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, and for other purposes.

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 114th Congress]
[From the U.S. Government Publishing Office]
[H.R. 696 Introduced in House (IH)]

114th CONGRESS
  1st Session
                                H. R. 696

 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, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                            February 3, 2015

 Mr. Whitfield (for himself, Mr. Gene Green of Texas, Mr. Shimkus, Ms. 
  DeGette, Mr. Nunes, and Mr. Tiberi) 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, and 
                          for other purposes.

    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 the calculation of the average sales price for calendar 
quarters beginning more than 90 days after the date of the enactment of 
this Act.
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