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[Congressional Bills 114th Congress]
[From the U.S. Government Publishing Office]
[S. 1364 Introduced in Senate (IS)]

114th CONGRESS
  1st Session
                                S. 1364

To amend title XIX of the Social Security Act to require the payment of 
an additional rebate to the State Medicaid plan in the case of increase 
in the price of a generic drug at a rate that is greater than the rate 
                             of inflation.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                              May 18, 2015

 Mr. Sanders (for himself, Mr. Brown, Ms. Hirono, Mr. Blumenthal, and 
 Mr. Franken) 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 payment of 
an additional rebate to the State Medicaid plan in the case of increase 
in the price of a generic drug at a rate that is greater than the rate 
                             of inflation.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Medicaid Generic Drug Price Fairness 
Act of 2015''.

SEC. 2. APPLYING THE MEDICAID ADDITIONAL REBATE REQUIREMENT TO GENERIC 
              DRUGS.

    (a) In General.--Section 1927(c)(3) of the Social Security Act (42 
U.S.C. 1396r-8(c)(3)) is amended--
            (1) in subparagraph (A), by striking ``The amount'' and 
        inserting ``Except as provided in subparagraph (C), the 
        amount''; and
            (2) by adding at the end the following new subparagraph:
                    ``(C) Additional rebate.--
                            ``(i) In general.--The amount of the rebate 
                        specified in this paragraph for a rebate 
                        period, with respect to each dosage form and 
                        strength of a covered outpatient drug other 
                        than a single source drug or an innovator 
                        multiple source drug, shall be increased in the 
                        manner that the rebate for a dosage form and 
                        strength of a single source drug or an 
                        innovator multiple source drug is increased 
                        under subparagraphs (A) and (D) of paragraph 
                        (2), except as provided in clause (ii).
                            ``(ii) Special rules for application of 
                        provision.--In applying subparagraphs (A) and 
                        (D) of paragraph (2) under clause (i)--
                                    ``(I) the reference in subparagraph 
                                (A)(i) of such paragraph to `1990' 
                                shall be deemed a reference to `2014';
                                    ``(II) subject to clause (iii), the 
                                reference in subparagraph (A)(ii) of 
                                such paragraph to `calendar quarter 
                                beginning July 1, 1990' shall be deemed 
                                a reference to the `calendar quarter in 
                                which the average manufacturer price 
                                for the drug is the lowest during the 
                                12-calendar quarter period ending on 
                                September 30, 2014'; and
                                    ``(III) subject to clause (iii), 
                                the reference in subparagraph (A)(ii) 
                                of such paragraph to `September 1990' 
                                shall be deemed a reference to `the 
                                last month of such calendar quarter';
                                    ``(IV) the references in 
                                subparagraph (D) of such paragraph to 
                                `paragraph (1)(A)(ii)', `this 
                                paragraph', and `December 31, 2009' 
                                shall be deemed references to 
                                `subparagraph (A)', `this 
                                subparagraph', and `December 31, 2014', 
                                respectively; and
                                    ``(V) any reference in such 
                                paragraph to a `single source drug or 
                                an innovator multiple source drug' 
                                shall be deemed to be a reference to a 
                                drug to which clause (i) applies.
                            ``(iii) Special rule for certain 
                        noninnovator multiple source drugs.--In 
                        applying paragraph (2)(A)(ii)(II) under clause 
                        (i) with respect to a covered outpatient drug 
                        that is first sold as a drug other than a 
                        single source drug or an innovator multiple 
                        source drug after the date that is 3 years 
                        before the date of the enactment of this 
                        subparagraph, such paragraph shall be applied--
                                    ``(I) by substituting `the 
                                applicable quarter' for `the calendar 
                                quarter beginning July 1, 1990'; and
                                    ``(II) by substituting `the last 
                                month in such applicable quarter' for 
                                `September 1990'.
                            ``(iv) Applicable quarter defined.--In this 
                        subsection, the term `applicable quarter' 
                        means, with respect to a drug described in 
                        clause (iii), the fifth full calendar quarter 
                        in which the drug is sold as a drug other than 
                        a single source drug or an innovator multiple 
                        source drug.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to rebate periods beginning after December 31, 2014.
                                 <all>
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