Title: SUPPLIES Act of 2020
Policy area: Health

Summary:
Surplus Utilization of Pharmaceutical Products Leveraged In Emergency Scenarios Act of 2020 or the SUPPLIES Act of 2020
This bill excludes certain short-dated drugs from rebate calculations under the Medicaid Drug Rebate Program during the public health emergency relating to COVID-19 (i.e., coronavirus disease 2019). Specifically, the bill excludes from such calculations direct sales of drugs that (1) have a shelf life of one year or more and expire one year after the date of sale, or (2) have a shelf life of less than one year and expire after the same number of days as the shelf life following the date of sale.

[Congressional Bills 116th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8139 Introduced in House (IH)]

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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 
   calculation 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 Representatives 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 Scenarios Act of 2020'' 
or the ``SUPPLIES Act of 2020''.

SEC. 2. REMOVING DIRECT SALES OF DRUGS NEAR EXPIRATION DURING THE 
              COVID-19 EMERGENCY FROM THE CALCULATION OF CERTAIN 
              PRICING METRICS UNDER THE MEDICAID PROGRAM.

    (a) In General.--Section 1927 of the Social Security 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 following 
                        new subclause:
                                    ``(VII) any prices charged with 
                                respect to the direct sale by a 
                                manufacturer of a short-dated drug (as 
                                defined 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:
                            ``(iv) Short-dated drug defined.--
                                    ``(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 percent of 
                                the number of days occurring during the 
                                period beginning on the date such drug 
                                is manufactured and ending on the date 
                                such drug expires (as determined by the 
                                labeled expiration 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 Secretary of Health and Human 
Services shall notify drug manufacturers of the amendments made by 
subsection (a) through an electronic communication through MLN Connects 
or such other method as determined appropriate by the Secretary.
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