To clarify that the medicaid statute does not prohibit a State from entering into drug rebate agreements in order to make outpatient prescription drugs accessible and affordable for residents of the State who are not otherwise eligible for medical assistance under the medicaid program.

1. Inserts new text on page 158, between lines 4 and 5

   InsertsPrinted page

   Inserted: (f) Clarification of State Authority Relating to Medicaid Drug Rebate Agreements.--Section 1927 (42 U.S.C. 1396r-8) is amended by adding at the end the following:

   Inserted: "(l) Rule of Construction.--Nothing in this section shall be construed as prohibiting a State from--

   Inserted: "(1) directly entering into rebate agreements (on the State's own initiative or under a section 1115 waiver approved by the Secretary before, on, or after the date of enactment of this subsection) that are similar to a rebate agreement described in subsection (b) with a manufacturer for purposes of ensuring the affordability of outpatient prescription drugs in order to provide access to such drugs by residents of a State who are not otherwise eligible for medical assistance under this title; or

   Inserted: "(2) making prior authorization (that satisfies the requirements of subsection (d) and that does not violate any requirements of this title that are designed to ensure access to medically necessary prescribed drugs for individuals enrolled in the State program under this title) a condition of not participating in such a similar rebate agreement.".

   Original wording

   On page 158, between lines 4 and 5, insert the following:

Read automatically from the Congressional Record. Check the original before relying on it.

As printed