[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[S. 662 Enrolled Bill (ENR)]

        S.662
                       One Hundred Third Congress

                                 of the

                        United States of America


                          AT THE FIRST SESSION

          Begun and held at the City of Washington on Tuesday,
  the fifth day of January, one thousand nine hundred and ninety-three


                                 An Act

  
 
  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.







                                Speaker of the House of Representatives.







                             Vice President of the United States and    
                                                President of the Senate.