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136 STAT. 1862 PUBLIC LAW 117–169—AUG. 16, 2022 (b) CONFORMING AMENDMENTS FOR DISCLOSURE OF CERTAIN INFORMATION.—Section 1927(b)(3)(D)(i) of the Social Security Act (42 U.S.C. 1396r–8(b)(3)(D)(i)) is amended by striking ‘‘or to carry out section 1847B’’ and inserting ‘‘or to carry out section 1847B or section 1192(f), including rebates under paragraph (4) of such section’’. (c) IMPLEMENTATION FOR 2026 THROUGH 2028.—The Secretary of Health and Human Services shall implement this section, including the amendments made by this section, for 2026, 2027, and 2028 by program instruction or other forms of program guid- ance. SEC. 11003. EXCISE TAX IMPOSED ON DRUG MANUFACTURERS DURING NONCOMPLIANCE PERIODS. (a) IN GENERAL.—Subtitle D of the Internal Revenue Code of 1986 is amended by adding at the end the following new chapter: ‘‘CHAPTER 50A—DESIGNATED DRUGS ‘‘Sec. 5000D. Designated drugs during noncompliance periods. ‘‘SEC. 5000D. DESIGNATED DRUGS DURING NONCOMPLIANCE PERIODS. ‘‘(a) IN GENERAL.—There is hereby imposed on the sale by the manufacturer, producer, or importer of any designated drug during a day described in subsection (b) a tax in an amount such that the applicable percentage is equal to the ratio of— ‘‘(1) such tax, divided by ‘‘(2) the sum of such tax and the price for which so sold. ‘‘(b) NONCOMPLIANCE PERIODS.—A day is described in this sub- section with respect to a designated drug if it is a day during one of the following periods: ‘‘(1) The period beginning on the March 1st (or, in the case of initial price applicability year 2026, the October 2nd) immediately following the date on which such drug is included on the list published under section 1192(a) of the Social Security Act and ending on the earlier of— ‘‘(A) the first date on which the manufacturer of such designated drug has in place an agreement described in section 1193(a) of such Act with respect to such drug, or ‘‘(B) the date that the Secretary of Health and Human Services has made a determination described in section 1192(c)(1) of such Act with respect to such designated drug. ‘‘(2) The period beginning on the November 2nd imme- diately following the March 1st described in paragraph (1) (or, in the case of initial price applicability year 2026, the August 2nd immediately following the October 2nd described in such paragraph) and ending on the earlier of— ‘‘(A) the first date on which the manufacturer of such designated drug and the Secretary of Health and Human Services have agreed to a maximum fair price under an agreement described in section 1193(a) of the Social Secu- rity Act, or ‘‘(B) the date that the Secretary of Health and Human Services has made a determination described in section 1192(c)(1) of such Act with respect to such designated drug. ‘‘(3) In the case of any designated drug which is a selected drug (as defined in section 1192(c) of the Social Security Act) 26 USC 5000D. 26 USC 5000D prec. 42 USC 1320f–1 note. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00046 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw