To amend part B of title XVIII of the Social Security Act to exclude customary prompt pay discounts from manufacturers to wholesalers from the average sales price for drugs and biologicals under Medicare.

Amends part B (Supplementary Medical Insurance) of title XVIII (Medicare) of the Social Security Act to exclude from the average sales price in calculating Medicare payments for drugs and biologicals any customary prompt pay discounts from manufacturers to wholesalers.

[Congressional Bills 112th Congress]
[From the U.S. Government Publishing Office]
[H.R. 905 Introduced in House (IH)]

112th CONGRESS
  1st Session
                                H. R. 905

 To amend part B of title XVIII of the Social Security Act to exclude 
 customary prompt pay discounts from manufacturers to wholesalers from 
   the average sales price for drugs and biologicals under Medicare.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 3, 2011

  Mr. Whitfield (for himself, Mr. Gene Green of Texas, Mr. Nunes, Mr. 
    Kind, Ms. DeGette, Mr. Shimkus, Mr. Towns, Mrs. Blackburn, Mr. 
Courtney, Mr. Rogers of Michigan, Ms. DeLauro, Mr. Tiberi, Mr. Israel, 
    Mr. Gerlach, Mr. Lewis of Georgia, Mr. Sessions, and Mr. Himes) 
 introduced the following bill; which was referred to the Committee on 
   Energy and Commerce, and in addition to the Committee on Ways and 
 Means, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
 To amend part B of title XVIII of the Social Security Act to exclude 
 customary prompt pay discounts from manufacturers to wholesalers from 
   the average sales price for drugs and biologicals under Medicare.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. EXCLUDING CUSTOMARY PROMPT PAY DISCOUNTS FROM MANUFACTURERS 
              TO WHOLESALERS FROM THE AVERAGE SALES PRICE FOR MEDICARE 
              PAYMENTS FOR DRUGS AND BIOLOGICALS.

    (a) In General.--Section 1847A(c)(3) of the Social Security Act (42 
U.S.C. 1395w-3a(c)(3)) is amended--
            (1) in the first sentence, by inserting ``(other than 
        customary prompt pay discounts extended to wholesalers)'' after 
        ``prompt pay discounts''; and
            (2) in the second sentence, by inserting ``(other than 
        customary prompt pay discounts extended to wholesalers)'' after 
        ``other price concessions''.
    (b) Effective Date.--The amendments made by this section shall 
apply to drugs and biologicals that are furnished on or after January 
1, 2012.
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