Page:United States Statutes at Large Volume 124.djvu/337

 124 STAT. 311 PUBLIC LAW 111–148—MAR. 23, 2010 ‘‘(B) EXCLUSION OF CUSTOMARY PROMPT PAY DISCOUNTS AND OTHER PAYMENTS.— ‘‘(i) IN GENERAL.—The average manufacturer price for a covered outpatient drug shall exclude— ‘‘(I) customary prompt pay discounts extended to wholesalers; ‘‘(II) bona fide service fees paid by manufactur- ers to wholesalers or retail community pharmacies, including (but not limited to) distribution service fees, inventory management fees, product stocking allowances, and fees associated with administra- tive services agreements and patient care pro- grams (such as medication compliance programs and patient education programs); ‘‘(III) reimbursement by manufacturers for recalled, damaged, expired, or otherwise unsalable returned goods, including (but not limited to) reimbursement for the cost of the goods and any reimbursement of costs associated with return goods handling and processing, reverse logistics, and drug destruction; and ‘‘(IV) payments received from, and rebates or discounts provided to, pharmacy benefit managers, managed care organizations, health maintenance organizations, insurers, hospitals, clinics, mail order pharmacies, long term care providers, manu- facturers, or any other entity that does not conduct business as a wholesaler or a retail community pharmacy. ‘‘(ii) INCLUSION OF OTHER DISCOUNTS AND PAY- MENTS.—Notwithstanding clause (i), any other dis- counts, rebates, payments, or other financial trans- actions that are received by, paid by, or passed through to, retail community pharmacies shall be included in the average manufacturer price for a covered out- patient drug.’’; and (C) in subparagraph (C), by striking ‘‘the retail phar- macy class of trade’’ and inserting ‘‘retail community phar- macies’’. (3) DEFINITION OF MULTIPLE SOURCE DRUG.—Section 1927(k)(7) of such Act (42 U.S.C. 1396r–8(k)(7)) is amended— (A) in subparagraph (A)(i)(III), by striking ‘‘the State’’ and inserting ‘‘the United States’’; and (B) in subparagraph (C)— (i) in clause (i), by inserting ‘‘and’’ after the semi- colon; (ii) in clause (ii), by striking ‘‘; and’’ and inserting a period; and (iii) by striking clause (iii). (4) DEFINITIONS OF RETAIL COMMUNITY PHARMACY; WHOLE- SALER.—Section 1927(k) of such Act (42 U.S.C. 1396r–8(k)) is amended by adding at the end the following new paragraphs: ‘‘(10) RETAIL COMMUNITY PHARMACY.—The term ‘retail community pharmacy’ means an independent pharmacy, a chain pharmacy, a supermarket pharmacy, or a mass merchan- diser pharmacy that is licensed as a pharmacy by the State and that dispenses medications to the general public at retail