Sec. 602. APPLYING THE MEDICAID ADDITIONAL REBATE REQUIREMENT TO GENERIC DRUGS
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## SEC. 602 APPLYING THE MEDICAID ADDITIONAL REBATE REQUIREMENT TO GENERIC DRUGS ###
(a)In general Section 1927(c)(3) of the Social Security Act (42 U.S.C. 1396r-8(c)(3)) is amended— ####
(1)in subparagraph (A), by striking “The amount” and inserting “Except as provided in subparagraph (C), the amount”; and ####
(2)by adding at the end the following new subparagraph: > > ##### “(C) Additional rebate > > > ###### “(i) In general > > The amount of the rebate specified in this paragraph for a rebate period, with respect to each dosage form and strength of a covered outpatient drug other than a single source drug or an innovator multiple source drug of a manufacturer, shall be increased in the manner that the rebate for a dosage form and strength of a single source drug or an innovator multiple source drug is increased under subparagraphs
(A)and
(D)of paragraph (2), except as provided in clause (ii). > > > ###### “(ii) Special rules for application of provision > > In applying subparagraphs
(A)and
(D)of paragraph
(2)under clause (i)— > > > ###### “(I) > > the reference in subparagraph (A)(i) of such paragraph to ‘1990’ shall be deemed a reference to ‘2014’; > > > ###### “(II) > > subject to clause (iii), the reference in subparagraph (A)(ii) of such paragraph to ‘the calendar quarter beginning July 1, 1990’ shall be deemed a reference to ‘the calendar quarter beginning July 1, 2014’; and > > > ###### “(III) > > subject to clause (iii), the reference in subparagraph (A)(ii) of such paragraph to ‘September 1990’ shall be deemed a reference to ‘September 2014’; > > > ###### “(IV) > > the references in subparagraph
(D)of such paragraph to ‘paragraph (1)(A)(ii)’, ‘this paragraph’, and ‘December 31, 2009’ shall be deemed references to ‘subparagraph (A)’, ‘this subparagraph’, and ‘December 31, 2014’, respectively; and > > > ###### “(V) > > any reference in such paragraph to a ‘single source drug or an innovator multiple source drug’ shall be deemed to be a reference to a drug to which clause
(i)applies. > > > ###### “(iii) Special rule for certain noninnovator multiple source drugs > > In applying paragraph (2)(A)(ii)(II) under clause
(i)with respect to a covered outpatient drug that is first marketed as a drug other than a single source drug or an innovator multiple source drug after April 1, 2013, such paragraph shall be applied— > > > ###### “(I) > > by substituting ‘the applicable quarter’ for ‘the calendar quarter beginning July 1, 1990’; and > > > ###### “(II) > > by substituting ‘the last month in such applicable quarter’ for ‘September 1990’. > > > ###### “(iv) Applicable quarter defined > > In this subsection, the term ‘applicable quarter’ means, with respect to a drug described in clause (iii), the fifth full calendar quarter after which the drug is marketed as a drug other than a single source drug or an innovator multiple source drug.” > . ###
(b)Effective Date **[**[42 U.S.C. 1396r-8](/us/usc/t42/s1396r-8)**]** The amendments made by subsection
(a)shall apply to rebate periods beginning after the date that is one year after the date of the enactment of this Act.
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Sec. 602
APPLYING THE MEDICAID ADDITIONAL REBATE REQUIREMENT TO GENERIC DRUGS
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