SEC. 2. STRENGTHENING RULES IN CASE OF COMPETITION 
FOR DIABETIC TESTING STRIPS. 
(a) SPECIAL RULE IN CASE OF COMPETITION FOR 
DIABETIC TESTING STRIPS.— 
(1) IN GENERAL.—Paragraph (10) of section 
1847(b) of the Social Security Act (42 U.S.C. 
1395w–3(b)) is amended— 
(A) in subparagraph (A), by striking the 
second sentence and inserting the following new 
sentence: ‘‘With respect to bids to furnish such 
types of products on or after January 1, 2019, 
the volume for such types of products shall be 
determined by the Secretary through the use of 
multiple sources of data, including market 
based data measuring sales of diabetic testing 
strip products described in section 1861(n) that 
are not exclusively sold by, and marketed under 
the name of, a single retailer that is not the 
manufacturer of such products, from mail 
order, non-mail order, Medicare, and non-Medi-
care markets.’’; and 
(B) by adding at the end the following new 
subparagraphs: 
‘‘(C) DEMONSTRATION
OF
ABILITY
TO 
FURNISH TYPES OF DIABETIC TESTING STRIP 
PRODUCTS.—With respect to bids to furnish di-
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abetic testing strip products on or after Janu-
ary 1, 2019, under the program described in 
subparagraph (A), the Secretary shall reject a 
bid submitted by an entity if the entity does not 
attest to the Secretary and demonstrate, 
through letters of intent with manufacturers, 
wholesalers, or other suppliers, or other evi-
dence as the Secretary may specify, that the en-
tity has the ability to obtain an inventory of the 
types and quantities of diabetic testing strip 
products that will allow the entity to furnish 
such products in a manner consistent with its 
bid. 
‘‘(D) USE OF UNLISTED TYPES IN CAL-
CULATION OF PERCENTAGE.—With respect to 
bids to furnish diabetic testing strip products 
on or after January 1, 2019, in determining 
under subparagraph (A) whether a bid sub-
mitted by an entity under such subparagraph 
covers 50 percent (or such higher percentage as 
the Secretary may specify) of all types of dia-
betic testing strip products, the Secretary may 
not attribute a percentage to types of diabetic 
testing strip products that the Secretary does 
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not identify by brand, model, and market share 
volume. 
‘‘(E) ADHERENCE TO DEMONSTRATION.— 
‘‘(i) IN GENERAL.—In the case of an 
entity that is furnishing diabetic testing 
strip products on or after January 1, 
2019, under a contract entered into under 
the competition conducted pursuant to 
paragraph (1), the Secretary shall estab-
lish a process to monitor, on an ongoing 
basis, the extent to which such entity con-
tinues to cover the product types included 
in the entity’s bid. 
‘‘(ii) TERMINATION.—If the Secretary 
determines that an entity described in 
clause (i) fails to maintain in inventory, or 
otherwise maintain ready access to through 
requirements contracts or otherwise, a type 
of product included in the entity’s bid, the 
Secretary may terminate such contract un-
less the Secretary finds that the failure of 
the entity to maintain inventory of, or 
ready access to, the product is the result of 
the discontinuation of the product by the 
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product manufacturer or a market-wide 
shortage of the product.’’. 
(b) CODIFYING AND EXPANDING ANTI-SWITCHING 
RULE.—Section 1847(b) of the Social Security Act (42 
U.S.C. 1395w–3(b)), as amended by subsection (a)(1), is 
further amended— 
(1) by redesignating paragraph (11) as para-
graph (12); and 
(2) by inserting after paragraph (10) the fol-
lowing new paragraph: 
‘‘(11) ADDITIONAL SPECIAL RULES IN CASE OF 
COMPETITION FOR DIABETIC TESTING STRIPS.— 
‘‘(A) IN GENERAL.—With respect to an en-
tity that is furnishing diabetic testing strip 
products to individuals under a contract entered 
into under the competitive acquisition program 
established under this section, the entity shall 
furnish to each individual a brand of such 
strips that is compatible with the home blood 
glucose monitor selected by the individual. 
‘‘(B) PROHIBITION ON INFLUENCING AND 
INCENTIVIZING.—An entity described in sub-
paragraph (A) may not attempt to influence or 
incentivize an individual to switch the brand of 
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glucose monitor or diabetic testing strip product 
selected by the individual, including by— 
‘‘(i) persuading, pressuring, or advis-
ing the individual to switch; or 
‘‘(ii) furnishing information about al-
ternative brands to the individual where 
the individual has not requested such in-
formation. 
‘‘(C) PROVISION OF INFORMATION.— 
‘‘(i) STANDARDIZED INFORMATION.— 
Not later than January 1, 2019, the Sec-
retary shall develop and make available to 
entities described in subparagraph (A) 
standardized information that describes 
the rights of an individual with respect to 
such an entity. The information described 
in the preceding sentence shall include in-
formation regarding— 
‘‘(I) the requirements established 
under subparagraphs (A) and (B); 
‘‘(II) the right of the individual 
to purchase diabetic testing strip 
products from another mail order sup-
plier of such products or a retail phar-
macy if the entity is not able to fur-
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nish the brand of such product that is 
compatible with the home blood glu-
cose monitor selected by the indi-
vidual; and 
‘‘(III) the right of the individual 
to return diabetic testing strip prod-
ucts furnished to the individual by the 
entity. 
‘‘(ii) REQUIREMENT.—With respect to 
diabetic testing strip products furnished on 
or after the date on which the Secretary 
develops 
the 
standardized 
information 
under clause (i), an entity described in 
subparagraph (A) may not communicate 
directly to an individual until the entity 
has verbally provided the individual with 
such standardized information. 
‘‘(D) ORDER
REFILLS.—With respect to 
diabetic testing strip products furnished on or 
after January 1, 2019, the Secretary shall re-
quire an entity furnishing diabetic testing strip 
products to an individual to contact and receive 
a request from the individual for such products 
not more than 14 days prior to dispensing a re-
fill of such products to the individual.’’. 
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(c) IMPLEMENTATION; NON-APPLICATION
OF
THE 
PAPERWORK REDUCTION ACT.— 
(1) IMPLEMENTATION.—Notwithstanding any 
other provision of law, the Secretary of Health and 
Human Services may implement the provisions of, 
and amendments made by, this section by program 
instruction or otherwise. 
(2) NON-APPLICATION OF THE PAPERWORK RE-
DUCTION
ACT.—Chapter 35 of title 44, United 
States Code (commonly referred to as the ‘‘Paper-
work Reduction Act of 1995’’), shall not apply to 
this section or the amendments made by this section. 
Æ 
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