231 
as most recently reported under subparagraph 
(C), instead of a percentage of RAMP or vol-
ume weighted average RAMP as described in 
paragraph (2). 
‘‘(B) INITIAL
APPLICATION.—For 2007, 
the Secretary may use this methodology for a 
limited number of covered outpatient drugs, in-
cluding both single source and multiple source 
drugs, selected by the Secretary in a manner so 
as to be representative of the classes of drugs 
dispensed under this title. 
‘‘(C) DETERMINATION OF RETAIL SURVEY 
PRICE FOR COVERED OUTPATIENT DRUGS.— 
‘‘(i) USE OF VENDOR.—The Secretary 
may contract services for the determina-
tion of retail survey prices for covered out-
patient drugs that represent a nationwide 
average of pharmacy sales costs for such 
drugs, net of all discounts and rebates. 
Such a contract shall be awarded for a 
term of 2 years. 
‘‘(ii) USE
OF
COMPETITIVE
BID-
DING.—In contracting for such services, 
the Secretary shall competitively bid for an
232 
outside vendor that has a demonstrated 
history in— 
‘‘(I) surveying and determining, 
on a representative nationwide basis, 
retail prices for ingredient costs of 
prescription drugs; 
‘‘(II) working with retail phar-
macies, commercial payers, and States 
in obtaining and disseminating such 
price information; and 
‘‘(III) collecting and reporting 
such price information on at least a 
monthly basis. 
‘‘(iii) ADDITIONAL
PROVISIONS.—A 
contract with a vendor under this subpara-
graph shall include such terms and condi-
tions as the Secretary shall specify, includ-
ing the following: 
‘‘(I) The vendor must monitor 
the marketplace and report to the 
Secretary each time there is a new 
covered outpatient drug available na-
tionwide. 
‘‘(II) The vendor must update 
the Secretary no less often than
233 
monthly on the retail survey prices for 
multiple source drugs. 
‘‘(III) The vendor must apply 
methods for independently confirming 
retail survey prices. 
‘‘(iv) AVAILABILITY OF INFORMATION 
TO STATES.—Information on retail survey 
prices obtained under this subparagraph, 
including applicable information on single 
source drugs, shall be provided to States 
on an ongoing, timely basis. 
‘‘(D) STATE
USE
OF
RETAIL
SURVEY 
PRICE DATA.— 
‘‘(i) DISTRIBUTION OF PRICE DATA.— 
The Secretary shall devise and implement 
a means for electronic distribution to each 
State agency designated under section 
1902(a)(5) with responsibility for the ad-
ministration or supervision of the adminis-
tration of the State plan under this title of 
the retail survey price determined under 
this paragraph. 
‘‘(ii) AUTHORITY TO ESTABLISH PAY-
MENT RATES BASED ON DATA.—A State 
may use the price data received in accord-
234 
ance with clause (i) in establishing pay-
ment rates for the ingredient costs and dis-
pensing fees for covered outpatient drugs 
dispensed to individuals eligible for medical 
assistance under this title. 
‘‘(6) LIMITATION ON JUDICIAL REVIEW.—There 
shall be no administrative or judicial review of— 
‘‘(A) the Secretary’s determinations of 
Federal upper limits, RAMPs, and volume 
weighted average RAMPs under this subsection, 
including the assignment of National Drug 
Codes to billing and payment classes; 
‘‘(B) the Secretary’s disclosure to States of 
the average manufacturer prices, RAMPs, vol-
ume weighted average RAMPs, and retail sur-
vey prices; 
‘‘(C) determinations under this subsection 
by the Secretary of covered outpatient drugs 
which are dispensed by a specialty pharmacy or 
administered by a physician in a physician’s of-
fice; 
‘‘(D) the contracting and calculations proc-
ess under this subsection; and
235 
‘‘(E) the method to allocate rebates, 
chargebacks, and other price concessions to a 
quarter if specified by the Secretary.’’. 
(b) CONFORMING AMENDMENTS.— 
(1) 
REPORTING
RAMP-RELATED
INFORMA-
TION.—Subsection (b)(3)(A) of such section is 
amended— 
(A) by striking ‘‘and’’ at the end of clause 
(ii); 
(B) by striking the period at the end of 
clause (iii) and inserting ‘‘; and’’; and 
(C) by inserting after clause (iii) the fol-
lowing new clause: 
‘‘(iv) for calendar quarters beginning on or 
after July 1, 2006, in conjunction with report-
ing required under clause (i) and by National 
Drug Code (including package size)— 
‘‘(I) the manufacturer’s RAMP (as 
defined in subsection (e)(2)(B)(i)) and the 
total number of units required to compute 
the volume weighted average RAMP under 
subsection (e)(2)(C); 
‘‘(II) if required to make payment 
under subsection (e)(2)(D), the manufac-
236 
turer’s wholesale acquisition cost, as de-
fined in clause (ii) of such subsection; and 
‘‘(III) information on those sales that 
were made at a nominal price or otherwise 
described in subsection (e)(2)(B)(ii)(II); 
for all covered outpatient drugs.’’. 
(2) 
DISCLOSURE
TO
STATES.—Subsection 
(b)(3)(D) of such section is amended— 
(A) by striking ‘‘and’’ at the end of clause 
(ii); 
(B) by striking the period at the end of 
clause (iii) and inserting ‘‘, and’’; and 
(C) by inserting after clause (iii) the fol-
lowing new clause: 
‘‘(iv) to States to carry out this 
title.’’. 
(3) LIMITATIONS ON FEDERAL FINANCIAL PAR-
TICIPATION.—Section 1903(i) of such Act (42 
U.S.C. 1396b(i)) is amended— 
(A) in paragraph (10)(A), by striking 
‘‘and’’ at the end; 
(B) in paragraph (10)(B), by striking ‘‘or’’ 
at the end and inserting ‘‘and’’; 
(C) by adding at the end of paragraph 
(10) the following: