SEC. 5. PUBLIC DISCLOSURE OF DRUG DISCOUNTS. 
Section 1150A of the Social Security Act (42 U.S.C. 
1320b–23) is amended— 
(1) in subsection (c), in the matter preceding 
paragraph (1), by inserting ‘‘(other than as per-
mitted under subsection (e))’’ after ‘‘disclosed by the 
Secretary’’; and 
(2) by adding at the end the following new sub-
section: 
‘‘(e) PUBLIC AVAILABILITY OF CERTAIN INFORMA-
TION.— 
‘‘(1) IN GENERAL.—In order to allow the com-
parison of PBMs’ ability to negotiate rebates, dis-
counts, and price concessions and the amount of 
such rebates, discounts, and price concessions that 
are passed through to plan sponsors, beginning Jan-
uary 1, 2020, the Secretary shall make available on 
the Internet website of the Department of Health 
and Human Services the information with respect to 
the second preceding calendar year provided to the 
Secretary on generic dispensing rates (as described 
in paragraph (1) of subsection (b)) and information 
provided to the Secretary under paragraphs (2) and 
(3) of such subsection that, as determined by the 
Secretary, is with respect to each PBM. 
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‘‘(2) AVAILABILITY OF DATA.—In carrying out 
paragraph (1), the Secretary shall ensure the fol-
lowing: 
‘‘(A) CONFIDENTIALITY.—The information 
described in such paragraph is displayed in a 
manner that prevents the disclosure of informa-
tion on rebates, discounts, and price conces-
sions, with respect to an individual drug or an 
individual plan. 
‘‘(B) CLASS OF DRUG.—The information 
described in such paragraph is made available 
by class of drug, using an existing classification 
system, but only if the class contains such num-
ber of drugs, as specified by the Secretary, to 
ensure confidentiality of proprietary informa-
tion or other information that is prevented to 
be disclosed under subparagraph (A).’’. 
SEC. 6. REQUIRING CERTAIN MANUFACTURERS TO REPORT 
DRUG 
PRICING 
INFORMATION 
WITH 
RE-
SPECT TO DRUGS UNDER THE MEDICARE 
PROGRAM. 
(a) IN GENERAL.—Section 1847A of the Social Secu-
rity Act (42 U.S.C. 1395w–3a) is amended— 
(1) in subsection (b)— 
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(A) in paragraph (2)(A), by inserting ‘‘or 
subsection (f)(2), as applicable’’ before the pe-
riod at the end; 
(B) in paragraph (3), in the matter pre-
ceding subparagraph (A), by inserting ‘‘or sub-
section (f)(2), as applicable,’’ before ‘‘deter-
mined by’’; and 
(C) in paragraph (6)(A), in the matter 
preceding clause (i), by inserting ‘‘or subsection 
(f)(2), as applicable,’’ before ‘‘determined by’’; 
and 
(2) in subsection (f)— 
(A) by striking ‘‘For requirements’’ and 
inserting the following: 
‘‘(1) IN GENERAL.—For requirements’’; and 
(B) by adding at the end the following new 
paragraph: 
‘‘(2) MANUFACTURERS
WITHOUT
A
REBATE 
AGREEMENT UNDER TITLE XIX.— 
‘‘(A) IN GENERAL.—In the case of a man-
ufacturer of a drug or biological described in 
subparagraph (C), (E), or (G) of section 
1842(o)(1) or in clause (ii) or (iii) of section 
1881(b)(14)(B) that does not have a rebate 
agreement in effect under section 1927, for cal-
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endar quarters beginning on or after January 
1, 2020, such manufacturer shall report to the 
Secretary the information described in sub-
section (b)(3)(A)(iii) of such section 1927 with 
respect to such drug or biological in a time and 
manner specified by the Secretary. 
‘‘(B) AUDIT.—Information reported under 
subparagraph (A) is subject to audit by the In-
spector General of the Department of Health 
and Human Services. 
‘‘(C) VERIFICATION.—The Secretary may 
survey wholesalers and manufacturers that di-
rectly distribute drugs described in subpara-
graph (A), when necessary, to verify manufac-
turer prices and manufacturer’s average sales 
prices (including wholesale acquisition cost) if 
required to make payment reported under sub-
paragraph (A). The Secretary may impose a 
civil monetary penalty in an amount not to ex-
ceed $100,000 on a wholesaler, manufacturer, 
or direct seller, if the wholesaler, manufacturer, 
or direct seller of such a drug refuses a request 
for information about charges or prices by the 
Secretary in connection with a survey under 
this subparagraph or knowingly provides false 
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information. The provisions of section 1128A 
(other than subsections (a) (with respect to 
amounts of penalties or additional assessments) 
and (b)) shall apply to a civil money penalty 
under this subparagraph in the same manner as 
such provisions apply to a penalty or proceeding 
under section 1128A(a). 
‘‘(D) 
CONFIDENTIALITY.—Notwithstand-
ing any other provision of law, information dis-
closed by manufacturers or wholesalers under 
this paragraph (other than the wholesale acqui-
sition cost for purposes of carrying out this sec-
tion) is confidential and shall not be disclosed 
by the Secretary in a form which discloses the 
identity of a specific manufacturer or whole-
saler or prices charged for drugs by such manu-
facturer or wholesaler, except— 
‘‘(i) as the Secretary determines to be 
necessary to carry out this section (includ-
ing the determination and implementation 
of the payment amount), or to carry out 
section 1847B; 
‘‘(ii) to permit the Comptroller Gen-
eral to review the information provided; 
and 
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‘‘(iii) to permit the Director of the 
Congressional Budget Office to review the 
information provided.’’. 
(b) ENFORCEMENT.—Section 1847A such Act (42 
U.S.C. 1395w–3a) is further amended— 
(1) in subsection (d)(4)— 
(A) in subparagraph (A), by striking ‘‘IN 
GENERAL’’ and inserting ‘‘MISREPRESENTA-
TION’’; 
(B) in subparagraph (B), by striking ‘‘sub-
paragraph (B)’’ and inserting ‘‘subparagraph 
(A), (B), or (C)’’; 
(C) by redesignating subparagraph (B) as 
subparagraph (D); and 
(D) by inserting after subparagraph (A) 
the following new subparagraphs: 
‘‘(B) FAILURE TO PROVIDE TIMELY INFOR-
MATION.—If the Secretary determines that a 
manufacturer described in subsection (f)(2) has 
failed to report on information described in sec-
tion 1927(b)(3)(A)(iii) with respect to a drug or 
biological in accordance with such subsection, 
the Secretary shall apply a civil money penalty 
in an amount of $10,000 for each day the man-
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ufacturer has failed to report such information 
and such amount shall be paid to the Treasury. 
‘‘(C) FALSE
INFORMATION.—Any manu-
facturer required to submit information under 
subsection (f)(2) that knowingly provides false 
information is subject to a civil money penalty 
in an amount not to exceed $100,000 for each 
item of false information. Such civil money pen-
alties are in addition to other penalties as may 
be prescribed by law.’’; and 
(2) in subsection (c)(6)(A), by striking the pe-
riod at the end and inserting ‘‘, except that, for pur-
poses of subsection (f)(2), the Secretary may, if the 
Secretary determines appropriate, exclude repack-
agers of a drug or biological from such term.’’. 
(c) REPORT.—Not later than January 1, 2021, the 
Inspector General of the Department of Health and 
Human Services shall assess and submit to Congress a 
report on the accuracy of average sales price information 
submitted by manufacturers under section 1847A of the 
Social Security Act (42 U.S.C. 1395w–3a). Such report 
shall include any recommendations on how to improve the 
accuracy of such information. 
Æ 
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