Page:United States Statutes at Large Volume 106 Part 6.djvu/413

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PUBLIC LAW 102-585—NOV. 4, 1992 106 STAT. 4971 (A) a description of the entities that are the subject of the study; (B) an analysis of the extent to which such entities procure prescription drugs; and (C) an analysis of the impact of the inclusion of such entities as covered entities under section 340B(a) of the Public Health Service Act on the qiudity of care provided to and the health status of the patients of such entities. (3) ENTITIES DESC;RIBED. — An entity described in this paragraph is an entity— (A) receiving funds from a State for the provision of mental health or substance abuse treatment services under subparts I or II of part B of title XIX of the Public Health Service Act or under title V of such Act; or (B) receiving funds from a State under title V of the Social Security Act for the provision of maternal and child health services that are furnished on an outpatient basis (other than an entity described in section 340B(a)(4)(G) of the Public Health Service Act). SEC. 603. LIMITATION ON PRICES OF DRUGS PROCURED BY DEPART- MENT OF VETERANS AFFAIRS AND CERTAIN OTHER FED- ERAL AGENCIES. (a) AGREEMENTS WITH SECRETARY OF VETERANS AFFAIRS. — (1) Subchapter II of chapter 81 is amended by adding at the end the following new section: ^§8126. Limitation on prices of drugs procured by Department and certain other Federal agencies (a) Each manufacturer of covered drugs shall enter into a master agreement with the Secretary under which— "(1) beginning January 1, 1993, the manufacturer shall make available for procurement on the Federal Supply Schedule of the General Services Administration each covered drug of the manufacturer; "(2) with respect to each covered drug of the manufacturer procured by a Federal agency described in subsection (b) on or after January 1, 1993, that is purchased under depot contracting systems or listed on the Federal Supply Schedule, the manufacturer has entered into and has in effect a pharmaceutical pricing agreement with the Secretary (or the Federal agency involved, if the Secretary delegates to the Federal agency the authority to enter into such a pharmaceutical pricing agreement) under which the price charged during the oneyear period beginning on the date on which the agreement takes effect may not exceed 76 percent of the non-Federal average manufacturer price (less the amount of any additional discount required under subsection (c)) during the one-year period ending one month before such date (or, in the case of a covered drug for which sufficient data for determining the non-Federal average manufacturer price during such period are not available, during such period preceding such date as the Secretary considers appropriate), except that such price may nominally exceed such amount if found by the Secretary to be in the best interests of the Department or such Federal agencies;