Page:United States Statutes at Large Volume 104 Part 2.djvu/555

 PUBLIC LAW 101-508—NOV. 5, 1990 104 STAT. 1388-147 date of the termination, unless the Secretary finds good cause for an earlier reinstatement of such an agreement. "(c) AMOUNT OF REBATE. — "(1) BASIC REBATE FOR SINGLE SOURCE DRUGS AND INNOVATOR MULTIPLE SOURCE DRUGS.— With respect to single source drugs and innovator multiple source drugs, each manufacturer shall remit a hasic rebate to the State medical assistance plan. Except as otherwise provided in this subsection, the amount of the rebate to a State for a calendar quarter (or other period specified by the Secretary) with respect to each dosage form and strength of single source drugs and innovator multiple source drugs shall be equal to the prcduct of^ "(A) the total number of units of each dosage form and strength dispensed under the plan under this title in the quarter (or other period) reported by the State under subsection (b)(2); and "(B)(i) for quarters (or periods) beginning after December 31, 1990, and before January 1, 1993, the greater of— "(I) the difference between the average manufacturer price (after deducting customary prompt payment discounts) and 87.5 percent of such price for the quarter (or other period), or "(II) the difference between the average manufacturer price for a drug and the best price (as defined in paragraph (2)(B)) for such quarter (or period) for such drug (except that for calendar quarters beginning after December 31, 1990, and ending before January 1, 1992, the rebate shall not exceed 25 percent of the average manufacturer price, and for calendar quarters beginning after December 31, 1991, and ending before January 1, 1993, the rebate shall not exceed 50 percent of the average manufacturer price); and "(ii) for quarters (or other periods) beginning after December 31, 1992, the greater of— "(I) the difference between the average manufacturer price for a drug and 85 percent of such price, or "(II) the difference between the average manufacturer price for a drug and the best price {as defined in paragraph (2)(B)) for such quarter (or period) for such drug. "(C) For the purposes of this paragraph, the term 'best price' means, with respect to a single source drug or innovator multiple source drug of a manufacturer, the lowest price available from the manufacturer to any wholesaler, retailer, nonprofit entity, or governmental entity within the United States (excluding depot prices and single award contract prices, as defined by the Secretaryof any ^ency of the Federal Government). The best price shall be inclusive of cash discounts, free goods, volume discounts, and rebates (other than rebates under this section) and shall be determined without regard to special packaging, labeling, or identifiers on the dosage form or product or package, and shall not take into account prices that are merely nominal in amount; ^^ "(D) In the case of a covered outpatient drug approved for marketing after October 1, 1990, any reference in this paragraph to 'October 1, 1990' shall be a reference to the first day of the first month during which the drug was marketed. '* So in original. Probably should be "."

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