Sec. 108. Clarification of Medicare average sales price payment methodology
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Section 1847A(c) of the Social Security Act (42 U.S.C. 1395w–3a(c)), as amended by section 102, is amended— in paragraph (3)(A), in the first sentence— by striking and rebates and inserting rebates ; and by inserting , and fees (other than bona fide service fees) before the period at the end; and in paragraph (6), by adding at the end the following new subparagraph: The term bona fide service fee means a fee paid by a manufacturer to an entity that— represents fair market value for a bona fide, itemized service that— is actually performed on behalf of the manufacturer; and the manufacturer would otherwise perform (or contract for) in the absence of the service arrangement; is not passed on, in whole or in part, to a client or customer of the entity, whether or not the entity takes title to the drug or biological; is a fixed payment and not based on a percentage of sales; and is not determined in a manner that takes into account the volume or value of any referrals or business otherwise generated between the parties. .
The amendments made by subsection
(a)shall apply to drugs and biologicals furnished on or after the first day of the first calendar quarter that begins on or after the date that is 180 days after the date of the enactment of this Act.
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- 42 USC 1395w–3a(c)
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Sec. 108
Clarification of Medicare average sales price payment methodology
Cite42 USC 1395w–3a(c)
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