[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 662 Considered and Passed Senate (CPS)]

103d CONGRESS
  1st Session
                                 S. 662

  To amend title 38, United States Code, and title XIX of the Social 
  Security Act to make technical corrections relating to the Veterans 
                        Health Care Act of 1992.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

               March 25 (legislative day, March 3), 1993

 Mr. Rockefeller introduced the following bill; which was read twice, 
              considered, read the third time, and passed

_______________________________________________________________________

                                 A BILL


 
  To amend title 38, United States Code, and title XIX of the Social 
  Security Act to make technical corrections relating to the Veterans 
                        Health Care Act of 1992.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. TECHNICAL CORRECTIONS OF PROVISIONS RELATING TO THE PRICE OF 
              DRUGS PURCHASED BY THE DEPARTMENT OF VETERANS AFFAIRS AND 
              OTHER FEDERAL AGENCIES.

    (a) In General.--Section 8126 of title 38, United States Code, as 
amended by section 603 of the Veterans Health Care Act of 1992, is 
amended--
            (1) in subsection (a)(2), by striking ``preceding such 
        date'';
            (2) in subsection (c)--
                    (A) in the matter preceding paragraph (1), by 
                striking ``for calendar quarters'', and
                    (B) in paragraph (1)--
                            (i) by striking ``preceding the month 
                        during which the contract goes into effect''; 
                        and
                            (ii) by striking ``increased by'' and 
                        inserting ``multiplied by'';
            (3) by amending subsection (d)(1) to read as follows:
            ``(1) during any one-year period that follows the first 
        year for which the contract is in effect, the contract price 
        charged for the drug may not exceed the contract price charged 
        during the preceding one-year period, increased by the 
        percentage increase in the Consumer Price Index for all urban 
        consumers (U.S. city average) during the 12-month period ending 
        with the last month of such preceding one-year period for which 
        Consumer Price Index data is available; and''; and
            (4) by adding at the end the following new subsection:
    ``(i)(1) If the Secretary modifies a multi-year contract described 
in subsection (d) to include a covered drug of the manufacturer that 
was not available for inclusion under the contract at the time the 
contract went into effect, the price of the drug shall be determined as 
follows:
            ``(A) For the portion of the first contract year during 
        which the drug is so included, the price of the drug shall be 
        determined in accordance with subsection (a)(2), except that 
        the reference in such subsection to `the one-year period 
        beginning on the date the agreement takes effect' shall be 
        considered a reference to such portion of the first contract 
        year.
            ``(B) For any subsequent contract year, the price of the 
        drug shall be determined in accordance with subsection (d), 
        except that each reference in such subsection to `the first 
        year for which the contract is in effect' shall be considered a 
        reference to the portion of the first contract year during 
        which the drug is included under the contract.
    ``(2) In this subsection, the term `contract year' means any one-
year period for which a multi-year contract described in subsection (d) 
is in effect.''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
take effect as if included in the enactment of section 603 of the 
Veterans Health Care Act of 1992.

SEC. 2. TECHNICAL CORRECTION OF BUDGET NEUTRALITY ADJUSTMENT FOR 
              MEDICAID PRESCRIPTION DRUG REBATES.

    (a) In General.--Section 1927(c)(1)(B)(ii)(II) of the Social 
Security Act (42 U.S.C. 1396r-8(c)(1)(B)(ii)(II)), as amended by 
section 601(c) of the Veterans Health Care Act of 1992, is amended by 
striking ``drug;'' and inserting the following: ``drug, except that for 
the calendar quarter beginning after September 30, 1992, and before 
January 1, 1993, the amount of the rebate may not exceed 50 percent of 
such average manufacturer price;''.
    (b) Effective Date.--The amendment made by subsection (a) shall 
take effect as if included in the enactment of section 601(c) of the 
Veterans Health Care Act of 1992.

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