I 
116TH CONGRESS 
2D SESSION 
H. R. 8139 
To amend title XIX of the Social Security Act to remove direct sales of 
drugs near expiration during the COVID–19 emergency from the calcula-
tion of certain pricing metrics under the Medicaid program. 
IN THE HOUSE OF REPRESENTATIVES 
SEPTEMBER 1, 2020 
Mr. BILIRAKIS (for himself and Mr. SOTO) introduced the following bill; which 
was referred to the Committee on Energy and Commerce 
A BILL 
To amend title XIX of the Social Security Act to remove 
direct sales of drugs near expiration during the COVID– 
19 emergency from the calculation of certain pricing 
metrics under the Medicaid program. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘Surplus Utilization of 
Pharmaceutical Products Leveraged In Emergency Sce-
narios Act of 2020’’ or the ‘‘SUPPLIES Act of 2020’’. 
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SEC. 2. REMOVING DIRECT SALES OF DRUGS NEAR EXPIRA-
TION DURING THE COVID–19 EMERGENCY 
FROM THE CALCULATION OF CERTAIN PRIC-
ING METRICS UNDER THE MEDICAID PRO-
GRAM. 
(a) IN GENERAL.—Section 1927 of the Social Secu-
rity Act (42 U.S.C. 1396r–8) is amended— 
(1) in subsection (c)(1)(C)— 
(A) in clause (i)— 
(i) in subclause (V), by striking ‘‘and’’ 
at the end; 
(ii) in subclause (VI), by striking the 
period and inserting ‘‘; and’’; and 
(iii) by adding at the end the fol-
lowing new subclause: 
‘‘(VII) any prices charged with 
respect to the direct sale by a manu-
facturer of a short-dated drug (as de-
fined in clause (iv)) during the period 
beginning on the first day of the 
emergency period described in section 
1135(g)(1)(B) and ending on the date 
that is 6 months after the last day of 
such emergency period.’’; and 
(B) by adding at the end the following new 
clause: 
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‘‘(iv) 
SHORT-DATED
DRUG
DE-
FINED.— 
‘‘(I) IN GENERAL.—For purposes 
of clause (i)(VII), the term ‘short- 
dated drug’ means, in the case of a 
drug with an applicable shelf life (as 
defined in subclause (II))— 
‘‘(aa) of 1 year or greater, a 
drug expiring (as determined by 
the labeled expiration date) not 
later than 1 year after the date 
of sale of such drug; and 
‘‘(bb) of less than 1 year, a 
drug expiring (as determined by 
the labeled expiration date) not 
later than the end of the period 
beginning on the date of sale of 
such drug and ending on the date 
that is the number of days of the 
applicable shelf life of such drug 
after such date of sale. 
‘‘(II) 
APPLICABLE
SHELF 
LIFE.—The term ‘applicable shelf life’ 
means, with respect to a drug, 50 per-
cent of the number of days occurring 
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during the period beginning on the 
date such drug is manufactured and 
ending on the date such drug expires 
(as determined by the labeled expira-
tion date), rounded to the nearest 
whole day.’’; and 
(2) in subsection (k)(1)(B)— 
(A) in subclause (IV), by striking ‘‘and’’ at 
the end; 
(B) in subclause (V), by striking the period 
and inserting ‘‘; and’’; and 
(C) by adding at the end the following new 
subclause: 
‘‘(VI) any prices described in 
subsection (c)(1)(C)(i)(VII).’’. 
(b) OUTREACH
TO MANUFACTURERS.—The Sec-
retary of Health and Human Services shall notify drug 
manufacturers of the amendments made by subsection (a) 
through an electronic communication through MLN Con-
nects or such other method as determined appropriate by 
the Secretary. 
Æ 
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