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136 STAT. 1880 PUBLIC LAW 117–169—AUG. 16, 2022 ‘‘(A) IN GENERAL.—Subject to subparagraph (B), for purposes’’; and (B) by adding at the end the following new subpara- graph: ‘‘(B) INCLUSION OF MANUFACTURER DISCOUNTS ON APPLICABLE DRUGS.—For purposes of applying subpara- graph (A), the term ‘allowable reinsurance costs’ shall include the portion of the negotiated price (as defined in section 1860D–14C(g)(6)) of an applicable drug (as defined in section 1860D–14C(g)(2)) that was paid by a manufac- turer under the manufacturer discount program under sec- tion 1860D–14C.’’; and (3) in paragraph (3)— (A) in the first sentence, by striking ‘‘For purposes’’ and inserting ‘‘Subject to paragraph (2)(B), for purposes’’; and (B) in the second sentence, by inserting ‘‘(or, with respect to 2025 and subsequent years, in the case of an applicable drug, as defined in section 1860D–14C(g)(2), by a manufacturer)’’ after ‘‘by the individual or under the plan’’. (c) MANUFACTURER DISCOUNT PROGRAM.— (1) IN GENERAL.—Part D of title XVIII of the Social Security Act (42 U.S.C. 1395w–101 through 42 U.S.C. 1395w–153), as amended by section 11102, is amended by inserting after section 1860D–14B the following new sections: ‘‘SEC. 1860D–14C. MANUFACTURER DISCOUNT PROGRAM. ‘‘(a) ESTABLISHMENT.—The Secretary shall establish a manufac- turer discount program (in this section referred to as the ‘program’). Under the program, the Secretary shall enter into agreements described in subsection (b) with manufacturers and provide for the performance of the duties described in subsection (c). ‘‘(b) TERMS OF AGREEMENT.— ‘‘(1) IN GENERAL.— ‘‘(A) AGREEMENT.—An agreement under this section shall require the manufacturer to provide, in accordance with this section, discounted prices for applicable drugs of the manufacturer that are dispensed to applicable bene- ficiaries on or after January 1, 2025. ‘‘(B) CLARIFICATION.—Nothing in this section shall be construed as affecting— ‘‘(i) the application of a coinsurance of 25 percent of the negotiated price, as applied under paragraph (2)(A) of section 1860D–2(b), for costs described in such paragraph; or ‘‘(ii) the application of the copayment amount described in paragraph (4)(A) of such section, with respect to costs described in such paragraph. ‘‘(C) TIMING OF AGREEMENT.— ‘‘(i) SPECIAL RULE FOR 2025.—In order for an agree- ment with a manufacturer to be in effect under this section with respect to the period beginning on January 1, 2025, and ending on December 31, 2025, the manu- facturer shall enter into such agreement not later than March 1, 2024. Deadlines. Effective date. 42 USC 1395w–114c. Definition. VerDate Sep 11 2014 13:57 Oct 25, 2022 Jkt 029139 PO 00169 Frm 00064 Fmt 6580 Sfmt 6581 E:\PUBLAW\PUBL169.117 PUBL169 jmbennett on LAP3P8D0R2PROD with Publaw