Community Health Center Drug Pricing Protection Act

Section 340B(a) of the Public Health Service Act (42 U.S.C. 256b(a)) is amended by adding at the end the following new paragraph:

The Secretary may not enter into an agreement with a manufacturer of covered outpatient drugs under paragraph (1) under which the amount required to be paid to the manufacturer for covered outpatient drugs by a covered entity described in paragraph (4)(A) exceeds, at the point of purchase of such drug, the applicable ceiling price for such drug (as described in paragraph (1)).

Nothing in this section, or the amendment made by this section, shall be construed to permit under paragraph (1) of section 340B(a) of the Public Health Service Act (42 U.S.C. 256b(a)) any arrangement under which a covered entity described in paragraph (4)(A) of such section pays to the manufacturer of a covered outpatient drug an amount in excess of the applicable ceiling price for such drug (as described in such paragraph (1)) at the time of purchase, with later reconciliation by rebate, reimbursement, or other payment.

The amendments made by this section shall take effect on the date of the enactment of this section and shall apply to drugs purchased on or after the date of the enactment of this section.

Beginning on the date of the enactment of this section, the amendments made by this section shall be taken into account in determining whether an agreement with a manufacturer of covered outpatient drugs meets the requirements of section 340B(a) of the Public Health Service Act (42 U.S.C. 256b(a)).