Sec. 102. Selected drug manufacturer excise tax imposed during noncompliance periods
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Subchapter E of chapter 32 of the Internal Revenue Code of 1986 is amended by adding at the end the following new section: There is hereby imposed on the sale by the manufacturer, producer, or importer of any selected drug during a day described in subsection
(b)a tax in an amount such that the applicable percentage is equal to the ratio of— such tax, divided by the sum of such tax and the price for which so sold. A day is described in this subsection with respect to a selected drug if it is a day during one of the following periods: The period beginning on the June 16th immediately following the selected drug publication date and ending on the first date during which the manufacturer of the drug has in place an agreement described in subsection
(a)of section 1193 of the Social Security Act with respect to such drug. The period beginning on the April 1st immediately following the June 16th described in paragraph
(1)and ending on the first date during which the manufacturer of the drug has agreed to a maximum fair price under such agreement. In the case of a selected drug with respect to which the Secretary of Health and Human Services has specified a renegotiation period under such agreement, the period beginning on the first date after the last date of such renegotiation period and ending on the first date during which the manufacturer of the drug has agreed to a renegotiated maximum fair price under such agreement. With respect to information that is required to be submitted to the Secretary of Health and Human Services under such agreement, the period beginning on the date on which such Secretary certifies that such information is overdue and ending on the date that such information is so submitted. In the case of a selected drug with respect to which a payment is due under subsection
(c)of such section 1193, the period beginning on the date on which the Secretary of Health and Human Services certifies that such payment is overdue and ending on the date that such payment is made in full. The term applicable percentage means— in the case of sales of a selected drug during the first 90 days described in subsection
(b)with respect to such drug, 65 percent, in the case of sales of such drug during the 91st day through the 180th day described in subsection
(b)with respect to such drug, 75 percent, in the case of sales of such drug during the 181st day through the 270th day described in subsection
(b)with respect to such drug, 85 percent, and in the case of sales of such drug during any subsequent day, 95 percent. The terms selected drug publication date and maximum fair price have the meaning given such terms in section 1191 of the Social Security Act and the term selected drug has the meaning given such term in section 1192 of such Act. In the case of a sale which was timed for the purpose of avoiding the tax imposed by this section, the Secretary may treat such sale as occurring during a day described in subsection (b). . Section 275 of the Internal Revenue Code of 1986 is amended by adding or by section 4192 before the period at the end of subsection (a)(6). Section 4221(a) of the Internal Revenue Code of 1986 is amended by inserting or 4192 after section 4191 . Section 6416(b)(2) of such Code is amended by inserting or 4192 after section 4191 . The heading of subchapter E of chapter 32 of the Internal Revenue Code of 1986 is amended by striking and inserting Medical devices . Other medical products The table of subchapters for chapter 32 of such Code is amended by striking the item relating to subchapter E and inserting the following new item: Subchapter E. Other medical products . The table of sections for subchapter E of chapter 32 of such Code is amended by adding at the end the following new item: Sec. 4192. Selected drugs during noncompliance periods. . The amendments made by this section shall apply to sales after the date of the enactment of this Act.