I 

116TH CONGRESS 

2D SESSION H. R. 8139 

To amend title XIX of the Social Security Act to remove direct sales of 

drugs near expiration during the COVID–19 emergency from the calculation of certain pricing metrics under the Medicaid program. 

IN THE HOUSE OF REPRESENTATIVES 

SEPTEMBER 1, 2020 

Mr. BILIRAKIS (for himself and Mr. SOTO) introduced the following bill; which 

was referred to the Committee on Energy and Commerce 

A BILL 

To amend title XIX of the Social Security Act to remove 

direct sales of drugs near expiration during the COVID– 

19 emergency from the calculation of certain pricing 

metrics under the Medicaid program. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 

3 SECTION 1. SHORT TITLE. 

4 This Act may be cited as the ‘‘Surplus Utilization of 

5 Pharmaceutical Products Leveraged In Emergency Sce6 narios Act of 2020’’ or the ‘‘SUPPLIES Act of 2020’’. 


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1 SEC. 2. REMOVING DIRECT SALES OF DRUGS NEAR EXPIRA2 TION DURING THE COVID–19 EMERGENCY 

3 FROM THE CALCULATION OF CERTAIN PRIC4 ING METRICS UNDER THE MEDICAID PRO5 GRAM. 

6 (a) IN GENERAL.—Section 1927 of the Social Secu7 rity Act (42 U.S.C. 1396r–8) is amended— 

8 (1) in subsection (c)(1)(C)— 

9 (A) in clause (i)— 

10 (i) in subclause (V), by striking ‘‘and’’ 

11 at the end; 

12 (ii) in subclause (VI), by striking the 

13 period and inserting ‘‘; and’’; and 

14 (iii) by adding at the end the fol15 lowing new subclause: 

16 ‘‘(VII) any prices charged with 

17 respect to the direct sale by a manu18 facturer of a short-dated drug (as de19 fined in clause (iv)) during the period 

20 beginning on the first day of the 

21 emergency period described in section 

22 1135(g)(1)(B) and ending on the date 

23 that is 6 months after the last day of 

24 such emergency period.’’; and 

25 (B) by adding at the end the following new 

26 clause: 


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•HR 8139 IH

1 ‘‘(iv) SHORT-DATED DRUG DE2 FINED.— 

3 ‘‘(I) IN GENERAL.—For purposes 

4 of clause (i)(VII), the term ‘short5 dated drug’ means, in the case of a 

6 drug with an applicable shelf life (as 

7 defined in subclause (II))— 

8 ‘‘(aa) of 1 year or greater, a 

9 drug expiring (as determined by 

10 the labeled expiration date) not 

11 later than 1 year after the date 

12 of sale of such drug; and 

13 ‘‘(bb) of less than 1 year, a 

14 drug expiring (as determined by 

15 the labeled expiration date) not 

16 later than the end of the period 

17 beginning on the date of sale of 

18 such drug and ending on the date 

19 that is the number of days of the 

20 applicable shelf life of such drug 

21 after such date of sale. 

22 ‘‘(II) APPLICABLE SHELF

23 LIFE.—The term ‘applicable shelf life’ 

24 means, with respect to a drug, 50 per25 cent of the number of days occurring 


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•HR 8139 IH

1 during the period beginning on the 

2 date such drug is manufactured and 

3 ending on the date such drug expires 

4 (as determined by the labeled expira5 tion date), rounded to the nearest 

6 whole day.’’; and 

7 (2) in subsection (k)(1)(B)— 

8 (A) in subclause (IV), by striking ‘‘and’’ at 

9 the end; 

10 (B) in subclause (V), by striking the period 

11 and inserting ‘‘; and’’; and 

12 (C) by adding at the end the following new 

13 subclause: 

14 ‘‘(VI) any prices described in 

15 subsection (c)(1)(C)(i)(VII).’’. 

16 (b) OUTREACH TO MANUFACTURERS.—The Sec17 retary of Health and Human Services shall notify drug 

18 manufacturers of the amendments made by subsection (a) 

19 through an electronic communication through MLN Con20 nects or such other method as determined appropriate by 

21 the Secretary. 

Æ 


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