II 

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. 

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 ‘‘Medicaid Generic Drug 

5 Price Fairness Act of 2015’’. 


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1 SEC. 2. APPLYING THE MEDICAID ADDITIONAL REBATE RE2 QUIREMENT TO GENERIC DRUGS. 

3 (a) IN GENERAL.—Section 1927(c)(3) of the Social 

4 Security Act (42 U.S.C. 1396r–8(c)(3)) is amended— 

5 (1) in subparagraph (A), by striking ‘‘The 

6 amount’’ and inserting ‘‘Except as provided in sub7 paragraph (C), the amount’’; and 

8 (2) by adding at the end the following new sub9 paragraph: 

10 ‘‘(C) ADDITIONAL REBATE.— 

11 ‘‘(i) IN GENERAL.—The amount of 

12 the rebate specified in this paragraph for 

13 a rebate period, with respect to each dos14 age form and strength of a covered out15 patient drug other than a single source 

16 drug or an innovator multiple source drug, 

17 shall be increased in the manner that the 

18 rebate for a dosage form and strength of 

19 a single source drug or an innovator mul20 tiple source drug is increased under sub21 paragraphs (A) and (D) of paragraph (2), 

22 except as provided in clause (ii). 

23 ‘‘(ii) SPECIAL RULES FOR APPLICA24 TION OF PROVISION.—In applying sub25 paragraphs (A) and (D) of paragraph (2) 

26 under clause (i)— 


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1 ‘‘(I) the reference in subpara2 graph (A)(i) of such paragraph to 

3 ‘1990’ shall be deemed a reference to 

4 ‘2014’; 

5 ‘‘(II) subject to clause (iii), the 

6 reference in subparagraph (A)(ii) of 

7 such paragraph to ‘calendar quarter 

8 beginning July 1, 1990’ shall be 

9 deemed a reference to the ‘calendar 

10 quarter in which the average manu11 facturer price for the drug is the low12 est during the 12-calendar quarter pe13 riod ending on September 30, 2014’; 

14 and 

15 ‘‘(III) subject to clause (iii), the 

16 reference in subparagraph (A)(ii) of 

17 such paragraph to ‘September 1990’ 

18 shall be deemed a reference to ‘the 

19 last month of such calendar quarter’; 

20 ‘‘(IV) the references in subpara21 graph (D) of such paragraph to ‘para22 graph (1)(A)(ii)’, ‘this paragraph’, 

23 and ‘December 31, 2009’ shall be 

24 deemed references to ‘subparagraph 


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1 (A)’, ‘this subparagraph’, and ‘De2 cember 31, 2014’, respectively; and 

3 ‘‘(V) any reference in such para4 graph to a ‘single source drug or an 

5 innovator multiple source drug’ shall 

6 be deemed to be a reference to a drug 

7 to which clause (i) applies. 

8 ‘‘(iii) SPECIAL RULE FOR CERTAIN

9 NONINNOVATOR MULTIPLE SOURCE

10 DRUGS.—In applying paragraph 

11 (2)(A)(ii)(II) under clause (i) with respect 

12 to a covered outpatient drug that is first 

13 sold as a drug other than a single source 

14 drug or an innovator multiple source drug 

15 after the date that is 3 years before the 

16 date of the enactment of this subpara17 graph, such paragraph shall be applied— 

18 ‘‘(I) by substituting ‘the applica19 ble quarter’ for ‘the calendar quarter 

20 beginning July 1, 1990’; and 

21 ‘‘(II) by substituting ‘the last 

22 month in such applicable quarter’ for 

23 ‘September 1990’. 

24 ‘‘(iv) APPLICABLE QUARTER DE25 FINED.—In this subsection, the term ‘apVerDate Sep 11 2014 23:54 May 22, 2015 Jkt 049200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1364.IS S1364

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1 plicable quarter’ means, with respect to a 

2 drug described in clause (iii), the fifth full 

3 calendar quarter in which the drug is sold 

4 as a drug other than a single source drug 

5 or an innovator multiple source drug.’’. 

6 (b) EFFECTIVE DATE.—The amendments made by 

7 subsection (a) shall apply to rebate periods beginning after 

8 December 31, 2014. 

Æ 


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