Page:United States Statutes at Large Volume 117.djvu/2270

 PUBLIC LAW 108–173—DEC. 8, 2003

117 STAT. 2251

‘‘(A) in that subparagraph to a ‘manufacturer or wholesaler’ is deemed a reference to a ‘bidder’ under this section; ‘‘(B) in that section to ‘prices charged for drugs’ is deemed a reference to a ‘bid’ submitted under this section; and ‘‘(C) in clause (i) of that section to ‘this section’, is deemed a reference to ‘part B of title XVIII’. ‘‘(6) INCLUSION OF COSTS.—The bid price submitted in a contract offer for a competitively biddable drug or biological shall— ‘‘(A) include all costs related to the delivery of the drug or biological to the selecting physician (or other point of delivery); and ‘‘(B) include the costs of dispensing (including shipping) of such drug or biological and management fees, but shall not include any costs related to the administration of the drug or biological, or wastage, spillage, or spoilage. ‘‘(7) PRICE ADJUSTMENTS DURING CONTRACT PERIOD; DISCLOSURE OF COSTS.—Each contract awarded shall provide for— ‘‘(A) disclosure to the Secretary the contractor’s reasonable, net acquisition costs for periods specified by the Secretary, not more often than quarterly, of the contract; and ‘‘(B) appropriate price adjustments over the period of the contract to reflect significant increases or decreases in a contractor’s reasonable, net acquisition costs, as so disclosed. ‘‘(d) COMPUTATION OF PAYMENT AMOUNTS.— ‘‘(1) IN GENERAL.—Payment under this section for competitively biddable drugs or biologicals shall be based on bids submitted and accepted under this section for such drugs or biologicals in an area. Based on such bids the Secretary shall determine a single payment amount for each competitively biddable drug or biological in the area. ‘‘(2) SPECIAL RULES.—The Secretary shall establish rules regarding the use under this section of the alternative payment amount provided under section 1847A to the use of a price for specific competitively biddable drugs and biologicals in the following cases: ‘‘(A) NEW DRUGS AND BIOLOGICALS.—A competitively biddable drug or biological for which a payment and billing code has not been established. ‘‘(B) OTHER CASES.—Such other exceptional cases as the Secretary may specify in regulations. ‘‘(e) COST-SHARING.— ‘‘(1) APPLICATION OF COINSURANCE.—Payment under this section for competitively biddable drugs and biologicals shall be in an amount equal to 80 percent of the payment basis described in subsection (d)(1). ‘‘(2) DEDUCTIBLE.—Before applying paragraph (1), the individual shall be required to meet the deductible described in section 1833(b). ‘‘(3) COLLECTION.—Such coinsurance and deductible shall be collected by the contractor that supplies the drug or biological involved. Subject to subsection (a)(3)(B), such coinsurance and deductible may be collected in a manner similar to the manner in which the coinsurance and deductible are collected for durable medical equipment under this part.

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