PUBLIC LAW 109–171—FEB. 8, 2006
120 STAT. 55
(2) by adding at the end of subsection (e) the following new paragraph: ‘‘(5) USE OF AMP IN UPPER PAYMENT LIMITS.—Effective January 1, 2007, in applying the Federal upper reimbursement limit under paragraph (4) and section 447.332(b) of title 42 of the Code of Federal Regulations, the Secretary shall substitute 250 percent of the average manufacturer price (as computed without regard to customary prompt pay discounts extended to wholesalers) for 150 percent of the published price.’’; (3) in subsection (k)(7)(A)(i), in the matter preceding subclause (I), by striking ‘‘are 2 or more drug products’’ and inserting ‘‘at least 1 other drug product’’; and (4) in subclauses (I), (II), and (III) of subsection (k)(7)(A)(i), by striking ‘‘are’’ and inserting ‘‘is’’ each place it appears. (b) DISCLOSURE OF PRICE INFORMATION TO STATES AND THE PUBLIC.—Subsection (b)(3) of such section is amended— (1) in subparagraph (A)— (A) in clause (i), by inserting ‘‘month of a’’ after ‘‘last day of each’’; and (B) by adding at the end the following: ‘‘Beginning July 1, 2006, the Secretary shall provide on a monthly basis to States under subparagraph (D)(iv) the most recently reported average manufacturer prices for single source drugs and for multiple source drugs and shall, on at least a quarterly basis, update the information posted on the website under subparagraph (D)(v).’’; and (2) in subparagraph (D)— (A) by striking ‘‘and’’ at the end of clause (ii); (B) by striking the period at the end of clause (iii) and inserting a comma; and (C) by inserting after clause (iii) the following new clauses: ‘‘(iv) to States to carry out this title, and ‘‘(v) to the Secretary to disclose (through a website accessible to the public) average manufacturer prices.’’. (c) DEFINITION OF AVERAGE MANUFACTURER PRICE.— (1) EXCLUSION OF CUSTOMARY PROMPT PAY DISCOUNTS EXTENDED TO WHOLESALERS.—Subsection (k)(1) of such section is amended— (A) by striking ‘‘The term’’ and inserting the following: ‘‘(A) IN GENERAL.—Subject to subparagraph (B), the term’’; (B) by striking ‘‘, after deducting customary prompt pay discounts’’; and (C) by adding at the end the following: ‘‘(B) EXCLUSION OF CUSTOMARY PROMPT PAY DISCOUNTS EXTENDED TO WHOLESALERS.—The average manufacturer price for a covered outpatient drug shall be determined without regard to customary prompt pay discounts extended to wholesalers.’’. (2) MANUFACTURER REPORTING OF PROMPT PAY DISCOUNTS.—Subsection (b)(3)(A)(i) of such section is amended by inserting ‘‘, customary prompt pay discounts extended to wholesalers,’’ after ‘‘(k)(1))’’. (3) REQUIREMENT TO PROMULGATE REGULATION.—
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Effective date.
42 USC 1396r–8.
Effective date.
42 USC 1396r–8 note.
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