A bill to amend title 38, United States Code, and title XIX of the Social Security Act to make technical corrections relating to the Veterans Health Care Act of 1992.
PL 103-18 (S.662), enacted 04/12/1993

PUBLIC LAW 103-18—APR. 12, 1993 
107 STAT. 53 
Public Law 103-18 
103d Congress 
An Act 
To amend title 38, United States Code, and title XIX of the Social Security Act 
Apr. 12, 1993 
to make technical corrections relating to the Veterans Health Care Act of 1992. 
[s. 662] 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. TECHNICAL CORRECTIONS OF PROVISIONS RELATING TO 
THE PRICE OF DRUGS PURCHASED BY THE DEPART-
MENT OF VETERANS AFFAIRS AND OTHER FEDERAL 
AGENCIES. 
(a) IN GENERAL.—Section 8126 of title 38, United States Code, 
as amended by section 603 of the Veterans Health Care Act of 
1992, is amended— 
(1) in subsection (a)(2), by striking "preceding such date"; 
(2) in subsection (c)— 
(A) in the matter preceding paragraph (1), by striking 
"for calendar quarters", and 
(B) in paragraph (1)— 
(i) by striking "preceding the month during which 
the contract goes into effect"; and 
(ii) by striking "increased by" and inserting "multi-
plied by"; 
(3) by amending subsection (d)(1) to read as follows: 
"(1) during any one-year period that follows the first year 
for which the contract is in effect, the contract price charged 
for the drug may not exceed the contract price charged during 
the preceding one-year period, increased by the percentage 
increase in the Consumer Price Index for all urban consumers 
(U.S. city average) during the 12-month period ending with 
the last month of such preceding one-year period for which 
Consumer Price Index data is available; and"; and 
(4) by adding at the end the following new subsection: 
"(i)(l) If the Secretary modifies a multi-year contract described 
in subsection (d) to include a covered drug of the manufacturer 
that was not available for inclusion under the contract at the 
time the contract went into effect, the price of the drug shall 
be determined as follows: 
"(A) For the portion of the first contract year during which 
the drug is so included, the price of the drug shall be deter-
mined in accordsmce with subsection (a)(2), except that the 
reference in such subsection to 'the one-year period beginning 
on the date the agreement takes effect' shall be considered 
a reference to such portion of the first contract year. 
107 STAT. 54 
PUBLIC LAW 103-18—APR. 12, 1993 
"(B) For any subsequent contract year, the price of the 
drug shall be determined in accordance with subsection (d), 
except that each reference in such subsection to 'the first year 
for which the contract is in effect' shall be considered a ref-
erence to the portion of the first contract year during which 
the drug is included under the contract. 
"(2) In this subsection, the term 'contract year' means any 
one-year period for which a multi-year contract described in sub-
section (d) is in effect.". 
38 use 8126 
(b) EFFECTIVE DATE.—The amendments made by subsection 
"°**- 
(a) shall take effect as if included in the enactment of section 
603 of the Veterans Health Care Act of 1992. 
SEC. 2. TECHNICAL CORRECTION OF BUDGET NEUTRALITY ADJUST-
MENT FOR MEDICAID PRESCRIPTION DRUG REBATES. 
(a) IN GENERAL.—Section 1927(c)(l)(B)(ii)(II) of the Social Secu-
rity Act (42 U.S.C. 1396r-8(c)(l)(B)(ii)(II)), as amended by section 
601(c) of the Veterans Health Care Act of 1992, is amended by 
striking "drug;" and inserting the following: "drug, except that 
for the calendar quarter beginning after September 30, 1992, and 
before January 1, 1993, the amount of the rebate may not exceed 
50 percent of such average manufacturer price;". 
42 use 
(b) EFFECTIVE DATE.—^The amendment made by subsection (a) 
i396r-8 note. 
shall take effect as if included in the enactment of section 601(c) 
of the Veterans Health Care Act of 1992. 
Approved April 12, 1993. 
LEGISLATIVE HISTORY—S. 662: 
eONGRESSIONAL RECORD, Vol. 139 (1993): 
Mar. 25, considered and passed Senate. 
Mar. 29, 30, considered and passed House.