term>’ means, with respect to an applicable year, the consumer price index for all urban consumers (United States city average) for January of such year.</content></paragraph>
<paragraph role="definitions" id="H285E3334E2C14902A8ED658AF165F10B" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Average manufacturer price</inline>.—</heading>
<content>The term ‘<term>average manufacturer price</term>’ has the meaning, with respect to a part D rebatable drug of a manufacturer, given such term in section 1927(k)(1), with respect to a covered outpatient drug of a manufacturer for a rebate period under section 1927.”.</content></paragraph></subsection></section></quotedContent></content></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s202/b" id="HA3D1D4AECA924B8988EDAB947394E798" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Conforming Amendment to Part B ASP Calculation</inline>.—</heading>
<content>Section 1847A(c)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–3a/c/3">42 U.S.C. 1395w–3a(c)(3)</ref>), as amended by section 201(c), is further amended by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 1927 or section 1834(x)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>section 1927, section 1834(x), or section 1860D–14B</quotedText>”.</content></subsection></section></title>
<title identifier="/us/bill/116/hr/3/tIII" id="HC643FE2403BB48C99ABD7A401F38813E"><num value="III">TITLE III—</num>
<heading class="inline">PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE BENEFICIARIES</heading> 
<section identifier="/us/bill/116/hr/3/tIII/s301" id="HF48FD097EFEB418FB05EBDC7C5F0EA65" role="subsequent-section"><num value="301">SEC. 301. </num>
<heading>MEDICARE PART D BENEFIT REDESIGN.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/a" id="HB23A9011D2064DE39898399AE4CC3898" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">Benefit Structure Redesign</inline>.—</heading>
<chapeau>Section 1860D–2(b) of the Social Security Act (<ref href="/us/usc/t42/s1395w–102/b">42 U.S.C. 1395w–102(b)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tIII/s301/a/1" id="HF45DDFE051B84630A3ED638503A5B75A" class="indent1"><num value="1">(1) </num>
<chapeau>in paragraph (2)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/1/A" id="H68D09F0557404B488AA25793F93B2A70" class="indent2"><num value="A">(A) </num>
<content>in subparagraph (A), in the matter preceding clause (i), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022 and for costs above the annual deductible specified in paragraph (1) and up to the annual out-of-pocket threshold specified in paragraph (4)(B) for 2022 and each subsequent year</quotedText>” after “<quotedText>paragraph (3)</quotedText>”;</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/1/B" id="H780343A7BD35425AB0F5EE23C9AB4FE6" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (C)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/B/i" id="HE0938EC45FC74448A2410F49412212D9" class="indent3"><num value="i">(i) </num>
<content>in clause (i), in the matter preceding subclause (I), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>paragraph (4),</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/B/ii" id="HE1D90E09CE9B485B809F17187432A9CF" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii)(III), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and each subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>and 2021</quotedText>”; and</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/1/C" id="HF853716547C740E39BEE89DEF7665079" class="indent2"><num value="C">(C) </num>
<chapeau>in subparagraph (D)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/i" id="H3EBB1D79D676477496E090DC4FED2E40" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (i)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/i/I" id="HBBCB53819ED44BBA929A3C451F705FC7" class="indent4"><num value="I">(I) </num>
<content>in the matter preceding subclause (I), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>paragraph (4),</quotedText>”; and</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/i/II" id="H50AD1E7AF71341678AE8C730AC6E5FBA" class="indent4"><num value="II">(II) </num>
<content>in subclause (I)(bb), by <amendingAction type="delete">striking</amendingAction> “<quotedText>a year after 2018</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>each of years 2018 through 2021</quotedText>”; and</content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/ii" id="H79017FD4F25A4848AE87BC65A18535DB" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii)(V), by <amendingAction type="delete">striking</amendingAction> “<quotedText>2019 and each subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>each of years 2019 through 2021</quotedText>”;</content></clause></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIII/s301/a/2" id="HDA26AB5550084284AE41AD5FF2E27363" class="indent1"><num value="2">(2) </num>
<chapeau>in paragraph (3)(A)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/2/A" id="H84DA84CB748D453988B0F4084705134A" class="indent2"><num value="A">(A) </num>
<content>in the matter preceding clause (i), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>and (4),</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/2/B" id="HD1DE2E3AC07B4E0E8994A45530411864" class="indent2"><num value="B">(B) </num>
<content>in clause (ii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>for a subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for each of years 2007 through 2021</quotedText>”; and</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIII/s301/a/3" id="HC3F9BF53D0484D6FB241B86DC4FE49E3" class="indent1"><num value="3">(3) </num>
<chapeau>in paragraph (4)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/A" id="H48C0E2C2D38F4BAAB73B06D88DB12ADF" class="indent2"><num value="A">(A) </num>
<chapeau>in subparagraph (A)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i" id="HD52E8D55EAB74192846B8EEE91DAB5F2" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (i)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/I" id="H835AF39382B949C3B7E0001F90A9A413" class="indent4"><num value="I">(I) </num>
<content>by <amendingAction type="redesignate">redesignating</amendingAction> subclauses (I) and (II) as items (aa) and (bb), respectively, and moving the margin of each such redesignated item 2 ems to the right;</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/II" id="H91320720214C4D14A9F5C1618C33F71B" class="indent4"><num value="II">(II) </num>
<content>in the matter preceding item (aa), as redesignated by subclause (I), by <amendingAction type="delete">striking</amendingAction> “<quotedText>is equal to the greater of—</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent>“is equal to— <subclause id="HF4017FEEC2AA45428B501CB9DFE342DF" class="indent4"><num value="I">“(I) </num>
<content>for a year preceding 2022, the greater of—”;</content></subclause></quotedContent></content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/III" id="H5508B37EC3E545FE9A1295F73829B516" class="indent4"><num value="III">(III) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end of item (bb), as redesignated by subclause (I), and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/IV" id="HC6DCE3399AC14BDFA9061D5984C5D4F0" class="indent4"><num value="IV">(IV) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HWM00" id="H9703F3C28AE54891B250BAD79CF90640" styleType="OLC"> <subclause id="HFCE7C26859EE452C8414A92F111015A0" class="indent4"><num value="II">“(II) </num>
<content>for 2022 and each succeeding year, $0.”; and</content></subclause></quotedContent></content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/ii" id="HABFDCC33936E4FB8A43CC7242635FB7A" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>clause (i)(I)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>clause (i)(I)(aa)</quotedText>”;</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/B" id="H3D94C1FA89834BABAC6583C646A002C9" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (B)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i" id="H13B05DD8F5894DB1A8E6794A3C481D24" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (i)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/I" id="HE4D1DBB7C87447D9BC07F4C7F49B2521" class="indent4"><num value="I">(I) </num>
<content>in subclause (V), by <amendingAction type="delete">striking</amendingAction> “<quotedText>or</quotedText>” at the end;</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/II" id="HD005F3B25D98441988BAEAF18C9701D8" class="indent4"><num value="II">(II) </num>
<chapeau>in subclause (VI)—</chapeau><item identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/II/aa" id="H8967C0867934415DA2EA7C82849D56A0" class="indent5"><num value="aa">(aa) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>for a subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for 2021</quotedText>”; and</content></item><item identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/II/bb" id="H68403A0A688048088E2DD2834858DE6F" class="indent5"><num value="bb">(bb) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> a semicolon; and</content></item></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/III" id="H320F0C9E2CF04132970906226B1EEB9A" class="indent4"><num value="III">(III) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subclauses:<quotedContent meta="committee ID HWM00" id="H12137DFA4A654A5F9CFCCD9B4DC1661B" styleType="OLC"> <subclause id="HA986C878F5CD4AC98494A6E61E75D07F" class="indent4"><num value="VII">“(VII) </num>
<content>for 2022, is equal to $2,000; or</content></subclause>
<subclause id="HED861B7320B64DF6960B4B98E4D3E6B1" class="indent4"><num value="VIII">“(VIII) </num>
<content>for a subsequent year, is equal to the amount specified in this subparagraph for the previous year, increased by the annual percentage increase described in paragraph (6) for the year involved.”; and</content></subclause></quotedContent></content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/ii" id="H9C7CC847E1B84907970019B364B52FB5" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>clause (i)(II)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>clause (i)</quotedText>”;</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/C" id="HE37DA00D570344B19520163CF3751905" class="indent2"><num value="C">(C) </num>
<content>in subparagraph (C)(i), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and for amounts</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>and, for a year preceding 2022, for amounts</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/D" id="H0DA082CAACE0454FB10BE2C9F29F77D8" class="indent2"><num value="D">(D) </num>
<content>in subparagraph (E), by <amendingAction type="delete">striking</amendingAction> “<quotedText>In applying</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For each of years 2011 through 2021, in applying</quotedText>”.</content></subparagraph></paragraph></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/b" id="H8A05ABC4B0C243359B4C08D962038513" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Decreasing Reinsurance Payment Amount</inline>.—</heading>
<content>Section 1860D–15(b)(1) of the Social Security Act (<ref href="/us/usc/t42/s1395w–115/b/1">42 U.S.C. 1395w–115(b)(1)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>80 percent</quotedText>” the following: “<quotedText>(or, with respect to a coverage year after 2021, 20 percent)</quotedText>”.</content></subsection>
<subsection identifier="/us/bill/116/hr/3/tIII/s301/c" id="H01BDF1DF0CC743DFB663DACA4AB875CD" class="indent0"><num value="c">(c) </num>
<heading><inline class="smallCaps">Manufacturer Discount Program</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/c/1" id="HE8F708B1823E424EB7186D391FBAC806" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Part D of title XVIII of the Social Security Act (<ref href="/us/usc/t42/s1395w–101">42 U.S.C. 1395w–101</ref> et seq.), as amended by section 202, is further amended by <amendingAction type="insert">inserting</amendingAction> after section 1860D–14B the following new section:<quotedContent meta="committee ID HWM00" id="H44E3826D3FF049238D10B8ED1A1F5572" styleType="OLC"> 
<section id="H278A77E16A6547E1A23F2985532A90A2" role="subsequent-section"><num value="1860D14C">“SEC. 1860D–14C. </num>
<heading>MANUFACTURER DISCOUNT PROGRAM.</heading>
<subsection id="H2AC956C39FBD490A8760111632E5F7E0" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Establishment</inline>.—</heading>
<content>The Secretary shall establish a manufacturer discount program (in this section referred to as the ‘program’). Under the program, the Secretary shall enter into agreements described in subsection (b) with manufacturers and provide for the performance of the duties described in subsection (c). The Secretary shall establish a model agreement for use under the program by not later than January 1, 2021, in consultation with manufacturers, and allow for comment on such model agreement.</content></subsection>
<subsection id="H14A1427FCD5A4E9C843F918C069C34B8" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Terms of Agreement</inline>.—</heading>
<paragraph id="H23B16A869CFC4499A1471239E92C87FA" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<subparagraph id="HD3E3A27B2DC14E159C38A67A2651FF39" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Agreement</inline>.—</heading>
<content>An agreement under this section shall require the manufacturer to provide applicable beneficiaries access to discounted prices for applicable drugs of the manufacturer that are dispensed on or after January 1, 2022.</content></subparagraph>
<subparagraph id="HC89AC0200FBE41E9A5053A0B7A1CF00A" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Provision of discounted prices at the point-of-sale</inline>.—</heading>
<content>The discounted prices described in subparagraph (A) shall be provided to the applicable beneficiary at the pharmacy or by the mail order service at the point-of-sale of an applicable drug.</content></subparagraph>
<subparagraph id="HC25DEADA30E14D39A2EA374EA6441C0E" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Timing of agreement</inline>.—</heading>
<clause id="HAC7D97922C694EE8904CBCD3CE4243C5" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">Special rule for 2022</inline>.—</heading>
<content>In order for an agreement with a manufacturer to be in effect under this section with respect to the period beginning on January 1, 2022, and ending on December 31, 2022, the manufacturer shall enter into such agreement not later than 30 days after the date of the establishment of a model agreement under subsection (a).</content></clause>
<clause id="H79E3D88254DC4E1EB3EA8AD54187158A" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">2023 and subsequent years</inline>.—</heading>
<content>In order for an agreement with a manufacturer to be in effect under this section with respect to plan year 2023 or a subsequent plan year, the manufacturer shall enter into such agreement (or such agreement shall be renewed under paragraph (4)(A)) not later than January 30 of the preceding year.</content></clause></subparagraph></paragraph>
<paragraph id="H6B75FBE498E3405E8D8AEF0E6EFFD475" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Provision of appropriate data</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall collect and have available appropriate data, as determined by the Secretary, to ensure that it can demonstrate to the Secretary compliance with the requirements under the program.</content></paragraph>
<paragraph id="H5C72F85459EF41F5A48C24CD96C490A9" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Compliance with requirements for administration of program</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall comply with requirements imposed by the Secretary or a third party with a contract under subsection (d)(3), as applicable, for purposes of administering the program, including any determination under subparagraph (A) of subsection (c)(1) or procedures established under such subsection (c)(1).</content></paragraph>
<paragraph id="H88C0E37544C44839BF078FFF1874FF70" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Length of agreement</inline>.—</heading>
<subparagraph id="H69BE73872AB34FCA822069C6B6375591" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>An agreement under this section shall be effective for an initial period of not less than 12 months and shall be automatically renewed for a period of not less than 1 year unless terminated under subparagraph (B).</content></subparagraph>
<subparagraph id="H29D422328F38425F82D78111AA7052C7" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Termination</inline>.—</heading>
<clause id="H10A112187A1A417595AE5BEFEEA469B8" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">By the secretary</inline>.—</heading>
<content>The Secretary may provide for termination of an agreement under this section for a knowing and willful violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 30 days after the date of notice to the manufacturer of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, and such hearing shall take place prior to the effective date of the termination with sufficient time for such effective date to be repealed if the Secretary determines appropriate.</content></clause>
<clause id="H61CC5615BB9A42B9ADED34C3E6030AAE" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">By a manufacturer</inline>.—</heading>
<chapeau>A manufacturer may terminate an agreement under this section for any reason. Any such termination shall be effective, with respect to a plan year—</chapeau>
<subclause id="HD242712C13034E9CB14DBE1E4BF5208A" class="indent4"><num value="I">“(I) </num>
<content>if the termination occurs before January 30 of a plan year, as of the day after the end of the plan year; and</content></subclause>
<subclause id="H8255CC0D587D406BB46C52374311DD43" class="indent4"><num value="II">“(II) </num>
<content>if the termination occurs on or after January 30 of a plan year, as of the day after the end of the succeeding plan year.</content></subclause></clause>
<clause id="HC17B0330522244E2AB39142E38FF096F" class="indent3"><num value="iii">“(iii) </num>
<heading><inline class="smallCaps">Effectiveness of termination</inline>.—</heading>
<content>Any termination under this subparagraph shall not affect discounts for applicable drugs of the manufacturer that are due under the agreement before the effective date of its termination.</content></clause>
<clause id="H14DF874D796A4C0788255C7042693CF4" class="indent3"><num value="iv">“(iv) </num>
<heading><inline class="smallCaps">Notice to third party</inline>.—</heading>
<content>The Secretary shall provide notice of such termination to a third party with a contract under subsection (d)(3) within not less than 30 days before the effective date of such termination.</content></clause></subparagraph></paragraph></subsection>
<subsection id="H24FDBECB5E064936AB8084FEA28491B2" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Duties Described</inline>.—</heading>
<chapeau>The duties described in this subsection are the following:</chapeau>
<paragraph id="H9589C37AA6CB41C18090464FCA91880C" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Administration of program</inline>.—</heading>
<chapeau>Administering the program, including—</chapeau>
<subparagraph id="HEA461BAE64D64271BAC0301BD4E8C027" class="indent2"><num value="A">“(A) </num>
<content>the determination of the amount of the discounted price of an applicable drug of a manufacturer;</content></subparagraph>
<subparagraph id="H22D94A4466064C938A3AC5D972CC6EBA" class="indent2"><num value="B">“(B) </num>
<content>the establishment of procedures under which discounted prices are provided to applicable beneficiaries at pharmacies or by mail order service at the point-of-sale of an applicable drug;</content></subparagraph>
<subparagraph id="H42802022931B41B9923AC60BDFB66D91" class="indent2"><num value="C">“(C) </num>
<chapeau>the establishment of procedures to ensure that, not later than the applicable number of calendar days after the dispensing of an applicable drug by a pharmacy or mail order service, the pharmacy or mail order service is reimbursed for an amount equal to the difference between—</chapeau>
<clause id="H25D1315D4E534F8F8D15EDE8961C4887" class="indent3"><num value="i">“(i) </num>
<content>the negotiated price of the applicable drug; and</content></clause>
<clause id="HAAD5465C07674E8E81CD67C050BCAC41" class="indent3"><num value="ii">“(ii) </num>
<content>the discounted price of the applicable drug;</content></clause></subparagraph>
<subparagraph id="HAF40761D6D9F4717A272ED19D0C4966E" class="indent2"><num value="D">“(D) </num>
<content>the establishment of procedures to ensure that the discounted price for an applicable drug under this section is applied before any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of applicable beneficiaries as the Secretary may specify; and</content></subparagraph>
<subparagraph id="H2BAF19A7DC074F1EA62B120766E600C5" class="indent2"><num value="E">“(E) </num>
<content>providing a reasonable dispute resolution mechanism to resolve disagreements between manufacturers, applicable beneficiaries, and the third party with a contract under subsection (d)(3).</content></subparagraph></paragraph>
<paragraph id="HF14CE9BDA4D24F8F9E7AC73C43235FF1" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Monitoring compliance</inline>.—</heading>
<subparagraph id="H0FA52354B1BC4B189E893D2CD7F1AB76" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under this section.</content></subparagraph>
<subparagraph id="H2DD80691FBB34204B1D3E19A0087748A" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Notification</inline>.—</heading>
<content>If a third party with a contract under subsection (d)(3) determines that the manufacturer is not in compliance with such agreement, the third party shall notify the Secretary of such noncompliance for appropriate enforcement under subsection (e).</content></subparagraph></paragraph>
<paragraph id="HF3C1136DC00747C0B7DFCB4B84B19229" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Collection of data from prescription drug plans and ma–pd plans</inline>.—</heading>
<content>The Secretary may collect appropriate data from prescription drug plans and MA–PD plans in a timeframe that allows for discounted prices to be provided for applicable drugs under this section.</content></paragraph></subsection>
<subsection id="HB3DA262ED285407C919C547AB64572AA" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Administration</inline>.—</heading>
<paragraph id="HFE94025A16E84505AC3CD734D35A65B2" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to paragraph (2), the Secretary shall provide for the implementation of this section, including the performance of the duties described in subsection (c).</content></paragraph>
<paragraph id="H185BEAD26BED44888C9363F102D41193" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Limitation</inline>.—</heading>
<content>In providing for the implementation of this section, the Secretary shall not receive or distribute any funds of a manufacturer under the program.</content></paragraph>
<paragraph id="H2036EC79C0594CB69E7E2759AF26A5E5" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Contract with third parties</inline>.—</heading>
<chapeau>The Secretary shall enter into a contract with 1 or more third parties to administer the requirements established by the Secretary in order to carry out this section. At a minimum, the contract with a third party under the preceding sentence shall require that the third party—</chapeau>
<subparagraph id="H311EC4B5D2F744B599B6ED272B002251" class="indent2"><num value="A">“(A) </num>
<content>receive and transmit information between the Secretary, manufacturers, and other individuals or entities the Secretary determines appropriate;</content></subparagraph>
<subparagraph id="H8FE55E89D12F49AD9F4873557F5BFFEC" class="indent2"><num value="B">“(B) </num>
<content>receive, distribute, or facilitate the distribution of funds of manufacturers to appropriate individuals or entities in order to meet the obligations of manufacturers under agreements under this section;</content></subparagraph>
<subparagraph id="HD013DBF5B1C84F3E9793F9B483C9ED22" class="indent2"><num value="C">“(C) </num>
<content>provide adequate and timely information to manufacturers, consistent with the agreement with the manufacturer under this section, as necessary for the manufacturer to fulfill its obligations under this section; and</content></subparagraph>
<subparagraph id="H9BF9A4F178F04268972D24B3069A0F03" class="indent2"><num value="D">“(D) </num>
<content>permit manufacturers to conduct periodic audits, directly or through contracts, of the data and information used by the third party to determine discounts for applicable drugs of the manufacturer under the program.</content></subparagraph></paragraph>
<paragraph id="H70C26E4DC29A42039DB767D983CA3163" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Performance requirements</inline>.—</heading>
<content>The Secretary shall establish performance requirements for a third party with a contract under paragraph (3) and safeguards to protect the independence and integrity of the activities carried out by the third party under the program under this section.</content></paragraph>
<paragraph id="H10D38909A17348F1988AD677EDA0F216" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Implementation</inline>.—</heading>
<content>Notwithstanding any other provision of law, the Secretary may implement the program under this section by program instruction or otherwise.</content></paragraph>
<paragraph id="H488B5C78DE794D83BFFB3F8A9D365636" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Administration</inline>.—</heading>
<content><ref href="usc-chapter/44/35">Chapter 35</ref> of <ref href="/us/usc/t44">title 44, United States Code</ref>, shall not apply to the program under this section.</content></paragraph></subsection>
<subsection id="H59684BAD39C742AEAB4F44CC1CAD209E" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Enforcement</inline>.—</heading>
<paragraph id="H71437E1E8676450AA78EBDF6BE76EE5F" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Audits</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall be subject to periodic audit by the Secretary.</content></paragraph>
<paragraph id="H7308DDCA9851458384AC0BB9DEFB97D9" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Civil money penalty</inline>.—</heading>
<subparagraph id="HE239E1734772457B9C04FFE16894A6E4" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>The Secretary may impose a civil money penalty on a manufacturer that fails to provide applicable beneficiaries discounts for applicable drugs of the manufacturer in accordance with such agreement for each such failure in an amount the Secretary determines is equal to the sum of—</chapeau>
<clause id="H7A8F86BF1DA1439FBA470EA187F325B8" class="indent3"><num value="i">“(i) </num>
<content>the amount that the manufacturer would have paid with respect to such discounts under the agreement, which will then be used to pay the discounts which the manufacturer had failed to provide; and</content></clause>
<clause id="HE5D286A98C0D45139E686EAC52BCC4EA" class="indent3"><num value="ii">“(ii) </num>
<content>25 percent of such amount.</content></clause></subparagraph>
<subparagraph id="HA8C27FA4DAA34AFAA5E0A83F56CEE4E1" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Application</inline>.—</heading>
<content>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></subparagraph></paragraph></subsection>
<subsection id="HC032459DC07D4426A81FDCEA45247CC4" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Clarification Regarding Availability of Other Covered Part D Drugs</inline>.—</heading>
<content>Nothing in this section shall prevent an applicable beneficiary from purchasing a covered part D drug that is not an applicable drug (including a generic drug or a drug that is not on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in).</content></subsection>
<subsection id="HE71994FB6E514B26A811F2FDC76E982E" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<chapeau>In this section:</chapeau>
<paragraph role="definitions" id="H5A8FED57E4C948FD8E2C6A9E3E4766B3" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Applicable beneficiary</inline>.—</heading>
<chapeau>The term ‘<term>applicable beneficiary</term>’ means an individual who, on the date of dispensing a covered part D drug—</chapeau>
<subparagraph id="HF011B440CA2646D2B112930D70FBF4CF" class="indent2"><num value="A">“(A) </num>
<content>is enrolled in a prescription drug plan or an MA–PD plan;</content></subparagraph>
<subparagraph id="HFD413B4B37894ED2B2C7E606A27897F6" class="indent2"><num value="B">“(B) </num>
<content>is not enrolled in a qualified retiree prescription drug plan; and</content></subparagraph>
<subparagraph id="H4C0A8E9150DD4484A76E984D2CF30EB3" class="indent2"><num value="C">“(C) </num>
<content>has incurred costs for covered part D drugs in the year that are equal to or exceed the annual deductible specified in section 1860D–2(b)(1) for such year.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H181707F38CF44359980EA5154E51457D" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Applicable drug</inline>.—</heading>
<chapeau>The term ‘<term>applicable drug</term>’, with respect to an applicable beneficiary—</chapeau>
<subparagraph id="H31767E13F5CA487988C3DD9AA6B9439E" class="indent2"><num value="A">“(A) </num>
<chapeau>means a covered part D drug—</chapeau>
<clause id="H389ABAF746EB4DDABE505A7E3DDA162E" class="indent3"><num value="i">“(i) </num>
<content>approved under a new drug application under section 505(c) of the Federal Food, Drug, and Cosmetic Act or, in the case of a biologic product, licensed under section 351 of the Public Health Service Act; and</content></clause>
<clause id="H890F489165404A25B3BE01ABE059465D" class="indent3"><num value="ii">“(ii)</num>
<subclause id="HEBB4C873DC02410CA20C499487FCA6E6" class="inline"><num value="I">(I) </num>
<content>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan uses a formulary, which is on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in;</content></subclause>
<subclause meta="committee ID HWM00" id="H5D851DC425F94836A963B322E3E9A364" class="indent3"><num value="II">“(II) </num>
<content>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan does not use a formulary, for which benefits are available under the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in; or</content></subclause>
<subclause meta="committee ID HWM00" id="HFB3C6F1DFA6845279D2F2F236DCA5274" class="indent3"><num value="III">“(III) </num>
<content>is provided through an exception or appeal; and</content></subclause></clause></subparagraph>
<subparagraph id="H80C816C1C5984E5BA7E1FC5A680B570C" class="indent2"><num value="B">“(B) </num>
<content>does not include a selected drug (as defined in section 1192(c)) during a price applicability period (as defined in section 1191(b)(2)) with respect to such drug.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H2EC29801277A4B82A99CBCAEBFA981A2" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Applicable number of calendar days</inline>.—</heading>
<chapeau>The term ‘<term>applicable number of calendar days</term>’ means—</chapeau>
<subparagraph id="HE4165F672F9D4EB0AA9F034A6CC77C68" class="indent2"><num value="A">“(A) </num>
<content>with respect to claims for reimbursement submitted electronically, 14 days; and</content></subparagraph>
<subparagraph id="H1067D4A53BA849A3B2FDDF572E6F9C85" class="indent2"><num value="B">“(B) </num>
<content>with respect to claims for reimbursement submitted otherwise, 30 days.</content></subparagraph></paragraph>
<paragraph id="H822E3DBC304F4786BE71C57723C4AEB9" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Discounted price</inline>.—</heading>
<subparagraph role="definitions" id="H1A728CAA3D744B82AD7081DF707EABFA" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>The term ‘<term>discounted price</term>’ means, with respect to an applicable drug of a manufacturer furnished during a year to an applicable beneficiary—</chapeau>
<clause id="HD2B0E5FB65234499865E073AD6447BEF" class="indent3"><num value="i">“(i) </num>
<content>who has not incurred costs for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, 90 percent of the negotiated price of such drug; and</content></clause>
<clause id="HD236FD22C3E94EED9D0CC76529155DA7" class="indent3"><num value="ii">“(ii) </num>
<content>who has incurred such costs in the year that are equal to or exceed such threshold for the year, 70 percent of the negotiated price of such drug.</content></clause></subparagraph>
<subparagraph id="HD225523AF35F441B8B63048D0F884CD8" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Clarification</inline>.—</heading>
<content>Nothing in this section shall be construed as affecting the responsibility of an applicable beneficiary for payment of a dispensing fee for an applicable drug.</content></subparagraph>
<subparagraph id="H58AA7A10F0644AD2AD8475DF9470EA3C" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Special case for certain claims</inline>.—</heading>
<clause id="H6F29F3187DA7402092BCFB4B09BD115C" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">Claims spanning deductible</inline>.—</heading>
<content>In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall at or above the annual deductible specified in section 1860D–2(b)(1) for the year, the manufacturer of the applicable drug shall provide the discounted price under this section on only the portion of the negotiated price of the applicable drug that falls at or above such annual deductible.</content></clause>
<clause id="H6E279BEE174F4059B9ED609DD198DB55" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Claims spanning out-of-pocket threshold</inline>.—</heading>
<chapeau>In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall entirely below or entirely above the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, the manufacturer of the applicable drug shall provide the discounted price—</chapeau>
<subclause id="H64E5193BED334B38B28D5F81D7E028FF" class="indent4"><num value="I">“(I) </num>
<content>in accordance with subparagraph (A)(i) on the portion of the negotiated price of the applicable drug that falls below such threshold; and</content></subclause>
<subclause id="H2FE6538C5F424F0FB36AC39E9FD4B0F7" class="indent4"><num value="II">“(II) </num>
<content>in accordance with subparagraph (A)(ii) on the portion of such price of such drug that falls at or above such threshold.</content></subclause></clause></subparagraph></paragraph>
<paragraph role="definitions" id="HD8A4B4B99CCB4BE78895F948E759620C" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Manufacturer</inline>.—</heading>
<content>The term ‘<term>manufacturer</term>’ means any entity which is engaged in the production, preparation, propagation, compounding, conversion, or processing of prescription drug products, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. Such term does not include a wholesale distributor of drugs or a retail pharmacy licensed under State law.</content></paragraph>
<paragraph role="definitions" id="H8CF925D212D64520833A97F9A543C335" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Negotiated price</inline>.—</heading>
<content>The term ‘<term>negotiated price</term>’ has the meaning given such term in <ref href="/us/cfr/t42/s423.100">section 423.100 of title 42, Code of Federal Regulations</ref> (or any successor regulation), except that, with respect to an applicable drug, such negotiated price shall not include any dispensing fee for the applicable drug.</content></paragraph>
<paragraph role="definitions" id="H653B891448ED4E4FAB650F4D12A5F3EF" class="indent1"><num value="7">“(7) </num>
<heading><inline class="smallCaps">Qualified retiree prescription drug plan</inline>.—</heading>
<content>The term ‘<term>qualified retiree prescription drug plan</term>’ has the meaning given such term in section 1860D–22(a)(2).”.</content></paragraph></subsection></section></quotedContent></content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/c/2" id="H16641DBA4D9943C2A4AF326B2B664F43" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Sunset of medicare coverage gap discount program</inline>.—</heading>
<chapeau>Section 1860D–14A of the Social Security Act (<ref href="/us/usc/t42/s1395–114a">42 U.S.C. 1395–114a</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/2/A" id="H42F2961C911042C88C6DC9EEB9043B88" class="indent2"><num value="A">(A) </num>
<content>in subsection (a), in the first sentence, by <amendingAction type="delete">striking</amendingAction> “<quotedText>The Secretary</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>Subject to subsection (h), the Secretary</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/2/B" id="H4BD2BCA1BE9743659B0A1C22932CEE6E" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent meta="committee ID HWM00" id="H1ECD60DA6F4E400BA5B7E75F058A3EAC" styleType="OLC"> <subsection id="H531DAEB2DFEF4E808A9D9BD604782AA8" class="indent0"><num value="h">“(h) </num>
<heading><inline class="smallCaps">Sunset of Program</inline>.—</heading>
<paragraph id="H193217FA13DD4E1F9A6E883139E14C0F" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The program shall not apply with respect to applicable drugs dispensed on or after January 1, 2022, and, subject to paragraph (2), agreements under this section shall be terminated as of such date.</content></paragraph>
<paragraph id="H4399DEDEF037406ABF00B4EE515FBB88" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Continued application for applicable drugs dispensed prior to sunset</inline>.—</heading>
<content>The provisions of this section (including all responsibilities and duties) shall continue to apply after January 1, 2022, with respect to applicable drugs dispensed prior to such date.”.</content></paragraph></subsection></quotedContent></content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/c/3" id="H0B564104A05F401BBB5177F1180D5119" class="indent1"><num value="3">(3) </num>
<heading><inline class="smallCaps">Inclusion of actuarial value of manufacturer discounts in bids</inline>.—</heading>
<chapeau>Section 1860D–11 of the Social Security Act (<ref href="/us/usc/t42/s1395w–111">42 U.S.C. 1395w–111</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/3/A" id="HFAE523B095A742708026106DD9F0251A" class="indent2"><num value="A">(A) </num>
<chapeau>in subsection (b)(2)(C)(iii)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/A/i" id="HF36C3EEEDDEC4DCC88FAED4D3B4856B9" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>assumptions regarding the reinsurance</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent>“assumptions regarding— <subclause id="H998F1377F0534E818CF66742EBAE43A0" class="indent4"><num value="I">“(I) </num>
<content>the reinsurance”; and</content></subclause></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/A/ii" id="H54EE657DAF324B50BF362FAA9C7F0E04" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HWM00" id="HF82E8F73423740D2A85C812C386ABF80" styleType="OLC"> <subclause id="HE84A85CC710F444F941376F38FB58552" class="indent4"><num value="II">“(II) </num>
<content>for 2022 and each subsequent year, the manufacturer discounts provided under section 1860D–14C subtracted from the actuarial value to produce such bid; and”; and</content></subclause></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/3/B" id="H207D5E59287542C1806914E6EB64AB55" class="indent2"><num value="B">(B) </num>
<chapeau>in subsection (c)(1)(C)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/B/i" id="HFB93CA6CF891476D88D94BF6D1F5752F" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>an actuarial valuation of the reinsurance</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent>“an actuarial valuation of— <clause id="H6DAA41C2781B44BF83B3B27B974A958D" class="indent3"><num value="i">“(i) </num>
<content>the reinsurance”;</content></clause></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/B/ii" id="H0BC54185F9DB4C1EA29A0189DC4B11ED" class="indent3"><num value="ii">(ii) </num>
<content>in clause (i), as inserted by clause (i) of this subparagraph, by <amendingAction type="add">adding</amendingAction> “<quotedText>and</quotedText>” at the end; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/B/iii" id="H563A61011D1A43B4B7125E462711B111" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HWM00" id="H406FAE7F73BE4E6C836E9F1289CA4C81" styleType="OLC"> <clause id="HCD351597E9AE4101891FCAE5236E76A5" class="indent3"><num value="ii">“(ii) </num>
<content>for 2022 and each subsequent year, the manufacturer discounts provided under section 1860D–14C;”.</content></clause></quotedContent></content></clause></subparagraph></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIII/s301/d" id="H49CDA06C5BA04F019C5D0ABCF6CF8C12" class="indent0"><num value="d">(d) </num>
<heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/1" id="H68669D29E8EF459E8550CDEF8EA17C38" class="indent1"><num value="1">(1) </num>
<chapeau>Section 1860D–2 of the Social Security Act (<ref href="/us/usc/t42/s1395w–102">42 U.S.C. 1395w–102</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/1/A" id="H60DD07E60628456B8752052D0116E9D0" class="indent2"><num value="A">(A) </num>
<content>in subsection (a)(2)(A)(i)(I), by <amendingAction type="delete">striking</amendingAction> “<quotedText>, or an increase in the initial</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>or, for a year preceding 2022, an increase in the initial</quotedText>”;</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/1/B" id="HCE8CB4425C3F42EBBCD87741BA291E6A" class="indent2"><num value="B">(B) </num>
<chapeau>in subsection (c)(1)(C)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/1/B/i" id="H8EE5B8696DD043FBA1B71EADD760A25B" class="indent3"><num value="i">(i) </num>
<content>in the subparagraph heading, by <amendingAction type="delete">striking</amendingAction> “<headingText role="subparagraph" class="smallCaps">at initial coverage limit</headingText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/1/B/ii" id="H8532EFFE94594B1CB89FB7DD4EC4E9B2" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022 or the annual out-of-pocket threshold specified in subsection (b)(4)(B) for the year for 2022 and each subsequent year</quotedText>” after “<quotedText>subsection (b)(3) for the year</quotedText>” each place it appears; and</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/1/C" id="H8F6BF2AE556942698AF23AFA1EE50283" class="indent2"><num value="C">(C) </num>
<content>in subsection (d)(1)(A), by <amendingAction type="delete">striking</amendingAction> “<quotedText>or an initial</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>or, for a year preceding 2022, an initial</quotedText>”.</content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/2" id="H90632CCC19074641A4A163B60B3BA81F" class="indent1"><num value="2">(2) </num>
<content>Section 1860D–4(a)(4)(B)(i) of the Social Security Act (<ref href="/us/usc/t42/s1395w–104/a/4/B/i">42 U.S.C. 1395w–104(a)(4)(B)(i)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>the initial</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022, the initial</quotedText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/3" id="H0988665945794C6E8D3DFAD942E1397B" class="indent1"><num value="3">(3) </num>
<chapeau>Section 1860D–14(a) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a">42 U.S.C. 1395w–114(a)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/3/A" id="HAF97654114044590B7DDD1F4326626D7" class="indent2"><num value="A">(A) </num>
<chapeau>in paragraph (1)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/A/i" id="H61D6368FB9EA4A898F2677F65006AD5F" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (C), by <amendingAction type="delete">striking</amendingAction> “<quotedText>The continuation</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For a year preceding 2022, the continuation</quotedText>”;</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/A/ii" id="H3C1B02659A0A427EABF5816427F1BAA8" class="indent3"><num value="ii">(ii) </num>
<content>in subparagraph (D)(iii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)(aa)</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/A/iii" id="HE12FA8CD17F8445BA9C52DFD30B918AB" class="indent3"><num value="iii">(iii) </num>
<content>in subparagraph (E), by <amendingAction type="delete">striking</amendingAction> “<quotedText>The elimination</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For a year preceding 2022, the elimination</quotedText>”; and</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/3/B" id="HCE0BA26127174A18839A70C150E4FD60" class="indent2"><num value="B">(B) </num>
<chapeau>in paragraph (2)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/B/i" id="HB9C4FF26BE0A4FECAE56427D9DDB7090" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (C), by <amendingAction type="delete">striking</amendingAction> “<quotedText>The continuation</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For a year preceding 2022, the continuation</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/B/ii" id="HDAB53B339548495E90455091F18302CB" class="indent3"><num value="ii">(ii) </num>
<content>in subparagraph (E), by <amendingAction type="delete">striking</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)(aa)</quotedText>”.</content></clause></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/4" id="HF91BA7046B9D4494BBC29A02E52A5B4D" class="indent1"><num value="4">(4) </num>
<content>Section 1860D–21(d)(7) of the Social Security Act (<ref href="/us/usc/t42/s1395w–131/d/7">42 U.S.C. 1395w–131(d)(7)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 1860D–2(b)(4)(B)(i)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>section 1860D–2(b)(4)(C)(i)</quotedText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/5" id="HEB0202697D31421481D18F697BBD980C" class="indent1"><num value="5">(5) </num>
<chapeau>Section 1860D–22(a)(2)(A) of the Social Security Act (<ref href="/us/usc/t42/s1395w–132/a/2/A">42 U.S.C. 1395w–132(a)(2)(A)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/5/A" id="HFE3F3F88822D44CFBEDA345E9B12C403" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>the value of any discount</quotedText>” and <amendingAction type="insert">inserting</amendingAction> the following: <quotedContent meta="committee ID HWM00" id="H94744A88B0FB4BA29CCBE4E36303AE13" styleType="OLC"> “the value of—<clause id="HB54D9CD89B024D0580C44F3B7008CB85" class="indent3"><num value="i">“(i) </num>
<content>for years prior to 2022, any discount”;</content></clause></quotedContent></content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/5/B" id="HE1D40F2703D44D9D8BCEFCCF26B5EEAE" class="indent2"><num value="B">(B) </num>
<content>in clause (i), as inserted by subparagraph (A) of this paragraph, by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/5/C" id="H499A7149DE4A425DA3BE4A3638F10BDB" class="indent2"><num value="C">(C) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new clause:<quotedContent meta="committee ID HWM00" id="H65D7C820E01E4A22B1E0C9CD88D5BB9B" styleType="OLC"> <clause id="H80268C4941CA43789C03A1EF63A0E45A" class="indent3"><num value="ii">“(ii) </num>
<content>for 2022 and each subsequent year, any discount provided pursuant to section 1860D–14C.”.</content></clause></quotedContent></content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/6" id="H2DE998C8192D4656B9BC8AC44C0572AA" class="indent1"><num value="6">(6) </num>
<chapeau>Section 1860D–41(a)(6) of the Social Security Act (<ref href="/us/usc/t42/s1395w–151/a/6">42 U.S.C. 1395w–151(a)(6)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/6/A" id="HD87A446F1F02483F92D010EFF73A8C58" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year before 2022</quotedText>” after “<quotedText>1860D–2(b)(3)</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/6/B" id="HFD81547E3B864CC4A2BB667E5CDACC6F" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for such year</quotedText>” before the period.</content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/7" id="H2614DB7F1EAE4203A98A94EB9988CAE2" class="indent1"><num value="7">(7) </num>
<chapeau>Section 1860D–43 of the Social Security Act (<ref href="/us/usc/t42/s1395w–153">42 U.S.C. 1395w–153</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/7/A" id="H898056D4D12F4BF2BDB6B4A58FBC8903" class="indent2"><num value="A">(A) </num>
<chapeau>in subsection (a)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/7/A/i" id="H8881D167D9D54F9C9298EDC6CD1F60F1" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> paragraph (1) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent meta="committee ID HWM00" id="H71ACDA71A73740EB8B63A6A77B0D6EB8" styleType="OLC"> <paragraph id="H0F59ECF305C6455D8560A70085687E1F" class="indent1"><num value="1">“(1) </num>
<chapeau>participate in—</chapeau>
<subparagraph id="H6EE45AE07C014600B16E4EF2D7BCC564" class="indent2"><num value="A">“(A) </num>
<content>for 2011 through 2021, the Medicare coverage gap discount program under section 1860D–14A; and</content></subparagraph>
<subparagraph id="H0B8FB62A5480468D8EF4FCEF902B219B" class="indent2"><num value="B">“(B) </num>
<content>for 2022 and each subsequent year, the manufacturer discount program under section 1860D–14C;”;</content></subparagraph></paragraph></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/7/A/ii" id="HB7C80D15E3D545F48F239260A6547611" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> paragraph (2) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent meta="committee ID HWM00" id="H230DDE02561349609533BF85A8370C42" styleType="OLC"> <paragraph id="HE77BE7911260433785E730410530B80A" class="indent1"><num value="2">“(2) </num>
<chapeau>have entered into and have in effect—</chapeau>
<subparagraph id="H50CF5B83F7BC4258B244E73BB855F88F" class="indent2"><num value="A">“(A) </num>
<content>for 2011 through 2021, an agreement described in subsection (b) of section 1860D–14A with the Secretary; and</content></subparagraph>
<subparagraph id="H120981008A544DBEAB52AEE5542EDB0D" class="indent2"><num value="B">“(B) </num>
<content>for 2022 and each subsequent year, an agreement described in subsection (b) of section 1860D–14C with the Secretary; and”; and</content></subparagraph></paragraph></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/7/A/iii" id="HDAF526CA67084317ADAA3DDAED6F3F5A" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> paragraph (3) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent meta="committee ID HWM00" id="HD7B7ED09570B4259864BFD166262BCBB" styleType="OLC"> <paragraph id="H36233B46BB2D4A7988FABA5CB808AC70" class="indent1"><num value="3">“(3) </num>
<chapeau>have entered into and have in effect, under terms and conditions specified by the Secretary—</chapeau>
<subparagraph id="H676E888847164134B8FC7C096B97CBB3" class="indent2"><num value="A">“(A) </num>
<content>for 2011 through 2021, a contract with a third party that the Secretary has entered into a contract with under subsection (d)(3) of section 1860D–14A; and</content></subparagraph>
<subparagraph id="H21214C962ACB442A82F102E49F3B8E34" class="indent2"><num value="B">“(B) </num>
<content>for 2022 and each subsequent year, a contract with a third party that the Secretary has entered into a contract with under subsection (d)(3) of section 1860D–14C.”; and</content></subparagraph></paragraph></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/7/B" id="H482F55A9E4694DB8ACEFC698775AA105" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="delete">striking</amendingAction> subsection (b) and <amendingAction type="insert">inserting</amendingAction> the following:<quotedContent meta="committee ID HWM00" id="H9154FD23102F4DAAB95D83BF2BB08727" styleType="OLC"> <subsection id="H1A70934DC2FF4404A169232D3D95F630" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>Paragraphs (1)(A), (2)(A), and (3)(A) of subsection (a) shall apply to covered part D drugs dispensed under this part on or after January 1, 2011, and before January 1, 2022, and paragraphs (1)(B), (2)(B), and (3)(B) of such subsection shall apply to covered part D drugs dispensed under this part on or after January 1, 2022.”.</content></subsection></quotedContent></content></subparagraph></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIII/s301/e" id="H07133D283FD94223A2867FA4441DAB4B" class="indent0"><num value="e">(e) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>The amendments made by this section shall apply with respect to plan year 2022 and subsequent plan years.</content></subsection></section> 
<section identifier="/us/bill/116/hr/3/tIII/s302" id="H45EFD6AF24D04BA4BF60318AA7DDC1B7" role="subsequent-section"><num value="302">SEC. 302. </num>
<heading>ALLOWING CERTAIN ENROLLEES OF PRESCRIPTION DRUGS PLANS AND MA–PD PLANS UNDER MEDICARE PROGRAM TO SPREAD OUT COST-SHARING UNDER CERTAIN CIRCUMSTANCES.</heading>
<chapeau class="indent0">Section 1860D–2(b)(2) of the Social Security Act (<ref href="/us/usc/t42/s1395w–102/b/2">42 U.S.C. 1395w–102(b)(2)</ref>), as amended by section 301, is further amended—</chapeau>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s302/1" id="H154E3F59F6A0483F8AB27F1BB4B3D3EA" class="indent1"><num value="1">(1) </num>
<content>in subparagraph (A), by <amendingAction type="delete">striking</amendingAction> “<quotedText>Subject to subparagraphs (C) and (D)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>Subject to subparagraphs (C), (D), and (E)</quotedText>”; and</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s302/2" id="H6E01146483F74008BB9FF56CDDC15A09" class="indent1"><num value="2">(2) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HWM00" id="H62C00BF93AE14A56942176F3413AF6EC" styleType="OLC"> <subparagraph id="H7923D473E16C4F0E995297DC67F1D8C5" class="indent2"><num value="E">“(E) </num>
<heading><inline class="smallCaps">Enrollee option regarding spreading cost-sharing</inline>.—</heading>
<content>The Secretary shall establish by regulation a process under which, with respect to plan year 2022 and subsequent plan years, a prescription drug plan or an MA–PD plan shall, in the case of a part D eligible individual enrolled with such plan for such plan year who is not a subsidy eligible individual (as defined in section 1860D–14(a)(3)) and with respect to whom the plan projects that the dispensing of the first fill of a covered part D drug to such individual will result in the individual incurring costs that are equal to or above the annual out-of-pocket threshold specified in paragraph (4)(B) for such plan year, provide such individual with the option to make the coinsurance payment required under subparagraph (A) (for the portion of such costs that are not above such annual out-of-pocket threshold) in the form of periodic installments over the remainder of such plan year.”.</content></subparagraph></quotedContent></content></paragraph></section> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tIII/s303" id="H6BC68F1D6FF148E7B444BB6F6D66E145"><num value="303">SEC. 303. </num>
<heading>ESTABLISHMENT OF PHARMACY QUALITY MEASURES UNDER MEDICARE PART D.</heading>
<chapeau class="indent0">Section 1860D–4(c) of the Social Security Act (<ref href="/us/usc/t42/s1395w–104/c">42 U.S.C. 1395w–104(c)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tIII/s303/1" id="HC4515BB6B4A342A4B453E24C7F26BAAC" class="indent1"><num value="1">(1) </num>
<content>by <amendingAction type="redesignate">redesignating</amendingAction> the paragraph (6), as added by section 50354 of division E of the Bipartisan Budget Act of 2018 (<ref href="/us/pl/115/123">Public Law 115–123</ref>), as paragraph (7); and</content></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIII/s303/2" id="H83E38C5CB1D3412AA059C84ED880F853" class="indent1"><num value="2">(2) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent meta="committee ID HWM00" id="H7E3BBED8EEC6448DBFA7741F5E90E9F3" styleType="OLC"> <paragraph id="HEBBA1AAB37FB43BDB244AF809B43A5B8" class="indent1"><num value="8">“(8) </num>
<heading><inline class="smallCaps">Application of pharmacy quality measures</inline>.—</heading>
<subparagraph id="H0D19EFC106DC4726A711FBB5177C62DD" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>A PDP sponsor that implements incentive payments to a pharmacy or price concessions paid by a pharmacy based on quality measures shall use measures established or approved by the Secretary under subparagraph (B) with respect to payment for covered part D drugs dispensed by such pharmacy.</content></subparagraph>
<subparagraph id="H99C9F6A049D840FE8B6E507B1C9DE1A2" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Standard pharmacy quality measures</inline>.—</heading>
<content>The Secretary shall establish or approve standard quality measures from a consensus and evidence-based organization for payments described in subparagraph (A). Such measures shall focus on patient health outcomes and be based on proven criteria measuring pharmacy performance.</content></subparagraph>
<subparagraph id="H377407DCA0EE4AAA813EBD6659CACF89" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Effective date</inline>.—</heading>
<content>The requirement under subparagraph (A) shall take effect for plan years beginning on or after January 1, 2021, or such earlier date specified by the Secretary if the Secretary determines there are sufficient measures established or approved under subparagraph (B) to meet the requirement under subparagraph (A).”.</content></subparagraph></paragraph></quotedContent></content></paragraph></section></title>
<title identifier="/us/bill/116/hr/3/tIV" id="H74F2C973C8D349F79DB1D834F66A0C57"><num value="IV">TITLE IV—</num>
<heading class="inline">PRESCRIPTION DRUG POLICIES FOR LOW-INCOME INDIVIDUALS</heading> 
<section identifier="/us/bill/116/hr/3/tIV/s401" id="HAB9632123A9A4C35BE0A8C00A9011FFA" role="subsequent-section"><num value="401">SEC. 401. </num>
<heading>ADJUSTMENTS TO MEDICARE PART D COST-SHARING REDUCTIONS FOR LOW-INCOME INDIVIDUALS.</heading>
<chapeau class="indent0">Section 1860D–14(a) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a">42 U.S.C. 1395w–114(a)</ref>), as amended by section 301(d), is further amended—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tIV/s401/1" id="HC4287970610E47BF916BB136E4981296" class="indent1"><num value="1">(1) </num>
<chapeau>in paragraph (1)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s401/1/A" id="H8247D2D8306D4222942EC8EEEDF1A613" class="indent2"><num value="A">(A) </num>
<chapeau>in subparagraph (D)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIV/s401/1/A/i" id="H5CA10979EE5F42258B31B46569BB2EA8" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (ii)—</chapeau>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/i/I" id="H2E1DE89F6FB14D08BC7658B7BD0A7A1F" class="indent4"><num value="I">(I) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>that does not exceed $1 for</quotedText>” and all that follows through the period at the end and <amendingAction type="insert">inserting</amendingAction> <quotedContent meta="committee ID HWM00" id="H33C7DF4800E343048799A65B7EF1FEC8" styleType="OLC"> “that does not exceed—<subclause id="H256CE5D766D04B6595A4842D7FE657E5" class="indent4"><num value="I">“(I) </num>
<chapeau>for plan years before plan year 2021—</chapeau><item id="HB11BA133D90B4354986A47853607611F" class="indent5"><num value="aa">“(aa) </num>
<content>for a generic drug or a preferred drug that is a multiple source drug (as defined in section 1927(k)(7)(A)(i)), $1 or, if less, the copayment amount applicable to an individual under clause (iii); and</content></item><item id="H6629CF4195F3414AA3BCDD9C363FF467" class="indent5"><num value="bb">“(bb) </num>
<content>for any other drug, $3 or, if less, the copayment amount applicable to an individual under clause (iii); and”; and</content></item></subclause></quotedContent></content></subclause>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/i/II" id="H107B5800A2A14DC38614C1BD58476112" class="indent4"><num value="II">(II) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subclauses:<quotedContent meta="committee ID HWM00" id="H528ADB093DBC472C8AEED940E54F85CF" styleType="OLC"> <subclause id="HAAFE416C64F1493992C8D28868DBFC99" class="indent4"><num value="II">“(II) </num>
<chapeau>for plan year 2021—</chapeau><item id="H0996AF5809774CABB208700C61729F59" class="indent5"><num value="aa">“(aa) </num>
<content>for a generic drug, $0; and</content></item><item id="H34AE074EB7ED49B7BB3EBB2B18C18744" class="indent5"><num value="bb">“(bb) </num>
<content>for any other drug, the dollar amount applied under this clause (after application of paragraph (4)(A)) for plan year 2020 for a drug described in subclause (I)(bb); and</content></item></subclause>
<subclause id="H3CC2F5FBD6634C44B8D12CF319AB30D4" class="indent4"><num value="III">“(III) </num>
<content>for a subsequent year, the dollar amount applied under this clause for the previous year for the drug, increased by the annual percentage increase in the consumer price index (all items; U.S. city average) as of September of such previous year.”; and</content></subclause></quotedContent></content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIV/s401/1/A/ii" id="H44E6AD9B6AA842FCBB46ADD1DF2EBB02" class="indent3"><num value="ii">(ii) </num>
<chapeau>in clause (iii)—</chapeau>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/ii/I" id="H108C02DA94684DFFBB31885618F63027" class="indent4"><num value="I">(I) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>does not exceed the copayment amount specified under</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent meta="committee ID HWM00" id="H5D5E456CA866452088520D37CC5C6141" styleType="OLC"> “does not exceed—<subclause id="HC20D54105A9342CA82A454E8B5DF7375" class="indent4"><num value="I">“(I) </num>
<content>for plan years beginning before plan year 2021, the copayment amount specified under”;</content></subclause></quotedContent></content></subclause>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/ii/II" id="H7FA6B4F4D8A541A4A32683605EA9D92C" class="indent4"><num value="II">(II) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></subclause>
<subclause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/A/ii/III" id="HCE743950351947C7999C1D76E634F7AA" class="indent4"><num value="III">(III) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subclause:<quotedContent meta="committee ID HWM00" id="H0AB5216187CD418DBADF0AB24AB3CBD4" styleType="OLC"> <subclause id="HAF1C5728F0DE4D03A217BBBF0C1C99D4" class="indent4"><num value="II">“(II) </num>
<content>for plan year 2021 and each subsequent plan year, the copayment amount applied under clause (ii) for the drug and year involved.”; and</content></subclause></quotedContent></content></subclause></clause></subparagraph>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/1/B" id="HC82FDD53E8CD4232BFCB5F03A587EBC8" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HWM00" id="HDFDB641063244460B8E3EBEE3D2AB933" styleType="OLC"> <subparagraph id="HAA012F057BC545E28845D05CB260A6A2" class="indent2"><num value="F">“(F) </num>
<heading><inline class="smallCaps">Rounding</inline>.—</heading>
<content>Any amount established under clause (ii) of subparagraph (D), including as applied under clause (iii) of such subparagraph or paragraph (2)(D), that is based on an increase of $3, that is not a multiple of 5 cents or 10 cents, respectively, shall be rounded to the nearest multiple of 5 cents or 10 cents, respectively.”;</content></subparagraph></quotedContent></content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIV/s401/2" id="H051F974231DB48D897EB1624BC582BD5" class="indent1"><num value="2">(2) </num>
<chapeau>in paragraph (2)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s401/2/A" id="H610DFDF799EA4EC6813BD689DEDE2DAB" class="indent2"><num value="A">(A) </num>
<chapeau>in subparagraph (D)—</chapeau>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/A/i" id="HCBBEEA31D83B4DC2AFA0876B79C0A754" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>of coinsurance of</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent meta="committee ID HWM00" id="H302545D219894D209B07FAF5CE664B84" styleType="OLC"> “of—<clause id="H6BEDCABADFF1445DADA29E8933BDCF3F" class="indent3"><num value="i">“(i) </num>
<content>for plan years before plan year 2021, coinsurance of”;</content></clause></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/A/ii" id="HE27E7781B51D4BE8BA394C384C27AEF4" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/A/iii" id="H9CA314F4D06D4627A89700FF7A65519D" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new clause:<quotedContent meta="committee ID HWM00" id="H35EDAA12BC814B7E918BC8410589CB66" styleType="OLC"> <clause id="HEA1AB5C450564733B473079C51CADC61" class="indent3"><num value="ii">“(ii) </num>
<content>for plan year 2021 and each subsequent plan year, a copayment amount that does not exceed the copayment amount applied under paragraph (1)(D)(ii) for the drug and year involved.”; and</content></clause></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s401/2/B" id="H3D01C232BB784AB6BD88A787B06A8C3B" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (E)—</chapeau>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/B/i" id="H0E835ADFAEAF42029A0AE1E045855D2D" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>subsection (c), the substitution for</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent meta="committee ID HWM00" id="HFC4C2A1568794CC18BA81091E21BAE02" styleType="OLC"> “subsection (c)—<clause id="H5AD246FDA5FE4970898C2648AE8CF9C5" class="indent3"><num value="i">“(i) </num>
<content>for plan years before plan year 2021, the substitution for”;</content></clause></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/B/ii" id="H2EC28194F96143BB9DD3D0655A5E27E0" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/2/B/iii" id="H6B18A93DF80F4ED0B35C1E6A61B1D226" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new clause:<quotedContent meta="committee ID HWM00" id="HDC36F757D1484E46ABBE8835E4BED7D8" styleType="OLC"> <clause id="HAC6B417AF2D240C3A4C7C9E4599AA66B" class="indent3"><num value="ii">“(ii) </num>
<content>for plan year 2021, the elimination of any cost-sharing imposed under section 1860D–2(b)(4)(A).”; and</content></clause></quotedContent></content></clause></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s401/3" id="H93CE91E4A457411D91264A33AF5A6829" class="indent1"><num value="3">(3) </num>
<content>in paragraph (4)(A)(ii), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(before 2021)</quotedText>” after “<quotedText>subsequent year</quotedText>”.</content></paragraph></section> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tIV/s402" id="H52B1B0F009D3427395EAC421584C4E86"><num value="402">SEC. 402. </num>
<heading>DISSEMINATION TO MEDICARE PART D SUBSIDY ELIGIBLE INDIVIDUALS OF INFORMATION COMPARING PREMIUMS OF CERTAIN PRESCRIPTION DRUG PLANS.</heading>
<content>Section 1860D–1(c)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–101/c/3">42 U.S.C. 1395w–101(c)(3)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HWM00" id="H1FEBF7C6F3B745E78A10C6C9AE31BC32" styleType="OLC"> <subparagraph id="H8AFB8705C2204BA0AFE637323C623B8E" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Information on premiums for subsidy eligible individuals</inline>.—</heading>
<clause id="HBE09B81C12B84517A013A8A178FAF3ED" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>For plan year 2022 and each subsequent plan year, the Secretary shall disseminate to each subsidy eligible individual (as defined in section 1860D–14(a)(3)) information under this paragraph comparing premiums that would apply to such individual for prescription drug coverage under LIS benchmark plans, including, in the case of an individual enrolled in a prescription drug plan under this part, information that compares the premium that would apply if such individual were to remain enrolled in such plan to premiums that would apply if the individual were to enroll in other LIS benchmark plans.</content></clause>
<clause role="definitions" id="HF416D8714C254793804273DAA80CD774" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">LIS benchmark plan</inline>.—</heading>
<chapeau>For purposes of clause (i), the term ‘<term>LIS benchmark plan</term>’ means, with respect to an individual, a prescription drug plan under this part that is offered in the region in which the individual resides and—</chapeau>
<subclause id="HCCF34CE088DA4CF683ED85E334D7FB54" class="indent4"><num value="I">“(I) </num>
<content>that provides for a premium that is not more than the low-income benchmark premium amount (as defined in section 1860D–14(b)(2)) for such region; or</content></subclause>
<subclause id="H73274748F6C4449E96C21FC96B9C7307" class="indent4"><num value="II">“(II) </num>
<content>with respect to which the premium would be waived as de minimis pursuant to section 1860D–14(a)(5) for such individual.”.</content></subclause></clause></subparagraph></quotedContent></content></section> 
<section identifier="/us/bill/116/hr/3/tIV/s403" id="HB91AFD1F85C04EB6B53D3C724281A18A" role="subsequent-section"><num value="403">SEC. 403. </num>
<heading>PROVIDING FOR INTELLIGENT ASSIGNMENT OF CERTAIN SUBSIDY ELIGIBLE INDIVIDUALS AUTO-ENROLLED UNDER MEDICARE PRESCRIPTION DRUG PLANS AND MA–PD PLANS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tIV/s403/a" id="HD3EC93BDC2CD463782E820F2CCBEDCA5" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>Section 1860D–1(b)(1) of the Social Security Act (<ref href="/us/usc/t42/s1395w–101/b/1">42 U.S.C. 1395w–101(b)(1)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tIV/s403/a/1" id="H8E21A3FB13684F2FA915F6B081870EA4" class="indent1"><num value="1">(1) </num>
<chapeau>in subparagraph (C)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s403/a/1/A" id="HEB72BC6E6A1B47DDB63C68C099E5715C" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>PDP region</quotedText>” the following: “<quotedText>or through use of an intelligent assignment process that is designed to maximize the access of such individual to necessary prescription drugs while minimizing costs to such individual and to the program under this part to the greatest extent possible. In the case the Secretary enrolls such individuals through use of an intelligent assignment process, such process shall take into account the extent to which prescription drugs necessary for the individual are covered in the case of a PDP sponsor of a prescription drug plan that uses a formulary, the use of prior authorization or other restrictions on access to coverage of such prescription drugs by such a sponsor, and the overall quality of a prescription drug plan as measured by quality ratings established by the Secretary</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s403/a/1/B" id="HE9D3E5DD0EAC498A82A954E046A38997" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>Nothing in the previous sentence</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>Nothing in this subparagraph</quotedText>”; and</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIV/s403/a/2" id="HBD8AB154EF4D49D8B4F8978BD982CC31" class="indent1"><num value="2">(2) </num>
<chapeau>in subparagraph (D)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s403/a/2/A" id="HD83E2FA69FEC4ECC929ED4EE764B6DB8" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>PDP region</quotedText>” the following: “<quotedText>or through use of an intelligent assignment process that is designed to maximize the access of such individual to necessary prescription drugs while minimizing costs to such individual and to the program under this part to the greatest extent possible. In the case the Secretary enrolls such individuals through use of an intelligent assignment process, such process shall take into account the extent to which prescription drugs necessary for the individual are covered in the case of a PDP sponsor of a prescription drug plan that uses a formulary, the use of prior authorization or other restrictions on access to coverage of such prescription drugs by such a sponsor, and the overall quality of a prescription drug plan as measured by quality ratings established by the Secretary</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s403/a/2/B" id="HF5A0A150DF2A43D491745256261E90D1" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>Nothing in the previous sentence</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>Nothing in this subparagraph</quotedText>”.</content></subparagraph></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIV/s403/b" id="HC70CD341BC754E7EB4C0A966A74DB9C8" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>The amendments made by subsection (a) shall apply with respect to plan years beginning with plan year 2022.</content></subsection></section> 
<section identifier="/us/bill/116/hr/3/tIV/s404" id="HC52A3A1137054A668BFDA6A8D7BAFDB0" role="subsequent-section"><num value="404">SEC. 404. </num>
<heading>EXPANDING ELIGIBILITY FOR LOW-INCOME SUBSIDIES UNDER PART D OF THE MEDICARE PROGRAM.</heading>
<chapeau class="indent0">Section 1860D–14(a) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a">42 U.S.C. 1395w–114(a)</ref>), as amended by sections 301(d) and 401, is further amended—</chapeau>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/1" id="H33100E299115439291CCF3301448583B" class="indent1"><num value="1">(1) </num>
<content>in the subsection heading, by <amendingAction type="delete">striking</amendingAction> “<headingText role="subsection" class="smallCaps">Individuals</headingText>” and all that follows through “<headingText role="subsection" class="smallCaps">Line</headingText>” and <amendingAction type="insert">inserting</amendingAction> “<headingText role="subsection" class="smallCaps">Certain Individuals</headingText>”;</content></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIV/s404/2" id="HB944299AB0B24E059C71B5641E9F25A0" class="indent1"><num value="2">(2) </num>
<chapeau>in paragraph (1)—</chapeau>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/2/A" id="HE48B6472244E48C6BD868EAD7609B900" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the paragraph heading and <amendingAction type="insert">inserting</amendingAction> “<headingText role="paragraph" class="smallCaps">Individuals with certain low incomes</headingText>”; and</content></subparagraph>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/2/B" id="HDFE3903CB7E346B08DD43953133C76BE" class="indent2"><num value="B">(B) </num>
<content>in the matter preceding subparagraph (A), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(or, with respect to a plan year beginning on or after January 1, 2022, 150 percent)</quotedText>” after “<quotedText>135 percent</quotedText>”;</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIV/s404/3" id="H00B53967234243D89686EB508FCDB269" class="indent1"><num value="3">(3) </num>
<chapeau>in paragraph (2)—</chapeau>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/3/A" id="H47E111B0247D43D4B4A8C6799EA67A39" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the paragraph heading and <amendingAction type="insert">inserting</amendingAction> “<headingText role="paragraph" class="smallCaps">Other low-income individuals</headingText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s404/3/B" id="H2A9AD4CB4BB442DB935A9B5D2F322F32" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (A)—</chapeau>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/3/B/i" id="HC2A954EF111A4FBB99F300F23E5B9506" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(or, with respect to a plan year beginning on or after January 1, 2022, 150 percent)</quotedText>” after “<quotedText>135 percent</quotedText>”; and</content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/3/B/ii" id="HDE0851D2EAC347BE96CB7B4AB9FB2207" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(or, with respect to a plan year beginning on or after January 1, 2022, 200 percent)</quotedText>” after “<quotedText>150 percent</quotedText>”; and</content></clause></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s404/4" id="HFF2D94D094A049AFBA9C9CA335F8839D" class="indent1"><num value="4">(4) </num>
<content>in paragraph (3)(A)(ii), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>(or, with respect to a plan year beginning on or after January 1, 2022, 200 percent)</quotedText>” after “<quotedText>150 percent</quotedText>”.</content></paragraph></section> 
<section identifier="/us/bill/116/hr/3/tIV/s405" id="H1128DC6D95694216B5F6B472AE6CD2AA" role="subsequent-section"><num value="405">SEC. 405. </num>
<heading>AUTOMATIC ELIGIBILITY OF CERTAIN LOW-INCOME TERRITORIAL RESIDENTS FOR PREMIUM AND COST-SHARING SUBSIDIES UNDER THE MEDICARE PROGRAM; SUNSET OF ENHANCED ALLOTMENT PROGRAM.</heading>
<subsection identifier="/us/bill/116/hr/3/tIV/s405/a" id="HD31AA8EF5A064D20BC052245AD2C2E6D" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">Automatic Eligibility of Certain Low-Income Territorial Residents for Premium and Cost-Sharing Subsidies Under the Medicare Program</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s405/a/1" id="H15FAF586330C44DDB62FF52A79E4C505" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>Section 1860D–14(a)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a/3">42 U.S.C. 1395w–114(a)(3)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s405/a/1/A" id="HAC0CDDBCBEC94421957AC04EAE38EE0F" class="indent2"><num value="A">(A) </num>
<chapeau>in subparagraph (B)(v)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIV/s405/a/1/A/i" id="HB1284112A52B4FAAB3FB1CAF4E8E90C5" class="indent3"><num value="i">(i) </num>
<content>in subclause (I), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end;</content></clause>
<clause identifier="/us/bill/116/hr/3/tIV/s405/a/1/A/ii" id="HC1DEE61AF7C543FBA89BB1776C1F17DE" class="indent3"><num value="ii">(ii) </num>
<content>in subclause (II), by <amendingAction type="delete">striking</amendingAction> the period and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIV/s405/a/1/A/iii" id="H12E2837EB79F47FAB5015DA49B986273" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> after subclause (II) the following new subclause:<quotedContent meta="committee ID HWM00" id="HC0774532A0B5468AAD192DA19E469E59" styleType="OLC"> <subclause id="HD40A03FA44834BA2871E64CB14A5737F" class="indent4"><num value="III">“(III) </num>
<content>with respect to plan years beginning on or after January 1, 2021, shall provide that any part D eligible individual who is enrolled for medical assistance under the State Medicaid plan of a territory (as defined in section 1935(f)) under title XIX (or a waiver of such a plan) shall be treated as a subsidy eligible individual described in paragraph (1).”; and</content></subclause></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s405/a/1/B" id="HF6E7355B02F444398594E80D52B173BD" class="indent2"><num value="B">(B) </num>
<content>in subparagraph (F), by <amendingAction type="add">adding</amendingAction> at the end the following new sentence: “<quotedText>The previous sentence shall not apply with respect to eligibility determinations for premium and cost-sharing subsidies under this section made on or after January 1, 2021.</quotedText>”.</content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s405/a/2" id="HBBA89C3F04ED49A29EF0A1D6BC8616A6" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Conforming amendment</inline>.—</heading>
<content>Section 1860D–31(j)(2)(D) of the Social Security Act (<ref href="/us/usc/t42/s1395w–141/j/2/D">42 U.S.C. 1395w–141(j)(2)(D)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new sentence: “<quotedText>The previous sentence shall not apply with respect to amounts made available to a State under this paragraph on or after January 1, 2021.</quotedText>”.</content></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIV/s405/b" id="HD7CE8FCFAEC34446B212A812104713B8" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Sunset of Enhanced Allotment Program</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s405/b/1" id="H2355FE83F0C945209368C624F0179F49" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>Section 1935(e) of the Social Security Act (<ref href="/us/usc/t42/s1396u–5/e">42 U.S.C. 1396u–5(e)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s405/b/1/A" id="HF3FED0116347435895E15CDBE84EF6B4" class="indent2"><num value="A">(A) </num>
<content>in paragraph (1)(A), by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>such State</quotedText>” the following: “<quotedText>before January 1, 2021</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIV/s405/b/1/B" id="H4D2E2B64A586426E8C6BBEDC58A7713E" class="indent2"><num value="B">(B) </num>
<chapeau>in paragraph (3)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIV/s405/b/1/B/i" id="H4BADC3698E56495A8C73D5D809EAB0E1" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (A), in the matter preceding clause (i), by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>a year</quotedText>” the following: “<quotedText>(before 2021)</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIV/s405/b/1/B/ii" id="HFE6922F030ED40A391580C3C6762B40E" class="indent3"><num value="ii">(ii) </num>
<content>in subparagraph (B)(iii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>a subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>each of fiscal years 2008 through 2020</quotedText>”.</content></clause></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s405/b/2" id="H7BEB8C4D03A04B0581251E81C644173C" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Territory defined</inline>.—</heading>
<content>Section 1935 of the Social Security Act (<ref href="/us/usc/t42/s1396u–5">42 U.S.C. 1396u–5</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent meta="committee ID HWM00" id="H1A21DFECD7D74D2796636B57379DF712" styleType="OLC"> <subsection role="definitions" id="HC46ED335F8154260B8D3E29ACA49B0EC" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Territory Defined</inline>.—</heading>
<content>In this section, the term ‘<term>territory</term>’ means Puerto Rico, the Virgin Islands, Guam, the Northern Mariana Islands, and American Samoa.”.</content></subsection></quotedContent></content></paragraph></subsection></section> 
<section identifier="/us/bill/116/hr/3/tIV/s406" id="H2110BEDA657845BCB61AB531AC3ED64A" role="subsequent-section"><num value="406">SEC. 406. </num>
<heading>AUTOMATIC QUALIFICATION OF CERTAIN MEDICAID BENEFICIARIES FOR PREMIUM AND COST-SHARING SUBSIDIES UNDER PART D OF THE MEDICARE PROGRAM.</heading>
<chapeau class="indent0">Clause (v) of section 1860D–14(a)(3)(B) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a/3/B">42 U.S.C. 1395w–114(a)(3)(B)</ref>), as amended by section 405, is further amended—</chapeau>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s406/1" id="HFC7790F6A3584F2DBD919AF337865CDF" class="indent1"><num value="1">(1) </num>
<content>in subclause (II), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and</quotedText>” at the end;</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s406/2" id="HFE3C6C27201549E5911ECE7514723386" class="indent1"><num value="2">(2) </num>
<content>in subclause (III), by <amendingAction type="delete">striking</amendingAction> the period and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIV/s406/3" id="HC5236E23C7254A44B49C62A8A3C0E7F9" class="indent1"><num value="3">(3) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> after subclause (III) the following new subclause:<quotedContent meta="committee ID HWM00" id="H687CA5A05CA44601A24CB644A6FA6522" styleType="OLC"> <subclause id="H0420B0B61D44431D80B8053E92AA0FF5" class="indent4"><num value="IV">“(IV) </num>
<content>with respect to plan years beginning on or after January 1, 2022, shall, notwithstanding the preceding clauses of this subparagraph, provide that any part D eligible individual not described in subclause (I), (II), or (III) who is enrolled, as of the day before the date on which such individual attains the age of 65, for medical assistance under a State plan under title XIX (or a waiver of such plan) pursuant to clause (i)(VIII) or (ii)(XX) of section 1902(a)(10)(A), and who has income below 200 percent of the poverty line applicable to a family of the size involved, shall be treated as a subsidy eligible individual described in paragraph (1) for a limited period of time, as specified by the Secretary.”.</content></subclause></quotedContent></content></paragraph></section> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tIV/s407" id="HD3FDB817E6F242B88B5910EB4F2A2BBB"><num value="407">SEC. 407. </num>
<heading>ELIMINATING THE RESOURCE REQUIREMENT WITH RESPECT TO SUBSIDY ELIGIBLE INDIVIDUALS UNDER PART D OF THE MEDICARE PROGRAM.</heading>
<content>Section 1860D–14(a)(3)(A)(iii) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a/3/A/iii">42 U.S.C. 1395w–114(a)(3)(A)(iii)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>in the case of a plan year beginning before January 1, 2022,</quotedText>” before “<quotedText>meets</quotedText>”.</content></section> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tIV/s408" id="H6D88438D06DE451FA4D1C1077F81B3F6"><num value="408">SEC. 408. </num>
<heading>PROVIDING FOR CERTAIN RULES REGARDING THE TREATMENT OF ELIGIBLE RETIREMENT PLANS IN DETERMINING THE ELIGIBILITY OF INDIVIDUALS FOR PREMIUM AND COST-SHARING SUBSIDIES UNDER PART D OF THE MEDICARE PROGRAM.</heading>
<content>Section 1860D–14(a)(3)(C)(i) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a/3/C/i">42 U.S.C. 1395w–114(a)(3)(C)(i)</ref>) <amendingAction type="amend">is amended</amendingAction>, by <amendingAction type="delete">striking</amendingAction> “<quotedText>except that support and maintenance furnished in kind shall not be counted as income; and</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent meta="committee ID HWM00" id="H75946F2F9D0F4D7B90A5DAE4DF12CCCB" styleType="OLC"> “except that—<subclause id="H5282F2975E60476BAC7FC9A79586E658" class="indent4"><num value="I">“(I) </num>
<content>support and maintenance furnished in kind shall not be counted as income; and</content></subclause>
<subclause id="HEF2BC546CD8441E4BFB9B0D1B7508C88" class="indent4"><num value="II">“(II) </num>
<content>for plan years beginning on or after January 1, 2022, any distribution or withdrawal from an eligible retirement plan (as defined in subparagraph (B) of <ref href="usc/26/402">section 402(c)(8)</ref> of the Internal Revenue Code of 1986, but excluding any defined benefit plan described in clause (iv) or (v) of such subparagraph and any qualified trust (as defined in subparagraph (A) of such section) which is part of such a defined benefit plan) shall be counted as income; and”.</content></subclause></quotedContent></content></section></title>
<title identifier="/us/bill/116/hr/3/tV" id="H684E0FF4C43E45FE977DE520450BDECF"><num value="V">TITLE V—</num>
<heading class="inline">DRUG PRICE TRANSPARENCY</heading> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tV/s501" id="H0CC439A184AD4337B739E64C72DA0343"><num value="501">SEC. 501. </num>
<heading>DRUG PRICE TRANSPARENCY.</heading>
<content>Part A of title XI of the Social Security Act <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new sections:<quotedContent meta="committee ID HWM00" id="HB46C46B26B2F48DF9CA69DF5FF275C85" styleType="OLC"> 
<section id="H3DDBBE7F78954C98B4B6AF0138CC56A5" role="subsequent-section"><num value="1150C">“SEC. 1150C. </num>
<heading>REPORTING ON DRUG PRICES.</heading>
<subsection id="H5E0A44234FB74927A58BD3507586C507" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<chapeau>In this section:</chapeau>
<paragraph role="definitions" id="H2AC5B6E0BDBF484F912D4E732E749CAC" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Manufacturer</inline>.—</heading>
<chapeau>The term ‘<term>manufacturer</term>’ means the person—</chapeau>
<subparagraph id="H5D0DE350271A4399BDF431F12258CC04" class="indent2"><num value="A">“(A) </num>
<content>that holds the application for a drug approved under section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under section 351 of the Public Health Service Act; or</content></subparagraph>
<subparagraph id="H2E0484D5194C4543AD350FC4AE1EF15F" class="indent2"><num value="B">“(B) </num>
<content>who is responsible for setting the wholesale acquisition cost for the drug.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H33DA546696B34064A05EABEDD9B9E690" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Qualifying drug</inline>.—</heading>
<chapeau>The term ‘<term>qualifying drug</term>’ means any drug that is approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under subsection (a) or (k) of section 351 of the Public Health Service Act—</chapeau>
<subparagraph id="HC4514F65B1D6476CBD133C69FF1AA5C6" class="indent2"><num value="A">“(A) </num>
<chapeau>that has a wholesale acquisition cost of $100 or more, adjusted for inflation occurring after the date of enactment of this section, for a month’s supply or a typical course of treatment that lasts less than a month, and is—</chapeau>
<clause id="H16347A8552D2451A9F2F59FEFF52F201" class="indent3"><num value="i">“(i) </num>
<content>subject to section 503(b)(1) of the Federal Food, Drug, and Cosmetic Act; and</content></clause>
<clause id="H573D34483CF6487BAA6B0CA78D728FEA" class="indent3"><num value="ii">“(ii) </num>
<content>not a preventative vaccine; and</content></clause></subparagraph>
<subparagraph id="H2094C42DA01B47469111690B621E9623" class="indent2"><num value="B">“(B) </num>
<content>for which, during the previous calendar year, at least 1 dollar of the total amount of sales were for individuals enrolled under the Medicare program under title XVIII or under a State Medicaid plan under title XIX or under a waiver of such plan.</content></subparagraph></paragraph>
<paragraph role="definitions" id="HBF9CA48C12F84E31B6A76FCD6C854388" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Wholesale acquisition cost</inline>.—</heading>
<content>The term ‘<term>wholesale acquisition cost</term>’ has the meaning given that term in section 1847A(c)(6)(B).</content></paragraph></subsection>
<subsection id="H4987AC877652411C878468E65F17860D" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Report</inline>.—</heading>
<paragraph id="H2E4F7FD267E440B4901C309CF8D4661A" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Report required</inline>.—</heading>
<chapeau>The manufacturer of a qualifying drug shall submit a report to the Secretary if, with respect to the qualifying drug—</chapeau>
<subparagraph id="H9CEAEECDDA024426A75C684413C08505" class="indent2"><num value="A">“(A) </num>
<chapeau>there is an increase in the price of the qualifying drug that results in an increase in the wholesale acquisition cost of that drug that is equal to—</chapeau>
<clause id="H5B1437EF99B34E10A176EA3125D69DBB" class="indent3"><num value="i">“(i) </num>
<content>10 percent or more within a 12-month period beginning on or after January 1, 2019; or</content></clause>
<clause id="H47E5C39CD1924960B395F2780767115F" class="indent3"><num value="ii">“(ii) </num>
<content>25 percent or more within a 36-month period beginning on or after January 1, 2019;</content></clause></subparagraph>
<subparagraph id="H3C4D5DDCF81845EE8EF04F83FBE55717" class="indent2"><num value="B">“(B) </num>
<content>the estimated price of the qualifying drug or spending per individual or per user of such drug (as estimated by the Secretary) for the applicable year (or per course of treatment in such applicable year as determined by the Secretary) is at least $26,000 beginning on or after January 1, 2021; or</content></subparagraph>
<subparagraph id="HCB6AD7C4A9394F17A225A1A71D5296B0" class="indent2"><num value="C">“(C) </num>
<chapeau>there was an increase in the price of the qualifying drug that resulted in an increase in the wholesale acquisition cost of that drug that is equal to—</chapeau>
<clause id="H5584AAC4B72A4EDF9E2E68FA3BF9D5BB" class="indent3"><num value="i">“(i) </num>
<content>10 percent or more within a 12-month period that begins and ends during the 5-year period preceding January 1, 2021; or</content></clause>
<clause id="H1F5595246F9B48D980701FDECE86F1D4" class="indent3"><num value="ii">“(ii) </num>
<content>25 percent or more within a 36-month period that begins and ends during the 5-year period preceding January 1, 2021.</content></clause></subparagraph></paragraph>
<paragraph id="HBA3E2EEFA08048EA8540B4AA9DD9FFF5" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Report deadline</inline>.—</heading>
<chapeau>Each report described in paragraph (1) shall be submitted to the Secretary—</chapeau>
<subparagraph id="HA6B8D3B666A74C3EB75CD6D0C8574F9F" class="indent2"><num value="A">“(A) </num>
<content>in the case of a report with respect to an increase in the price of a qualifying drug that occurs during the period beginning on January 1, 2019, and ending on the day that is 60 days after the date of the enactment of this section, not later than 90 days after such date of enactment;</content></subparagraph>
<subparagraph id="H7B5B5F70098742E7912E64726F6C6211" class="indent2"><num value="B">“(B) </num>
<content>in the case of a report with respect to an increase in the price of a qualifying drug that occurs after the period described in subparagraph (A), not later than 30 days prior to the planned effective date of such price increase for such qualifying drug;</content></subparagraph>
<subparagraph id="H6FA7ED3A5D1740F6BAFDFC8135F5F8B4" class="indent2"><num value="C">“(C) </num>
<content>in the case of a report with respect to a qualifying drug that meets the criteria under paragraph (1)(B), not later than 30 days after such drug meets such criteria; and</content></subparagraph>
<subparagraph id="HE1AFC6F4260F4E75869DB882F6A2F380" class="indent2"><num value="D">“(D) </num>
<content>in the case of a report with respect to an increase in the price of a qualifying drug that occurs during a 12-month or 36-month period described in paragraph (1)(C), not later than April 1, 2021.</content></subparagraph></paragraph></subsection>
<subsection id="H11FB4EA813DB4E3DBCF39658C47A8B5E" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Contents</inline>.—</heading>
<chapeau>A report under subsection (b), consistent with the standard for disclosures described in <ref href="/us/cfr/t12/s213.3/d">section 213.3(d) of title 12, Code of Federal Regulations</ref> (as in effect on the date of enactment of this section), shall, at a minimum, include—</chapeau>
<paragraph id="H149EDB606C544A25A0D8706BC70F3E3A" class="indent1"><num value="1">“(1) </num>
<chapeau>with respect to the qualifying drug—</chapeau>
<subparagraph id="H4FC43AD1AC524277B94AD05DBF34B104" class="indent2"><num value="A">“(A) </num>
<content>the percentage by which the manufacturer will raise the wholesale acquisition cost of the drug within the 12-month period or 36-month period as described in subsection (b)(1)(A)(i), (b)(1)(A)(ii), (b)(1)(C)(i), or (b)(1)(C)(ii), as applicable, and the effective date of such price increase or the cost associated with a qualifying drug if such drug meets the criteria under subsection (b)(1)(B) and the effective date at which such drug meets such criteria;</content></subparagraph>
<subparagraph id="H83266C4503EA49F9939EEC9C8764E37C" class="indent2"><num value="B">“(B) </num>
<content>an explanation for, and description of, each price increase for such drug that will occur during the 12-month period or the 36-month period described in subsection (b)(1)(A)(i), (b)(1)(A)(ii), (b)(1)(C)(i), or (b)(1)(C)(ii), as applicable;</content></subparagraph>
<subparagraph id="HD7D450563BD14BCA986C3D45AE9BBC8A" class="indent2"><num value="C">“(C) </num>
<content>an explanation for, and description of, the cost associated with a qualifying drug if such drug meets the criteria under subsection (b)(1)(B), as applicable;</content></subparagraph>
<subparagraph id="HBBD939E9B39D4BA2989FA86EBF4D52A5" class="indent2"><num value="D">“(D) </num>
<chapeau>if known and different from the manufacturer of the qualifying drug, the identity of—</chapeau>
<clause id="H02BFDB8BC0DB4D55BCC1EFC4B427D61E" class="indent3"><num value="i">“(i) </num>
<chapeau>the sponsor or sponsors of any investigational new drug applications under section 505(i) of the Federal Food, Drug, and Cosmetic Act for clinical investigations with respect to such drug, for which the full reports are submitted as part of the application—</chapeau>
<subclause id="HA763CF4367A8495F8912EB38B017A6CE" class="indent4"><num value="I">“(I) </num>
<content>for approval of the drug under section 505 of such Act; or</content></subclause>
<subclause id="H6606204AE77A41D79E6CBD0DCB5378D0" class="indent4"><num value="II">“(II) </num>
<content>for licensure of the drug under section 351 of the Pubic Health Service Act; and</content></subclause></clause>
<clause id="H7E3BFCB5DD114C00A68FF32769553084" class="indent3"><num value="ii">“(ii) </num>
<content>the sponsor of an application for the drug approved under such section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under section 351 of the Public Health Service Act;</content></clause></subparagraph>
<subparagraph id="HC224BB93B2944105979246EEFE25F900" class="indent2"><num value="E">“(E) </num>
<content>a description of the history of the manufacturer’s price increases for the drug since the approval of the application for the drug under section 505 of the Federal Food, Drug, and Cosmetic Act or the issuance of the license for the drug under section 351 of the Public Health Service Act, or since the manufacturer acquired such approved application or license, if applicable;</content></subparagraph>
<subparagraph id="H6318AA0FA0804C87B97E9EEF46C8E6A3" class="indent2"><num value="F">“(F) </num>
<content>the current wholesale acquisition cost of the drug;</content></subparagraph>
<subparagraph id="HA80763014EAE4B079652A9D488D0A40D" class="indent2"><num value="G">“(G) </num>
<chapeau>the total expenditures of the manufacturer on—</chapeau>
<clause id="HF862838FDD844862BF9CA078FE163A3E" class="indent3"><num value="i">“(i) </num>
<content>materials and manufacturing for such drug;</content></clause>
<clause id="H433F1E0961B14861A403800119C5AE2B" class="indent3"><num value="ii">“(ii) </num>
<content>acquiring patents and licensing for such drug; and</content></clause>
<clause id="H8B416541111C4F54A18F13593A57B3D2" class="indent3"><num value="iii">“(iii) </num>
<content>purchasing or acquiring such drug from another manufacturer, if applicable;</content></clause></subparagraph>
<subparagraph id="H1C106697A70044D191382174AEA46DDC" class="indent2"><num value="H">“(H) </num>
<content>the percentage of total expenditures of the manufacturer on research and development for such drug that was derived from Federal funds;</content></subparagraph>
<subparagraph id="HE65EACC555C543E08667D5EFD7AFB4C1" class="indent2"><num value="I">“(I) </num>
<content>the total expenditures of the manufacturer on research and development for such drug that is necessary to demonstrate that it meets applicable statutory standards for approval under section 505 of the Federal Food, Drug, and Cosmetic Act or licensure under section 351 of the Public Health Service Act, as applicable;</content></subparagraph>
<subparagraph id="HB3BA45712B6F4B34ACA02EDB42865868" class="indent2"><num value="J">“(J) </num>
<content>the total expenditures of the manufacturer on pursuing new or expanded indications or dosage changes for such drug under section 505 of the Federal Food, Drug, and Cosmetic Act or section 351 of the Public Health Service Act;</content></subparagraph>
<subparagraph id="H7288BF40E83B482AB59092B1D2D9CC9B" class="indent2"><num value="K">“(K) </num>
<content>the total expenditures of the manufacturer on carrying out postmarket requirements related to such drug, including under section 505(o)(3) of the Federal Food, Drug, and Cosmetic Act;</content></subparagraph>
<subparagraph id="H1FA029B4438C4E60A62D710FF8679199" class="indent2"><num value="L">“(L) </num>
<content>the total revenue and the net profit generated from the qualifying drug for each calendar year since the approval of the application for the drug under section 505 of the Federal Food, Drug, and Cosmetic Act or the issuance of the license for the drug under section 351 of the Public Health Service Act, or since the manufacturer acquired such approved application or license; and</content></subparagraph>
<subparagraph id="H3A03CD3FFDDD44149F4D2BAC9747FB36" class="indent2"><num value="M">“(M) </num>
<content>the total costs associated with marketing and advertising for the qualifying drug;</content></subparagraph></paragraph>
<paragraph id="HCA409D8A79B1448A9AEC876DEA8DE716" class="indent1"><num value="2">“(2) </num>
<chapeau>with respect to the manufacturer—</chapeau>
<subparagraph id="H6E2250B32DD34F8F864DFF1B65EB88B3" class="indent2"><num value="A">“(A) </num>
<content>the total revenue and the net profit of the manufacturer for each of the 12-month period described in subsection (b)(1)(A)(i) or (b)(1)(C)(i) or the 36-month period described in subsection (b)(1)(A)(ii) or (b)(1)(C)(ii), as applicable;</content></subparagraph>
<subparagraph id="H816D6964E872486DAEA1AA7A6A9C6690" class="indent2"><num value="B">“(B) </num>
<content>all stock-based performance metrics used by the manufacturer to determine executive compensation for each of the 12-month periods described in subsection (b)(1)(A)(i) or (b)(1)(C)(i) or the 36-month periods described in subsection (b)(1)(A)(ii) or (b)(1)(C)(ii), as applicable; and</content></subparagraph>
<subparagraph id="H88B7EAEDC3824783A93A54C43CC0943B" class="indent2"><num value="C">“(C) </num>
<chapeau>any additional information the manufacturer chooses to provide related to drug pricing decisions, such as total expenditures on—</chapeau>
<clause id="H539CA6D69468406FAB6BD8C137B15D27" class="indent3"><num value="i">“(i) </num>
<content>drug research and development; or</content></clause>
<clause id="HEAE15A022B13463FB332A4544A5760CE" class="indent3"><num value="ii">“(ii) </num>
<content>clinical trials, including on drugs that failed to receive approval by the Food and Drug Administration; and</content></clause></subparagraph></paragraph>
<paragraph id="HAAC9DBD84EDF47DC962F2699039D2215" class="indent1"><num value="3">“(3) </num>
<content>such other related information as the Secretary considers appropriate and as specified by the Secretary.</content></paragraph></subsection>
<subsection id="H1BA7C2CD318E4EB690049485E761CC4E" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Information Provided</inline>.—</heading>
<content>The manufacturer of a qualifying drug that is required to submit a report under subsection (b), shall ensure that such report and any explanation for, and description of, each price increase described in subsection (c)(1) shall be truthful, not misleading, and accurate.</content></subsection>
<subsection id="H13E75C10C42746FA9DCB6DFDCD94FF8A" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Civil Monetary Penalty</inline>.—</heading>
<content>Any manufacturer of a qualifying drug that fails to submit a report for the drug as required by this section, following notification by the Secretary to the manufacturer that the manufacturer is not in compliance with this section, shall be subject to a civil monetary penalty of $75,000 for each day on which the violation continues.</content></subsection>
<subsection id="H00D9ABF24FC44032947E2B2707D47E07" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">False Information</inline>.—</heading>
<content>Any manufacturer that submits a report for a drug as required by this section that knowingly provides false information in such report is subject to a civil monetary penalty in an amount not to exceed $100,000 for each item of false information.</content></subsection>
<subsection id="H4A1D4E39C8464103986FEE64EDDC23A5" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">Public Posting</inline>.—</heading>
<paragraph id="HAB0F1BF79C8D4F0E8F703D9D07E8CD31" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to paragraph (4), the Secretary shall post each report submitted under subsection (b) on the public website of the Department of Health and Human Services the day the price increase of a qualifying drug is scheduled to go into effect.</content></paragraph>
<paragraph id="H46354B2959184C05A1194FF0DD417EF4" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Format</inline>.—</heading>
<chapeau>In developing the format in which reports will be publicly posted under paragraph (1), the Secretary shall consult with stakeholders, including beneficiary groups, and shall seek feedback from consumer advocates and readability experts on the format and presentation of the content of such reports to ensure that such reports are—</chapeau>
<subparagraph id="H33190742514E4E29AA4F23D9495CF367" class="indent2"><num value="A">“(A) </num>
<content>user-friendly to the public; and</content></subparagraph>
<subparagraph id="H24E4B5335469468E98CB7BE6B3772E17" class="indent2"><num value="B">“(B) </num>
<content>written in plain language that consumers can readily understand.</content></subparagraph></paragraph>
<paragraph id="HCE8D3F5C74F24CEB8AFEB61407DFF402" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">List</inline>.—</heading>
<content>In addition to the reports submitted under subsection (b), the Secretary shall also post a list of each qualifying drug with respect to which the manufacturer was required to submit such a report in the preceding year and whether such manufacturer was required to submit such report based on a qualifying price increase or whether such drug meets the criteria under subsection (b)(1)(B).</content></paragraph>
<paragraph id="HB506AF29BFB34E3785A3EB74D782944D" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Protected information</inline>.—</heading>
<content>In carrying out this section, the Secretary shall enforce applicable law concerning the protection of confidential commercial information and trade secrets.</content></paragraph></subsection></section> 
<section id="H0A4B445FA2214890BE278C9525950B64" role="subsequent-section"><num value="1150D">“SEC. 1150D. </num>
<heading>ANNUAL REPORT TO CONGRESS.</heading>
<subsection id="HFEE78DD0C52342CCACA46BDF477C42FB" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>Subject to subsection (b), the Secretary shall submit to the Committees on Energy and Commerce and Ways and Means of the House of Representatives and the Committees on Health, Education, Labor, and Pensions and Finance of the Senate, and post on the public website of the Department of Health and Human Services in a way that is user-friendly to the public and written in plain language that consumers can readily understand, an annual report—</chapeau>
<paragraph id="H294D0CE645DF4CE9A3B3D66C0F597474" class="indent1"><num value="1">“(1) </num>
<content>summarizing the information reported pursuant to section 1150C;</content></paragraph>
<paragraph id="H9FE0265B7E9A4D41B6CA493116A71124" class="indent1"><num value="2">“(2) </num>
<content>including copies of the reports and supporting detailed economic analyses submitted pursuant to such section;</content></paragraph>
<paragraph id="HE63A0FC59EF24507AF4A2939070D0C1F" class="indent1"><num value="3">“(3) </num>
<content>detailing the costs and expenditures incurred by the Department of Health and Human Services in carrying out section 1150C; and</content></paragraph>
<paragraph id="H004DF60FAAD748D2ACEBBA23506D9D47" class="indent1"><num value="4">“(4) </num>
<content>explaining how the Department of Health and Human Services is improving consumer and provider information about drug value and drug price transparency.</content></paragraph></subsection>
<subsection id="HADAB503D307E43FDA9C1B088CC859942" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Protected Information</inline>.—</heading>
<content>In carrying out this section, the Secretary shall enforce applicable law concerning the protection of confidential commercial information and trade secrets.”.</content></subsection></section></quotedContent></content></section></title> 
            </main>
        </component>
        <component origin="#HED00" changed="added">
            <main> 
<section identifier="/us/bill/116/hr/3/s1" id="H37FE84EC32334878BA4FA1882F0F8070"><num value="1">SECTION 1. </num>
<heading>SHORT TITLE; TABLE OF CONTENTS.</heading>
<subsection identifier="/us/bill/116/hr/3/s1/a" id="H7B397C590C6E4839AD0D9394023AB693" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>This Act may be cited as the “<shortTitle role="act">Lower Drug Costs Now Act of 2019</shortTitle>”.</content></subsection>
<subsection identifier="/us/bill/116/hr/3/s1/b" id="H05C2D0E0DAE445BE9D842557D09FC1A0" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Table of Contents</inline>.—</heading>
<content>The table of contents is as follows:<toc meta="committee ID HED00"> <referenceItem role="section" idref="H37FE84EC32334878BA4FA1882F0F8070">
<designator>Sec. 1. </designator>
<label>Short title; table of contents.</label></referenceItem>
<referenceItem role="title" idref="H00B43B45F4164AB5A946A866BFFA8C35">
<designator>TITLE I—</designator>
<label>LOWERING PRICES THROUGH FAIR DRUG PRICE NEGOTIATION</label></referenceItem>
<referenceItem role="section" idref="H0A11A1E1D19F46D291887CB507CC3615">
<designator>Sec. 101. </designator>
<label>Providing for lower prices for certain high-priced single source drugs.</label></referenceItem>
<referenceItem role="section" idref="H5D71B268930E4A6BB99E5B35CE843000">
<designator>Sec. 102. </designator>
<label>Selected drug manufacturer excise tax imposed during noncompliance periods.</label></referenceItem>
<referenceItem role="title" idref="H8A812AE8483F4210BC1F67FE7A41ABB5">
<designator>TITLE II—</designator>
<label>MEDICARE PARTS B AND D PRESCRIPTION DRUG INFLATION REBATES</label></referenceItem>
<referenceItem role="section" idref="H5143EF5DC9054A728D416A3AA2C18B51">
<designator>Sec. 201. </designator>
<label>Medicare part B rebate by manufacturers.</label></referenceItem>
<referenceItem role="section" idref="HC9CA5E4DB2C045F48FF29330FBB67DC7">
<designator>Sec. 202. </designator>
<label>Medicare part D rebate by manufacturers.</label></referenceItem>
<referenceItem role="title" idref="HA64DCB84479243749CACDD972CDFD3EF">
<designator>TITLE III—</designator>
<label>PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE BENEFICIARIES</label></referenceItem>
<referenceItem role="section" idref="H834F141A5E504B80BBA2817DE92660E1">
<designator>Sec. 301. </designator>
<label>Medicare part D benefit redesign.</label></referenceItem></toc></content></subsection></section>
<title identifier="/us/bill/116/hr/3/tI" id="H00B43B45F4164AB5A946A866BFFA8C35"><num value="I">TITLE I—</num>
<heading class="inline">LOWERING PRICES THROUGH FAIR DRUG PRICE NEGOTIATION</heading> 
<section identifier="/us/bill/116/hr/3/tI/s101" id="H0A11A1E1D19F46D291887CB507CC3615" role="subsequent-section"><num value="101">SEC. 101. </num>
<heading>PROVIDING FOR LOWER PRICES FOR CERTAIN HIGH-PRICED SINGLE SOURCE DRUGS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tI/s101/a" id="HCB7B919E08CA451292F6DFFDFC309BA2" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">Program To Lower Prices for Certain High-Priced Single Source Drugs</inline>.—</heading>
<content>Title XI of the Social Security Act (<ref href="/us/usc/t42/s1301">42 U.S.C. 1301</ref> et seq.) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new part:<quotedContent meta="committee ID HED00" id="H407D10BB35424EE6B2EC2AEA167AD1F8" styleType="OLC"> <part id="H67300C8A58CA4604B7FC247D58C704C6"><num value="E">“PART E—</num>
<heading>FAIR PRICE NEGOTIATION PROGRAM TO LOWER PRICES FOR CERTAIN HIGH-PRICED SINGLE SOURCE DRUGS</heading> 
<section id="H6535C5F69A884A2981EBF09FBBC048CD" role="subsequent-section"><num value="1191">“SEC. 1191. </num>
<heading>ESTABLISHMENT OF PROGRAM.</heading>
<subsection id="HE38C94C726B846ED9E17D4C5FBC5AA12" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>The Secretary shall establish a Fair Price Negotiation Program (in this part referred to as the ‘program’). Under the program, with respect to each price applicability period, the Secretary shall—</chapeau>
<paragraph id="H5E80F2DAE6F547869D887A01FABD04C4" class="indent1"><num value="1">“(1) </num>
<content>publish a list of selected drugs in accordance with section 1192;</content></paragraph>
<paragraph id="H02DFEE1B74464BEFA84DCA99B102EED2" class="indent1"><num value="2">“(2) </num>
<content>enter into agreements with manufacturers of selected drugs with respect to such period, in accordance with section 1193;</content></paragraph>
<paragraph id="HD3C639CF24C1426AAB6A2E023D12F537" class="indent1"><num value="3">“(3) </num>
<content>negotiate and, if applicable, renegotiate maximum fair prices for such selected drugs, in accordance with section 1194; and</content></paragraph>
<paragraph id="HD7EACF62D4BE466FAC9DD8D14DDB92CF" class="indent1"><num value="4">“(4) </num>
<content>carry out the administrative duties described in section 1196.</content></paragraph></subsection>
<subsection id="HB16FF277F01D4229A553F76F3D4F6FD0" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Definitions Relating to Timing</inline>.—</heading>
<chapeau>For purposes of this part:</chapeau>
<paragraph role="definitions" id="HAF7461F34BE3462291ECD964E6BE803C" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Initial price applicability year</inline>.—</heading>
<content>The term ‘<term>initial price applicability year</term>’ means a plan year (beginning with plan year 2023) or, if agreed to in an agreement under section 1193 by the Secretary and manufacturer involved, a period of more than one plan year (beginning on or after January 1, 2023).</content></paragraph>
<paragraph role="definitions" id="H7997014484EE4C2E8895FE279FCBB4AA" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Price applicability period</inline>.—</heading>
<content>The term ‘<term>price applicability period</term>’ means, with respect to a drug, the period beginning with the initial price applicability year with respect to which such drug is a selected drug and ending with the last plan year during which the drug is a selected drug.</content></paragraph>
<paragraph role="definitions" id="H23DB88DAD8C24541B0F8557D53D1C189" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Selected drug publication date</inline>.—</heading>
<content>The term ‘<term>selected drug publication date</term>’ means, with respect to each initial price applicability year, April 15 of the plan year that begins 2 years prior to such year.</content></paragraph>
<paragraph role="definitions" id="H68A9C6836B4441AA99E19EBC45B03874" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Voluntary negotiation period</inline>.—</heading>
<chapeau>The term ‘<term>voluntary negotiation period</term>’ means, with respect to an initial price applicability year with respect to a selected drug, the period—</chapeau>
<subparagraph id="HE3FB8CAACA0A44E0A6B57AF9E73E9F69" class="indent2"><num value="A">“(A) </num>
<chapeau>beginning on the sooner of—</chapeau>
<clause id="H31467B42A9BA4BD2907467095C5B12F6" class="indent3"><num value="i">“(i) </num>
<content>the date on which the manufacturer of the drug and the Secretary enter into an agreement under section 1193 with respect to such drug; or</content></clause>
<clause id="HFB08D2337EBE450089D8307C0B822E1B" class="indent3"><num value="ii">“(ii) </num>
<content>June 15 following the selected drug publication date with respect to such selected drug; and</content></clause></subparagraph>
<subparagraph id="H9A85A73135E8469DBAC03323E2DAF213" class="indent2"><num value="B">“(B) </num>
<content>ending on March 31 of the year that begins one year prior to the initial price applicability year.</content></subparagraph></paragraph></subsection>
<subsection id="H3DDA0F6B98944916B360A44955548EB1" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Other Definitions</inline>.—</heading>
<chapeau>For purposes of this part:</chapeau>
<paragraph role="definitions" id="HE84C7BE272D1402383F7696BB67CB668" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Fair price eligible individual</inline>.—</heading>
<chapeau>The term ‘<term>fair price eligible individual</term>’ means, with respect to a selected drug—</chapeau>
<subparagraph id="HBFE616E082084DE2A9F9289F9024871D" class="indent2"><num value="A">“(A) </num>
<chapeau>in the case such drug is furnished or dispensed to the individual at a pharmacy or by a mail order service—</chapeau>
<clause id="HB0C079B1CACC455796AD63DC251FF0B9" class="indent3"><num value="i">“(i) </num>
<content>an individual who is enrolled under a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title under which coverage is provided for such drug; and</content></clause>
<clause id="H88B2FEAEAC5342AA9AD9D5E105D55613" class="indent3"><num value="ii">“(ii) </num>
<content>an individual who is enrolled under a group health plan or health insurance coverage offered in the group or individual market (as such terms are defined in section 2791 of the Public Health Service Act) with respect to which there is in effect an agreement with the Secretary under section 1197 with respect to such selected drug as so furnished or dispensed; and</content></clause></subparagraph>
<subparagraph id="HEA553ACF85CE4B52BAB76836675344FC" class="indent2"><num value="B">“(B) </num>
<chapeau>in the case such drug is furnished or administered to the individual by a hospital, physician, or other provider of services or supplier—</chapeau>
<clause id="H2248943D8E16486F9777B448E6A2AEFB" class="indent3"><num value="i">“(i) </num>
<content>an individual who is entitled to benefits under part A of title XVIII or enrolled under part B of such title if such selected drug is covered under the respective part; and</content></clause>
<clause id="HDF955DF4555F423A83DD71E9BD9F0E31" class="indent3"><num value="ii">“(ii) </num>
<content>an individual who is enrolled under a group health plan or health insurance coverage offered in the group or individual market (as such terms are defined in section 2791 of the Public Health Service Act) with respect to which there is in effect an agreement with the Secretary under section 1197 with respect to such selected drug as so furnished or administered.</content></clause></subparagraph></paragraph>
<paragraph role="definitions" id="H3E402D1084F94ADBAF4AB3FB92B55BB3" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Maximum fair price</inline>.—</heading>
<content>The term ‘<term>maximum fair price</term>’ means, with respect to a plan year during a price applicability period and with respect to a selected drug (as defined in section 1192(c)) with respect to such period, the price published pursuant to section 1195 in the Federal Register for such drug and year.</content></paragraph>
<paragraph id="HCEC0B2913C8541EC9ADDA09DD178B31F" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Average international market price defined</inline>.—</heading>
<subparagraph id="H2DC325AF5C404AB6BA28616C79806A2D" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The terms ‘average international market price’ and ‘AIM price’ mean, with respect to a drug, the average price (which shall be the net average price, if practicable, and volume-weighted, if practicable) for a unit (as defined in paragraph (4)) of the drug for sales of such drug (calculated across different dosage forms and strengths of the drug and not based on the specific formulation or package size or package type), as computed (as of the date of publication of such drug as a selected drug under section 1192(a)) in all countries described in clause (ii) of subparagraph (B) that are applicable countries (as described in clause (i) of such subparagraph) with respect to such drug.</content></subparagraph>
<subparagraph id="H1FBC73DE1B6148CDAFAA1CF860D7B19D" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Applicable countries</inline>.—</heading>
<clause id="H8EFD8A2141644259BB5CF70D69AF0EA3" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>For purposes of subparagraph (A), a country described in clause (ii) is an applicable country described in this clause with respect to a drug if there is available an average price for any unit for the drug for sales of such drug in such country.</content></clause>
<clause id="H0A5B7D00E63941E7BBAFECDC53A56E4C" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Countries described</inline>.—</heading>
<chapeau>For purposes of this paragraph, the following are countries described in this clause:</chapeau>
<subclause id="H283AED55C9E34DCA851CF320A2EBF865" class="indent4"><num value="I">“(I) </num>
<content>Australia.</content></subclause>
<subclause id="HCB53B654E7F24DF4B3D29AE0FD4F443D" class="indent4"><num value="II">“(II) </num>
<content>Canada.</content></subclause>
<subclause id="H833455DFF41E4A3FA520609736CE49E8" class="indent4"><num value="III">“(III) </num>
<content>France.</content></subclause>
<subclause id="HB5B68727C32C4CAA8547C5ADBE9A6394" class="indent4"><num value="IV">“(IV) </num>
<content>Germany.</content></subclause>
<subclause id="H8F704E955323442192CEAE8101C44D60" class="indent4"><num value="V">“(V) </num>
<content>Japan.</content></subclause>
<subclause id="HB4EBE9C53B4F428D94D6E95EFF44B486" class="indent4"><num value="VI">“(VI) </num>
<content>The United Kingdom.</content></subclause></clause></subparagraph></paragraph>
<paragraph role="definitions" id="HF03C9AD1AA414BF984EA23FBB5748B92" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Unit</inline>.—</heading>
<content>The term ‘<term>unit</term>’ means, with respect to a drug, the lowest identifiable quantity (such as a capsule or tablet, milligram of molecules, or grams) of the drug that is dispensed.</content></paragraph></subsection></section> 
<section id="H927D8382DD4A4A9C85B841CB0A133F45" role="subsequent-section"><num value="1192">“SEC. 1192. </num>
<heading>SELECTION OF NEGOTIATION-ELIGIBLE DRUGS AS SELECTED DRUGS.</heading>
<subsection id="HA1E8B7683DA54E678DB88CF65630324A" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>Not later than the selected drug publication date with respect to an initial price applicability year, the Secretary shall select and publish in the Federal Register a list of—</chapeau>
<paragraph id="HBAB29B0EC9074A30867EFD5EAC3DF4BF" class="indent1"><num value="1">“(1)</num>
<subparagraph id="HE3E2480E45ED4B62B3552A02D2C32E49" class="inline"><num value="A">(A) </num>
<content>with respect to an initial price applicability year during the period beginning with 2023 and ending with 2027, at least 25 negotiation-eligible drugs described in subparagraphs (A) and (B), but not subparagraph (C), of subsection (d)(1) (or, with respect to an initial price applicability year during such period beginning after 2023, the maximum number (if such number is less than 25) of such negotiation-eligible drugs for the year) with respect to such year;</content></subparagraph>
<subparagraph meta="committee ID HED00" id="HE818E6E97AF2470D972A8DA020DC1CE7" class="indent1"><num value="B">“(B) </num>
<content>with respect to an initial price applicability year during the period beginning with 2028 and ending with 2032, at least 30 negotiation-eligible drugs described in subparagraphs (A) and (B), but not subparagraph (C), of subsection (d)(1) (or, with respect to an initial price applicability year during such period, the maximum number (if such number is less than 30) of such negotiation-eligible drugs for the year) with respect to such year; and</content></subparagraph>
<subparagraph meta="committee ID HED00" id="HD24B94C5679F417B89F16CC34470B0F3" class="indent1"><num value="C">“(C) </num>
<content>with respect to an initial price applicability year beginning after 2032, at least 35 negotiation-eligible drugs described in subparagraphs (A) and (B), but not subparagraph (C), of subsection (d)(1) (or, with respect to an initial price applicability year during such period, the maximum number (if such number is less than 35) of such negotiation-eligible drugs for the year) with respect to such year;</content></subparagraph></paragraph>
<paragraph id="H75FBC1DD5F504521AB12B89806EAD9C6" class="indent1"><num value="2">“(2) </num>
<content>all negotiation-eligible drugs described in subparagraph (C) of such subsection with respect to such year; and</content></paragraph>
<paragraph id="HA8BBFAE95C3F402DA06D782698E0BAE9" class="indent1"><num value="3">“(3) </num>
<content>all new-entrant negotiation-eligible drugs (as defined in subsection (g)(1)) with respect to such year.</content></paragraph>
<continuation class="indent0">Each drug published on the list pursuant to the previous sentence shall be subject to the negotiation process under section 1194 for the voluntary negotiation period with respect to such initial price applicability year (and the renegotiation process under such section as applicable for any subsequent year during the applicable price applicability period). In applying this subsection, any negotiation-eligible drug that is selected under this subsection for an initial price applicability year shall not count toward the required minimum amount of drugs to be selected under paragraph (1) for any subsequent year, including such a drug so selected that is subject to renegotiation under section 1194.</continuation></subsection>
<subsection id="HCF9EDDFEF57F4B0D834FF5397A2CA38A" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Selection of Drugs</inline>.—</heading>
<content>In carrying out subsection (a)(1) the Secretary shall select for inclusion on the published list described in subsection (a) with respect to a price applicability period, the negotiation-eligible drugs that the Secretary projects will result in the greatest savings to the Federal Government or fair price eligible individuals during the price applicability period. In making this projection of savings for drugs for which there is an AIM price for a price applicability period, the savings shall be projected across different dosage forms and strengths of the drugs and not based on the specific formulation or package size or package type of the drugs, taking into consideration both the volume of drugs for which payment is made, to the extent such data is available, and the amount by which the net price for the drugs exceeds the AIM price for the drugs.</content></subsection>
<subsection id="H7CEAC780E5C5420284A1E43F47E3F722" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Selected Drug</inline>.—</heading>
<chapeau>For purposes of this part, each drug included on the list published under subsection (a) with respect to an initial price applicability year shall be referred to as a ‘selected drug’ with respect to such year and each subsequent plan year beginning before the first plan year beginning after the date on which the Secretary determines two or more drug products—</chapeau>
<paragraph id="H784D2B717AA645EDA4CB0B874CD12CEE" class="indent1"><num value="1">“(1) </num>
<chapeau>are approved or licensed (as applicable)—</chapeau>
<subparagraph id="H8481111908C2466CBFCEFBB1C2A6219E" class="indent2"><num value="A">“(A) </num>
<content>under section 505(j) of the Federal Food, Drug, and Cosmetic Act using such drug as the listed drug; or</content></subparagraph>
<subparagraph id="HB9A8B109E6854195B476FBA90016CBA1" class="indent2"><num value="B">“(B) </num>
<content>under section 351(k) of the Public Health Service Act using such drug as the reference product; and</content></subparagraph></paragraph>
<paragraph id="HBF7F7B5CE020446488EFE6BCC5FE7C22" class="indent1"><num value="2">“(2) </num>
<content>continue to be marketed.</content></paragraph></subsection>
<subsection id="H867EEE90E59A41318AAA3BDCF0134EE0" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Negotiation-Eligible Drug</inline>.—</heading>
<paragraph role="definitions" id="HE03ADDBDCAEF40089EEC8EEBC28C55BE" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of this part, the term ‘<term>negotiation-eligible drug</term>’ means, with respect to the selected drug publication date with respect to an initial price applicability year, a qualifying single source drug, as defined in subsection (e), that meets any of the following criteria:</chapeau>
<subparagraph id="H14F2542DF4E543E6AEAA87E35D158C12" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Covered part d drugs</inline>.—</heading>
<content>The drug is among the 125 covered part D drugs (as defined in section 1860D–2(e)) for which there was an estimated greatest net spending under parts C and D of title XVIII, as determined by the Secretary, during the most recent plan year prior to such drug publication date for which data are available.</content></subparagraph>
<subparagraph id="H42C4F2BB19E64E14BB2AAC66389823D7" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Other drugs</inline>.—</heading>
<content>The drug is among the 125 drugs for which there was an estimated greatest net spending in the United States (including the 50 States, the District of Columbia, and the territories of the United States), as determined by the Secretary, during the most recent plan year prior to such drug publication date for which data are available.</content></subparagraph>
<subparagraph id="H881C05779B2E4EE1BDB7F99790F45058" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Insulin</inline>.—</heading>
<content>The drug is a qualifying single source drug described in subsection (e)(3).</content></subparagraph></paragraph>
<paragraph id="HF13000AD36DD4E94ADB37CA4315BDC48" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Clarification</inline>.—</heading>
<content>In determining whether a qualifying single source drug satisfies any of the criteria described in paragraph (1), the Secretary shall, to the extent practicable, use data that is aggregated across dosage forms and strengths of the drug and not based on the specific formulation or package size or package type of the drug.</content></paragraph>
<paragraph id="HE853D230853747438A6CC02324F678B3" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Publication</inline>.—</heading>
<content>Not later than the selected drug publication date with respect to an initial price applicability year, the Secretary shall publish in the Federal Register a list of negotiation-eligible drugs with respect to such selected drug publication date.</content></paragraph></subsection>
<subsection role="definitions" id="H2DABC02328184FE9B517D8C80A5C95D7" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Qualifying Single Source Drug</inline>.—</heading>
<chapeau>For purposes of this part, the term ‘<term>qualifying single source drug</term>’ means any of the following:</chapeau>
<paragraph id="HA3B84B8825F54BA3BAA75A91F7FD874A" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Drug products</inline>.—</heading>
<chapeau>A drug that—</chapeau>
<subparagraph id="H4623DD3ECAD8493797CA58C9BEBD07E9" class="indent2"><num value="A">“(A) </num>
<content>is approved under section 505(c) of the Federal Food, Drug, and Cosmetic Act and continues to be marketed pursuant to such approval; and</content></subparagraph>
<subparagraph id="H34F8124919584FF3A7D9585FAC79ED1B" class="indent2"><num value="B">“(B) </num>
<content>is not the listed drug for any drug that is approved and continues to be marketed under section 505(j) of such Act.</content></subparagraph></paragraph>
<paragraph id="HD9C06478D6AB4C929EDD15BBA19A2C5F" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Biological products</inline>.—</heading>
<chapeau>A biological product that—</chapeau>
<subparagraph id="HA27AED2C9F724F728E3C860CF5538097" class="indent2"><num value="A">“(A) </num>
<content>is licensed under section 351(a) of the Public Health Service Act, including any product that has been deemed to be licensed under section 351 of such Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009, and continues to be marketed under section 351 of such Act; and</content></subparagraph>
<subparagraph id="H6550387C69B14A168D1A26A8B3657641" class="indent2"><num value="B">“(B) </num>
<content>is not the reference product for any biological product that is licensed and continues to be marketed under section 351(k) of such Act.</content></subparagraph></paragraph>
<paragraph id="H3E816E47A10A481CA1531CCD201218A5" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Insulin product</inline>.—</heading>
<content>Notwithstanding paragraphs (1) and (2), any insulin product that is approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act or licensed under subsection (a) or (k) of section 351 of the Public Health Service Act and continues to be marketed under such section 505 or 351, including any insulin product that has been deemed to be licensed under section 351(a) of the Public Health Service Act pursuant to section 7002(e)(4) of the Biologics Price Competition and Innovation Act of 2009 and continues to be marketed pursuant to such licensure.</content></paragraph>
<continuation class="indent0">For purposes of applying paragraphs (1) and (2), a drug or biological product that is marketed by the same sponsor or manufacturer (or an affiliate thereof or a cross-licensed producer or distributor) as the listed drug or reference product described in such respective paragraph shall not be taken into consideration.</continuation></subsection>
<subsection id="HAA532C90A72D444B93DAF73CAF2DBBF6" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Information on International Drug Prices</inline>.—</heading>
<content>For purposes of determining which negotiation-eligible drugs to select under subsection (a) and, in the case of such drugs that are selected drugs, to determine the maximum fair price for such a drug and whether such maximum fair price should be renegotiated under section 1194, the Secretary shall use data relating to the AIM price with respect to such drug as available or provided to the Secretary and shall on an ongoing basis request from manufacturers of selected drugs information on the AIM price of such a drug.</content></subsection>
<subsection id="H5BAF2030BB0240BE86C444D1EDBB0CBF" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">New-entrant Negotiation-eligible Drugs</inline>.—</heading>
<paragraph role="definitions" id="H6F3F6C8EE99F4A8396B6AA3BFA973656" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of this part, the term ‘<term>new-entrant negotiation-eligible drug</term>’ means, with respect to the selected drug publication date with respect to an initial price applicability year, a qualifying single source drug—</chapeau>
<subparagraph id="H6E58B9A01D6B4E1BA7301397A7A3FCD5" class="indent2"><num value="A">“(A) </num>
<content>that is first approved or licensed, as described in paragraph (1), (2), or (3) of subsection (e), as applicable, during the year preceding such selected drug publication date; and</content></subparagraph>
<subparagraph id="H125F4B0EBC4044468129245946A4FA23" class="indent2"><num value="B">“(B) </num>
<content>that the Secretary determines under paragraph (2) is likely to be a negotiation-eligible drug with respect to the subsequent selected drug publication date.</content></subparagraph></paragraph>
<paragraph role="definitions" id="HDECE1AFFF0B742E6BB98660C842EDC6B" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Determination</inline>.—</heading>
<content>In the case of a qualifying single source drug that meets the criteria described in subparagraphs (A) and (B) of paragraph (1), with respect to an initial price applicability year, if the wholesale acquisition cost at which such drug is first marketed in the United States is equal to or greater than the median household income (as determined according to the most recent data collected by the United States Census Bureau), the Secretary shall determine before the selected drug publication date with respect to the initial price applicability year, if the drug is likely to be included as a negotiation-eligible drug with respect to the subsequent selected drug publication date, based on the projected spending under title XVIII or in the United States on such drug. For purposes of this paragraph the term ‘<term>United States</term>’ includes the 50 States, the District of Columbia, and the territories of the United States.</content></paragraph></subsection></section> 
<section id="H2223B36D93DD4A0FBB5B4B22DEDF1B77" role="subsequent-section"><num value="1193">“SEC. 1193. </num>
<heading>MANUFACTURER AGREEMENTS.</heading>
<subsection id="HFAAD97A9BF6E4E39890B2D63D807EA94" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>For purposes of section 1191(a)(2), the Secretary shall enter into agreements with manufacturers of selected drugs with respect to a price applicability period, by not later than June 15 following the selected drug publication date with respect to such selected drug, under which—</chapeau>
<paragraph id="HA5CA5118DC664945B7C38039B81CAAE4" class="indent1"><num value="1">“(1) </num>
<chapeau>during the voluntary negotiation period for the initial price applicability year for the selected drug, the Secretary and manufacturer, in accordance with section 1194, negotiate to determine (and, by not later than the last date of such period and in accordance with subsection (c), agree to) a maximum fair price for such selected drug of the manufacturer in order to provide access to such price—</chapeau>
<subparagraph id="H428BC08A9C4643C58CA3777179E502C2" class="indent2"><num value="A">“(A) </num>
<content>to fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(1) and are furnished or dispensed such drug during, subject to subparagraph (2), the price applicability period; and</content></subparagraph>
<subparagraph id="HBD0C5DB81D274FF3AE948586E3465FE7" class="indent2"><num value="B">“(B) </num>
<content>to hospitals, physicians, and other providers of services and suppliers with respect to fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during, subject to subparagraph (2), the price applicability period;</content></subparagraph></paragraph>
<paragraph id="HBC0266E096734DB68FC14928175CC34F" class="indent1"><num value="2">“(2) </num>
<chapeau>the Secretary and the manufacturer shall, in accordance with a process and during a period specified by the Secretary pursuant to rulemaking, renegotiate (and, by not later than the last date of such period and in accordance with subsection (c), agree to) the maximum fair price for such drug if the Secretary determines that there is a material change in any of the factors described in section 1194(d) relating to the drug, including changes in the AIM price for such drug, in order to provide access to such maximum fair price (as so renegotiated)—</chapeau>
<subparagraph id="H372897648A464D02935007417EAF5440" class="indent2"><num value="A">“(A) </num>
<content>to fair price eligible individuals who with respect to such drug are described in subparagraph (A) of section 1191(c)(1) and are furnished or dispensed such drug during any year during the price applicability period (beginning after such renegotiation) with respect to such selected drug; and</content></subparagraph>
<subparagraph id="H3727F643D73D49479AA3A11754C9205C" class="indent2"><num value="B">“(B) </num>
<content>to hospitals, physicians, and other providers of services and suppliers with respect to fair price eligible individuals who with respect to such drug are described in subparagraph (B) of such section and are furnished or administered such drug during any year described in subparagraph (A);</content></subparagraph></paragraph>
<paragraph id="H511F336AB15F4FA79495FBD9E9D2AD6A" class="indent1"><num value="3">“(3) </num>
<content>the maximum fair price (including as renegotiated pursuant to paragraph (2)), with respect to such a selected drug, shall be provided to fair price eligible individuals, who with respect to such drug are described in subparagraph (A) of section 1191(c)(1), at the pharmacy or by a mail order service at the point-of-sale of such drug;</content></paragraph>
<paragraph id="HAA0A766250E44505BB6888EDF1251001" class="indent1"><num value="4">“(4) </num>
<chapeau>the manufacturer, subject to subsection (c), submits to the Secretary, in a form and manner specified by the Secretary—</chapeau>
<subparagraph id="H1DCE2797ED5844248847D25ADA20A1DB" class="indent2"><num value="A">“(A) </num>
<content>for the voluntary negotiation period for the price applicability period (and, if applicable, before any period of renegotiation specified pursuant to paragraph (2)) with respect to such drug all information that the Secretary requires to carry out the negotiation (or renegotiation process) under this part, including information described in section 1192(f) and section 1194(d)(1); and</content></subparagraph>
<subparagraph id="HBA2F04D38073496192CA2BD4BAD9278F" class="indent2"><num value="B">“(B) </num>
<content>on an ongoing basis, information on changes in prices for such drug that would affect the AIM price for such drug or otherwise provide a basis for renegotiation of the maximum fair price for such drug pursuant to paragraph (2);</content></subparagraph></paragraph>
<paragraph id="HB44478966F2347A68DF38957EA381B10" class="indent1"><num value="5">“(5) </num>
<content>the manufacturer agrees that in the case the selected drug of a manufacturer is a drug described in subsection (c), the manufacturer will, in accordance with such subsection, make any payment required under such subsection with respect to such drug; and</content></paragraph>
<paragraph id="HD7BC3D6459BC4F9DAD3B00042A4DE159" class="indent1"><num value="6">“(6) </num>
<content>the manufacturer complies with requirements imposed by the Secretary for purposes of administering the program, including with respect to the duties described in section 1196.</content></paragraph></subsection>
<subsection id="H8D2917AD10D54006A5984F147F687033" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Agreement in Effect Until Drug Is No Longer a Selected Drug</inline>.—</heading>
<content>An agreement entered into under this section shall be effective, with respect to a drug, until such drug is no longer considered a selected drug under section 1192(c).</content></subsection>
<subsection id="H932F10C5306F4831B3D7715B5D7470D9" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Special Rule for Certain Selected Drugs Without AIM Price</inline>.—</heading>
<paragraph id="H5996055F79A444CDB7ABF1483CB5285D" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>In the case of a selected drug for which there is no AIM price available with respect to the initial price applicability year for such drug and for which an AIM price becomes available beginning with respect to a subsequent plan year during the price applicability period for such drug, if the Secretary determines that the amount described in paragraph (2)(A) for a unit of such drug is greater than the amount described in paragraph (2)(B) for a unit of such drug, then by not later than one year after the date of such determination, the manufacturer of such selected drug shall pay to the Treasury an amount equal to the product of—</chapeau>
<subparagraph id="H96E4BA9BAE71451793B672ADB47C4DB9" class="indent2"><num value="A">“(A) </num>
<content>the difference between such amount described in paragraph (2)(A) for a unit of such drug and such amount described in paragraph (2)(B) for a unit of such drug; and</content></subparagraph>
<subparagraph id="H8F4ED106FAA949BF8F0F38A5977171C4" class="indent2"><num value="B">“(B) </num>
<content>the number of units of such drug sold in the United States, including the 50 States, the District of Columbia, and the territories of the United States, during the period described in paragraph (2)(B).</content></subparagraph></paragraph>
<paragraph id="HB36A4BB2592A4A2B9F3BB45316F23368" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Amounts described</inline>.—</heading>
<subparagraph id="HEA550E6E3A33467E9D0F6C9F783A370F" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Weighted average price before aim price available</inline>.—</heading>
<content>For purposes of paragraph (1), the amount described in this subparagraph for a selected drug described in such paragraph, is the amount equal to the weighted average manufacturer price (as defined in section 1927(k)(1)) for such dosage strength and form for the drug during the period beginning with the first plan year for which the drug is included on the list of negotiation-eligible drugs published under section 1192(d) and ending with the last plan year during the price applicability period for such drug with respect to which there is no AIM price available for such drug.</content></subparagraph>
<subparagraph id="H3B4491CEF15445C28792415F0E466EAF" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Amount multiplier after aim price available</inline>.—</heading>
<content>For purposes of paragraph (1), the amount described in this subparagraph for a selected drug described in such paragraph, is the amount equal to 200 percent of the AIM price for such drug with respect to the first plan year during the price applicability period for such drug with respect to which there is an AIM price available for such drug.</content></subparagraph></paragraph></subsection>
<subsection id="HA22F0F2DE2B545B48B44B38E8AA19C0C" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Confidentiality of Information</inline>.—</heading>
<content>Information submitted to the Secretary under this part by a manufacturer of a selected drug that is proprietary information of such manufacturer (as determined by the Secretary) may be used only by the Secretary or disclosed to and used by the Comptroller General of the United States or the Medicare Payment Advisory Commission for purposes of carrying out this part.</content></subsection>
<subsection id="HB1EED713C33847E9982866A01E25C448" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Regulations</inline>.—</heading>
<paragraph id="H226D202F2941412EA77C3D5DF636C178" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall, pursuant to rulemaking, specify, in accordance with paragraph (2), the information that must be submitted under subsection (a)(4).</content></paragraph>
<paragraph id="HA506E8FDD39941E7A1C3C97A9AAA1BF1" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Information specified</inline>.—</heading>
<content>Information described in paragraph (1), with respect to a selected drug, shall include information on sales of the drug (by the manufacturer of the drug or by another entity under license or other agreement with the manufacturer, with respect to the sales of such drug, regardless of the name under which the drug is sold) in any foreign country that is part of the AIM price. The Secretary shall verify, to the extent practicable, such sales from appropriate officials of the government of the foreign country involved.</content></paragraph></subsection>
<subsection id="HF91CF522C5AD4074A7DD9DC16946D685" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Compliance With Requirements for Administration of Program</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall comply with requirements imposed by the Secretary or a third party with a contract under section 1196(c)(1), as applicable, for purposes of administering the program.</content></subsection></section> 
<section id="H016813943F9A4C1BA5971C42BC9FA871" role="subsequent-section"><num value="1194">“SEC. 1194. </num>
<heading>NEGOTIATION AND RENEGOTIATION PROCESS.</heading>
<subsection id="HA28643675AD64BC1901C8BFCD90235D3" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>For purposes of this part, under an agreement under section 1193 between the Secretary and a manufacturer of a selected drug, with respect to the period for which such agreement is in effect and in accordance with subsections (b) and (c), the Secretary and the manufacturer—</chapeau>
<paragraph id="HAEC65D37803E4AD3A471092F922955D5" class="indent1"><num value="1">“(1) </num>
<content>shall during the voluntary negotiation period with respect to the initial price applicability year for such drug, in accordance with this section, negotiate a maximum fair price for such drug for the purpose described in section 1193(a)(1); and</content></paragraph>
<paragraph id="H6811C6BAF6384FE98E943147A5E0F32F" class="indent1"><num value="2">“(2) </num>
<content>as applicable pursuant to section 1193(a)(2) and in accordance with the process specified pursuant to such section, renegotiate such maximum fair price for such drug for the purpose described in such section.</content></paragraph></subsection>
<subsection id="HB4589B13EA2549D39A4CFF641B084814" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Negotiating Methodology and Objective</inline>.—</heading>
<paragraph id="H8A7ABA93469746B2B8D0847FF7DF421F" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall develop and use a consistent methodology for negotiations under subsection (a) that, in accordance with paragraph (2) and subject to paragraph (3), achieves the lowest maximum fair price for each selected drug while appropriately rewarding innovation.</content></paragraph>
<paragraph id="H2085D6012CEF49828D10CFB3A227F7F4" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Prioritizing factors</inline>.—</heading>
<chapeau>In considering the factors described in subsection (d) in negotiating (and, as applicable, renegotiating) the maximum fair price for a selected drug, the Secretary shall, to the extent practicable, consider all of the available factors listed but shall prioritize the following factors:</chapeau>
<subparagraph id="H93233A74285042BFAB6D5B2622BBB095" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Research and development costs</inline>.—</heading>
<content>The factor described in paragraph (1)(A) of subsection (d).</content></subparagraph>
<subparagraph id="HD11D84769C174AB58F444E884F967204" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Market data</inline>.—</heading>
<content>The factor described in paragraph (1)(B) of such subsection.</content></subparagraph>
<subparagraph id="H96A51D33D9D141BA88A8D9B1DF775C5C" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Unit costs of production and distribution</inline>.—</heading>
<content>The factor described in paragraph (1)(C) of such subsection.</content></subparagraph>
<subparagraph id="H3B724DF504314F9D953EA4BDE75F0005" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Comparison to existing therapeutic alternatives</inline>.—</heading>
<content>The factor described in paragraph (2)(A) of such subsection.</content></subparagraph></paragraph>
<paragraph id="HBAA2B62A4F10475B8A6EC696772B6CF1" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Requirement</inline>.—</heading>
<subparagraph id="H08C330A3068448D3A260E37DC89F0287" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>In negotiating the maximum fair price of a selected drug, with respect to an initial price applicability year for the selected drug, and, as applicable, in renegotiating the maximum fair price for such drug, with respect to a subsequent year during the price applicability period for such drug, in the case that the manufacturer of the selected drug offers under the negotiation or renegotiation, as applicable, a price for such drug that is not more than the target price described in subparagraph (B) for such drug for the respective year, the Secretary shall agree under such negotiation or renegotiation, respectively, to such offered price as the maximum fair price.</content></subparagraph>
<subparagraph id="H434A7DCC754F46DD90D96DA5D2F915F3" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Target price</inline>.—</heading>
<clause id="H8536555CBDBF4E51A1F2E01BB109F530" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to clause (ii), the target price described in this subparagraph for a selected drug with respect to a year, is the average price (which shall be the net average price, if practicable, and volume-weighted, if practicable) for a unit of such drug for sales of such drug, as computed (across different dosage forms and strengths of the drug and not based on the specific formulation or package size or package type of the drug) in the applicable country described in section 1191(c)(3)(B) with respect to such drug that, with respect to such year, has the lowest average price for such drug as compared to the average prices (as so computed) of such drug with respect to such year in the other applicable countries described in such section with respect to such drug.</content></clause>
<clause id="H6CA2DADD59334A0685ABA5F87F2314BE" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Selected drugs without aim price</inline>.—</heading>
<content>In applying this paragraph in the case of negotiating the maximum fair price of a selected drug for which there is no AIM price available with respect to the initial price applicability year for such drug, or, as applicable, renegotiating the maximum fair price for such drug with respect to a subsequent year during the price applicability period for such drug before the first plan year for which there is an AIM price available for such drug, the target price described in this subparagraph for such drug and respective year is the amount that is 80 percent of the average manufacturer price (as defined in section 1927(k)(1)) for such drug and year.</content></clause></subparagraph></paragraph>
<paragraph id="HFBC24758CCB34285B6B1F9E64B33A92E" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Annual report</inline>.—</heading>
<content>After the completion of each voluntary negotiation period, the Secretary shall submit to Congress a report on the maximum fair prices negotiated (or, as applicable, renegotiated) for such period. Such report shall include information on how such prices so negotiated (or renegotiated) meet the requirements of this part, including the requirements of this subsection.</content></paragraph></subsection>
<subsection id="H47978DAFBF1C47D5AF8DFE825175441B" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Limitation</inline>.—</heading>
<paragraph id="H3ECA4A4E4BE34E85826F24A5FA18639C" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to paragraph (2), the maximum fair price negotiated (including as renegotiated) under this section for a selected drug, with respect to each plan year during a price applicability period for such drug, shall not exceed 120 percent of the AIM price applicable to such drug with respect to such year.</content></paragraph>
<paragraph id="H4C67CC324692422A86CFB897C8C00E65" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Selected drugs without aim price</inline>.—</heading>
<content>In the case of a selected drug for which there is no AIM price available with respect to the initial price applicability year for such drug, for each plan year during the price applicability period before the first plan year for which there is an AIM price available for such drug, the maximum fair price negotiated (including as renegotiated) under this section for the selected drug shall not exceed the amount equal to 85 percent of the average manufacturer price for the drug with respect to such year.</content></paragraph></subsection>
<subsection id="HA79A30C01A804D0AB3DCFB0B8F62014D" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Considerations</inline>.—</heading>
<chapeau>For purposes of negotiating and, as applicable, renegotiating (including for purposes of determining whether to renegotiate) the maximum fair price of a selected drug under this part with the manufacturer of the drug, the Secretary shall, consistent with subsection (b)(2), take into consideration the following factors:</chapeau>
<paragraph id="HA0340CE936F5455B9C707C42725FEA88" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Manufacturer-specific information</inline>.—</heading>
<chapeau>The following information, including as submitted by the manufacturer:</chapeau>
<subparagraph id="HF7A3D1DB4D66471892E120527D2DF853" class="indent2"><num value="A">“(A) </num>
<content>Research and development costs of the manufacturer for the drug and the extent to which the manufacturer has recouped research and development costs.</content></subparagraph>
<subparagraph id="H37060ADF555E445B8F6BED625C498CB4" class="indent2"><num value="B">“(B) </num>
<content>Market data for the drug, including the distribution of sales across different programs and purchasers and projected future revenues for the drug.</content></subparagraph>
<subparagraph id="H609D3A6B52CF40FB994243B855548A4A" class="indent2"><num value="C">“(C) </num>
<content>Unit costs of production and distribution of the drug.</content></subparagraph>
<subparagraph id="H9CD4900A84B8441F92C92219663DBF8E" class="indent2"><num value="D">“(D) </num>
<content>Prior Federal financial support for novel therapeutic discovery and development with respect to the drug.</content></subparagraph>
<subparagraph id="H38AC7B63C10846C9B6AF8C44F3F475B7" class="indent2"><num value="E">“(E) </num>
<content>Data on patents and on existing and pending exclusivity for the drug.</content></subparagraph>
<subparagraph id="HA237191B2C7649C4B287F76C6E2EF30A" class="indent2"><num value="F">“(F) </num>
<content>National sales data for the drug.</content></subparagraph>
<subparagraph id="HBFAB58A4968E49A09F63903553DE4A1B" class="indent2"><num value="G">“(G) </num>
<content>Information on clinical trials for the drug in the United States or in applicable countries described in section 1191(c)(3)(B).</content></subparagraph></paragraph>
<paragraph id="H830F2E0792F5418FB315A6C50ADB6313" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Information on alternative products</inline>.—</heading>
<chapeau>The following information:</chapeau>
<subparagraph id="H09FA128B78E84704845EF82B631722A3" class="indent2"><num value="A">“(A) </num>
<content>The extent to which the drug represents a therapeutic advance as compared to existing therapeutic alternatives and, to the extent such information is available, the costs of such existing therapeutic alternatives.</content></subparagraph>
<subparagraph id="H005AB1B3E8AE47FAAB7B8601F16DC65B" class="indent2"><num value="B">“(B) </num>
<content>Information on approval by the Food and Drug Administration of alternative drug products.</content></subparagraph>
<subparagraph id="H580F50511616490E8C078C3E7E75486B" class="indent2"><num value="C">“(C) </num>
<content>Information on comparative effectiveness analysis for such products, taking into consideration the effects of such products on specific populations, such as individuals with disabilities, the elderly, terminally ill, children, and other patient populations.</content></subparagraph>
<continuation class="indent0">In considering information described in subparagraph (C), the Secretary shall not use evidence or findings from comparative clinical effectiveness research in a manner that treats extending the life of an elderly, disabled, or terminally ill individual as of lower value than extending the life of an individual who is younger, nondisabled, or not terminally ill. Nothing in the previous sentence shall affect the application or consideration of an AIM price for a selected drug.</continuation></paragraph>
<paragraph id="H4AFF776289BA4E35AB889F6DCB490044" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Foreign sales information</inline>.—</heading>
<content>To the extent available on a timely basis, including as provided by a manufacturer of the selected drug or otherwise, information on sales of the selected drug in each of the countries described in section 1191(c)(3)(B).</content></paragraph>
<paragraph id="H14CA389ECA844E8A8D7785F186546996" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Additional information</inline>.—</heading>
<content>Information submitted to the Secretary, in accordance with a process specified by the Secretary, by other parties that are affected by the establishment of a maximum fair price for the selected drug.</content></paragraph></subsection>
<subsection id="HF2052986291A493A975F0222F89FBEF1" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Request for Information</inline>.—</heading>
<chapeau>For purposes of negotiating and, as applicable, renegotiating (including for purposes of determining whether to renegotiate) the maximum fair price of a selected drug under this part with the manufacturer of the drug, with respect to a price applicability period, and other relevant data for purposes of this section—</chapeau>
<paragraph id="H20231676DB9440EBA5C74F4807ECEA59" class="indent1"><num value="1">“(1) </num>
<content>the Secretary shall, not later than the selected drug publication date with respect to the initial price applicability year of such period, request drug pricing information from the manufacturer of such selected drug, including information described in subsection (d)(1); and</content></paragraph>
<paragraph id="H2EDC0ED402FE4F2EB94CAEAD9C64BC5D" class="indent1"><num value="2">“(2) </num>
<content>by not later than October 1 following the selected drug publication date, the manufacturer of such selected drug shall submit to the Secretary such requested information in such form and manner as the Secretary may require.</content></paragraph>
<continuation class="indent0">The Secretary shall request, from the manufacturer or others, such additional information as may be needed to carry out the negotiation and renegotiation process under this section.</continuation></subsection></section> 
<section id="H6B25770810E04C5B931D624CFA65F5C7" role="subsequent-section"><num value="1195">“SEC. 1195. </num>
<heading>PUBLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="H5FEAD9E2451349098B20A1055762A534" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>With respect to an initial price applicability year and selected drug with respect to such year, not later than April 1 of the plan year prior to such initial price applicability year, the Secretary shall publish in the Federal Register the maximum fair price for such drug negotiated under this part with the manufacturer of such drug.</content></subsection>
<subsection id="HD816DA2EE3C24E368BA43DD77E22C632" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Updates</inline>.—</heading>
<paragraph id="HEEE2326320824B5892BA8DF81490B94B" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Subsequent year maximum fair prices</inline>.—</heading>
<chapeau>For a selected drug, for each plan year subsequent to the initial price applicability year for such drug with respect to which an agreement for such drug is in effect under section 1193, the Secretary shall publish in the Federal Register—</chapeau>
<subparagraph id="H497C6AF7AF664495A2F4B2DA85E76F11" class="indent2"><num value="A">“(A) </num>
<content>subject to subparagraph (B), the amount equal to the maximum fair price published for such drug for the previous year, increased by the annual percentage increase in the consumer price index for all urban consumers (all items; U.S. city average) as of September of such previous year; or</content></subparagraph>
<subparagraph id="HB6E7ADE4C2034DD69830A4F17FB01864" class="indent2"><num value="B">“(B) </num>
<content>in the case the maximum fair price for such drug was renegotiated, for the first year for which such price as so renegotiated applies, such renegotiated maximum fair price.</content></subparagraph></paragraph>
<paragraph id="H48422F8255124677BFC0EA59BEAA0962" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Prices negotiated after deadline</inline>.—</heading>
<content>In the case of a selected drug with respect to an initial price applicability year for which the maximum fair price is determined under this part after the date of publication under this section, the Secretary shall publish such maximum fair price in the Federal Register by not later than 30 days after the date such maximum price is so determined.</content></paragraph></subsection></section> 
<section id="HB4F041F6EB114ED5A4F7DA0A7C20C22E" role="subsequent-section"><num value="1196">“SEC. 1196. </num>
<heading>ADMINISTRATIVE DUTIES; COORDINATION PROVISIONS.</heading>
<subsection id="H3FEB867154DE425397763DA59DB93811" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Administrative Duties</inline>.—</heading>
<paragraph id="H9CABB21A8BF744A498901286F1C6BA36" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of section 1191, the administrative duties described in this section are the following:</chapeau>
<subparagraph id="H29A6F4456BDC4F93937D27FC30CD717E" class="indent2"><num value="A">“(A) </num>
<content>The establishment of procedures (including through agreements with manufacturers under this part, contracts with prescription drug plans under part D of title XVIII and MA–PD plans under part C of such title, and agreements under section 1197 with group health plans and health insurance issuers of health insurance coverage offered in the individual or group market) under which the maximum fair price for a selected drug is provided to fair price eligible individuals, who with respect to such drug are described in subparagraph (A) of section 1191(c)(1), at pharmacies or by mail order service at the point-of-sale of the drug for the applicable price period for such drug and providing that such maximum fair price is used for determining cost-sharing under such plans or coverage for the selected drug.</content></subparagraph>
<subparagraph id="HDE687949969744B1BEB2E41F7B5F97AD" class="indent2"><num value="B">“(B) </num>
<content>The establishment of procedures (including through agreements with manufacturers under this part and contracts with hospitals, physicians, and other providers of services and suppliers and agreements under section 1197 with group health plans and health insurance issuers of health insurance coverage offered in the individual or group market) under which, in the case of a selected drug furnished or administered by such a hospital, physician, or other provider of services or supplier to fair price eligible individuals (who with respect to such drug are described in subparagraph (B) of section 1191(c)(1)), the maximum fair price for the selected drug is provided to such hospitals, physicians, and other providers of services and suppliers (as applicable) with respect to such individuals and providing that such maximum fair price is used for determining cost-sharing under the respective part, plan, or coverage for the selected drug.</content></subparagraph>
<subparagraph id="H31372760E1374E0E97A3D3450FD7B329" class="indent2"><num value="C">“(C) </num>
<chapeau>The establishment of procedures (including through agreements and contracts described in subparagraphs (A) and (B)) to ensure that, not later than 90 days after the dispensing of a selected drug to a fair price eligible individual by a pharmacy or mail order service, the pharmacy or mail order service is reimbursed for an amount equal to the difference between—</chapeau>
<clause id="HB2D4ED966CCC4724A42EA0F2CC50A204" class="indent3"><num value="i">“(i) </num>
<chapeau>the lesser of—</chapeau>
<subclause id="HE1B4C64C1D0541E5AB17824AB5A46121" class="indent4"><num value="I">“(I) </num>
<content>the wholesale acquisition cost of the drug;</content></subclause>
<subclause id="H34C726F3DF374A30A7EE0D837C0E3265" class="indent4"><num value="II">“(II) </num>
<content>the national average drug acquisition cost of the drug; and</content></subclause>
<subclause id="HE772D3026AAF4831887BAEE81F8A8ADD" class="indent4"><num value="III">“(III) </num>
<content>any other similar determination of pharmacy acquisition costs of the drug, as determined by the Secretary; and</content></subclause></clause>
<clause id="HEE03E39EC0F84972964CE98BE15E8F8F" class="indent3"><num value="ii">“(ii) </num>
<content>the maximum fair price for the drug.</content></clause></subparagraph>
<subparagraph id="H3D7F93D1F61E49C1A3DFAE70525C3895" class="indent2"><num value="D">“(D) </num>
<chapeau>The establishment of procedures to ensure that the maximum fair price for a selected drug is applied before—</chapeau>
<clause id="HF443930CD6CC4EABB63991454E95A0E6" class="indent3"><num value="i">“(i) </num>
<content>any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of fair price eligible individuals as the Secretary may specify; and</content></clause>
<clause id="HC1CE472AF6CC4CE89D3308E87FA59E53" class="indent3"><num value="ii">“(ii) </num>
<content>any other discounts.</content></clause></subparagraph>
<subparagraph id="H8B32676854D44D5D89D87DA02CC10979" class="indent2"><num value="E">“(E) </num>
<content>The establishment of procedures to enter into appropriate agreements and protocols for the ongoing computation of AIM prices for selected drugs, including, to the extent possible, to compute the AIM price for selected drugs and including by providing that the manufacturer of such a selected drug should provide information for such computation not later than 3 months after the first date of the voluntary negotiation period for such selected drug.</content></subparagraph>
<subparagraph id="H30BD031F1C69413CA036A439ACE276BD" class="indent2"><num value="F">“(F) </num>
<content>The establishment of procedures to compute and apply the maximum fair price across different strengths and dosage forms of a selected drug and not based on the specific formulation or package size or package type of the drug.</content></subparagraph>
<subparagraph id="HB385516FD16B4C96975C551C10C40839" class="indent2"><num value="G">“(G) </num>
<content>The establishment of procedures to negotiate and apply the maximum fair price in a manner that does not include any dispensing or similar fee.</content></subparagraph>
<subparagraph id="H269849E6DF1644F2BB2DB8601575DF7F" class="indent2"><num value="H">“(H) </num>
<chapeau>The establishment of procedures to carry out the provisions of this part, as applicable, with respect to—</chapeau>
<clause id="H6DBBADE498A746C2BE3599CDB49ABFE1" class="indent3"><num value="i">“(i) </num>
<content>fair price eligible individuals who are enrolled under a prescription drug plan under part D of title XVIII or an MA–PD plan under part C of such title; and</content></clause>
<clause id="HDA503B51309149649BBB7A7FF9BCB10A" class="indent3"><num value="ii">“(ii) </num>
<content>fair price eligible individuals who are enrolled under a group health plan or health insurance coverage offered by a health insurance issuer in the individual or group market with respect to which there is an agreement in effect under section 1197.</content></clause></subparagraph>
<subparagraph id="H144C5F8C5B09447D80DB165EF51B45EA" class="indent2"><num value="I">“(I) </num>
<content>The establishment of a negotiation process and renegotiation process in accordance with section 1194, including a process for acquiring information described in subsection (d) of such section and determining amounts described in subsection (b) of such section.</content></subparagraph>
<subparagraph id="H12193FDBA18549C9A0529C80A372DB7D" class="indent2"><num value="J">“(J) </num>
<content>The provision of a reasonable dispute resolution mechanism to resolve disagreements between manufacturers, fair price eligible individuals, and the third party with a contract under subsection (c)(1).</content></subparagraph></paragraph>
<paragraph id="HC0D0DDEB9D1C4833A120521E23A7073A" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Monitoring compliance</inline>.—</heading>
<subparagraph id="H9BCB08EF48B947F2ABCB79B7C3A50EDF" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under section 1193, including by establishing a mechanism through which violations of such terms may be reported.</content></subparagraph>
<subparagraph id="H6646E43EA0FF4643B1A4C157405695A7" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Notification</inline>.—</heading>
<content>If a third party with a contract under subsection (c)(1) determines that the manufacturer is not in compliance with such agreement, the third party shall notify the Secretary of such noncompliance for appropriate enforcement under <ref href="usc/26/4192">section 4192</ref> of the Internal Revenue Code of 1986 or section 1198, as applicable.</content></subparagraph></paragraph></subsection>
<subsection id="H1C49E1FEF0774FDAAE491D219F50B9C3" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Collection of Data</inline>.—</heading>
<paragraph id="HBD8F5E2B96964340BE51A2ADD90CCBFC" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">From prescription drug plans and ma–pd plans</inline>.—</heading>
<content>The Secretary may collect appropriate data from prescription drug plans under part D of title XVIII and MA–PD plans under part C of such title in a timeframe that allows for maximum fair prices to be provided under this part for selected drugs.</content></paragraph>
<paragraph id="HF562A44B417E485096823A53C6B004CD" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">From health plans</inline>.—</heading>
<content>The Secretary may collect appropriate data from group health plans or health insurance issuers offering group or individual health insurance coverage in a timeframe that allows for maximum fair prices to be provided under this part for selected drugs.</content></paragraph>
<paragraph id="H9BED5BC179514C70B677151938D123AC" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Coordination of data collection</inline>.—</heading>
<content>To the extent feasible, as determined by the Secretary, the Secretary shall ensure that data collected pursuant to this subsection is coordinated with, and not duplicative of, other data collection efforts.</content></paragraph></subsection>
<subsection id="H4B183282874F4F88A89A80FF46FB8A03" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Contract With Third Parties</inline>.—</heading>
<paragraph id="HBA25CBCFF1FF42FA9BB9F4412548DBA9" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>The Secretary may enter into a contract with 1 or more third parties to administer the requirements established by the Secretary in order to carry out this part. At a minimum, the contract with a third party under the preceding sentence shall require that the third party—</chapeau>
<subparagraph id="H0CBE8D7E21D44DD6B8A690DFBAABB847" class="indent2"><num value="A">“(A) </num>
<content>receive and transmit information between the Secretary, manufacturers, and other individuals or entities the Secretary determines appropriate;</content></subparagraph>
<subparagraph id="H8657C876769B4695A6607A7FFB4A90F9" class="indent2"><num value="B">“(B) </num>
<content>receive, distribute, or facilitate the distribution of funds of manufacturers to appropriate individuals or entities in order to meet the obligations of manufacturers under agreements under this part;</content></subparagraph>
<subparagraph id="H754E974D904940B1A6B4C981555DB0E6" class="indent2"><num value="C">“(C) </num>
<content>provide adequate and timely information to manufacturers, consistent with the agreement with the manufacturer under this part, as necessary for the manufacturer to fulfill its obligations under this part; and</content></subparagraph>
<subparagraph id="HAE04CBEA436643E4AFDE521034CBF02B" class="indent2"><num value="D">“(D) </num>
<content>permit manufacturers to conduct periodic audits, directly or through contracts, of the data and information used by the third party to determine discounts for applicable drugs of the manufacturer under the program.</content></subparagraph></paragraph>
<paragraph id="H2950BA53363B4D12BFD0A8BB796F10BE" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Performance requirements</inline>.—</heading>
<content>The Secretary shall establish performance requirements for a third party with a contract under paragraph (1) and safeguards to protect the independence and integrity of the activities carried out by the third party under the program under this part.</content></paragraph></subsection>
<subsection id="H2FEDF40375C449ABB6ECE190B500E6EA" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Coordination With 340B Program</inline>.—</heading>
<content>In the case of a manufacturer of a selected drug, with respect to an initial price applicability year, for each year with respect to which a maximum fair price is applied under this part for such drug, such drug shall not be considered a covered outpatient drug subject to an agreement under section 340B of the Public Health Service Act.</content></subsection></section> 
<section id="HEF656F5BCD0146D6BDC7AA52C3F5F5E8" role="subsequent-section"><num value="1197">“SEC. 1197. </num>
<heading>VOLUNTARY PARTICIPATION BY OTHER HEALTH PLANS.</heading>
<subsection id="H5E9D43B38A5C4732B95CAB2EBC38B9BF" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Agreement to Participate Under Program</inline>.—</heading>
<chapeau/>
<paragraph id="H5CFBF868A8C449E185D425256FBC0710" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>Subject to paragraph (2), under the program under this part the Secretary shall be treated as having in effect an agreement with a group health plan or health insurance issuer offering health insurance coverage (as such terms are defined in section 2791 of the Public Health Service Act), with respect to a price applicability period and a selected drug with respect to such period—</chapeau>
<subparagraph id="H0636576330C94D7EBF8E6E3AC9131C1E" class="indent2"><num value="A">“(A) </num>
<content>with respect to such selected drug furnished or dispensed at a pharmacy or by mail order service if coverage is provided under such plan or coverage during such period for such selected drug as so furnished or dispensed; and</content></subparagraph>
<subparagraph id="H5839A79582A3473397E6314B8A23F9D6" class="indent2"><num value="B">“(B) </num>
<content>with respect to such selected drug furnished or administered by a hospital, physician, or other provider of services or supplier if coverage is provided under such plan or coverage during such period for such selected drug as so furnished or administered.</content></subparagraph></paragraph>
<paragraph id="HE25C37D94D6A4EFFA5630797CB5C7B59" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Opting out of agreement</inline>.—</heading>
<content>The Secretary shall not be treated as having in effect an agreement under the program under this part with a group health plan or health insurance issuer offering health insurance coverage with respect to a price applicability period and a selected drug with respect to such period if such a plan or issuer affirmatively elects, through a process specified by the Secretary, not to participate under the program with respect to such period and drug.</content></paragraph></subsection>
<subsection id="HEDC48A3B69164A5A9D829D581C632CBA" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Publication of Election</inline>.—</heading>
<content>With respect to each price applicability period and each selected drug with respect to such period, the Secretary and the Secretary of Labor and the Secretary of the Treasury, as applicable, shall make public a list of each group health plan and each issuer of health insurance coverage, with respect to which coverage is provided under such plan or coverage for such drug, that has elected under subsection (a) not to participate under the program with respect to such period and drug.</content></subsection></section> 
<section id="HFE87F4DB5E914000A1499542A41271C0" role="subsequent-section"><num value="1198">“SEC. 1198. </num>
<heading>CIVIL MONETARY PENALTY.</heading>
<subsection id="H4E9577905C6948A08206776FBE4CC16C" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Violations Relating To Offering of Maximum Fair Price</inline>.—</heading>
<chapeau>Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a plan year during the price applicability period for such drug, that does not provide access to a price that is not more than the maximum fair price (or a lesser price) for such drug for such year—</chapeau>
<paragraph id="HFE8FA396885C4BE98F1F02DA845FBBAE" class="indent1"><num value="1">“(1) </num>
<content>to a fair price eligible individual who with respect to such drug is described in subparagraph (A) of section 1191(c)(1) and who is furnished or dispensed such drug during such year; or</content></paragraph>
<paragraph id="H3EBAD507B38F4F53A54DECFD47B3DC8A" class="indent1"><num value="2">“(2) </num>
<content>to a hospital, physician, or other provider of services or supplier with respect to fair price eligible individuals who with respect to such drug is described in subparagraph (B) of such section and is furnished or administered such drug by such hospital, physician, or provider or supplier during such year;</content></paragraph>
<continuation class="indent0">shall be subject to a civil monetary penalty equal to ten times the amount equal to the difference between the price for such drug made available for such year by such manufacturer with respect to such individual or hospital, physician, provider, or supplier and the maximum fair price for such drug for such year.</continuation></subsection>
<subsection id="H5B76D74F6A3F4016B89CB71598F5047C" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Violations of Certain Terms of Agreement</inline>.—</heading>
<content>Any manufacturer of a selected drug that has entered into an agreement under section 1193, with respect to a plan year during the price applicability period for such drug, that is in violation of a requirement imposed pursuant to section 1193(a)(6) shall be subject to a civil monetary penalty of not more than $1,000,000 for each such violation.</content></subsection>
<subsection id="H2775C653A3744F0A9358F9E13AD904C0" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Application</inline>.—</heading>
<content>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil monetary penalty under this section in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></subsection></section> 
<section id="HE8DF6B121C684493AFA83DAE93264967" role="subsequent-section"><num value="1199">“SEC. 1199. </num>
<heading>MISCELLANEOUS PROVISIONS.</heading>
<subsection id="H1F1F3B5D05EC49348FCD06ED0C336E79" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Paperwork Reduction Act</inline>.—</heading>
<content><ref href="usc-chapter/44/35">Chapter 35</ref> of <ref href="/us/usc/t44">title 44, United States Code</ref>, shall not apply to data collected under this part.</content></subsection>
<subsection id="H1FC1B7131DE44B8583961ABA5FCB8E4B" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">National Academy of Medicine Study</inline>.—</heading>
<content>Not later than December 31, 2025, the National Academy of Medicine shall conduct a study, and submit to Congress a report, on recommendations for improvements to the program under this part, including the determination of the limits applied under section 1194(c).</content></subsection>
<subsection id="H2A588F89F1DC4993BF8F6E25C7D6E1E3" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">MedPAC Study</inline>.—</heading>
<content>Not later than December 31, 2025, the Medicare Payment Advisory Commission shall conduct a study, and submit to Congress a report, on the program under this part with respect to the Medicare program under title XVIII, including with respect to the effect of the program on individuals entitled to benefits or enrolled under such title.</content></subsection>
<subsection id="H20F324FBC4294188A8CEF1EDD102A30C" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Limitation on Judicial Review</inline>.—</heading>
<chapeau>The following shall not be subject to judicial review:</chapeau>
<paragraph id="H0B8D5DC8774E4E5593B1AE02468D12CA" class="indent1"><num value="1">“(1) </num>
<content>The selection of drugs for publication under section 1192(a).</content></paragraph>
<paragraph id="H7D547884EA874872B0A7B8509084E3D5" class="indent1"><num value="2">“(2) </num>
<content>The determination of whether a drug is a negotiation-eligible drug under section 1192(d).</content></paragraph>
<paragraph id="HE96F71B1F7C540C6992E22292ACE14B2" class="indent1"><num value="3">“(3) </num>
<content>The determination of the maximum fair price of a selected drug under section 1194.</content></paragraph>
<paragraph id="HB730263721C94ADE98F9E40B4C229C95" class="indent1"><num value="4">“(4) </num>
<content>The determination of units of a drug for purposes of section 1191(c)(3).</content></paragraph></subsection>
<subsection id="H3D1466514F1C4CCD8AC3A4DA67F06602" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Coordination</inline>.—</heading>
<content>In carrying out this part with respect to group health plans or health insurance coverage offered in the group market that are subject to oversight by the Secretary of Labor or the Secretary of the Treasury, the Secretary of Health and Human Services shall coordinate with such respective Secretary.</content></subsection>
<subsection id="H76870E52180C4002BA9EF74D5DD2F098" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Data Sharing</inline>.—</heading>
<content>The Secretary shall share with the Secretary of the Treasury such information as is necessary to determine the tax imposed by <ref href="usc/26/4192">section 4192</ref> of the Internal Revenue Code of 1986.</content></subsection>
<subsection id="H0024CEE9E146447EAB043C35B25097A0" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">GAO Study</inline>.—</heading>
<content>Not later than December 31, 2025, the Comptroller General of the United States shall conduct a study of, and submit to Congress a report on, the implementation of the Fair Price Negotiation Program under this part.</content></subsection>
<subsection id="HF3B7FA5E2FC7487DB20BF9BAF23FC400" class="indent0"><num value="h">“(h) </num>
<heading><inline class="smallCaps">Inflation Rebate for Group Health Plans</inline>.—</heading>
<paragraph id="H98A52AE590B24BBEBCB42CC45036AA13" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>Not later than December 31, 2021, the Secretary of Labor shall, in consultation with the Secretary of Health and Human Services and the Secretary of the Treasury, submit to Congress a report on the feasibility of the Secretary of Labor—</chapeau>
<subparagraph id="HEE7681C3DA58418981C9163851D6AFC1" class="indent2"><num value="A">“(A) </num>
<content>establishing an agreement process with manufacturers of prescription drugs under which manufacturers provide for inflation rebates (in a manner similar to rebates under section 1834(x) and 1860D–14B with respect to part B and part D drugs, respectively) with respect to drugs that are furnished or dispensed to participants, enrollees, and beneficiaries of health insurance coverage in connection with a group health plan; and</content></subparagraph>
<subparagraph id="H89EC52CF13954AD1BFB6172A907EDB6C" class="indent2"><num value="B">“(B) </num>
<chapeau>establishing an enforcement mechanism with respect to such agreement process that ensures that such inflation rebates are, proportionally distributed, with respect to costs, to—</chapeau>
<clause id="HCD7B97F1CE854CCCA09D055CA0848262" class="indent3"><num value="i">“(i) </num>
<content>participants, enrollees, and beneficiaries of health insurance coverage offered in the group market; and</content></clause>
<clause id="HB79445C9DB634CB7B5DB49FBD783284D" class="indent3"><num value="ii">“(ii) </num>
<content>a health insurance issuer offering health insurance coverage in the group market.</content></clause></subparagraph></paragraph>
<paragraph id="H12FE6D276FCE46D5ADFCD9F039853B40" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Regulations</inline>.—</heading>
<chapeau>Not later than December 31, 2022, the Secretary of Labor shall, in consultation with the Secretary of Health and Human Services and the Secretary of the Treasury, promulgate regulations consistent with the information contained in the report submitted pursuant to paragraph (1) if—</chapeau>
<subparagraph id="H3CC21D67723047B49755B25C83B1C133" class="indent2"><num value="A">“(A) </num>
<content>the Secretary of Labor determines the prices of a sufficient number (as determined by the Secretary of Labor) of drugs described in paragraph (1)(A) have increased at a percentage that exceeds the percentage by which the consumer price index for all urban consumers (United States city average) for a period of time (as determined by the Secretary of Labor); and</content></subparagraph>
<subparagraph id="H0D2CD74B7D45442AB46F2341E594E1F3" class="indent2"><num value="B">“(B) </num>
<content>the Secretary of Labor finds that the agreement process identified pursuant to subparagraph (A) of paragraph (1) and the enforcement mechanism identified pursuant to subparagraph (B) of such paragraph are feasible.”.</content></subparagraph></paragraph></subsection></section></part></quotedContent></content></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s101/b" id="H384D875312F344A0B32F24B69F6CA159" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Application of Maximum Fair Prices and Conforming Amendments</inline>.—</heading>
<paragraph identifier="/us/bill/116/hr/3/tI/s101/b/1" id="HE36B75F59DEF413ABC00859A006AD0F2" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">Under medicare prescription drug program</inline>.—</heading>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/A" id="H9E6A9AAC315D4A9581F9815B6E1247B4" class="indent2"><num value="A">(A) </num>
<heading><inline class="smallCaps">Exception to non-interference</inline>.—</heading>
<content>Section 1860D–11(i) of the Social Security Act (<ref href="/us/usc/t42/s1395w–111/i">42 U.S.C. 1395w–111(i)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>, except as provided under part E of title XI,</quotedText>” after “<quotedText>the Secretary</quotedText>”.</content></subparagraph>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/B" id="H849A1B1EAC22474EB3EC6A7E45EC040C" class="indent2"><num value="B">(B) </num>
<heading><inline class="smallCaps">Application as negotiated price</inline>.—</heading>
<chapeau>Section 1860D–2(d)(1) of the Social Security Act (<ref href="/us/usc/t42/s1395w–102/d/1">42 U.S.C. 1395w–102(d)(1)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<clause identifier="/us/bill/116/hr/3/tI/s101/b/1/B/i" id="H33EC7BCC77484C9280F562CE4B347799" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (B), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>, subject to subparagraph (D),</quotedText>” after “<quotedText>negotiated prices</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tI/s101/b/1/B/ii" id="HFE1A1D92A498465FABDCEAD4A629FA29" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HED00" id="H5A56EF70E05C46EEA5FC15F90872D53E" styleType="OLC"> <subparagraph id="H37B0D36CAF99418889927F11BC671E7C" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Application of maximum fair price for selected drugs</inline>.—</heading>
<content>In applying this section, in the case of a covered part D drug that is a selected drug (as defined in section 1192(c)), with respect to a price applicability period (as defined in section 1191(b)(2)), the negotiated price described in this subsection shall be the maximum fair price (as defined in section 1191(c)(2)) for such drug and for each plan year during such period.”.</content></subparagraph></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tI/s101/b/1/C" id="HBF98FB4A4E684EABB2B9A104698EC88C" class="indent2"><num value="C">(C) </num>
<heading><inline class="smallCaps">Information from prescription drug plans and ma–pd plans required</inline>.—</heading>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/C/i" id="HA25B455BCB0949C8BF88015E15E1446B" class="indent3"><num value="i">(i) </num>
<heading><inline class="smallCaps">Prescription drug plans</inline>.—</heading>
<content>Section 1860D–12(b) of the Social Security Act (<ref href="/us/usc/t42/s1395w–112/b">42 U.S.C. 1395w–112(b)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new paragraph:<quotedContent meta="committee ID HED00" id="HEE0F588450A04FA880305EF080C3E0F0" styleType="OLC"> <paragraph id="HE97A05CAB7264171B116E99E64D692ED" class="indent1"><num value="8">“(8) </num>
<heading><inline class="smallCaps">Provision of information related to maximum fair prices</inline>.—</heading>
<content>Each contract entered into with a PDP sponsor under this part with respect to a prescription drug plan offered by such sponsor shall require the sponsor to provide information to the Secretary as requested by the Secretary in accordance with section 1196(b).”.</content></paragraph></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/1/C/ii" id="H22FC2834004642FEB947A6BD14DE0DD0" class="indent3"><num value="ii">(ii) </num>
<heading><inline class="smallCaps">MA–PD plans</inline>.—</heading>
<content>Section 1857(f)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–27/f/3">42 U.S.C. 1395w–27(f)(3)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subparagraph:<quotedContent meta="committee ID HED00" id="H1BA021A6B8824FBB860D4ECDA53C8132" styleType="OLC"> <subparagraph id="HF4A9B891589F459188A7ADF778F1C67F" class="indent2"><num value="E">“(E) </num>
<heading><inline class="smallCaps">Provision of information related to maximum fair prices</inline>.—</heading>
<content>Section 1860D–12(b)(8).”.</content></subparagraph></quotedContent></content></clause></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tI/s101/b/2" id="HDFECA279F80E48BEBB35ECB26E00F1B8" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Under group health plans and health insurance coverage</inline>.—</heading>
<subparagraph role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/A" id="H06A34A3A821747E58D928E9FD9E67FD4" class="indent2"><num value="A">(A) </num>
<heading><inline class="smallCaps">PHSA</inline>.—</heading>
<content>Part A of title XXVII of the Public Health Service Act <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after section 2729 the following new section:<quotedContent meta="committee ID HED00" id="H8DC27D2A75174488AA32AC11641F9B26" styleType="OLC"> 
<section id="H1383932123F143C684E85B0B62D0CDEE" role="subsequent-section"><num value="2729A">“SEC. 2729A. </num>
<heading>FAIR PRICE DRUG NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="H1619804821674970A31819DA1AFE9CFC" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>In the case of a group health plan or health insurance issuer offering health insurance coverage that is treated under section 1197 of the Social Security Act as having in effect an agreement with the Secretary under the Fair Price Drug Negotiation Program under part E of title XI of such Act, with respect to a price applicability period (as defined in section 1191(b) of such Act) and a selected drug (as defined in section 1192(c) of such Act) with respect to such period with respect to which coverage is provided under such plan or coverage—</chapeau>
<paragraph id="HDC7085071588457694F3231B062DEB5E" class="indent1"><num value="1">“(1) </num>
<content>the provisions of such part shall apply to the plans or coverage offered by such plan or issuer, and to the individuals enrolled under such plans or coverage, during such period, with respect to such selected drug, in the same manner as such provisions apply to prescription drug plans and MA–PD plans, and to individuals enrolled under such prescription drug plans and MA–PD plans;</content></paragraph>
<paragraph id="H343F9A02CAEF49DF90D27379E1DB9816" class="indent1"><num value="2">“(2) </num>
<content>the plan or issuer shall apply any cost-sharing responsibilities under such plan or coverage, with respect to such selected drug, by substituting the maximum fair price negotiated under such part for such drug in lieu of the contracted rate under such plan or coverage for such selected drug; and</content></paragraph>
<paragraph id="H2D0F918FBB7B4E6AB5A0303FCA17484A" class="indent1"><num value="3">“(3) </num>
<content>the Secretary shall apply the provisions of such part to such plan, issuer, and coverage, and such individuals so enrolled in such plans.</content></paragraph></subsection>
<subsection id="H9363C3200EE54E9C98069687A5220BAE" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Notification Regarding Nonparticipation in Fair Drug Price Negotiation Program</inline>.—</heading>
<content>A group health plan or a health insurance issuer offering group or individual health insurance coverage shall publicly disclose in a manner and in accordance with a process specified by the Secretary any election made under section 1197 of the Social Security Act by the plan or issuer to not participate in the Fair Drug Price Negotiation Program under part E of title XI of such Act with respect to a selected drug (as defined in section 1192(c) of such Act) for which coverage is provided under such plan or coverage before the beginning of the plan year for which such election was made.”.</content></subsection></section></quotedContent></content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tI/s101/b/2/B" id="H32DBB5BD97D947CA8FAB06494948470B" class="indent2"><num value="B">(B) </num>
<heading><inline class="smallCaps">ERISA</inline>.—</heading>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/B/i" id="H89A747D2511540199616DD68FC5C3784" class="indent3"><num value="i">(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1181">29 U.S.C. 1181</ref> et. seq.) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent meta="committee ID HED00" id="H462F904F65924A1782B412F0D1BC2710" styleType="OLC"> 
<section id="H9C2D96DAF4D04A41B159C9C459FED3D3" role="subsequent-section"><num value="716">“SEC. 716. </num>
<heading>FAIR PRICE DRUG NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="H2F8D9186055C4E1598916C4C5100EADA" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>In the case of a group health plan or health insurance issuer offering group health insurance coverage that is treated under section 1197 of the Social Security Act as having in effect an agreement with the Secretary under the Fair Price Drug Negotiation Program under part E of title XI of such Act, with respect to a price applicability period (as defined in section 1191(b) of such Act) and a selected drug (as defined in section 1192(c) of such Act) with respect to such period with respect to which coverage is provided under such plan or coverage—</chapeau>
<paragraph id="HDEECE160573B47BCB96528EA8D610C2E" class="indent1"><num value="1">“(1) </num>
<chapeau>the provisions of such part shall apply, as applicable—</chapeau>
<subparagraph id="H2EF41A9BD103491094987E226DD3AA09" class="indent2"><num value="A">“(A) </num>
<content>if coverage of such selected drug is provided under such plan or coverage if the drug is furnished or dispensed at a pharmacy or by a mail order service, to the plans or coverage offered by such plan or issuer, and to the individuals enrolled under such plans or coverage, during such period, with respect to such selected drug, in the same manner as such provisions apply to prescription drug plans and MA–PD plans, and to individuals enrolled under such prescription drug plans and MA–PD plans during such period; and</content></subparagraph>
<subparagraph id="HD242A96A58D84D74A3BE7172868F3EBC" class="indent2"><num value="B">“(B) </num>
<content>if coverage of such selected drug is provided under such plan or coverage if the drug is furnished or administered by a hospital, physician, or other provider of services or supplier, to the plans or coverage offered by such plan or issuers, to the individuals enrolled under such plans or coverage, and to hospitals, physicians, and other providers of services and suppliers during such period, with respect to such drug in the same manner as such provisions apply to the Secretary, to individuals entitled to benefits under part A of title XVIII or enrolled under part B of such title, and to hospitals, physicians, and other providers and suppliers participating under title XVIII during such period;</content></subparagraph></paragraph>
<paragraph id="H68FA69E93DA849A48BB8B4CEC53F127D" class="indent1"><num value="2">“(2) </num>
<content>the plan or issuer shall apply any cost-sharing responsibilities under such plan or coverage, with respect to such selected drug, by substituting an amount not more than the maximum fair price negotiated under such part E of title XI for such drug in lieu of the drug price upon which the cost-sharing would have otherwise applied, and such cost-sharing responsibilities with respect to such selected drug may not exceed such amount; and</content></paragraph>
<paragraph id="H108E1EB792AD4AE392E5E01F04F03A11" class="indent1"><num value="3">“(3) </num>
<content>the Secretary shall apply the provisions of such part E to such plan, issuer, and coverage, and such individuals so enrolled in such plans.</content></paragraph></subsection>
<subsection id="H105D8F30710E410BBB038BEECAE2B8BA" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Notification Regarding Nonparticipation in Fair Drug Price Negotiation Program</inline>.—</heading>
<content>A group health plan or a health insurance issuer offering group health insurance coverage shall publicly disclose in a manner and in accordance with a process specified by the Secretary any election made under section 1197 of the Social Security Act by the plan or issuer to not participate in the Fair Drug Price Negotiation Program under part E of title XI of such Act with respect to a selected drug (as defined in section 1192(c) of such Act) for which coverage is provided under such plan or coverage before the beginning of the plan year for which such election was made.”.</content></subsection></section></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/B/ii" id="HCDEB36C9C08E4D66A8B54E65F4FC0B6B" class="indent3"><num value="ii">(ii) </num>
<heading><inline class="smallCaps">Application to retiree and certain small group health plans</inline>.—</heading>
<content>Section 732(a) of the Employee Retirement Income Security Act of 1974 (<ref href="/us/usc/t29/s1191a/a">29 U.S.C. 1191a(a)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 711</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>sections 711 and 716</quotedText>”.</content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/B/iii" id="H5686D607AB0B4C7086C598069A721BDC" class="indent3"><num value="iii">(iii) </num>
<heading><inline class="smallCaps">Clerical amendment</inline>.—</heading>
<content>The table of sections for subpart B of part 7 of subtitle B of title I of the Employee Retirement Income Security Act of 1974 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HED00" id="HFE83D33878E249E281C0815C792B20BB" styleType="OLC"> <toc meta="committee ID HED00"> <referenceItem role="section">
<designator>“Sec. 716. </designator>
<label>Fair Price Drug Negotiation Program and application of maximum fair prices.”.</label></referenceItem></toc></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tI/s101/b/2/C" id="H9AF2515E60E144F6B4E1073EF421747B" class="indent2"><num value="C">(C) </num>
<heading><inline class="smallCaps">IRC</inline>.—</heading>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/C/i" id="H221B634272BB407390AFB609E6A6F6D7" class="indent3"><num value="i">(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subchapter B of <ref href="usc-chapter/26/100">chapter 100</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent meta="committee ID HED00" id="H32E3F55C25D942C4BC115B2DD3B412F4" styleType="OLC"> 
<section id="H86C3156D77FA44C5B5B834EB63C69ED1" role="subsequent-section"><num value="9816">“SEC. 9816. </num>
<heading>FAIR PRICE DRUG NEGOTIATION PROGRAM AND APPLICATION OF MAXIMUM FAIR PRICES.</heading>
<subsection id="HB6290930B2184807A29506509C877FC2" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>In the case of a group health plan that is treated under section 1197 of the Social Security Act as having in effect an agreement with the Secretary under the Fair Price Drug Negotiation Program under part E of title XI of such Act, with respect to a price applicability period (as defined in section 1191(b) of such Act) and a selected drug (as defined in section 1192(c) of such Act) with respect to such period with respect to which coverage is provided under such plan—</chapeau>
<paragraph id="HC35425DD47E04FDF9514129CDCB6E110" class="indent1"><num value="1">“(1) </num>
<content>the provisions of such part shall apply to the plans offered by such plan, and to the individuals enrolled under such plans, during such period, with respect to such selected drug, in the same manner as such provisions apply to prescription drug plans and MA–PD plans, and to individuals enrolled under such prescription drug plans and MA–PD plans;</content></paragraph>
<paragraph id="HE20C542783FA4697912DFDDEFA7DA0BA" class="indent1"><num value="2">“(2) </num>
<content>the plan shall apply any cost-sharing responsibilities under such plan, with respect to such selected drug, by substituting the maximum fair price negotiated under such part for such drug in lieu of the contracted rate under such plan for such selected drug; and</content></paragraph>
<paragraph id="H28C379645F85433EB89467DBBF6669BE" class="indent1"><num value="3">“(3) </num>
<content>the Secretary shall apply the provisions of such part to such plan and such individuals so enrolled in such plan.</content></paragraph></subsection>
<subsection id="HE9287E39075448BABFC5BE509263473B" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Notification Regarding Nonparticipation in Fair Drug Price Negotiation Program</inline>.—</heading>
<content>A group health plan shall publicly disclose in a manner and in accordance with a process specified by the Secretary any election made under section 1197 of the Social Security Act by the plan to not participate in the Fair Drug Price Negotiation Program under part E of title XI of such Act with respect to a selected drug (as defined in section 1192(c) of such Act) for which coverage is provided under such plan before the beginning of the plan year for which such election was made.”.</content></subsection></section></quotedContent></content></clause>
<clause role="instruction" identifier="/us/bill/116/hr/3/tI/s101/b/2/C/ii" id="H859F2BA16F574F7E9B6F528C3D2F1BD4" class="indent3"><num value="ii">(ii) </num>
<heading><inline class="smallCaps">Clerical amendment</inline>.—</heading>
<content>The table of sections for subchapter B of chapter 100 of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new item:<quotedContent meta="committee ID HED00" id="H3BA3A45300F7486583DD3B24B9B939C6" styleType="OLC"> <toc meta="committee ID HED00"> <referenceItem role="section">
<designator>“Sec. 9816. </designator>
<label>Fair Price Drug Negotiation Program and application of maximum fair prices.”.</label></referenceItem></toc></quotedContent></content></clause></subparagraph></paragraph></subsection></section> 
<section identifier="/us/bill/116/hr/3/tI/s102" id="H5D71B268930E4A6BB99E5B35CE843000" role="subsequent-section"><num value="102">SEC. 102. </num>
<heading>SELECTED DRUG MANUFACTURER EXCISE TAX IMPOSED DURING NONCOMPLIANCE PERIODS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tI/s102/a" id="H4A5EF6A410D64453A59EC3214FB0E721" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>Subchapter E of <ref href="usc-chapter/26/32">chapter 32</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new section:<quotedContent meta="committee ID HED00" id="H3CB76CD0A42F42E7B21A00619B3DD7AC" styleType="OLC"> 
<section id="HF89B763D8F5F405B82DFC6D85FEB2BA6" role="subsequent-section"><num value="4192">“SEC. 4192. </num>
<heading>SELECTED DRUGS DURING NONCOMPLIANCE PERIODS.</heading>
<subsection id="HAB39C0ADE6234707A228E938CDEB10C9" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<chapeau>There is hereby imposed on the sale by the manufacturer, producer, or importer of any selected drug during a day described in subsection (b) a tax in an amount such that the applicable percentage is equal to the ratio of—</chapeau>
<paragraph id="H3B57E6DF28D04C9FA3486D8D432107C5" class="indent1"><num value="1">“(1) </num>
<content>such tax, divided by</content></paragraph>
<paragraph id="H98E53392D6894FFB87E38C5D6D42AF0A" class="indent1"><num value="2">“(2) </num>
<content>the sum of such tax and the price for which so sold.</content></paragraph></subsection>
<subsection id="H2302EE0C2A234C64AF7EFBDF02A5E61B" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Noncompliance Periods</inline>.—</heading>
<chapeau>A day is described in this subsection with respect to a selected drug if it is a day during one of the following periods:</chapeau>
<paragraph id="HF3E4EA2A411541F48F86B7080E27ED97" class="indent1"><num value="1">“(1) </num>
<content>The period beginning on the June 16th immediately following the selected drug publication date and ending on the first date during which the manufacturer of the drug has in place an agreement described in subsection (a) of section 1193 of the Social Security Act with respect to such drug.</content></paragraph>
<paragraph id="HA76F9038E6C74AABBF354846B3136D86" class="indent1"><num value="2">“(2) </num>
<content>The period beginning on the April 1st immediately following the June 16th described in paragraph (1) and ending on the first date during which the manufacturer of the drug has agreed to a maximum fair price under such agreement.</content></paragraph>
<paragraph id="H2A8BCD72D429493C99E7EAB6B36A384F" class="indent1"><num value="3">“(3) </num>
<content>In the case of a selected drug with respect to which the Secretary of Health and Human Services has specified a renegotiation period under such agreement, the period beginning on the first date after the last date of such renegotiation period and ending on the first date during which the manufacturer of the drug has agreed to a renegotiated maximum fair price under such agreement.</content></paragraph>
<paragraph id="H40BB5DC3F9A34BFBB484CC983738D271" class="indent1"><num value="4">“(4) </num>
<content>With respect to information that is required to be submitted to the Secretary of Health and Human Services under such agreement, the period beginning on the date on which such Secretary certifies that such information is overdue and ending on the date that such information is so submitted.</content></paragraph>
<paragraph id="HFCF0541C494B46C09FF671DDCA05FE97" class="indent1"><num value="5">“(5) </num>
<content>In the case of a selected drug with respect to which a payment is due under subsection (c) of such section 1193, the period beginning on the date on which the Secretary of Health and Human Services certifies that such payment is overdue and ending on the date that such payment is made in full.</content></paragraph></subsection>
<subsection role="definitions" id="H2AE16996DD984DDCBA5EBC49E5BCAAD8" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Applicable Percentage</inline>.—</heading>
<chapeau>The term ‘<term>applicable percentage</term>’ means—</chapeau>
<paragraph id="HE7AD7BF2BE3D4E418F8710137CCC0C33" class="indent1"><num value="1">“(1) </num>
<content>in the case of sales of a selected drug during the first 90 days described in subsection (b) with respect to such drug, 65 percent,</content></paragraph>
<paragraph id="H1BAFCB0C18B34C6994C3B388959DA399" class="indent1"><num value="2">“(2) </num>
<content>in the case of sales of such drug during the 91st day through the 180th day described in subsection (b) with respect to such drug, 75 percent,</content></paragraph>
<paragraph id="H807EB57C4F97437997C3B66B378A9359" class="indent1"><num value="3">“(3) </num>
<content>in the case of sales of such drug during the 181st day through the 270th day described in subsection (b) with respect to such drug, 85 percent, and</content></paragraph>
<paragraph id="H70C5C732AA8147EEAF2EB05A829FC873" class="indent1"><num value="4">“(4) </num>
<content>in the case of sales of such drug during any subsequent day, 95 percent.</content></paragraph></subsection>
<subsection role="definitions" id="H0EA08ADD111D4AE4A258189B55BEED57" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<content>The terms ‘selected drug publication date’ and ‘maximum fair price’ have the meaning given such terms in section 1191 of the Social Security Act and the term ‘<term>selected drug</term>’ has the meaning given such term in section 1192 of such Act.</content></subsection>
<subsection id="HFB8D2FC85BB04FC497F92A53FE4E6700" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Anti-Abuse Rule</inline>.—</heading>
<content>In the case of a sale which was timed for the purpose of avoiding the tax imposed by this section, the Secretary may treat such sale as occurring during a day described in subsection (b).”.</content></subsection></section></quotedContent></content></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tI/s102/b" id="HEF87D4E1778F4EB39556916CB42DAB09" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">No Deduction for Excise Tax Payments</inline>.—</heading>
<content><ref href="usc/26/275">Section 275</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> “<quotedText>or by section 4192</quotedText>” before the period at the end of subsection (a)(6).</content></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s102/c" id="HF1AF7E59CCF64F9A9CFBF64BF3931CAB" class="indent0"><num value="c">(c) </num>
<heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/c/1" id="H33CB5B864988442BA3CAA33E8388DB1A" class="indent1"><num value="1">(1) </num>
<content><ref href="usc/26/4221">Section 4221(a)</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or 4192</quotedText>” after “<quotedText>section 4191</quotedText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/c/2" id="HC7097CA6BD1F4842AEB553AD4D85E346" class="indent1"><num value="2">(2) </num>
<content>Section 6416(b)(2) of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or 4192</quotedText>” after “<quotedText>section 4191</quotedText>”.</content></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s102/d" id="H1F56170EA6B34E7DBA92E86A04A8001E" class="indent0"><num value="d">(d) </num>
<heading><inline class="smallCaps">Clerical Amendments</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/d/1" id="H16D611D7355A4B63955B59ADCC530D2B" class="indent1"><num value="1">(1) </num>
<content>The heading of subchapter E of <ref href="usc-chapter/26/32">chapter 32</ref> of the Internal Revenue Code of 1986 <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<headingText role="subchapter">Medical Devices</headingText>” and <amendingAction type="insert">inserting</amendingAction> “<headingText role="subchapter">Other Medical Products</headingText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/d/2" id="H303F36EC18B943C0B528B9534681F556" class="indent1"><num value="2">(2) </num>
<content>The table of subchapters for chapter 32 of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> the item relating to subchapter E and <amendingAction type="insert">inserting</amendingAction> the following new item:<quotedContent meta="committee ID HED00" id="H5F4D09B19EE644FA9EC2B345C1B62C7F" styleType="OLC"> <toc meta="committee ID HED00"> <referenceItem role="subchapter">
<designator>“Subchapter E. </designator>
<label>Other medical products”.</label></referenceItem></toc></quotedContent></content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tI/s102/d/3" id="HBAF64F7AE0474011BC3F401597FA8D4A" class="indent1"><num value="3">(3) </num>
<content>The table of sections for subchapter E of chapter 32 of such Code <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new item:<quotedContent meta="committee ID HED00" id="H5E272462581E49D8B7557E6B7FEE5F3E" styleType="OLC"> <toc meta="committee ID HED00"> <referenceItem role="section" idref="HF89B763D8F5F405B82DFC6D85FEB2BA6">
<designator>“Sec. 4192. </designator>
<label>Selected drugs during noncompliance periods.”.</label></referenceItem></toc></quotedContent></content></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tI/s102/e" id="H7380C226DA8C4810A5025C9BBE414CF0" class="indent0"><num value="e">(e) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>The amendments made by this section shall apply to sales after the date of the enactment of this Act.</content></subsection></section></title>
<title identifier="/us/bill/116/hr/3/tII" id="H8A812AE8483F4210BC1F67FE7A41ABB5"><num value="II">TITLE II—</num>
<heading class="inline">MEDICARE PARTS B AND D PRESCRIPTION DRUG INFLATION REBATES</heading> 
<section identifier="/us/bill/116/hr/3/tII/s201" id="H5143EF5DC9054A728D416A3AA2C18B51" role="subsequent-section"><num value="201">SEC. 201. </num>
<heading>MEDICARE PART B REBATE BY MANUFACTURERS.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s201/a" id="HC45B93EC11A4489D9321F9C327B4C9AC" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>Section 1834 of the Social Security Act (<ref href="/us/usc/t42/s1395m">42 U.S.C. 1395m</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent meta="committee ID HED00" id="H21406DE0701846EA9460E4E9902DA6AE" styleType="OLC"> <subsection id="HD47572453822427DA6711FE9AEA2B58C" class="indent0"><num value="x">“(x) </num>
<heading><inline class="smallCaps">Rebate by Manufacturers for Single Source Drugs With Prices Increasing Faster Than Inflation</inline>.—</heading>
<paragraph id="HDB9C6378693D49A59E802F78DDE63CE6" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Requirements</inline>.—</heading>
<subparagraph id="HFD648D75A50340E583D71D76CF764BAE" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Secretarial provision of information</inline>.—</heading>
<chapeau>Not later than 6 months after the end of each calendar quarter beginning on or after July 1, 2021, the Secretary shall, for each part B rebatable drug, report to each manufacturer of such part B rebatable drug the following for such calendar quarter:</chapeau>
<clause id="H2D217DBEBF2A492A94A509B2B861291E" class="indent3"><num value="i">“(i) </num>
<content>Information on the total number of billing units described in subparagraph (A)(i) of paragraph (3) with respect to such drug and calendar quarter.</content></clause>
<clause id="H5D39EFEB576E43008D2525280103D91E" class="indent3"><num value="ii">“(ii) </num>
<content>Information on the amount (if any) of the excess average sales price increase described in subparagraph (A)(ii) of such paragraph for such drug and calendar quarter.</content></clause>
<clause id="H0094D66D3ABF46779D1C802028990963" class="indent3"><num value="iii">“(iii) </num>
<content>The rebate amount specified under such paragraph for such part B rebatable drug and calendar quarter.</content></clause></subparagraph>
<subparagraph id="H57F0FF4861A2407F920706CCC25EADD8" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Manufacturer requirement</inline>.—</heading>
<content>For each calendar quarter beginning on or after July 1, 2021, the manufacturer of a part B rebatable drug shall, for such drug, not later than 30 days after the date of receipt from the Secretary of the information described in subparagraph (A) for such calendar quarter, provide to the Secretary a rebate that is equal to the amount specified in paragraph (3) for such drug for such calendar quarter.</content></subparagraph></paragraph>
<paragraph id="H569D73E468A44997A2A30446CD270A58" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Part b rebatable drug defined</inline>.—</heading>
<subparagraph role="definitions" id="H10EA182CAC614992A7513B51DB6B06A8" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>In this subsection, the term ‘<term>part B rebatable drug</term>’ means a single source drug or biological (as defined in subparagraph (D) of section 1847A(c)(6)), including a biosimilar biological product (as defined in subparagraph (H) of such section), paid for under this part, except such term shall not include such a drug or biological—</chapeau>
<clause id="H6A4C0BE09008446D95A1F0B7F8143D18" class="indent3"><num value="i">“(i) </num>
<content>if the average total allowed charges for a year per individual that uses such a drug or biological, as determined by the Secretary, are less than, subject to subparagraph (B), $100; or</content></clause>
<clause id="H1BDB00C6F07C49F39B8042BAEE4F03FC" class="indent3"><num value="ii">“(ii) </num>
<content>that is a vaccine described in subparagraph (A) or (B) of section 1861(s)(10).</content></clause></subparagraph>
<subparagraph id="HD638573346C34D53B7EABDEAE00D3587" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Increase</inline>.—</heading>
<chapeau>The dollar amount applied under subparagraph (A)(i)—</chapeau>
<clause id="H4D55B652B6654A9BAE106542F96063C0" class="indent3"><num value="i">“(i) </num>
<content>for 2022, shall be the dollar amount specified under such subparagraph for 2021, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) as of the first quarter of the previous year; and</content></clause>
<clause id="HF6749F2F5E0749CCB33593ECFEFEC43F" class="indent3"><num value="ii">“(ii) </num>
<content>for a subsequent year, shall be the dollar amount specified in this clause (or clause (i)) for the previous year, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) as of the first quarter of the previous year.</content></clause>
<continuation class="indent0">Any dollar amount specified under this subparagraph that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</continuation></subparagraph></paragraph>
<paragraph id="H5CAE1FEFBC024F148101BAF42B0435C1" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Rebate amount</inline>.—</heading>
<subparagraph id="HF5E0FEBB1A6B47CE839B1AF46681BB76" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of paragraph (1)(B), the amount specified in this paragraph for a part B rebatable drug assigned to a billing and payment code for a calendar quarter is, subject to paragraph (4), the amount equal to the product of—</chapeau>
<clause id="HA63B06FA5D8C465DB2FA7AE338272C5F" class="indent3"><num value="i">“(i) </num>
<content>subject to subparagraph (B), the total number of billing units, as described in section 1847A(b)(6)(B), for such part B rebatable drug furnished under this part during the calendar quarter; and</content></clause>
<clause id="H2672B1389FF246B089BCA75A12986A8A" class="indent3"><num value="ii">“(ii) </num>
<chapeau>the amount (if any) by which—</chapeau>
<subclause id="H628D9BA83E69417A96B298051B429357" class="indent4"><num value="I">“(I) </num>
<content>the payment amount under subparagraph (B) or (C) of section 1847A(b)(1), as applicable, for such part B rebatable drug during the calendar quarter; exceeds</content></subclause>
<subclause id="H870BF4BB9A6C4BCBBAE576AD3D687889" class="indent4"><num value="II">“(II) </num>
<content>the inflation-adjusted payment amount determined under subparagraph (C) for such part B rebatable drug during the calendar quarter.</content></subclause></clause></subparagraph>
<subparagraph id="HEBC00326227347E7835957B7ED1EEE8D" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Excluded units</inline>.—</heading>
<chapeau>For purposes of subparagraph (A)(i), the total number of billing units for part B rebatable drugs furnished during a calendar quarter shall not include—</chapeau>
<clause id="H1482F4A50F134CC69972AAA96FA08B57" class="indent3"><num value="i">“(i) </num>
<content>units packaged into the payment for a related procedure or service under section 1833(t) or under section 1833(i) (instead of separately payable under such respective section);</content></clause>
<clause id="H45EE86E6E8CC401F8A29611554B0BA41" class="indent3"><num value="ii">“(ii) </num>
<content>units included under the single payment system for renal dialysis services under section 1881(b)(14); or</content></clause>
<clause id="H7FD6C3C1F87044A68AB9D804DAD197F5" class="indent3"><num value="iii">“(iii) </num>
<content>units of a part B rebatable drug of a manufacturer that is furnished to an individual, if such manufacturer, with respect to the furnishing of such units of such drug, provides for discounts under section 340B of the Public Health Service Act or for rebates under section 1927.</content></clause></subparagraph>
<subparagraph id="H0178A74BC188498BB335A2CA3D81037E" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Determination of inflation-adjusted payment amount</inline>.—</heading>
<chapeau>The inflation-adjusted payment amount determined under this subparagraph for a part B rebatable drug for a calendar quarter is—</chapeau>
<clause id="H560EAA29FD014A00AC1990B599DC800E" class="indent3"><num value="i">“(i) </num>
<content>the payment amount for the billing and payment code for such drug in the payment amount benchmark quarter (as defined in subparagraph (D)); increased by</content></clause>
<clause id="HEA324DC0EB1B40F88A5FFD083CF8BE81" class="indent3"><num value="ii">“(ii) </num>
<content>the percentage by which the rebate period CPI–U (as defined in subparagraph (F)) for the calendar quarter exceeds the benchmark period CPI–U (as defined in subparagraph (E)).</content></clause></subparagraph>
<subparagraph role="definitions" id="HF7DACFBC90E344508F0F7C570595B7C7" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Payment amount benchmark quarter</inline>.—</heading>
<content>The term ‘<term>payment amount benchmark quarter</term>’ means the calendar quarter beginning January 1, 2016.</content></subparagraph>
<subparagraph role="definitions" id="H6369A548D3D1497083FBA43D9FA79A07" class="indent2"><num value="E">“(E) </num>
<heading><inline class="smallCaps">Benchmark period cpi–u</inline>.—</heading>
<content>The term ‘<term>benchmark period CPI–U</term>’ means the consumer price index for all urban consumers (United States city average) for July 2015.</content></subparagraph>
<subparagraph role="definitions" id="HC67734A9D54741E692DD9A66C33C7037" class="indent2"><num value="F">“(F) </num>
<heading><inline class="smallCaps">Rebate period cpi–u</inline>.—</heading>
<content>The term ‘<term>rebate period CPI–U</term>’ means, with respect to a calendar quarter described in subparagraph (C), the greater of the benchmark period CPI–U and the consumer price index for all urban consumers (United States city average) for the first month of the calendar quarter that is two calendar quarters prior to such described calendar quarter.</content></subparagraph></paragraph>
<paragraph id="HAE625DB4282F495DB6077808EFD41557" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Special treatment of certain drugs and exemption</inline>.—</heading>
<subparagraph role="definitions" id="HFE37B397BDAE452D944214D9F8BBA7BF" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Subsequently approved drugs</inline>.—</heading>
<content>Subject to subparagraph (B), in the case of a part B rebatable drug first approved by the Food and Drug Administration after July 1, 2015, clause (i) of paragraph (3)(C) shall be applied as if the term ‘<term>payment amount benchmark quarter</term>’ were defined under paragraph (3)(D) as the third full calendar quarter after the day on which the drug was first marketed and clause (ii) of paragraph (3)(C) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under paragraph (3)(E) as if the reference to ‘July 2015’ under such paragraph were a reference to ‘the first month of the first full calendar quarter after the day on which the drug was first marketed’.</content></subparagraph>
<subparagraph id="HD68F47FA894C460082ACDC38167DCB85" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Timeline for provision of rebates for new drugs</inline>.—</heading>
<content>In the case of a part B rebatable drug first approved by the Food and Drug Administration after July 1, 2015, clause (i) of paragraph (1)(B) shall be applied as if the reference to ‘July 1, 2021’ under such paragraph were a reference to the later of the 6th full calendar quarter after the day on which the drug was first marketed or July 1, 2021.</content></subparagraph>
<subparagraph id="H50EFF389F9AA4D74AF55F47B37C858C5" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Exemption for shortages</inline>.—</heading>
<content>The Secretary may reduce or waive the rebate under paragraph (1)(B) with respect to a part B rebatable drug that appears on the drug shortage list in effect under section 506(e) of the Federal Food, Drug, and Cosmetic Act or in the case of other exigent circumstances, as determined by the Secretary.</content></subparagraph>
<subparagraph role="definitions" id="HFE56630163FF4C6BA8F28116F8E0ACC2" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Selected drugs</inline>.—</heading>
<content>In the case of a part B rebatable drug that is a selected drug (as defined in section 1192(c)), for each applicable year beginning after the price applicability period (as defined in section 1191(b)(2) with respect to such drug, clause (i) of paragraph (3)(C) shall be applied as if the term ‘<term>payment amount benchmark quarter</term>’ were defined under paragraph (3)(D) as the calendar quarter beginning January 1 of the last year beginning during such price applicability period with respect to such selected drug and clause (ii) of paragraph (3)(C) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under paragraph (3)(E) as if the reference to ‘July 2015’ under such paragraph were a reference to the July of the year preceding such last year.</content></subparagraph></paragraph>
<paragraph id="HC98F8E171F43400BB872CAB8C24F7FE8" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Application to beneficiary coinsurance</inline>.—</heading>
<chapeau>In the case of a part B rebatable drug for which a rebate is payable under this subsection—</chapeau>
<subparagraph id="H5EE78519FDED453AB18BF86A45B9785B" class="indent2"><num value="A">“(A) </num>
<content>in computing the amount of any coinsurance applicable under this title to an individual with respect to such drug, the computation of such coinsurance shall be based on the inflation-adjusted payment amount determined under paragraph (3)(C) for such part B rebatable drug; and</content></subparagraph>
<subparagraph id="HEA151F10CF0B4B2A84CFDB2DC50522B9" class="indent2"><num value="B">“(B) </num>
<content>the amount of such coinsurance is equal to 20 percent of such inflation-adjusted payment amount so determined.</content></subparagraph></paragraph>
<paragraph id="H861D36957A5847629C8EA4EFB6D91022" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Rebate deposits</inline>.—</heading>
<content>Amounts paid as rebates under paragraph (1)(B) shall be deposited into the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</content></paragraph>
<paragraph id="HBA621200003547D18452454D4F552965" class="indent1"><num value="7">“(7) </num>
<heading><inline class="smallCaps">Civil money penalty</inline>.—</heading>
<content>If a manufacturer of a part B rebatable drug has failed to comply with the requirements under paragraph (1)(B) for such drug for a calendar quarter, the manufacturer shall be subject to, in accordance with a process established by the Secretary pursuant to regulations, a civil money penalty in an amount equal to at least 125 percent of the amount specified in paragraph (3) for such drug for such calendar quarter. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></paragraph>
<paragraph id="H552998BD22F34609B7A1492893FBDF1E" class="indent1"><num value="8">“(8) </num>
<heading><inline class="smallCaps">Study and report</inline>.—</heading>
<subparagraph id="H58EF1546D07F4A43BAC59648708FC463" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Study</inline>.—</heading>
<chapeau>The Secretary shall conduct a study of the feasibility of and operational issues involved with the following:</chapeau>
<clause id="HE5F13259C32244F38CCFBAD38651A0A8" class="indent3"><num value="i">“(i) </num>
<content>Including multiple source drugs (as defined in section 1847A(c)(6)(C)) in the rebate system under this subsection.</content></clause>
<clause id="HC77F4EFC82EA47A8BDBBC62DEF38252A" class="indent3"><num value="ii">“(ii) </num>
<content>Including drugs and biologicals paid for under MA plans under part C in the rebate system under this subsection.</content></clause>
<clause id="HC360CE41A11F4DF48797742638C55EE1" class="indent3"><num value="iii">“(iii) </num>
<content>Including drugs excluded under paragraph (2)(A) and billing units of drugs excluded under paragraph (3)(B) in the rebate system under this subsection.</content></clause></subparagraph>
<subparagraph id="H26D761DE404949FB9B15071A75C78D6A" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Report</inline>.—</heading>
<content>Not later than 3 years after the date of the enactment of this subsection, the Secretary shall submit to Congress a report on the study conducted under subparagraph (A).</content></subparagraph></paragraph>
<paragraph id="HC56924850EED4F48B7281C52CEC0E270" class="indent1"><num value="9">“(9) </num>
<heading><inline class="smallCaps">Application to multiple source drugs</inline>.—</heading>
<content>The Secretary may, based on the report submitted under paragraph (8) and pursuant to rulemaking, apply the provisions of this subsection to multiple source drugs (as defined in section 1847A(c)(6)(C)), including, for purposes of determining the rebate amount under paragraph (3), by calculating manufacturer-specific average sales prices for the benchmark period and the rebate period.”.</content></paragraph></subsection></quotedContent></content></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s201/b" id="HACB6E4F53372476893123351C9481F9B" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Amounts Payable; Cost-Sharing</inline>.—</heading>
<chapeau>Section 1833(a) of the Social Security Act <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tII/s201/b/1" id="HF561BC5949F841D59FA846C61268C349" class="indent1"><num value="1">(1) </num>
<chapeau>in paragraph (1)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tII/s201/b/1/A" id="HA6D4283FF3424CBE8D4D2539F67DA425" class="indent2"><num value="A">(A) </num>
<content>in subparagraph (S), by <amendingAction type="delete">striking</amendingAction> “<quotedText>with respect to</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>subject to subparagraph (DD), with respect to</quotedText>”;</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tII/s201/b/1/B" id="H30B3B7C8F5694FC799146C2C6EB1D978" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>and (CC)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>(CC)</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tII/s201/b/1/C" id="H4E70E8ED414A4F378766246B843515C3" class="indent2"><num value="C">(C) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> before the semicolon at the end the following: “<quotedText>, and (DD) with respect to a part B rebatable drug (as defined in paragraph (2) of section 1834(x)) for which a rebate is payable under such section, the amounts paid shall be the difference between (i) the payment amount under paragraph (3)(A)(ii)(I) of such section for such drug, and (ii) 20 percent of the inflation-adjusted payment amount under paragraph (3)(A)(ii)(II) of such section for such drug</quotedText>”; and</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tII/s201/b/2" id="H13170BCAC15A4B7C81322B0409A063C7" class="indent1"><num value="2">(2) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end of the flush left matter following paragraph (9), the following:<quotedContent meta="committee ID HED00" id="HF29CE4B453924FFCB058AAB0BF9750C5" styleType="OLC"> <continuation class="indent0">“For purposes of applying paragraph (1)(DD) and section 1834(x)(5), the Secretary shall make such estimates and use such data as the Secretary determines appropriate.”</continuation></quotedContent>.</content></paragraph></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tII/s201/c" id="HE4ABB3DD56CF4B318122C67CE3CC2AAE" class="indent0"><num value="c">(c) </num>
<heading><inline class="smallCaps">Conforming Amendment to Part B ASP Calculation</inline>.—</heading>
<content>Section 1847A(c)(3) of the Social Security Act (<ref href="/us/usc/t42/s1395w–3a/c/3">42 U.S.C. 1395w–3a(c)(3)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> “<quotedText>or section 1834(x)</quotedText>” after “<quotedText>section 1927</quotedText>”.</content></subsection></section> 
<section role="subsequent-section instruction" identifier="/us/bill/116/hr/3/tII/s202" id="HC9CA5E4DB2C045F48FF29330FBB67DC7"><num value="202">SEC. 202. </num>
<heading>MEDICARE PART D REBATE BY MANUFACTURERS.</heading>
<content>Part D of title XVIII of the Social Security Act <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after section 1860D–14A (<ref href="/us/usc/t42/s1395w–114a">42 U.S.C. 1395w–114a</ref>) the following new section:<quotedContent meta="committee ID HED00" id="HC18DFE4A815E43D39509CA9001123C97" styleType="OLC"> 
<section id="HF32661932F1A41F08D26816454B39C90" role="subsequent-section"><num value="1860D14B">“SEC. 1860D–14B. </num>
<heading>MANUFACTURER REBATE FOR CERTAIN DRUGS WITH PRICES INCREASING FASTER THAN INFLATION.</heading>
<subsection role="definitions" id="HB98A7991ECF24D31AB4F6CC1F628879B" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">In General</inline>.—</heading>
<content>Subject to the provisions of this section, in order for coverage to be available under this part for a part D rebatable drug of a manufacturer dispensed during an applicable year, the manufacturer must have entered into and have in effect an agreement described in subsection (b). For purposes of this section the term ‘<term>applicable year</term>’ means a year beginning with 2022.</content></subsection>
<subsection id="H0F95E55E16644485B12706A5E8243BB1" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Agreements</inline>.—</heading>
<paragraph id="HD898A391F09B403EABF703889E1FF699" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Terms of agreement</inline>.—</heading>
<chapeau>An agreement described in this subsection, with respect to a manufacturer of a part D rebatable drug, is an agreement under which the following applies:</chapeau>
<subparagraph id="H4A338693CE2243A8918F1BF049922056" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Secretarial provision of information</inline>.—</heading>
<chapeau>Not later than 9 months after the end of each applicable year with respect to which the agreement is in effect, the Secretary, for the part D rebatable drug of the manufacturer, reports to the manufacturer the following for such year:</chapeau>
<clause id="H9BC2AA74E31A4E73A9C74BC469CD22CA" class="indent3"><num value="i">“(i) </num>
<content>Information on the total units (as defined in subsection (g)(2)) dispensed for each dosage form and strength with respect to such part D rebatable drug and year.</content></clause>
<clause id="H024849C98F6B4DECA58B0D0000E64BD2" class="indent3"><num value="ii">“(ii) </num>
<content>Information on the amount (if any) of the excess average manufacturer price increase described in subsection (c)(1)(B) for each dosage form and strength with respect to such drug and year.</content></clause>
<clause id="H7689A91E44ED4B21965E672013E6CD00" class="indent3"><num value="iii">“(iii) </num>
<content>The rebate amount specified under subsection (c) for each dosage form and strength with respect to such drug and year.</content></clause></subparagraph>
<subparagraph id="HCE5BE48CB40B426787D6BF6E74175ED3" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Manufacturer requirements</inline>.—</heading>
<content>For each applicable year with respect to which the agreement is in effect, the manufacturer of the part D rebatable drug, for each dosage form and strength with respect to such drug, not later than 30 days after the date of receipt from the Secretary of the information described in subparagraph (A) for such year, provides to the Secretary a rebate that is equal to the amount specified in subsection (c) for such dosage form and strength with respect to such drug for such year.</content></subparagraph></paragraph>
<paragraph id="HE26F844BD07F4ED19395CD3A4F261E74" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Length of agreement</inline>.—</heading>
<subparagraph id="H4A8E7E9A08C6408F8C14A9702E549BE6" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>An agreement under this section, with respect to a part D rebatable drug, shall be effective for an initial period of not less than one year and shall be automatically renewed for a period of not less than one year unless terminated under subparagraph (B).</content></subparagraph>
<subparagraph id="HB6ECA7DCF0E547908816AB8373CFE8A3" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Termination</inline>.—</heading>
<clause id="H2A5898B474454F70BDB4B0E1B2D7C54F" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">By secretary</inline>.—</heading>
<content>The Secretary may provide for termination of an agreement under this section for violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 60 days after the date of notice of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, but such hearing shall not delay the effective date of the termination.</content></clause>
<clause id="H002E4AB0DF12416883D025D10D033CD2" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">By a manufacturer</inline>.—</heading>
<content>A manufacturer may terminate an agreement under this section for any reason. Any such termination shall not be effective until the year beginning at least 60 days after the date the manufacturer provides notice to the Secretary.</content></clause></subparagraph>
<subparagraph id="H1A8959AA21694F3CBB398C6DC64A4F08" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Effectiveness of termination</inline>.—</heading>
<content>Any termination under this paragraph shall not affect rebates due under the agreement under this section before the effective date of its termination.</content></subparagraph>
<subparagraph id="HF46D23DC8E274C0F8FD40656FBDFA14B" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Delay before reentry</inline>.—</heading>
<content>In the case of any agreement under this section with a manufacturer which is terminated in a plan year, another such agreement with the manufacturer (or a successor manufacturer) may not be entered into before the subsequent plan year, unless the Secretary finds good cause for an earlier reinstatement of such an agreement.</content></subparagraph></paragraph>
<paragraph id="H3EFCAB44E7DD474D9290BE6D00E6A422" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Information</inline>.—</heading>
<content>For purposes of carrying out this section, the Secretary shall use information submitted by manufacturers under section 1927(b)(3).</content></paragraph></subsection>
<subsection id="HB00F5E3D32A4451DACCAE60C52053AAE" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Rebate Amount</inline>.—</heading>
<paragraph id="H5AC503D597A146908F02C9042F75222B" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>For purposes of this section, the amount specified in this subsection for a dosage form and strength with respect to a part D rebatable drug and applicable year is, subject to subparagraphs (B) and (C) of paragraph (3), the amount equal to the product of—</chapeau>
<subparagraph id="H9225FA937EB1422B94B9D81E999361DE" class="indent2"><num value="A">“(A) </num>
<content>the total average number of units weighted by, and dispensed for, such dosage form and strength with respect to such part D rebatable drug and year; and</content></subparagraph>
<subparagraph id="H1E8F133BE1314876B1C7843FE5052552" class="indent2"><num value="B">“(B) </num>
<chapeau>the amount (if any) by which—</chapeau>
<clause id="HBFC8A6AD10FB45FC87399F104163F251" class="indent3"><num value="i">“(i) </num>
<content>the average manufacturer price (as defined in subsection (g)) paid for such dosage form and strength with respect to such part D rebatable drug during the year; exceeds</content></clause>
<clause id="HC962D39EC6C94312BD37F15637EC5FB4" class="indent3"><num value="ii">“(ii) </num>
<content>the inflation-adjusted payment amount determined under paragraph (2) for such dosage form and strength with respect to such part D rebatable drug during the year.</content></clause></subparagraph></paragraph>
<paragraph id="HD48449868E4A42C68E3938FA4D9BAC0D" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Determination of inflation-adjusted payment amount</inline>.—</heading>
<chapeau>The inflation-adjusted payment amount determined under this paragraph for a dosage form and strength with respect to a part D rebatable drug for an applicable year, subject to subparagraphs (A) and (D) of paragraph (3), is—</chapeau>
<subparagraph id="H75112CF9542B4BECBD4F5BA24B362C7A" class="indent2"><num value="A">“(A) </num>
<content>the average manufacturer price paid for such dosage form and strength with respect to such drug in the payment amount benchmark year (as defined in subsection (g)(3)); increased by</content></subparagraph>
<subparagraph id="H0BFFFDED483940E58A5909E5083AD13D" class="indent2"><num value="B">“(B) </num>
<content>the percentage by which the rebate period CPI–U (as defined in subsection (g)(5)) for the applicable year exceeds the benchmark period CPI–U (as defined in subsection (g)(4)).</content></subparagraph></paragraph>
<paragraph id="H51BD84EFBEB043BDAC405681ECBBFEEF" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Special treatment of certain drugs and exemption</inline>.—</heading>
<subparagraph role="definitions" id="H683FB1EE0B6841DEBF1B3E24E6F3475C" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Subsequently approved drugs</inline>.—</heading>
<content>In the case of a part D rebatable drug first approved by the Food and Drug Administration after January 1, 2016, subparagraph (A) of paragraph (2) shall be applied as if the term ‘<term>payment amount benchmark year</term>’ were defined under subsection (g)(3) as the first year beginning after the day on which the drug was first marketed and subparagraph (B) of paragraph (2) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under subsection (g)(4) as if the reference to ‘January 2016’ under such subsection were a reference to ‘January of the first year beginning after the date on which the drug was first marketed by any manufacturer’.</content></subparagraph>
<subparagraph id="H01C13C96159546BEBECC12FAD270C042" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Exemption for shortages</inline>.—</heading>
<content>The Secretary may reduce or waive the rebate under paragraph (1) with respect to a part D rebatable drug in the case of a shortage of such drug or other exigent circumstances, as determined by the Secretary.</content></subparagraph>
<subparagraph id="H494DF7D082F748CD8F29DCAB2B4CDD65" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Treatment of new formulations</inline>.—</heading>
<clause id="HCF88B9521D724185B48527AB02DAE8C0" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>In the case of a part D rebatable drug that is a line extension of a single source drug or an innovator multiple source drug that is an oral solid dosage form, the Secretary shall establish a formula for determining the amount specified in this subsection with respect to such part D rebatable drug and an applicable year with consideration of the single source drug or an innovator multiple source drug.</content></clause>
<clause role="definitions" id="H5DEC0754680D4630B075B8E1ECAA2ECB" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Line extension defined</inline>.—</heading>
<content>In this subparagraph, the term ‘<term>line extension</term>’ means, with respect to a part D rebatable drug, a new formulation of the drug (as determined by the Secretary), such as an extended release formulation, but does not include an abuse-deterrent formulation of the drug (as determined by the Secretary), regardless of whether such abuse-deterrent formulation is an extended release formulation.</content></clause></subparagraph>
<subparagraph role="definitions" id="HC133E673624147F7A1B8BCFE95A4122F" class="indent2"><num value="D">“(D) </num>
<heading><inline class="smallCaps">Selected drugs</inline>.—</heading>
<content>In the case of a part D rebatable drug that is a selected drug (as defined in section 1192(c)), for each applicable year beginning after the price applicability period (as defined in section 1191(b)(2) with respect to such drug, subparagraph (A) of paragraph (2) shall be applied as if the term ‘<term>payment amount benchmark year</term>’ were defined under subsection (g)(3) as the last year beginning during such price applicability period with respect to such selected drug and subparagraph (B) of paragraph (2) shall be applied as if the term ‘<term>benchmark period CPI–U</term>’ were defined under subsection (g)(4) as if the reference to ‘January 2016’ under such subsection were a reference to January of the last year beginning during such price applicability period with respect to such drug.</content></subparagraph></paragraph></subsection>
<subsection id="H4DC834E9466941E099BC6313F592762F" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Rebate Deposits</inline>.—</heading>
<content>Amounts paid as rebates under subsection (c) shall be deposited into the Medicare Prescription Drug Account in the Federal Supplementary Medical Insurance Trust Fund established under section 1841.</content></subsection>
<subsection id="HD888A5A3FF3342B6AA09CB9649294E5A" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Civil Money Penalty</inline>.—</heading>
<content>In the case of a manufacturer of a part D rebatable drug with an agreement in effect under this section who has failed to comply with the terms of the agreement under subsection (b)(1)(B) with respect to such drug for an applicable year, the Secretary may impose a civil money penalty on such manufacturer in an amount equal to 125 percent of the amount specified in subsection (c) for such drug for such year. The provisions of section 1128A (other than subsections (a) (with respect to amounts of penalties or additional assessments) and (b)) shall apply to a civil money penalty under this subsection in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></subsection>
<subsection id="H42B78814030541B3B9E8C1DED6D2B36D" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Judicial Review</inline>.—</heading>
<chapeau>There shall be no judicial review of the following:</chapeau>
<paragraph id="H1C56F7C2DADB4448B277BE9CDBF66C69" class="indent1"><num value="1">“(1) </num>
<content>The determination of units under this section.</content></paragraph>
<paragraph id="HC024001399244AE7A8D9F6D02B13669B" class="indent1"><num value="2">“(2) </num>
<content>The determination of whether a drug is a part D rebatable drug under this section.</content></paragraph>
<paragraph id="HF1DDDB7E1F464C459D308010075F767E" class="indent1"><num value="3">“(3) </num>
<content>The calculation of the rebate amount under this section.</content></paragraph></subsection>
<subsection id="HE56F774F76D941F79C6907F1D0892FAE" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<chapeau>In this section:</chapeau>
<paragraph id="H1A14DC362019410CA9167FC2F57E75E1" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Part d rebatable drug defined</inline>.—</heading>
<subparagraph role="definitions" id="HD3F178BEC45542F59CD2960F231C0BB5" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The term ‘<term>part D rebatable drug</term>’ means a drug or biological that would (without application of this section) be a covered part D drug, except such term shall, with respect to an applicable year, not include such a drug or biological if the average total cost under a prescription drug plan under this part or MA–PD plan under part C for such year per individual who uses such a drug or biological, as determined by the Secretary, are less than, subject to subparagraph (B), $100, as determined by the Secretary using the most recent data available or, if data is not available, as estimated by the Secretary.</content></subparagraph>
<subparagraph id="H1ADB535CD02A489F9A62202DEEF7208E" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Increase</inline>.—</heading>
<chapeau>The dollar amount applied under subparagraph (A)—</chapeau>
<clause id="H979E5BD9167D47CCA95DE965F475DD16" class="indent3"><num value="i">“(i) </num>
<content>for 2023, shall be the dollar amount specified under such subparagraph for 2022, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) as of January of 2022; and</content></clause>
<clause id="H2BF1CD3DC113471F9F5CA5505011D208" class="indent3"><num value="ii">“(ii) </num>
<content>for a subsequent year, shall be the dollar amount specified in this subparagraph (or subparagraph (A)) for the previous year, increased by the percentage increase in the consumer price index for all urban consumers (United States city average) as of January of the previous year.</content></clause>
<continuation class="indent0">Any dollar amount specified under this subparagraph that is not a multiple of $10 shall be rounded to the nearest multiple of $10.</continuation></subparagraph></paragraph>
<paragraph role="definitions" id="H2CDFDA5168644E579A9E9A6BDF0177F0" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Unit defined</inline>.—</heading>
<content>The term ‘<term>unit</term>’ means, with respect to a part D rebatable drug, the lowest identifiable quantity (such as a capsule or tablet, milligram of molecules, or grams) of the part D rebatable drug that is dispensed to individuals enrolled under a prescription drug plan under this part or an MA–PD plan under part C.</content></paragraph>
<paragraph role="definitions" id="H6A9484C11EE44C41AF56DF02549E79D9" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Payment amount benchmark year</inline>.—</heading>
<content>The term ‘<term>payment amount benchmark year</term>’ means the year beginning January 1, 2016.</content></paragraph>
<paragraph role="definitions" id="H558615545A2F4C8FAA88FF89F07495C9" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Benchmark period cpi–u</inline>.—</heading>
<content>The term ‘<term>benchmark period CPI–U</term>’ means the consumer price index for all urban consumers (United States city average) for January 2016.</content></paragraph>
<paragraph role="definitions" id="H628D8E8BAB3744E2A52C577CA8D8EBDD" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Rebate period cpi–u</inline>.—</heading>
<content>The term ‘<term>rebate period CPI–U</term>’ means, with respect to an applicable year, the consumer price index for all urban consumers (United States city average) for January of such year.</content></paragraph>
<paragraph role="definitions" id="HD34997FEF484427BAB266EBA406FC8E5" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Average manufacturer price</inline>.—</heading>
<content>The term ‘<term>average manufacturer price</term>’ has the meaning, with respect to a part D rebatable drug of a manufacturer for an applicable year, given such term in section 1927(k)(1), with respect to a covered outpatient drug of a manufacturer for a rebate period under section 1927. For purposes of applying the previous sentence, with respect to a part D rebatable drug of a manufacturer and an applicable year, the Secretary shall use the information with respect to the average manufacturer price for such drug reported by the manufacturer under section 1927(b)(3) with respect to each of the quarters in the applicable year and calculate an annual average manufacturer price for such applicable year as the average of such average manufacturer prices for each such quarter, weighted by units of such drug sold or dispensed with respect to such applicable year.”.</content></paragraph></subsection></section></quotedContent></content></section></title>
<title identifier="/us/bill/116/hr/3/tIII" id="HA64DCB84479243749CACDD972CDFD3EF"><num value="III">TITLE III—</num>
<heading class="inline">PART D IMPROVEMENTS AND MAXIMUM OUT-OF-POCKET CAP FOR MEDICARE BENEFICIARIES</heading> 
<section identifier="/us/bill/116/hr/3/tIII/s301" id="H834F141A5E504B80BBA2817DE92660E1" role="subsequent-section"><num value="301">SEC. 301. </num>
<heading>MEDICARE PART D BENEFIT REDESIGN.</heading>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/a" id="H33F4063E49614C14A7109CBEBEF29EA8" class="indent0"><num value="a">(a) </num>
<heading><inline class="smallCaps">Benefit Structure Redesign</inline>.—</heading>
<chapeau>Section 1860D–2(b) of the Social Security Act (<ref href="/us/usc/t42/s1395w–102/b">42 U.S.C. 1395w–102(b)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<paragraph identifier="/us/bill/116/hr/3/tIII/s301/a/1" id="H3F83441498BC47B29E8359E1D2C07A89" class="indent1"><num value="1">(1) </num>
<chapeau>in paragraph (2)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/1/A" id="H71EA6A5B424F49DD92E2D455433C8F97" class="indent2"><num value="A">(A) </num>
<content>in subparagraph (A), in the matter preceding clause (i), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022 and for costs above the annual deductible specified in paragraph (1) and up to the annual out-of-pocket threshold specified in paragraph (4)(B) for 2022 and each subsequent year</quotedText>” after “<quotedText>paragraph (3)</quotedText>”;</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/1/B" id="HB25EA28C8DA747A8BED59B2E0166F5CD" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (C)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/B/i" id="HAEF01395FDA34A35BB296D3E955C4482" class="indent3"><num value="i">(i) </num>
<content>in clause (i), in the matter preceding subclause (I), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>paragraph (4),</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/B/ii" id="HAF4282BE06594AF88E35A7D69AC232AA" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii)(III), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and each subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>and 2021</quotedText>”; and</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/1/C" id="H4E5E1359E0E24217A9526F382C6BB97C" class="indent2"><num value="C">(C) </num>
<chapeau>in subparagraph (D)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/i" id="H7D29190FBF5D4D098FAF24BAB019A359" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (i)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/i/I" id="H2364C2AB7A5B416898896DA30525FCC9" class="indent4"><num value="I">(I) </num>
<content>in the matter preceding subclause (I), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>paragraph (4),</quotedText>”; and</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/i/II" id="HF7755A65ADE347E3AB13ED2934D09D09" class="indent4"><num value="II">(II) </num>
<content>in subclause (I)(bb), by <amendingAction type="delete">striking</amendingAction> “<quotedText>a year after 2018</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>each of years 2018 through 2021</quotedText>”; and</content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/1/C/ii" id="H9500AD7A57EE4EC6A0B2F46D1577A8FC" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii)(V), by <amendingAction type="delete">striking</amendingAction> “<quotedText>2019 and each subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>each of years 2019 through 2021</quotedText>”;</content></clause></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIII/s301/a/2" id="HFFE23CB138CA44D5959CBB6315810BFC" class="indent1"><num value="2">(2) </num>
<chapeau>in paragraph (3)(A)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/2/A" id="H266D1854048E4C04959D5CA944F82C51" class="indent2"><num value="A">(A) </num>
<content>in the matter preceding clause (i), by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>and (4),</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/2/B" id="HF0E1341EE7584A7F8CEED7C823F65A76" class="indent2"><num value="B">(B) </num>
<content>in clause (ii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>for a subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for each of years 2007 through 2021</quotedText>”; and</content></subparagraph></paragraph>
<paragraph identifier="/us/bill/116/hr/3/tIII/s301/a/3" id="H5535ECDF4EFE4BE1B54E25E9B56D34E2" class="indent1"><num value="3">(3) </num>
<chapeau>in paragraph (4)—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/A" id="H5BC0DD1CA40F4615BCFAAF8982AD0C9D" class="indent2"><num value="A">(A) </num>
<chapeau>in subparagraph (A)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i" id="H2F0CF0B88AB64C00B3A5F8C1F54478BD" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (i)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/I" id="HC2B2F74DA173407182094FDE4B1DD514" class="indent4"><num value="I">(I) </num>
<content>by <amendingAction type="redesignate">redesignating</amendingAction> subclauses (I) and (II) as items (aa) and (bb), respectively, and moving the margin of each such redesignated item 2 ems to the right;</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/II" id="HF81760E17BED492A8B3498572ECC7032" class="indent4"><num value="II">(II) </num>
<content>in the matter preceding item (aa), as redesignated by subclause (I), by <amendingAction type="delete">striking</amendingAction> “<quotedText>is equal to the greater of—</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent>“is equal to— <subclause id="HD5F0A42FE5C84633BAE35DE2DA355016" class="indent4"><num value="I">“(I) </num>
<content>for a year preceding 2022, the greater of—”;</content></subclause></quotedContent></content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/III" id="H713CDC922D9A43499B954EAB166FD050" class="indent4"><num value="III">(III) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end of item (bb), as redesignated by subclause (I), and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/i/IV" id="HBE83081A8CC947FFB72FB075E42DD557" class="indent4"><num value="IV">(IV) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HED00" id="H350CD95D3A64489ABD8B69D63D437878" styleType="OLC"> <subclause id="HB9CE358BCBE14AB28995C1FC3F055943" class="indent4"><num value="II">“(II) </num>
<content>for 2022 and each succeeding year, $0.”; and</content></subclause></quotedContent></content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/ii" id="H7EC75FDC1D68467D84C4A8689D0517E7" class="indent3"><num value="ii">(ii) </num>
<chapeau>in clause (ii)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/ii/I" id="H07CF0489FEEC49CCB0C4E2CB20598255" class="indent4"><num value="I">(I) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>clause (i)(I)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>clause (i)(I)(aa)</quotedText>”; and</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/A/ii/II" id="HFCDE58F6DE3B448EA92F422C9129CEDA" class="indent4"><num value="II">(II) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new sentence: “<quotedText>The Secretary shall continue to calculate the dollar amounts specified in clause (i)(I)(aa), including with the adjustment under this clause, after 2021 for purposes of section 1860D–14(a)(1)(D)(iii).</quotedText>”;</content></subclause></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/B" id="HC71229F2B4D34660B4E3C89BD082201F" class="indent2"><num value="B">(B) </num>
<chapeau>in subparagraph (B)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i" id="H95B17F93375D416190AF788D167F6463" class="indent3"><num value="i">(i) </num>
<chapeau>in clause (i)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/I" id="HDCC4918830164B0EB84EF5530836350D" class="indent4"><num value="I">(I) </num>
<content>in subclause (V), by <amendingAction type="delete">striking</amendingAction> “<quotedText>or</quotedText>” at the end;</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/II" id="HE88B398F1B84417BB99022D7C1BF6962" class="indent4"><num value="II">(II) </num>
<chapeau>in subclause (VI)—</chapeau><item identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/II/aa" id="H4F35A7BA478D4A2596BEEBCEF7BADE0E" class="indent5"><num value="aa">(aa) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>for a subsequent year</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for 2021</quotedText>”; and</content></item><item identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/II/bb" id="H63CC8C5FBD174024BA1902210E500BE6" class="indent5"><num value="bb">(bb) </num>
<content>by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> a semicolon; and</content></item></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/i/III" id="H82D81F4DA7284CC3931E8C2112329FE5" class="indent4"><num value="III">(III) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subclauses:<quotedContent meta="committee ID HED00" id="H4FE0BBB3754642888063338616E1928D" styleType="OLC"> <subclause id="H32E598443C8943C0A33103918F53BDFD" class="indent4"><num value="VII">“(VII) </num>
<content>for 2022, is equal to $2,000; or</content></subclause>
<subclause id="H7A95892133164C2AB01ABD660D87B236" class="indent4"><num value="VIII">“(VIII) </num>
<content>for a subsequent year, is equal to the amount specified in this subparagraph for the previous year, increased by the annual percentage increase described in paragraph (6) for the year involved.”; and</content></subclause></quotedContent></content></subclause></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/a/3/B/ii" id="H221A70FD865F4308B2D1D1F4F5F966FB" class="indent3"><num value="ii">(ii) </num>
<content>in clause (ii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>clause (i)(II)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>clause (i)</quotedText>”;</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/C" id="H4D047EE445D24A46BFE7C1F57C12D89E" class="indent2"><num value="C">(C) </num>
<content>in subparagraph (C)(i), by <amendingAction type="delete">striking</amendingAction> “<quotedText>and for amounts</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>and, for a year preceding 2022, for amounts</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/a/3/D" id="H359B874FB0C34A4E9EDDC0CA18FBD412" class="indent2"><num value="D">(D) </num>
<content>in subparagraph (E), by <amendingAction type="delete">striking</amendingAction> “<quotedText>In applying</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For each of years 2011 through 2021, in applying</quotedText>”.</content></subparagraph></paragraph></subsection>
<subsection role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/b" id="HB7E736992E03439F88EA52E42F62DBF5" class="indent0"><num value="b">(b) </num>
<heading><inline class="smallCaps">Decreasing Reinsurance Payment Amount</inline>.—</heading>
<content>Section 1860D–15(b)(1) of the Social Security Act (<ref href="/us/usc/t42/s1395w–115/b/1">42 U.S.C. 1395w–115(b)(1)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="insert">inserting</amendingAction> after “<quotedText>80 percent</quotedText>” the following: “<quotedText>(or, with respect to a coverage year after 2021, 20 percent)</quotedText>”.</content></subsection>
<subsection identifier="/us/bill/116/hr/3/tIII/s301/c" id="HF796BBD4E4074C69A95C39CD3FAD1288" class="indent0"><num value="c">(c) </num>
<heading><inline class="smallCaps">Manufacturer Discount Program</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/c/1" id="HAF7664560BA74C8A917E0C0E52192EA3" class="indent1"><num value="1">(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Part D of title XVIII of the Social Security Act (<ref href="/us/usc/t42/s1395w–101">42 U.S.C. 1395w–101</ref> et seq.), as amended by section 202, is further amended by <amendingAction type="insert">inserting</amendingAction> after section 1860D–14B the following new section:<quotedContent meta="committee ID HED00" id="H97898E60E76D4D6DA7955E4153E261C8" styleType="OLC"> 
<section id="H98F7AB49D3114E9CAE2BB2B5204B66D4" role="subsequent-section"><num value="1860D14C">“SEC. 1860D–14C. </num>
<heading>MANUFACTURER DISCOUNT PROGRAM.</heading>
<subsection id="H7ACF4DBBC7EF42EF8CD01C3E7E2AF9F5" class="indent0"><num value="a">“(a) </num>
<heading><inline class="smallCaps">Establishment</inline>.—</heading>
<content>The Secretary shall establish a manufacturer discount program (in this section referred to as the ‘program’). Under the program, the Secretary shall enter into agreements described in subsection (b) with manufacturers and provide for the performance of the duties described in subsection (c). The Secretary shall establish a model agreement for use under the program by not later than January 1, 2021, in consultation with manufacturers, and allow for comment on such model agreement.</content></subsection>
<subsection id="H8C8E533DF6924E4CAB9A904A98FD542E" class="indent0"><num value="b">“(b) </num>
<heading><inline class="smallCaps">Terms of Agreement</inline>.—</heading>
<paragraph id="H5AACCE1CF08243BC8F4848FB2549B489" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<subparagraph id="HEBECF80F3C844A659E471E39972CA2E8" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">Agreement</inline>.—</heading>
<content>An agreement under this section shall require the manufacturer to provide applicable beneficiaries access to discounted prices for applicable drugs of the manufacturer that are dispensed on or after January 1, 2022.</content></subparagraph>
<subparagraph id="H8CD216F67F6D4B65936730CC8270378F" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Provision of discounted prices at the point-of-sale</inline>.—</heading>
<content>The discounted prices described in subparagraph (A) shall be provided to the applicable beneficiary at the pharmacy or by the mail order service at the point-of-sale of an applicable drug.</content></subparagraph>
<subparagraph id="H72E598CE2EE64CF29E2B2C7CF952D42B" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Timing of agreement</inline>.—</heading>
<clause id="HC3D2441A911F4E169EC1D8268DAC7A48" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">Special rule for 2022</inline>.—</heading>
<content>In order for an agreement with a manufacturer to be in effect under this section with respect to the period beginning on January 1, 2022, and ending on December 31, 2022, the manufacturer shall enter into such agreement not later than 30 days after the date of the establishment of a model agreement under subsection (a).</content></clause>
<clause id="H79799529360545CBBD6892344D97BC77" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">2023 and subsequent years</inline>.—</heading>
<content>In order for an agreement with a manufacturer to be in effect under this section with respect to plan year 2023 or a subsequent plan year, the manufacturer shall enter into such agreement (or such agreement shall be renewed under paragraph (4)(A)) not later than January 30 of the preceding year.</content></clause></subparagraph></paragraph>
<paragraph id="H83B48C6683274D0E8625C1FC08307DA7" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Provision of appropriate data</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall collect and have available appropriate data, as determined by the Secretary, to ensure that it can demonstrate to the Secretary compliance with the requirements under the program.</content></paragraph>
<paragraph id="HC54144AE511C4AC7B9A3645F0007E4C9" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Compliance with requirements for administration of program</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall comply with requirements imposed by the Secretary or a third party with a contract under subsection (d)(3), as applicable, for purposes of administering the program, including any determination under subparagraph (A) of subsection (c)(1) or procedures established under such subsection (c)(1).</content></paragraph>
<paragraph id="H5FB73150999C4DE38354EE7429AAA891" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Length of agreement</inline>.—</heading>
<subparagraph id="HA9FB2A18C16A443789BB816D9273217F" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>An agreement under this section shall be effective for an initial period of not less than 12 months and shall be automatically renewed for a period of not less than 1 year unless terminated under subparagraph (B).</content></subparagraph>
<subparagraph id="H4F6873EBB6604ABAAEAF9060652B5019" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Termination</inline>.—</heading>
<clause id="H10AEC577D4C54BA989B5D7E9B61E9806" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">By the secretary</inline>.—</heading>
<content>The Secretary may provide for termination of an agreement under this section for a knowing and willful violation of the requirements of the agreement or other good cause shown. Such termination shall not be effective earlier than 30 days after the date of notice to the manufacturer of such termination. The Secretary shall provide, upon request, a manufacturer with a hearing concerning such a termination, and such hearing shall take place prior to the effective date of the termination with sufficient time for such effective date to be repealed if the Secretary determines appropriate.</content></clause>
<clause id="H504AF7FDCC3E48339510A12430F3295A" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">By a manufacturer</inline>.—</heading>
<chapeau>A manufacturer may terminate an agreement under this section for any reason. Any such termination shall be effective, with respect to a plan year—</chapeau>
<subclause id="H42856B2F99234557987A5F94B3837697" class="indent4"><num value="I">“(I) </num>
<content>if the termination occurs before January 30 of a plan year, as of the day after the end of the plan year; and</content></subclause>
<subclause id="H702ABC08A1384028821A54DF33970F3F" class="indent4"><num value="II">“(II) </num>
<content>if the termination occurs on or after January 30 of a plan year, as of the day after the end of the succeeding plan year.</content></subclause></clause>
<clause id="H3098F8D3ABCD4DBC99945F7AE880B994" class="indent3"><num value="iii">“(iii) </num>
<heading><inline class="smallCaps">Effectiveness of termination</inline>.—</heading>
<content>Any termination under this subparagraph shall not affect discounts for applicable drugs of the manufacturer that are due under the agreement before the effective date of its termination.</content></clause>
<clause id="H1C912DA10FA947EC96F8E35E1480F297" class="indent3"><num value="iv">“(iv) </num>
<heading><inline class="smallCaps">Notice to third party</inline>.—</heading>
<content>The Secretary shall provide notice of such termination to a third party with a contract under subsection (d)(3) within not less than 30 days before the effective date of such termination.</content></clause></subparagraph></paragraph></subsection>
<subsection id="H85DBA99CABD144BEA650362AA2DFC26A" class="indent0"><num value="c">“(c) </num>
<heading><inline class="smallCaps">Duties Described</inline>.—</heading>
<chapeau>The duties described in this subsection are the following:</chapeau>
<paragraph id="HED74D51CB4C94B54A38631702CD12737" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Administration of program</inline>.—</heading>
<chapeau>Administering the program, including—</chapeau>
<subparagraph id="H39F5E364A2B24DD1904DBA5CC6CCD82F" class="indent2"><num value="A">“(A) </num>
<content>the determination of the amount of the discounted price of an applicable drug of a manufacturer;</content></subparagraph>
<subparagraph id="H84F8561DDCAD42C6A2263242D75B8654" class="indent2"><num value="B">“(B) </num>
<content>the establishment of procedures under which discounted prices are provided to applicable beneficiaries at pharmacies or by mail order service at the point-of-sale of an applicable drug;</content></subparagraph>
<subparagraph id="HE8066A4F382B4D4599304D73E14BFDB6" class="indent2"><num value="C">“(C) </num>
<chapeau>the establishment of procedures to ensure that, not later than the applicable number of calendar days after the dispensing of an applicable drug by a pharmacy or mail order service, the pharmacy or mail order service is reimbursed for an amount equal to the difference between—</chapeau>
<clause id="HF1C42C3F184B4804A062B15D388A36DE" class="indent3"><num value="i">“(i) </num>
<content>the negotiated price of the applicable drug; and</content></clause>
<clause id="H29B59FD6F7C34838B99A7EC6645738F0" class="indent3"><num value="ii">“(ii) </num>
<content>the discounted price of the applicable drug;</content></clause></subparagraph>
<subparagraph id="H9D7A0741D13045B6A2E9E29D9963A0EE" class="indent2"><num value="D">“(D) </num>
<content>the establishment of procedures to ensure that the discounted price for an applicable drug under this section is applied before any coverage or financial assistance under other health benefit plans or programs that provide coverage or financial assistance for the purchase or provision of prescription drug coverage on behalf of applicable beneficiaries as the Secretary may specify; and</content></subparagraph>
<subparagraph id="H98F16998B8EE438A8E8C5095F8A78DB1" class="indent2"><num value="E">“(E) </num>
<content>providing a reasonable dispute resolution mechanism to resolve disagreements between manufacturers, applicable beneficiaries, and the third party with a contract under subsection (d)(3).</content></subparagraph></paragraph>
<paragraph id="H849B149DB92E4CABA7D4BBF8143BA070" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Monitoring compliance</inline>.—</heading>
<subparagraph id="H08C752F0F72041CDA457ACB686FCDD7B" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The Secretary shall monitor compliance by a manufacturer with the terms of an agreement under this section.</content></subparagraph>
<subparagraph id="HFEE484AD7F25462E950E8AAA2EB4399C" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Notification</inline>.—</heading>
<content>If a third party with a contract under subsection (d)(3) determines that the manufacturer is not in compliance with such agreement, the third party shall notify the Secretary of such noncompliance for appropriate enforcement under subsection (e).</content></subparagraph></paragraph>
<paragraph id="HB8F504BBCC0342AF98BB4727BDB80ECA" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Collection of data from prescription drug plans and ma–pd plans</inline>.—</heading>
<content>The Secretary may collect appropriate data from prescription drug plans and MA–PD plans in a timeframe that allows for discounted prices to be provided for applicable drugs under this section.</content></paragraph></subsection>
<subsection id="H3DD37B84006047769B75305F8405FDE7" class="indent0"><num value="d">“(d) </num>
<heading><inline class="smallCaps">Administration</inline>.—</heading>
<paragraph id="H283DAE3277FE4DC89F29CAFCA7A6EEB2" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>Subject to paragraph (2), the Secretary shall provide for the implementation of this section, including the performance of the duties described in subsection (c).</content></paragraph>
<paragraph id="HA2776BE78E684343859A39F6EFA5C5B4" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Limitation</inline>.—</heading>
<content>In providing for the implementation of this section, the Secretary shall not receive or distribute any funds of a manufacturer under the program.</content></paragraph>
<paragraph id="H6456C6F65C554EF783D26500113CB89A" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Contract with third parties</inline>.—</heading>
<chapeau>The Secretary shall enter into a contract with 1 or more third parties to administer the requirements established by the Secretary in order to carry out this section. At a minimum, the contract with a third party under the preceding sentence shall require that the third party—</chapeau>
<subparagraph id="HE75F77305DE54AACACD812E7BE08E3DC" class="indent2"><num value="A">“(A) </num>
<content>receive and transmit information between the Secretary, manufacturers, and other individuals or entities the Secretary determines appropriate;</content></subparagraph>
<subparagraph id="H5DEC9230C3FD43E99764E08F90CC07BE" class="indent2"><num value="B">“(B) </num>
<content>receive, distribute, or facilitate the distribution of funds of manufacturers to appropriate individuals or entities in order to meet the obligations of manufacturers under agreements under this section;</content></subparagraph>
<subparagraph id="H70714D81376D46E99C35792A2BE3608A" class="indent2"><num value="C">“(C) </num>
<content>provide adequate and timely information to manufacturers, consistent with the agreement with the manufacturer under this section, as necessary for the manufacturer to fulfill its obligations under this section; and</content></subparagraph>
<subparagraph id="H52CDF48F5AF841EDB68ABA0CD8608F8A" class="indent2"><num value="D">“(D) </num>
<content>permit manufacturers to conduct periodic audits, directly or through contracts, of the data and information used by the third party to determine discounts for applicable drugs of the manufacturer under the program.</content></subparagraph></paragraph>
<paragraph id="H54D0B83B667E4598B30060CB284A3E9D" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Performance requirements</inline>.—</heading>
<content>The Secretary shall establish performance requirements for a third party with a contract under paragraph (3) and safeguards to protect the independence and integrity of the activities carried out by the third party under the program under this section.</content></paragraph>
<paragraph id="H3CE6904CA7DD41D1A02F806EA3DE0BA0" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Implementation</inline>.—</heading>
<content>The Secretary may implement the program under this section by program instruction or otherwise.</content></paragraph>
<paragraph id="HB6D209DCB92C49C4A6C223F5335B61FD" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Administration</inline>.—</heading>
<content><ref href="usc-chapter/44/35">Chapter 35</ref> of <ref href="/us/usc/t44">title 44, United States Code</ref>, shall not apply to the program under this section.</content></paragraph></subsection>
<subsection id="H5849A047F0EF4DE8AD5810E0145E1A42" class="indent0"><num value="e">“(e) </num>
<heading><inline class="smallCaps">Enforcement</inline>.—</heading>
<paragraph id="HC9B7B94E876E443CA8B8847889F1908B" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Audits</inline>.—</heading>
<content>Each manufacturer with an agreement in effect under this section shall be subject to periodic audit by the Secretary.</content></paragraph>
<paragraph id="HBB02C0A962054789924C98EB15B2CB17" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Civil money penalty</inline>.—</heading>
<subparagraph id="H7505D730F77947FB94A0004D183C28AF" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>The Secretary may impose a civil money penalty on a manufacturer that fails to provide applicable beneficiaries discounts for applicable drugs of the manufacturer in accordance with such agreement for each such failure in an amount the Secretary determines is commensurate with the sum of—</chapeau>
<clause id="H36899192DD844C4F89462B206D68F49D" class="indent3"><num value="i">“(i) </num>
<content>the amount that the manufacturer would have paid with respect to such discounts under the agreement, which will then be used to pay the discounts which the manufacturer had failed to provide; and</content></clause>
<clause id="H23C00B36E37F47B0B53BEA8DE6BC0E3B" class="indent3"><num value="ii">“(ii) </num>
<content>25 percent of such amount.</content></clause></subparagraph>
<subparagraph id="H204D7F803BF141D09F8A77D3483BDB08" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Application</inline>.—</heading>
<content>The provisions of section 1128A (other than subsections (a) and (b)) shall apply to a civil money penalty under this paragraph in the same manner as such provisions apply to a penalty or proceeding under section 1128A(a).</content></subparagraph></paragraph></subsection>
<subsection id="HF72FF4C6ACD5412280E6E609D63E0F6A" class="indent0"><num value="f">“(f) </num>
<heading><inline class="smallCaps">Clarification Regarding Availability of Other Covered Part D Drugs</inline>.—</heading>
<content>Nothing in this section shall prevent an applicable beneficiary from purchasing a covered part D drug that is not an applicable drug (including a generic drug or a drug that is not on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in).</content></subsection>
<subsection id="H1447B375BC464DA3A1DCAF4339C7F05C" class="indent0"><num value="g">“(g) </num>
<heading><inline class="smallCaps">Definitions</inline>.—</heading>
<chapeau>In this section:</chapeau>
<paragraph role="definitions" id="H1792BB78057A412A93A18A45E104D1F4" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">Applicable beneficiary</inline>.—</heading>
<chapeau>The term ‘<term>applicable beneficiary</term>’ means an individual who, on the date of dispensing a covered part D drug—</chapeau>
<subparagraph id="HEC9DD209783940939AC87A9E39230CBB" class="indent2"><num value="A">“(A) </num>
<content>is enrolled in a prescription drug plan or an MA–PD plan;</content></subparagraph>
<subparagraph id="HA9F59792D26747A083FB685DDCA8BC8C" class="indent2"><num value="B">“(B) </num>
<content>is not enrolled in a qualified retiree prescription drug plan; and</content></subparagraph>
<subparagraph id="HF659B35044784CA6AEC215692846B3C4" class="indent2"><num value="C">“(C) </num>
<content>has incurred costs for covered part D drugs in the year that are equal to or exceed the annual deductible specified in section 1860D–2(b)(1) for such year.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H27540AA559CC4E849E46DEDEA25AF371" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Applicable drug</inline>.—</heading>
<chapeau>The term ‘<term>applicable drug</term>’, with respect to an applicable beneficiary—</chapeau>
<subparagraph id="H5EF42A23CE144EB8AC5042A353EE07B4" class="indent2"><num value="A">“(A) </num>
<chapeau>means a covered part D drug—</chapeau>
<clause id="H63F25AB3BDDA412498AF31C4761C19B1" class="indent3"><num value="i">“(i) </num>
<content>approved under a new drug application under section 505(b) of the Federal Food, Drug, and Cosmetic Act or, in the case of a biologic product, licensed under section 351 of the Public Health Service Act; and</content></clause>
<clause id="HBDA1260D7E2E453AB03EA76D1F338DEB" class="indent3"><num value="ii">“(ii)</num>
<subclause id="HF617E52B49C44A65A020872416D10E6E" class="inline"><num value="I">(I) </num>
<content>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan uses a formulary, which is on the formulary of the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in;</content></subclause>
<subclause meta="committee ID HED00" id="H6B7102EFA6E745D7A577B5C2717AEB79" class="indent3"><num value="II">“(II) </num>
<content>if the PDP sponsor of the prescription drug plan or the MA organization offering the MA–PD plan does not use a formulary, for which benefits are available under the prescription drug plan or MA–PD plan that the applicable beneficiary is enrolled in; or</content></subclause>
<subclause meta="committee ID HED00" id="H093C3B29A62A40B29C011CBA91ADA210" class="indent3"><num value="III">“(III) </num>
<content>is provided through an exception or appeal; and</content></subclause></clause></subparagraph>
<subparagraph id="H205D98ABDF90428799AA72C7F1D3AEBF" class="indent2"><num value="B">“(B) </num>
<content>does not include a selected drug (as defined in section 1192(c)) during a price applicability period (as defined in section 1191(b)(2)) with respect to such drug.</content></subparagraph></paragraph>
<paragraph role="definitions" id="H557A7E8EA70E48AEB8FF80DE7522E496" class="indent1"><num value="3">“(3) </num>
<heading><inline class="smallCaps">Applicable number of calendar days</inline>.—</heading>
<chapeau>The term ‘<term>applicable number of calendar days</term>’ means—</chapeau>
<subparagraph id="HB5D932EEB8894ABD934A9948057CC67E" class="indent2"><num value="A">“(A) </num>
<content>with respect to claims for reimbursement submitted electronically, 14 days; and</content></subparagraph>
<subparagraph id="H5AFDEC9AFE9147B5BB2BC860373D3483" class="indent2"><num value="B">“(B) </num>
<content>with respect to claims for reimbursement submitted otherwise, 30 days.</content></subparagraph></paragraph>
<paragraph id="H5740817E3C4646EBBE4A8482CC43C7D0" class="indent1"><num value="4">“(4) </num>
<heading><inline class="smallCaps">Discounted price</inline>.—</heading>
<subparagraph role="definitions" id="H45A410C0A8F741B3A13DCD18B58F322A" class="indent2"><num value="A">“(A) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<chapeau>The term ‘<term>discounted price</term>’ means, with respect to an applicable drug of a manufacturer furnished during a year to an applicable beneficiary—</chapeau>
<clause id="H944F4F7391C249EEAB8998ACE7C7CC43" class="indent3"><num value="i">“(i) </num>
<content>who has not incurred costs for covered part D drugs in the year that are equal to or exceed the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, 90 percent of the negotiated price of such drug; and</content></clause>
<clause id="HEBA9B98E84424173A368A36BA325CDE1" class="indent3"><num value="ii">“(ii) </num>
<content>who has incurred such costs in the year that are equal to or exceed such threshold for the year, 70 percent of the negotiated price of such drug.</content></clause></subparagraph>
<subparagraph id="H0F571908EA0344CFB580339CA4C88AB2" class="indent2"><num value="B">“(B) </num>
<heading><inline class="smallCaps">Clarification</inline>.—</heading>
<content>Nothing in this section shall be construed as affecting the responsibility of an applicable beneficiary for payment of a dispensing fee for an applicable drug.</content></subparagraph>
<subparagraph id="HCE8BCF1C6A5044D8B1BFC43064ED3D39" class="indent2"><num value="C">“(C) </num>
<heading><inline class="smallCaps">Special case for certain claims</inline>.—</heading>
<clause id="HB60FE6B78660404E9309D4D851A357FF" class="indent3"><num value="i">“(i) </num>
<heading><inline class="smallCaps">Claims spanning deductible</inline>.—</heading>
<content>In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall at or above the annual deductible specified in section 1860D–2(b)(1) for the year, the manufacturer of the applicable drug shall provide the discounted price under this section on only the portion of the negotiated price of the applicable drug that falls at or above such annual deductible.</content></clause>
<clause id="HB11D6F01754A44F993B83F978B6023ED" class="indent3"><num value="ii">“(ii) </num>
<heading><inline class="smallCaps">Claims spanning out-of-pocket threshold</inline>.—</heading>
<chapeau>In the case where the entire amount of the negotiated price of an individual claim for an applicable drug with respect to an applicable beneficiary does not fall entirely below or entirely above the annual out-of-pocket threshold specified in section 1860D–2(b)(4)(B)(i) for the year, the manufacturer of the applicable drug shall provide the discounted price—</chapeau>
<subclause id="H905000020A4B434897C5EAD413DCE702" class="indent4"><num value="I">“(I) </num>
<content>in accordance with subparagraph (A)(i) on the portion of the negotiated price of the applicable drug that falls below such threshold; and</content></subclause>
<subclause id="H0BDFF78375214F9D80675395E8391EEE" class="indent4"><num value="II">“(II) </num>
<content>in accordance with subparagraph (A)(ii) on the portion of such price of such drug that falls at or above such threshold.</content></subclause></clause></subparagraph></paragraph>
<paragraph role="definitions" id="H2407BF057D78489D8F4E93618176990B" class="indent1"><num value="5">“(5) </num>
<heading><inline class="smallCaps">Manufacturer</inline>.—</heading>
<content>The term ‘<term>manufacturer</term>’ means any entity which is engaged in the production, preparation, propagation, compounding, conversion, or processing of prescription drug products, either directly or indirectly by extraction from substances of natural origin, or independently by means of chemical synthesis, or by a combination of extraction and chemical synthesis. Such term does not include a wholesale distributor of drugs or a retail pharmacy licensed under State law.</content></paragraph>
<paragraph role="definitions" id="H709044FDA9BA4828A61A32D80BD6C74E" class="indent1"><num value="6">“(6) </num>
<heading><inline class="smallCaps">Negotiated price</inline>.—</heading>
<content>The term ‘<term>negotiated price</term>’ has the meaning given such term in <ref href="/us/cfr/t42/s423.100">section 423.100 of title 42, Code of Federal Regulations</ref> (as in effect on the date of enactment of section 1860D–14A), except that such negotiated price shall not include any dispensing fee for the applicable drug.</content></paragraph>
<paragraph role="definitions" id="H658B738E3EA742EF863D5D790550819C" class="indent1"><num value="7">“(7) </num>
<heading><inline class="smallCaps">Qualified retiree prescription drug plan</inline>.—</heading>
<content>The term ‘<term>qualified retiree prescription drug plan</term>’ has the meaning given such term in section 1860D–22(a)(2).”.</content></paragraph></subsection></section></quotedContent></content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/c/2" id="HAB0E66EC907E440183142F1B475862CB" class="indent1"><num value="2">(2) </num>
<heading><inline class="smallCaps">Sunset of medicare coverage gap discount program</inline>.—</heading>
<chapeau>Section 1860D–14A of the Social Security Act (<ref href="/us/usc/t42/s1395–114a">42 U.S.C. 1395–114a</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/2/A" id="H99549B29298D4F92AC680BED9985567E" class="indent2"><num value="A">(A) </num>
<content>in subsection (a), in the first sentence, by <amendingAction type="delete">striking</amendingAction> “<quotedText>The Secretary</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>Subject to subsection (h), the Secretary</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/2/B" id="H67C52984E5104A339B209E78ED440B68" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new subsection:<quotedContent meta="committee ID HED00" id="HF7E04C5D19A34F1CAF02CDF99D3DAD14" styleType="OLC"> <subsection id="H6CEF0CDDC5104366AD895777FF1E0127" class="indent0"><num value="h">“(h) </num>
<heading><inline class="smallCaps">Sunset of Program</inline>.—</heading>
<paragraph id="H309F391837F54A13B7C90E716B174B6F" class="indent1"><num value="1">“(1) </num>
<heading><inline class="smallCaps">In general</inline>.—</heading>
<content>The program shall not apply with respect to applicable drugs dispensed on or after January 1, 2022, and, subject to paragraph (2), agreements under this section shall be terminated as of such date.</content></paragraph>
<paragraph id="HE78CC5537BCB46BE85B97844B64742D6" class="indent1"><num value="2">“(2) </num>
<heading><inline class="smallCaps">Continued application for applicable drugs dispensed prior to sunset</inline>.—</heading>
<content>The provisions of this section (including all responsibilities and duties) shall continue to apply after January 1, 2022, with respect to applicable drugs dispensed prior to such date.”.</content></paragraph></subsection></quotedContent></content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/c/3" id="HA7EB1CFD3F874C68B31FE46AA0C704FD" class="indent1"><num value="3">(3) </num>
<heading><inline class="smallCaps">Inclusion of actuarial value of manufacturer discounts in bids</inline>.—</heading>
<chapeau>Section 1860D–11 of the Social Security Act (<ref href="/us/usc/t42/s1395w–111">42 U.S.C. 1395w–111</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/3/A" id="H55976B2C0F5643A693A59B285ED70B7E" class="indent2"><num value="A">(A) </num>
<chapeau>in subsection (b)(2)(C)(iii)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/A/i" id="H2DF3867331CE40D08A090AA487CD6A86" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>assumptions regarding the reinsurance</quotedText>” an <amendingAction type="insert">inserting</amendingAction> <quotedContent>“assumptions regarding— <subclause id="H63B077DD79B542CA8D30D3B1C74D4E59" class="indent4"><num value="I">“(I) </num>
<content>the reinsurance”; and</content></subclause></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/A/ii" id="H3C9B8A82535949518868AB9C27DF0275" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HED00" id="H8AE0F60959D447ADB8EABA38AA2700BB" styleType="OLC"> <subclause id="HDA9DA4C518494AE48CE4E9F12FD3D353" class="indent4"><num value="II">“(II) </num>
<content>for 2022 and each subsequent year, the manufacturer discounts provided under section 1860D–14C subtracted from the actuarial value to produce such bid; and”; and</content></subclause></quotedContent></content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/c/3/B" id="HD902562C0D3F41EFA63BFAAEB98394BC" class="indent2"><num value="B">(B) </num>
<chapeau>in subsection (c)(1)(C)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/B/i" id="H234DF43387C14D388D9E20A97932E726" class="indent3"><num value="i">(i) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>an actuarial valuation of the reinsurance</quotedText>” and <amendingAction type="insert">inserting</amendingAction> <quotedContent>“an actuarial valuation of— <clause id="H9AB8CD19313C4BFBA1E586221759E2E8" class="indent3"><num value="i">“(i) </num>
<content>the reinsurance”;</content></clause></quotedContent></content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/B/ii" id="H94E68D4A79C74189860D0266790A4F4E" class="indent3"><num value="ii">(ii) </num>
<content>in clause (i), as inserted by clause (i) of this subparagraph, by <amendingAction type="add">adding</amendingAction> “<quotedText>and</quotedText>” at the end; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/c/3/B/iii" id="H2E00E9D31B7A42EEB20485E1001FD61D" class="indent3"><num value="iii">(iii) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following:<quotedContent meta="committee ID HED00" id="H77607BB6E55E4CEAB7BB0D57B16F9C49" styleType="OLC"> <clause id="HAB1CE5C8D5394C0CAE652C1A91B4BAA7" class="indent3"><num value="ii">“(ii) </num>
<content>for 2022 and each subsequent year, the manufacturer discounts provided under section 1860D–14C;”.</content></clause></quotedContent></content></clause></subparagraph></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIII/s301/d" id="HAA98E4A2873C4BB69FC33F720DA9DA5A" class="indent0"><num value="d">(d) </num>
<heading><inline class="smallCaps">Conforming Amendments</inline>.—</heading>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/1" id="H9FBF6771AB0D41BEAAB9CA2399E6FD4A" class="indent1"><num value="1">(1) </num>
<chapeau>Section 1860D–2 of the Social Security Act (<ref href="/us/usc/t42/s1395w–102">42 U.S.C. 1395w–102</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/1/A" id="H77672AE134444811A785E7AA37111736" class="indent2"><num value="A">(A) </num>
<content>in subsection (a)(2)(A)(i)(I), by <amendingAction type="delete">striking</amendingAction> “<quotedText>, or an increase in the initial</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>or, for a year preceding 2022, an increase in the initial</quotedText>”;</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/1/B" id="HDD38DD7E3D5F47E59063288E509509FE" class="indent2"><num value="B">(B) </num>
<chapeau>in subsection (c)(1)(C)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/1/B/i" id="HBF0FB3CDB21D4307817413CA71F23048" class="indent3"><num value="i">(i) </num>
<content>in the subparagraph heading, by <amendingAction type="delete">striking</amendingAction> “<headingText role="subparagraph" class="smallCaps">at initial coverage limit</headingText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/1/B/ii" id="H018874FD1F5C46B7A6975726AB80783A" class="indent3"><num value="ii">(ii) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022 or the annual out-of-pocket threshold specified in subsection (b)(4)(B) for the year for 2022 and each subsequent year</quotedText>” after “<quotedText>subsection (b)(3) for the year</quotedText>” each place it appears; and</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/1/C" id="H6568AA4B4A0040A9AF267495206C3E6C" class="indent2"><num value="C">(C) </num>
<content>in subsection (d)(1)(A), by <amendingAction type="delete">striking</amendingAction> “<quotedText>or an initial</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>or, for a year preceding 2022, an initial</quotedText>”.</content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/2" id="H198B93A9485B461E85598991A5B02ACF" class="indent1"><num value="2">(2) </num>
<content>Section 1860D–4(a)(4)(B)(i) of the Social Security Act (<ref href="/us/usc/t42/s1395w–104/a/4/B">42 U.S.C. 1395w–104(a)(4)(B)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>the initial</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022, the initial</quotedText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/3" id="H9DA5A9FE754E4EBC8CCE1AF6B8E1E4BD" class="indent1"><num value="3">(3) </num>
<chapeau>Section 1860D–14(a) of the Social Security Act (<ref href="/us/usc/t42/s1395w–114/a">42 U.S.C. 1395w–114(a)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/3/A" id="HC42284EBFBB3477184823C12A6D463F5" class="indent2"><num value="A">(A) </num>
<chapeau>in paragraph (1)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/A/i" id="H6DA648584E4D434689AC8D0F10F2F7F3" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (C), by <amendingAction type="delete">striking</amendingAction> “<quotedText>The continuation</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For a year preceding 2022, the continuation</quotedText>”;</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/A/ii" id="HF2F2E9D08EED4DA4BAC5337A72392909" class="indent3"><num value="ii">(ii) </num>
<content>in subparagraph (D)(iii), by <amendingAction type="delete">striking</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)(aa)</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/A/iii" id="H57B6A713DD784E418A27A0AD190BAA55" class="indent3"><num value="iii">(iii) </num>
<content>in subparagraph (E), by <amendingAction type="delete">striking</amendingAction> “<quotedText>The elimination</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For a year preceding 2022, the elimination</quotedText>”; and</content></clause></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/3/B" id="H8D3555A322A745FE89AAA379D72C7EE1" class="indent2"><num value="B">(B) </num>
<chapeau>in paragraph (2)—</chapeau>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/B/i" id="HAE1E5A8AC5F94BF6A2FF8CA53E76BA88" class="indent3"><num value="i">(i) </num>
<content>in subparagraph (C), by <amendingAction type="delete">striking</amendingAction> “<quotedText>The continuation</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>For a year preceding 2022, the continuation</quotedText>”; and</content></clause>
<clause identifier="/us/bill/116/hr/3/tIII/s301/d/3/B/ii" id="H9302DE7172E248498C6795B4134D8932" class="indent3"><num value="ii">(ii) </num>
<chapeau>in subparagraph (E)—</chapeau>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/d/3/B/ii/I" id="H130FBF4773764471B5D3D9580B2DA23E" class="indent4"><num value="I">(I) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year preceding 2022,</quotedText>” after “<quotedText>subsection (c)</quotedText>”; and</content></subclause>
<subclause identifier="/us/bill/116/hr/3/tIII/s301/d/3/B/ii/II" id="HC11302C1172B484B9D43307AEE2217CB" class="indent4"><num value="II">(II) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>1860D–2(b)(4)(A)(i)(I)(aa)</quotedText>”.</content></subclause></clause></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/4" id="H0E8512F28CF24D638CEBA79987CE6493" class="indent1"><num value="4">(4) </num>
<content>Section 1860D–21(d)(7) of the Social Security Act (<ref href="/us/usc/t42/s1395w–131/d/7">42 U.S.C. 1395w–131(d)(7)</ref>) <amendingAction type="amend">is amended</amendingAction> by <amendingAction type="delete">striking</amendingAction> “<quotedText>section 1860D–2(b)(4)(B)(i)</quotedText>” and <amendingAction type="insert">inserting</amendingAction> “<quotedText>section 1860D–2(b)(4)(C)(i)</quotedText>”.</content></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/5" id="H94F9DC6D913C42F5A5893C4A55049D50" class="indent1"><num value="5">(5) </num>
<chapeau>Section 1860D–22(a)(2)(A) of the Social Security Act (<ref href="/us/usc/t42/s1395w–132/a/2/A">42 U.S.C. 1395w–132(a)(2)(A)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/5/A" id="HEA4D2D8FC87B41ECA5988E7AEBE378B5" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="delete">striking</amendingAction> “<quotedText>the value of any discount</quotedText>” and <amendingAction type="insert">inserting</amendingAction> the following: <quotedContent meta="committee ID HED00" id="H977DCD609C9B4846A3425C501E2A2E88" styleType="OLC"> “the value of—<clause id="HD5787C20438D4F669066CC81C58AC043" class="indent3"><num value="i">“(i) </num>
<content>for years prior to 2022, any discount”.</content></clause></quotedContent></content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/5/B" id="HE463E33B9C5D42F79312135F88748BE5" class="indent2"><num value="B">(B) </num>
<content>in clause (i), as inserted by subparagraph (A) of this paragraph, by <amendingAction type="delete">striking</amendingAction> the period at the end and <amendingAction type="insert">inserting</amendingAction> “<quotedText>; and</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/5/C" id="H822246E881774C48ACC8E27E1596049B" class="indent2"><num value="C">(C) </num>
<content>by <amendingAction type="add">adding</amendingAction> at the end the following new clause:<quotedContent meta="committee ID HED00" id="H24871A9A7A2F4173AECAF31961C7AD47" styleType="OLC"> <clause id="HD150EEC515534E72972E6271D4B57F60" class="indent3"><num value="ii">“(ii) </num>
<content>for 2022 and each subsequent year, any discount provided pursuant to section 1860D–14C.”.</content></clause></quotedContent></content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/6" id="H74A028E9FE914F34AD7DF13C8BEA9950" class="indent1"><num value="6">(6) </num>
<chapeau>Section 1860D–41(a)(6) of the Social Security Act (<ref href="/us/usc/t42/s1395w–151/a/6">42 U.S.C. 1395w–151(a)(6)</ref>) <amendingAction type="amend">is amended</amendingAction>—</chapeau>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/6/A" id="HE877C093DD2F446E9FD2862EC208EE1E" class="indent2"><num value="A">(A) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for a year before 2022</quotedText>” after “<quotedText>1860D–2(b)(3)</quotedText>”; and</content></subparagraph>
<subparagraph identifier="/us/bill/116/hr/3/tIII/s301/d/6/B" id="HA788E7242098438899C366E47E91DA7D" class="indent2"><num value="B">(B) </num>
<content>by <amendingAction type="insert">inserting</amendingAction> “<quotedText>for such year</quotedText>” before the period.</content></subparagraph></paragraph>
<paragraph role="instruction" identifier="/us/bill/116/hr/3/tIII/s301/d/7" id="HD05258B0EA6346B09E949BF38593CFB3" class="indent1"><num value="7">(7) </num>
<content>Paragraph (1) of section 1860D–43(a) of the Social Security Act (<ref href="/us/usc/t42/s1395w–153/a">42 U.S.C. 1395w–153(a)</ref>) <amendingAction type="amend">is amended</amendingAction> to read as follows:<quotedContent meta="committee ID HED00" id="H650A87A3192E4BCFB29E054C2A292516" styleType="OLC"> <paragraph id="H2305555D75E2449880D094942A62B2BB" class="indent1"><num value="1">“(1) </num>
<chapeau>participate in—</chapeau>
<subparagraph id="HA7E1D15693BE48098F273926D45506E4" class="indent2"><num value="A">“(A) </num>
<content>for 2011 through 2021, the Medicare coverage gap discount program under section 1860D–14A; and</content></subparagraph>
<subparagraph id="H6A4585976C204A67AF7BD56FC36B4093" class="indent2"><num value="B">“(B) </num>
<content>for 2022 and each subsequent year, the manufacturer discount program under section 1860D–14C;”.</content></subparagraph></paragraph></quotedContent></content></paragraph></subsection>
<subsection identifier="/us/bill/116/hr/3/tIII/s301/e" id="HEFD9EE8AC593426F9B49649C23A2EA7A" class="indent0"><num value="e">(e) </num>
<heading><inline class="smallCaps">Effective Date</inline>.—</heading>
<content>The amendments made by this section shall apply with respect to plan year 2022 and subsequent plan years.</content></subsection></section></title>
            </main>
        </component>
    </collection>
</main>
    <endorsement orientation="landscape">
        <relatedDocument role="calendar" href="/us/116/hcal/Union/264">Union Calendar No. 264</relatedDocument>
        <congress value="116">116th CONGRESS</congress><session value="1">1st Session</session>
        <dc:type>H. R. </dc:type><docNumber>3</docNumber>
                <relatedDocuments>[Report No. 116–324, Parts <relatedDocument href="/us/hrpt/116/324/pt1"
            role="report" value="CRPT-116hrpt324-pt1">I</relatedDocument>, <relatedDocument
            href="/us/hrpt/116/324/pt2" role="report" value="CRPT-116hrpt324-pt2"
            >II</relatedDocument> and <relatedDocument href="/us/hrpt/116/324/pt3" role="report"
            value="CRPT-116hrpt324-pt3">III</relatedDocument>]</relatedDocuments>
        <longTitle><docTitle>A BILL</docTitle><officialTitle>To establish a fair price negotiation program, protect the Medicare program from excessive price increases, and establish an out-of-pocket maximum for Medicare part D enrollees, and for other purposes.</officialTitle></longTitle><action><date date="2019-12-09"><inline class="smallCaps">December </inline>9, 2019</date><actionDescription>Reported from the <committee committeeId="HED00">Committee on Education and Labor</committee> with an amendment; committed to the Committee of the Whole House on the State of the Union and ordered to be printed</actionDescription></action></endorsement></bill>