,i #aae? ,,congress #b;d ,session ,h4 ,r4 #egci ,,9 ,,! ,,h\se ,,( ,,repres5tatives ,may #i1 #bjah,ms4 ,de,lauro 7= h]self1 ,mr4 ,doggett1 & ,ms4 ,moore7 introduc$ ! foll[+ bill2 :i* 0 ref]r$ to ! ,committee on ,en]gy & ,comm]ce1 & 9 addition to ! ,committees on ,ways & ,means1 & ! ,judici>y1 = a p]iod to be subsequ5tly det]m9$ by ! ,speak]1 9 ea* case = consid]ation ( su* provisions z fall )9 ! jurisdiction ( ! committee conc]n$ ,a ,,bill ,to e/abli% )9 ! ,dep>tm5t ( ,heal? & ,human ,s]vices ! ,prescription ,drug & ,m$ical ,device ,price ,review ,bo>d to regulate ! prices ( c]ta9 prescription drugs & m$ical devices1 & = o!r purposes4 #a4 ,%ort title ,?is ,act may be cit$ z ! ,prescription ,drug & ,m$ical ,device ,price ,review ,bo>d ,act ( #bjah4 #b4 ,e/abli%m5t ,!re is e/abli%$ 9 ! ,dep>tm5t ( ,heal? & ,human ,s]vices a bo>d to be kn[n z ! ,prescription ,drug & ,m$ical ,device ,price ,review ,bo>d 79 ?is ,act ref]r$ to z ! ,bo>d74 #c4 ,memb]%ip2 /aff 7a7 ,memb]s ,! ,bo>d %all be compos$ ( #e memb]s z foll[s3 7#a7 ,! ,assi/ant ,secret>y = ,plann+ & ,evaluation ( ! ,dep>tm5t ( ,heal? & ,human ,s]vices 7or ! ,assi/ant ,secret>y's designee74 7#b7 ,! ,adm9i/rator ( ! ,c5t]s = ,m$ic>e ,m$icaid ,s]vices 7or ! ,adm9i/rator's designee74 7#c7 ,! ,assi/ant ,director = ! ,heal? ,s]vices ,division ( ! ,f$]al ,bureau ( ,prisons 7or ! ,assi/ant ,director's designee74 7#d7 ,! ,secret>y ( ,def5se 7or ! ,secret>y's designee74 7#e7 ,! ,secret>y ( ,vet]ans ,affairs 7or ! ,secret>y's designee74 7#f7 ,! ,commission] ( ,food & ,drugs 7or ! ,commission]'s designee74 7b7 ,*airp]son ,! ,bo>d %all designate #a memb] ( ! ,bo>d to s]ve z ! *airp]son4 7c7 ,director & /aff 7#a7 ,director ,! ,bo>d %all h a director :o %all be appo9t$ by ! *airp]son ( ! ,bo>d1 subject to rules prescrib$ by ! ,bo>d4 7#b7 ,/aff ,! director may appo9t & fix ! pay ( su* additional p]sonnel z ! *airp]son consid]s appropriate1 subject to rules prescrib$ by ! ,bo>d4 7#c7 ,applicability ( c]ta9 civil s]vice laws ,! director & /aff ( ! ,bo>d %all be appo9t$ subject to ! provisions ( title #e1 ,unit$ ,/ates ,code1 gov]n+ appo9tm5ts 9 ! competitive s]vice1 & %all be paid 9 accordance ) ! requirem5ts ( *apt] #ea & sub*apt] ,,iii ( *apt] #ec ( su* title relat+ to classification & ,g5]al ,s*$ule pay rates2 except t an individual s appo9t$ may n receive pay 9 excess ( ! maximum annual rate ( basic pay payable = grade ,,gs-#ae ( ! ,g5]al ,s*$ule4 7d7 ,assi/ance = ! bo>d ,subject to section #g7;g71 9 c>ry+ out ?is ,act1 ! ,bo>d-- 7#a7 may seek assi/ance f outside exp]ts 9 ! fields ( consum] advocacy1 m$ic9e1 ph>macology1 ph>macy1 & prescription drug reimbursem5t2 & 7#b7 %all e/abli% & ma9ta9 an advisory gr\p & a /akehold] gr\p = purposes ( seek+ su* assi/ance4 7e7 ,initial meet+ ,! ,bo>d %all hold its initial meet+ n lat] ?an #ij days aft] ! date ( ! enactm5t ( ?is ,act4 #d4 ,report+ requirem5ts 7a7 ,report+ by manufactur]s ,! ,bo>d %all require ea* manufactur] ( a prescription drug or m$ical device t is sold 9 ! ,unit$ ,/ates to submit to ! ,bo>d on a p]iodic basis1 at a level ( specificity det]m9$ by ! ,bo>d to be necess>y to make a det]m9ation "u section #e1 ! foll[+ in=mation ) respect to ! report+ p]iod3 7#a7 ,ea* type ( prescription drug & m$ical device t is sold by ! manufactur] or an affiliate ( ! manufactur]-- 7,a7 9 ! ,unit$ ,/ates2 or 7,b7 9 a c\ntry t is a memb] ( ! ,organization = ,economic ,co-op]ation & ,developm5t4 7#b7 ,! price *>g$ by ! manufactur] & ! affiliate = ! prescription drug or m$ical device 9 ! ,unit$ ,/ates & 9 any su* c\ntry1 z applicable4 7#c7 ,! co/s ( ! manufactur] & ! affiliate to produce & m>ket ! prescription drug or m$ical device = sale 9 ! ,unit$ ,/ates & 9 any su* c\ntry1 z applicable4 7b7 ,report+ by ,,cbo ,! ,director ( ! ,congressional ,budget ,(fice %all submit an annual report to ! ,bo>d on tr5ds 9 ! prices *>g$ = prescription drugs & m$ical devices4 #e4 ,prohibition aga9/ excessive price 7a7 ,prohibition ,beg9n+ on ! effective date ( ! regulation requir$ by subsection 7b71 ! manufactur] ( a prescription drug or m$ical device %all n *>ge an excessive price1 z det]m9$ pursuant to su* regulation1 = su* drug or device4 7b7 ,=mula ,! ,bo>d %all by regulation prescribe a =mula = det]m9+ :e!r ! av]age manufactur] price ( su* drug or device ov] an annual qu>t] is an excessive price4 7c7 ,det]m9ation ( excessive price ,if ! ,bo>d det]m9es1 on its own initiative or 9 response to a petition submitt$ "u subsection 7d71 t ! manufactur] ( a prescription drug or m$ical device *>ges an excessive price = su* drug or device 9 violation ( subsection 7a7-- 7#a7 ! ,bo>d %all give ! manufactur]-- 7,a7 notice ( su* violation2 & 7,b7 subject to subsection 7d71 a p]iod to correct su* violation2 & 7#b7 if ! manufactur] fails to correct ! violation by ! end ( su* p]iod1 ! manufactur] %all be subject to section #f ( ?is ,act1 section #aibg7;c77#b77;,e7 ( ! ,social ,security ,act1 z add$ by subsection 7c7 ( su* section #f1 & section #daib ( ! ,int]nal ,rev5ue ,code ( #aihf1 z add$ by subsection 7d7 ( su* section #f4 7d7 ,petitions ,any p]son may petition ! ,bo>d to make a det]m9ation "u subsection 7c7 reg>d+ ! pric+ ( a prescription drug or m$ical device4 ,n lat] ?an #ij days aft] ! date ( receipt ( su* a petition1 ! ,bo>d %all-- 7#a7 make a det]m9ation "u subsection 7c7 reg>d+ su* pric+2 or 7#b7 decl9e to make su* a det]m9ation4 7e7 ,cont9u+ violation ,! ,bo>d %all n be requir$ to give a manufactur] an opportunity to correct a violation1 z describ$ 9 subsection 7c77#a77;,b71 be=e ! manufactur] becomes subject to ! provisions describ$ 9 subsection 7c77#b7 = su* violation1 if-- 7#a7 ! ,bo>d has already provid$ su* an opportunity to correct to ! manufactur]2 & 7#b7 ! ,bo>d f9ds t ! violation ( subsection 7a7 is a cont9uation ( an e>li] violation ) respect to :i* su* an opportunity 0 provid$4 7f7 ,consid]ations ,! =mula requir$ by subsection 7a7 %all at a m9imum take into consid]ation-- 7#a7 ! av]age manufactur] price ( ! prescription drug or m$ical device ov] ! respective annual qu>t] or qu>t]s2 7#b7 ! av]age manufactur] price ( o!r prescription drugs or m$ical devices 9 ! same !rapeutic class ov] ! same qu>t] or qu>t]s2 7#c7 ! av]age price at :i* ! prescription drug or m$ical device & o!r prescription drugs & m$ical devices 9 ! same !rapeutic class h be5 sold by manufactur]s 9 c\ntries o!r ?an ! ,unit$ ,/ates2 7#d7 ! co/s associat$ ) produc+ & m>ket+ ! prescription drug or m$ical device1 ! value ( ! drug or device to pati5ts :]e suffici5t data is available to det]m9e su* value1 ! total ,f$]al inve/m5t 9 ! developm5t ( ! drug or device1 ! size ( ! pati5t population receiv+ ! drug or device1 & o!r factors det]m9ative z to ! true co/ ( production2 & 7#e7 :e!r ! price ( ! prescription drug or m$ical device increas$ dur+ any annual qu>t] by a p]c5tage t is m ?an #b p]c5t great] ?an ! ,,cpi increase p]c5tage 7z def9$ 9 section #bae7;i7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #dae77 = ! respective annual qu>t]4 #f4 ,en=cem5t provisions 7a7 ,r$uc$ pat5t t]m ,if ! ,bo>d f9ds t ! manufactur] ( a prescription drug or m$ical device1 :o is also an own] ( a pat5t = su* drug or device1 *>g$ an excessive price = su* drug or device 9 violation ( section #e7;a71 ! ,bo>d may-- 7#a7 r$uce ! t]m1 by n m ?an #e ye>s1 ( any pat5t issu$ "u title #ce1 ,unit$ ,/ates ,code1 relat+ to su* drug or device2 or 7#b7 if ! t]m ( ea* pat5t = su* drug or device has expir$1 r$uce ! t]m1 by n m ?an #e ye>s1 ( ano!r pat5t own$ by ! pat5t own] relat+ to a prescription drug or m$ical device4 7b7 ,civil p5alties ,if ! ,bo>d det]m9es "u section #e7;c7 t a manufactur] ( a prescription drug or m$ical device *>g$ an excessive price = a prescription drug or m$ical device 9 violation ( section #e7;a71 ! ,bo>d may impose a civil p5alty on ! manufactur] ( n m ?an #aj p]c5t ( ! manufactur]'s gross sales ( ! drug or device dur+ ! p]iod beg9n+ on ! date on :i* an excessive price is fir/ *>g$ & end+ on ! date on :i* ! manufactur] ceases to *>ge an excessive price4 7c7 ,en=cem5t ?r\gh increas$ ,m$icaid rebates 7#a7 ,9 g5]al ,section #aibg7;c77#b7 ( ! ,social ,security ,act 7#db ,u4,s4,c4 #acifr-#h7;c77#b77 is am5d$-- 7,a7 9 subp>agraph 7,a71 by ins]t+ 1 subject to subp>agraph 7,e71 aft] increas$ by2 & 7,b7 by add+ at ! end ! foll[+ new subp>agraph3 7,e7 ,disc\rag+ excessive prices 7i7 ,9 g5]al ,9 ! case ( a manufactur] ( a s+le s\rce drug or an innovator multiple s\rce drug ) a rebate agreem5t "u ?is section1 if ! ,prescription ,drug & ,m$ical ,device ,price ,review ,bo>d e/abli%$ "u section #b ( ! ,prescription ,drug & ,m$ical ,device ,price ,review ,bo>d ,act ( #bjah det]m9es "u section #e7;a7 ( su* ,act t su* manufactur] *>g$1 ) respect to a #cj-;day p]iod1 an excessive price = su* drug1 & ! ,bo>d det]m9es "u clause 7ii7 to apply an increas$ am\nt describ$ 9 su* clause ) respect to su* manufactur] & drug1 ! am\nt ( ! rebate det]m9$ "u subp>agraph 7,a7 = su* manufactur] & drug %all be1 subject to subp>agraph 7,d71 increas$ by su* am\nt = ! #d rebate p]iods foll[+ su* #cj-;day p]iod4 7ii7 ,increas$ am\nt det]m9ation ,= purposes ( clause 7i71 if ! ,bo>d describ$ 9 su* clause makes su* a det]m9ation "u su* section #e7;a71 ) respect to a manufactur] & drug describ$ 9 su* clause1 ! ,bo>d may det]m9e an increas$ am\nt to apply ) respect to su* manufactur] & drug & rebate p]iod describ$ 9 su* clause4 ,su* increas$ am\nt may n exce$ ! rebate am\nt t w\ld o!rwise be appli$ to su* manufactur] & drug "u ?is section = su* rebate p]iod1 )\t reg>d to ?is subp>agraph4 4 7#b7 ,effective date ,?is subsection & ! am5dm5ts made by ?is subsection %all apply ) respect to rebate agreem5ts ent]$ into aft] ! date t is #fj days aft] ! date ( ! enactm5t ( ?is ,act4 7d7 ,tax on excess prescription drug & m$ical device pr(its 7#a7 ,det]m9ation ( am\nt ,if ! ,bo>d det]m9es "u section #e7;a7 t a manufactur]1 produc]1 or import] ( a prescription drug or m$ical device *>g$ an excessive price = su* prescription drug or m$ical device dur+ a taxable ye>1 ! ,bo>d may det]m9e "u ?is p>agraph a reasonable price = su* drug or device = su* taxable ye>4 7#b7 ,imposition ( tax 7,a7 ,9 g5]al ,! ,int]nal ,rev5ue ,code ( #aihf is am5d$ by ins]t+ aft] section #daia ! foll[+ new section3 #daib4 ,excessive prescription drug & m$ical device price 7a7 ,9 g5]al ,!re is h]eby impos$ on ! sale ( any prescription drug or m$ical device by ! manufactur]1 produc]1 or import] a tax equal to ! diff]5ce betwe5 ! price at :i* su* drug or device is s sold & ! reasonable price det]m9$ by ! ,prescription ,drug & ,m$ical ,device ,price ,review ,bo>d "u section #f7;d77#a7 ( ! ,prescription ,drug & ,m$ical ,device ,price ,review ,bo>d ,act ( #bjah = su* drug or device = ! taxable ye> = sales aft] ! det]m9ation4 7b7 ,prescription ,drug or ,m$ical ,device ,= purposes ( ?is section1 ! t]m prescription drug or m$ical device means any prescription drug 7z def9$ 9 section #ijjh ( ! ,pati5t ,protection & ,af=dable ,c>e ,act7 or device 7z def9$ 9 section #bja7;h7 ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act7 int5d$ = humans4 4 7,b7 ,cl]ical am5dm5t ,! table ( p>ts = *apt] #cb ( su* ,code is am5d$-- 7i7 9 ! item relat+ to sub*apt] ,e1 by /rik+ ,m$ical & ins]t+ ,drugs & m$ical1 & 7ii7 by ins]t+ aft] ! item relat+ to section #daia ! foll[+ new item3 ,sec4 #daib4 ,excessive prescription drug & m$ical device price4 4 7#c7 ,effective date ,?is subsection & ! am5dm5ts made by ?is subsection %all apply ) respect to sales aft] ,decemb] #ca1 #bjah4 7e7 ,safe & af=dable drugs f approv$ c\ntries ,*apt] ,,viii ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cha et seq47 is am5d$ by add+ at ! end ! foll[+3 #haj4 ,importation by individuals ( prescription drugs1 & devices1 f an approv$ c\ntry if manufactur]s are *>g+ an excessive price = comp>able products 9 ! ,unit$ ,/ates 7a7 ,9 g5]al ,not)/&+ any o!r provision ( ?is ,act1 n lat] ?an #ahj days aft] ! date ( enactm5t ( ?is section1 ! ,prescription ,drug & ,m$ical ,device ,price ,review ,bo>d 79 ?is section ref]r$ to z ! ,bo>d7 %all promulgate regulations p]mitt+ individuals to safely import f an approv$ c\ntry into ! ,unit$ ,/ates prescription drugs1 & devices1 t are comp>able to prescription drugs1 & devices1 = :i* ! ,bo>d makes a f9al det]m9ation t ! manufactur] is *>g+ or has *>g$ an excessive price 9 violation ( section #e7;a7 ( ! ,prescription ,drug & ,m$ical ,device ,price ,review ,bo>d ,act ( #bjah4 7b7 ,comp>able def9$ ,= purposes ( ?is section1 ! t]m comp>able means-- 7#a7 ) respect to a drug1 hav+ ! same active +r$i5t or +r$i5ts1 r\te ( adm9i/ration1 dosage =m1 & /r5g?2 & 7#b7 ) respect to a device1 be+ sub/antially equival5t4 7c7 ,assurance ( safety ,= purposes ( ?is section1 ! t]m approv$ c\ntry means a c\ntry t is det]m9$ by ! ,secret>y to h 9 effect /&>ds to ensure ! safety ( prescription drugs1 & ( devices1 t are at lea/ z protective z ! /&>ds applicable "u ,f$]al law 9 ! ,unit$ ,/ates4 4 #g4 ,au?ority 7a7 ,obta9+ (ficial data ,! *airp]son ( ! ,bo>d may secure directly f any ,f$]al ag5cy in=mation necess>y to enable ! ,bo>d to c>ry out its duties4 ,^u reque/ ( ! *airp]son1 ! head ( ! ag5cy %all furni% su* in=mation to ! ,bo>d to ! ext5t su* in=mation is n prohibit$ f disclosure by law4 7b7 ,mails ,! ,bo>d may use ! ,unit$ ,/ates mails 9 ! same mann] & "u ! same conditions z o!r ,f$]al ag5cies4 7c7 ,adm9i/rative support s]vices ,^u ! reque/ ( ! *airp]son ( ! ,bo>d1 ! ,adm9i/rator ( ,g5]al ,s]vices %all provide to ! ,bo>d1 on a reimbursable basis1 ! adm9i/rative support s]vices necess>y = ! ,bo>d to c>ry out its duties4 7d7 ,contract au?ority ,! ,bo>d may contract ) & comp5sate gov]nm5t & private ag5cies or p]sons = ! purpose ( conduct+ rese>*1 surveys1 & o!r s]vices necess>y to enable ! ,bo>d to c>ry out its duties4 7e7 ,inve/igations ,! ,bo>d may make su* inve/igations z x consid]s necess>y to det]m9e :e!r !re is or may be a violation ( any regulation promulgat$ "u ?is ,act & may require or p]mit any p]son to file ) x a /atem5t 9 writ+1 "u oa? or o!rwise z ! ,bo>d %all det]m9e1 z to all ! facts & circum/ances conc]n+ ! matt] to be inve/igat$4 7f7 ,subpo5a p[] 7#a7 ,9 g5]al ,! ,bo>d may issue subpo5as requir+ ! att5dance & te/imony ( witnesses & ! production ( any evid5ce relat+ to any matt] "u inve/igation by ! ,bo>d4 ,! att5dance ( witnesses & ! production ( evid5ce may be requir$ f any place )9 ! ,unit$ ,/ates at any designat$ place ( he>+ )9 ! ,unit$ ,/ates4 7#b7 ,failure to obey a subpo5a ,if a p]son refuses to obey a subpo5a issu$ "u p>agraph 7#a71 ! ,bo>d may apply to a ,unit$ ,/ates di/rict c\rt = an ord] requir+ t p]son to appe> be=e ! ,bo>d to give te/imony1 produce evid5ce1 or bo?1 relat+ to ! matt] "u inve/igation4 ,! application may be made )9 ! judicial di/rict :]e ! he>+ is conduct$ or :]e t p]son is f\nd1 resides1 or transacts bus9ess4 ,any failure to obey ! ord] ( ! c\rt may be puni%$ by ! c\rt z civil contempt4 7#c7 ,s]vice ( subpo5as ,! subpo5as ( ! ,bo>d %all be s]v$ 9 ! mann] provid$ = subpo5as issu$ by a ,unit$ ,/ates di/rict c\rt "u ! ,f$]al ,rules ( ,civil ,proc$ure = ! ,unit$ ,/ates di/rict c\rts4 7#d7 ,s]vice ( process ,all process ( any c\rt to :i* application is made "u p>agraph 7#b7 may be s]v$ 9 ! judicial di/rict 9 :i* ! p]son requir$ to be s]v$ resides or may be f\nd4 7#e7 ,notice ,^u issu+ any subpo5a "u ?is subsection1 ! ,bo>d %all give notice ( su* issuance to ! appropriate committees ( ,congress1 includ+ ! ,committee on ,appropriations ( ! ,h\se ( ,repres5tatives & ! ,committee on ,appropriations ( ! ,s5ate4 7g7 ,confid5tiality ,no?+ 9 ?is ,act %all be con/ru$ z au?oriz+ ! ,bo>d to disclose any in=mation t is a trade secret or confid5tial in=mation subject to section #eeb7;b77#d7 ( title #e1 ,unit$ ,/ates ,code1 or section #aije ( title #ah1 ,unit$ ,/ates ,code4 #h4 ,regulations 7a7 ,9 g5]al ,n lat] ?an #a ye> aft] ! date ( ! initial meet+ held "u section #c7;e71 ! ,bo>d %all issue f9al regulations to c>ry out ?is ,act4 7b7 ,notice & comm5t requirem5t ,! regulations develop$ "u subsection 7a7 %all be issu$ 9 accordance ) ! notice & comm5t proc$ures e/abli%$ "u section #eec ( title #e1 ,unit$ ,/ates ,code4 #i4 ,report to ,f$]al ag5cies ,n lat] ?an #a ye> aft] ! effective date ( ! regulations "u section #h & annually !reaft]1 ! ,bo>d %all submit to ea* ,f$]al ag5cy t disp5ses or makes paym5ts = ! disp5s+ ( prescription drugs or m$ical devices a report conta9+-- 7#a7 a li/ ( ea* prescription drug & m$ical device = :i* an excessive price 0 *>g$ dur+ ! prec$+ cal5d> ye>1 z det]m9$ by ! ,bo>d "u section #e2 7#b7 recomm5dations to ! ,f$]al ag5cy aga9/ disp5s+ or mak+ paym5ts = ! disp5s+ ( ! prescription drug or m$ical device2 & 7#c7 recomm5dations to ! ,f$]al ag5cy to sub/itute1 9 place ( any drug or device li/$ pursuant to p>agraph 7#a71 a simil> prescription drug or m$ical device t is n sold at an excessive price4 #aj4 ,report to ,congress ,n lat] ?an #a ye> aft] ! initial meet+ ( ! ,bo>d "u section #c7;e71 & annually !reaft]1 ! ,bo>d %all submit to ! ,congress a report describ+ ! activities ( ! ,bo>d = ! prec$+ ye>4 #aa4 ,def9itions ,9 ?is ,act3 7#a7 ,! t]m affiliate means1 ) respect to a manufactur]1 any entity t controls1 is controll$ by1 or is "u common control ) su* manufactur]4 7#b7 ,! t]m av]age manufactur] price means ! av]age price *>g$ by ! manufactur] ( a prescription drug or m$ical device1 z applicable1 = sales ( ! drug or device by ! manufactur] 9 ! ,unit$ ,/ates ov] ! respective annual qu>t]4 7#c7 ,! t]m m$ical device means a device 7z def9$ 9 section #bja ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cba774 7#d7 ,! t]m prescription drug means a drug 7z def9$ 9 section #bja ( ! ,f$]al ,food1 ,drug1 & ,cosmetic ,act 7#ba ,u4,s4,c4 #cba77 t is subject to section #ejc7;b77#a7 ( su* ,act 7#ba ,u4,s4,c4 #cec7;b77#a774