,,ii  #aafth ,,congress  #b;d ,session  
,s4 #dddh  ,,in ,,the ,,senate ,,of     
,,the ,,united ,,states  ,august #e1    
#bjbj,mr4 ,warner 7for himself and ,mr4 
,booker7 introduced the following bill2 
which was read twice and referred to the
 ,committee on ,finance  ,a ,,bill  ,to 
amend titles ,,xix and ,,xxi of the     
,social ,security ,act to give ,states  
the option to extend the ,medicaid drug 
rebate program to the ,children's       
,health ,insurance ,program1 and for    
other purposes4  #a4 ,short title ,this 
,act may be cited as the ,fair ,drug    
,prices for ,kids ,act4  #b4 ,reducing  
prescription drug costs for children's  
medicine  7a7 ,in general ,section      
#aibg7;a7 of the ,social ,security ,act 
7#db ,u4,s4,c4 #acifr-#h7;a77 is amended
 by adding at the end the following new 
paragraph3  7#h7 ,state option to apply 
rebate requirements to the ,state child 
health plan  7,a7 ,in general ,a ,state 
may elect to apply the requirements of  
this section and regulations promulgated

 to carry out this section to covered   
outpatient drugs for which payment is   
available under the ,state child health 
plan under title ,,xxi in the same      
manner as such requirements apply to the
 ,state plan under this title1 subject  
to such guidance as the ,secretary shall
 establish4  7,b7 ,application rules ,if
 a ,state makes an election under       
subparagraph 7,a71 then1 in applying    
this section with respect to that       
,state-- 7i7 paragraph 7#a7 of this     
subsection shall be applied as if or    
section #baje 7if the ,state has elected
 to apply this section to the ,state    
child health plan under title ,,xxi7    
were inserted after #aijc7;a72  7ii7    
paragraph 7#g77;,a7 of this subsection  
shall be applied-- 7,i7 as if or section
 #baje 7if the ,state has elected to    
apply this section to the ,state child  
health plan under title ,,xxi7 were     
inserted after #aijc7;a72 and  7,,ii7 as
 if 7or1 if the ,state has elected to   
apply this section to the ,state child  

health plan under title ,,xxi1 on or    
after the date this section first       
applies to the ,state7 were inserted    
after ,january #a1 #bjjf2  7iii7        
paragraph 7#g77;,b77ii7 of this         
subsection shall be applied-- 7,i7 as if
 or section #baje 7if the ,state has    
elected to apply this section to the    
,state child health plan under title    
,,xxi7 were inserted after #aijc7;a72   
and  7,,ii7 as if 7or1 if the ,state has
 elected to apply this section to the   
,state child health plan under title    
,,xxi1 on or after the date this section
 first applies to the ,state7 were      
inserted after ,january #a1 #bjjh2  7iv7
 subsection 7b77#a77;,a7 shall be       
applied as if 7or1 if the ,state has    
elected to apply this section to the    
,state child health plan under title    
,,xxi1 on or after the date this section
 first applies to the ,state1 to each   
,state child health plan for which      
payment was made under such ,state child
 health plan for such period7 were      

inserted after such period2  7v7        
subsection 7b77#a77;,b7 shall be applied
 as if 7or a reduction in the amount    
expended under the ,state child health  
plan in the quarter for child health    
assistance or pregnancy-related         
assistance for purposes of section #baje
 if the ,state has elected to apply this
 section to the ,state child health plan
 under title ,,xxi7 were inserted after 
#aijc7;a77#a72 and  7vi7 paragraphs     
7#b77;,a77i7 and 7#c77;,a77ii7 of       
subsection 7c7 shall each be applied as 
if 7or1 if the ,state has elected to    
apply this section to the ,state child  
health plan under title ,,xxi1 on or    
after the date this section first       
applies to the ,state7 were inserted    
after ,december #ca1 #aiij each place it
 appears4  4  7b7 ,conforming amendments
  7#a7 ,section #bajg7;e77#a7 of the    
,social ,security ,act 7#db ,u4,s4,c4   
#acig;gg7e77#a77 is amended-- 7,a7 by   
redesignating subparagraphs 7,d7 through
 7,s7 as subparagraphs 7,e7 through     

7,t71 respectively2 and  7,b7 by        
inserting after subparagraph 7,c7 the   
following new subparagraph3  7,d7       
,section #aijb7;a77#ed7 7relating to    
compliance with the requirements of     
section #aibg but only if the ,state has
 elected to apply such requirements to  
the ,state child health plan under this 
title74  4  7#b7 ,section #baaj7;a77#f7 
of the ,social ,security ,act 7#db      
,u4,s4,c4 #acig;jj7a77#f77 is amended by
 inserting and1 if the ,state has       
elected to apply the requirements of    
section #aibg to the ,state child health
 plan under this title1 covered         
outpatient drugs1 as defined in section 
#aibg7k77#b71 after ,prescription drugs 
and biologicals4