Medicaid Generic Drug Price Fairness Act of 2015

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. Short title This Act may be cited as the Medicaid Generic Drug Price Fairness Act of 2015 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) (1) in subparagraph (A), by striking The amount Except as provided in subparagraph (C), the amount (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 2014 (II) subject to clause (iii), the reference in subparagraph (A)(ii) of such paragraph to calendar quarter beginning July 1, 1990 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 (III) subject to clause (iii), the reference in subparagraph (A)(ii) of such paragraph to September 1990 the last month of such calendar quarter (IV) the references in subparagraph (D) of such paragraph to paragraph (1)(A)(ii) this paragraph December 31, 2009 subparagraph (A) this subparagraph December 31, 2014 (V) any reference in such paragraph to a single source drug or an innovator multiple source drug (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 the calendar quarter beginning July 1, 1990 (II) by substituting the last month in such applicable quarter September 1990 (iv) Applicable quarter defined In this subsection, the term applicable quarter . (b) Effective date The amendments made by subsection (a) shall apply to rebate periods beginning after December 31, 2014.

Summary: Medicaid Generic Drug Price Fairness Act of 2015 This bill amends title XIX (Medicaid) of the Social Security Act to increase the amount of rebate with respect to each generic drug 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, except as provided in special application rules, including a special rule for certain noninnovator multiple source drugs.