for such drugs than the amount it charges to
the general public (as determined by the Sec-
retary in regulations).
‘‘(C) The entity agrees to keep patient records
(including records on expenses) for all covered out-
patient drugs dispensed to all medicare beneficiaries.
‘‘(D) The entity agrees to submit information
(in a manner specified by the Secretary to be nec-
essary to administer this title) on all purchases of
covered outpatient drugs dispensed to medicare
beneficiaries.
‘‘(E) The entity agrees—
‘‘(i) to offer to counsel, or to offer to pro-
vide information (consistent with State law re-
specting the provision of such information) to,
each medicare beneficiary on the appropriate
use of a drug to be dispensed and whether there
are potential interactions between the drug and
other drugs dispensed to the beneficiary; and
‘‘(ii) to advise the beneficiary on the avail-
ability (consistent with State laws respecting
substitution of drugs) of therapeutically equiva-
lent covered outpatient drugs.
‘‘(F) The entity agrees to provide the informa-
tion requested by the Secretary in surveys under sec-
tion 1834(d)(3)(C)(ii).
Nothing in this paragraph shall be construed as requiring
a pharmacy operated by an eligible organization (described
in section 1876(b)) or an organization described in section
1833(a)(1)(A) for the exclusive benefit of its members to
dispense covered outpatient drugs to individuals who are
not members of the organization.
‘‘(2) The Secretary shall provide to each participating
pharmacy—
‘‘(A) a distinctive emblem (suitable for display
to the public) indicating that the pharmacy is a par-
ticipating pharmacy; and
‘‘(B) upon request, such electronic equipment
and technical assistance (other than the costs of ob-
taining, maintaining, or expanding telephone service)
as the Secretary determines may be necessary for
the pharmacy to submit claims using the electronic
system established under paragraph (4).
‘‘(3) The Secretary shall provide for periodic audits
of participating pharmacies to assure—
‘‘(A) compliance with the requirements for par-
ticipation under this title; and
‘‘(B) the accuracy of information submitted by
the pharmacies under this title.
‘‘(4) The Secretary shall establish, by not later than
January 1, 1995, a point-of-sale electronic system for use
by carriers and participating pharmacies in the submission
of information respecting covered outpatient drugs dis-
pensed to medicare beneficiaries under this part.
‘‘(5) Notwithstanding subsection (b)(3)(B), payment
for covered outpatient drugs may be made on the basis
of an assignment described in clause (ii) of that subsection
only to a participating pharmacy.’’.
(2) CIVIL MONEY PENALTIES FOR VIOLATION
OF
PARTICIPATION
AGREEMENT, FOR
EXCESSIVE
CHARGES FOR NONPARTICIPATING PHARMACIES AND
FOR FAILURE TO PROVIDE SURVEY INFORMATION.—
Section 1128A(a) of such Act (42 U.S.C. 1320a–
7a(a)) is amended—
(A) by striking ‘‘or’’ at the end of para-
graph (1);
(B) in paragraph (2)(C), by inserting ‘‘or
to be a participating pharmacy under section
1842(o)’’ after ‘‘1842(h)(1)’’;
(C) by striking ‘‘, or’’ at the end of para-
graph (2) and inserting a semicolon;
(D) by adding ‘‘or’’ at the end of para-
graph (3); and
(E) by inserting after paragraph (3) the
following new paragraph:
‘‘(4) in the case of a participating or
nonparticipating pharmacy (as defined for purposes
of part B of title XVIII)—
‘‘(A) presents or causes to be presented to
any person a request for payment for covered
outpatient drugs dispensed to an individual en-
titled to benefits under part B of title XVIII
and for which the amount charged by the phar-
macy is greater than the amount the pharmacy
charges the general public (as determined by
the Secretary in regulations), or
‘‘(B) fails to provide the information re-
quested by the Secretary in a survey under sec-
tion 1834(d)(3)(C)(ii);’’.
(d) LIMITATION ON LENGTH OF PRESCRIPTION.—
Section 1862(c) of such Act (42 U.S.C. 1395y(c)) is
amended—
(1) by redesignating subparagraphs (A) through
(D) of paragraph (1) as clauses (i) through (iv);
(2) in paragraph (2)(A), by striking ‘‘paragraph
(1)’’ and inserting ‘‘subparagraph (A)’’;