106 STAT. 4962 PUBLIC LAW 102-585—NOV. 4, 1992 The report shall include a description of the actions taken at each covered facility to ensure compliance with this section. (d) EFFECTIVE DATE. —The requirement to establish and maintain areas for smoking under subsection (a) shall take effect 60 days after the date on which the Comptroller General submits to the committees referred to in subsection (c)(1) that report required under that subsection. TITLE VI—DRUG PRICING AGREEMENTS SEC. 601. TREATMENT OF PRESCRIPTION DRUGS PROCURED BY DEPARTMENT OF VETERANS AFFAIRS OR PURCHASED BY CERTAIN CLINICS AND HOSPITALS. (a) EXCLUSION OF PRICES FROM CALCULATION OF BEST PRICES FOR MEDICAID REBATE AGREEMENTS. — Section 1927(c)(l)(C) of the Social Security Act (42 U.S.C. 1396r-8(c)(l)(C)) is amended by striking "(excluding" and inserting "(excluding any prices charged on or after October 1, 1992, to the Indian Health Service, the Department of Veterans Affairs, a State home receiving funds under section 1741 of title 38, United States Code, the Department of Defense, the Public Health Service, or a covered entity described in subsection (a)(5)(B), any prices charged under the Federal Supply Schedule of the General Services Administration, or any prices used under a State pharmaceutical assistance program, and excluding". (b) AGREEMENTS REQUIRED To RECEIVE PAYMENT. — (1) IN GENERAL.—The first sentence of section 1927(a)(l) of such Act (42 U.S.C. 1396r-8(a)(l)) is amended by striking "manufacturer)." and inserting "manufacturer), and must meet the requirements of paragraph (5) (with respect to drugs purchased by a covered entity on or after the first day of the first month that begins after the date of the enactment of title VI of the Veterans Health Care Act of 1992) and paragraph (6).". (2) AGREEMENTS DESCRIBED.—Section 1927(a) of such Act (42 U.S.C. 1396r-8(a)) is amended by adding at the end the following new paragraphs: "(5) LIMITATION ON PRICES OF DRUGS PURCHASED BY COV- ERED ENTITIES.— "(A) AGREEMENT WITH SECRETARY. —A manufacturer meets the requirements of this paragraph if the manufacturer has entered into an agreement with the Secretary that meets the requirements of section 340B of the Public Health Service Act with respect to covered outpatient drugs purchased by a covered entity on or after the first day of the first month that begins after the date of the enactment of this paragraph. "(B) COVERED ENTITY DEFINED. —In this subsection, the term 'covered entity* means an entity described in section 340B(a)(4) of the Public Health Service Act. "(C) ESTABLISHMENT OF ALTERNATIVE MECHANISM TO ENSURE AGAINST DUPLICATE DISCOUNTS OR REBATES.— I f the Secretary does not establish a mechanism under section 340B(a)(5)(A) of the Public Health Service Act within 12 months of the date of the enactment of such section, the following requirements shall apply:
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