II

106TH CONGRESS

2D SESSION S. 2963

To amend title XIX of the Social Security Act to require the Secretary

of Health and Human Services to make publicly available medicaid

drug pricing information.

IN THE SENATE OF THE UNITED STATES

JULY 27, 2000

Mr. BRYAN (for himself Mr. GRAHAM, and Mr. GORTON) introduced the

following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend title XIX of the Social Security Act to require

the Secretary of Health and Human Services to make

publicly available medicaid drug pricing information.

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 ‘‘Consumer Awareness

5 of Market-Based Drug Prices Act of 2000’’.
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1 SEC. 2. PUBLIC DISCLOSURE OF MARKET-BASED DRUG

2 PRICING INFORMATION.

3 (a) IN GENERAL.—Section 1927(b)(3)(D) of the So4 cial Security Act (42 U.S.C. 1396r–8(b)(3)(D)) is amend5 ed to read as follows:

6 ‘‘(D) PUBLIC AVAILABILITY OF INFORMA7 TION.—

8 ‘‘(i) TIMELY AVAILABILITY OF INFOR9 MATION.—Notwithstanding any other pro10 vision of law, with respect to a manufac11 turer with an agreement in effect under

12 this section, not later than 30 days after

13 the date the Secretary receives from such

14 manufacturer the information required to

15 be reported under this paragraph (or

16 verifies such information with a whole17 saler), the Secretary shall make the infor18 mation described in clause (ii), including

19 the identity of the manufacturer to which

20 the information applies, publicly available

21 through the Internet or other means of

22 communication.

23 ‘‘(ii) INFORMATION DESCRIBED.—The

24 information described in this clause is the

25 following:
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1 ‘‘(I) AVERAGE MANUFACTURER’S

2 PRICE.—The average manufacturer

3 price (as defined in subsection (k)(1))

4 for each of the manufacturer’s covered

5 outpatient drugs.

6 ‘‘(II) BEST PRICE.—With respect

7 to single source drugs and innovator

8 multiple source drugs, the manufac9 turer’s best price (as defined in sub10 section (c)(1)(C)) for each of the

11 manufacturer’s covered outpatient

12 drugs.

13 ‘‘(III) BASE AVERAGE MANUFAC14 TURER PRICE AND INITIAL AVERAGE

15 MANUFACTURER PRICE FOR NEWLY

16 MARKETED DRUGS USED TO DETER17 MINE AN ADDITIONAL REBATE FOR

18 SINGLE SOURCE AND INNOVATOR

19 MULTIPLE SOURCE DRUGS.—The av20 erage manufacturer price described in

21 subparagraphs (A)(ii)(II) (without re22 gard to the percentage increase deter23 mined under that subparagraph) and

24 (B) of subsection (c)(2) for each dos25 age form and strength of a single
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1 source drug or an innovator multiple

2 source drug used to determine, with

3 respect to a rebate period, an addi4 tional rebate for such dosage form

5 and strength for such a drug.

6 ‘‘(iii) NONDISCLOSURE OF CERTAIN

7 INFORMATION.—Notwithstanding any

8 other provision of law, information dis9 closed by manufacturers (or verified with

10 wholesalers) under an agreement with the

11 Secretary of Veterans Affairs described in

12 subsection (a)(6)(A) may not be disclosed

13 except—

14 ‘‘(I) as the Secretary determines

15 to be necessary to carry out this sec16 tion;

17 ‘‘(II) to permit the Comptroller

18 General to review the information pro19 vided; or

20 ‘‘(III) to permit the Director of

21 the Congressional Budget Office to re22 view the information provided.

23 ‘‘(iv) RULE OF CONSTRUCTION.—

24 Nothing in this subparagraph shall be con25 strued as affecting any requirement appli-
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1 cable to the Secretary of Veterans Affairs

2 regarding the confidentiality of information

3 required to be disclosed to the Secretary of

4 Veterans Affairs by a manufacturer under

5 section 8126 of title 38, United States

6 Code.’’.

7 (b) EFFECTIVE DATE; IMPLEMENTATION.—

8 (1) EFFECTIVE DATE.—The amendments made

9 by subsection (a) take effect upon the date of enact10 ment of this Act and apply to the most recent re11 ported price information under section 1927(b)(3) of

12 the Social Security Act (42 U.S.C. 1396r–8(b)(3))

13 as of such date, and all such information reported

14 under such section after such date.

15 (2) ADDITIONAL PERIOD FOR IMPLEMENTA16 TION.—Notwithstanding the 30-day requirement for

17 the public availability of market-based drug pricing

18 information under section 1927(b)(3)(D)(i) of the

19 Social Security Act (42 U.S.C. 1396r–

20 8(b)(3)(D)(i)), with respect to the initial public

21 availability of such information, the Secretary of

22 Health and Human Services shall have up to 90

23 days from the date of the enactment of this Act in

24 which to make such information so available.
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1 SEC. 3. AUTHORIZATION OF APPROPRIATIONS.

2 There are authorized to be appropriated to carry out

3 section 1927(b)(3)(D) of the Social Security Act (42

4 U.S.C. 1396r–8(b)(3)(D)), as amended by section 2(a),

5 such sums as may be necessary to carry out such section.

6 Amounts appropriated pursuant to this section shall be

7 in addition to amounts otherwise appropriated to carry out

8 title XIX of such Act (42 U.S.C. 1396 et seq.).

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