81_FR_79033 81 FR 78816 - Medicaid Program; Announcement of Medicaid Drug Rebate Program National Rebate Agreement

81 FR 78816 - Medicaid Program; Announcement of Medicaid Drug Rebate Program National Rebate Agreement

DEPARTMENT OF HEALTH AND HUMAN SERVICES
Centers for Medicare & Medicaid Services

Federal Register Volume 81, Issue 217 (November 9, 2016)

Page Range78816-78835
FR Document2016-26834

This proposed notice with comment period announces changes that would be made to the Medicaid National Drug Rebate Agreement (NDRA) for use by the Secretary of the Department of Health and Human Services (HHS) and manufacturers under the Medicaid Drug Rebate Program (MDRP). We are updating the NDRA to incorporate legislative and regulatory changes that have occurred since the agreement was published in the February 21, 1991 Federal Register (56 FR 7049). We are also updating the NDRA to make editorial and structural revisions, such as references to the updated Office of Management and Budget (OMB)- approved data collection forms and electronic data reporting.

Federal Register, Volume 81 Issue 217 (Wednesday, November 9, 2016)
[Federal Register Volume 81, Number 217 (Wednesday, November 9, 2016)]
[Notices]
[Pages 78816-78835]
From the Federal Register Online  [www.thefederalregister.org]
[FR Doc No: 2016-26834]


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DEPARTMENT OF HEALTH AND HUMAN SERVICES

Centers for Medicare & Medicaid Services

[CMS-2397-PN]
RIN-0938-ZB29


Medicaid Program; Announcement of Medicaid Drug Rebate Program 
National Rebate Agreement

AGENCY: Centers for Medicare & Medicaid Services (CMS), HHS.

ACTION: Proposed notice.

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SUMMARY: This proposed notice with comment period announces changes 
that would be made to the Medicaid National Drug Rebate Agreement 
(NDRA) for use by the Secretary of the Department of Health and Human 
Services (HHS) and manufacturers under the Medicaid Drug Rebate Program 
(MDRP). We are updating the NDRA to incorporate legislative and 
regulatory changes that have occurred since the agreement was published 
in the February 21, 1991 Federal Register (56 FR 7049). We are also 
updating the NDRA to make editorial and structural revisions, such as 
references to the updated Office of Management and Budget (OMB)-
approved data collection forms and electronic data reporting.

DATES: To be assured consideration, comments must be received at one of 
the addresses provided below, no later than 5 p.m. on February 7, 2017.

ADDRESSES: In commenting, refer to file code CMS-2397-PN. Because of 
staff and resource limitations, we cannot accept comments by facsimile 
(FAX) transmission.
    You may submit comments in one of four ways (please choose only one 
of the ways listed):
    1. Electronically. You may submit electronic comments on this 
regulation to http://www.regulations.gov. Follow the ``Submit a 
comment'' instructions.
    2. By regular mail. You may mail written comments to the following 
address ONLY: Centers for Medicare & Medicaid Services, Department of 
Health and Human Services, Attention: CMS-2397-PN, P.O. Box 8016, 
Baltimore, MD 21244-8016.
    Please allow sufficient time for mailed comments to be received 
before the close of the comment period.

[[Page 78817]]

    3. By express or overnight mail. You may send written comments to 
the following address ONLY: Centers for Medicare & Medicaid Services, 
Department of Health and Human Services, Attention: CMS-2397-PN, Mail 
Stop C4-26-05, 7500 Security Boulevard, Baltimore, MD 21244-1850.
    4. By hand or courier. Alternatively, you may deliver (by hand or 
courier) your written comments ONLY to the following addresses:
    a. For delivery in Washington, DC--Centers for Medicare & Medicaid 
Services, Department of Health and Human Services, Room 445-G, Hubert 
H. Humphrey Building, 200 Independence Avenue SW., Washington, DC 
20201.
    (Because access to the interior of the Hubert H. Humphrey Building 
is not readily available to persons without Federal government 
identification, commenters are encouraged to leave their comments in 
the CMS drop slots located in the main lobby of the building. A stamp-
in clock is available for persons wishing to retain a proof of filing 
by stamping in and retaining an extra copy of the comments being 
filed.)
    b. For delivery in Baltimore, MD-- Centers for Medicare & Medicaid 
Services, Department of Health and Human Services, 7500 Security 
Boulevard, Baltimore, MD 21244-1850.
    If you intend to deliver your comments to the Baltimore address, 
call telephone number (410) 786-9994 in advance to schedule your 
arrival with one of our staff members.
    Comments erroneously mailed to the addresses indicated as 
appropriate for hand or courier delivery may be delayed and received 
after the comment period.
    For information on viewing public comments, see the beginning of 
the SUPPLEMENTARY INFORMATION section.

FOR FURTHER INFORMATION CONTACT: Terry Simananda, (410) 786-8144.

SUPPLEMENTARY INFORMATION: 
    Inspection of Public Comments: All comments received before the 
close of the comment period are available for viewing by the public, 
including any personally identifiable or confidential business 
information that is included in a comment. We post all comments 
received before the close of the comment period on the following Web 
site as soon as possible after they have been received: http://www.regulations.gov. Follow the search instructions on that Web site to 
view public comments.
    Comments received timely will also be available for public 
inspection as they are received, generally beginning approximately 3 
weeks after publication of a document, at the headquarters of the 
Centers for Medicare & Medicaid Services, 7500 Security Boulevard, 
Baltimore, Maryland 21244, Monday through Friday of each week from 8:30 
a.m. to 4 p.m. To schedule an appointment to view public comments, 
phone 1-800-743-3951.

I. Background

    Under the Medicaid Program, states may provide coverage of 
outpatient drugs furnished to eligible individuals as an optional 
benefit under section 1905(a)(12) of the Social Security Act (the Act). 
Section 1903(a) of the Act provides for federal financial participation 
(FFP) in state expenditures for these drugs. In general, for payment to 
be made available under section 1903 of the Act for most drugs, 
manufacturers must enter into, and have in effect, a Medicaid National 
Drug Rebate Agreement (NDRA) with the Secretary of the Department of 
Health and Human Services (HHS) as set forth in section 1927(a) of the 
Act.
    Authorized under section 1927 of the Act, the Medicaid Drug Rebate 
Program (MDRP) is a program that includes CMS, State Medicaid Agencies, 
and participating drug manufacturers that helps to partially offset the 
federal and state costs of most outpatient prescriptions drugs 
dispensed to Medicaid patients. Currently there are more than 600 drug 
manufacturers who participate in the MDRP. The NDRA provides that 
manufacturers are responsible for notifying states of a new drug's 
coverage. Additionally, manufacturers are required to report all 
covered outpatient drugs under their labeler code to the MDRP and may 
not be selective in reporting their NDCs to the program. Manufacturers 
are then responsible for paying a rebate on those drugs for which 
payment was made under the state plan. These rebates are paid by 
manufacturers on a quarterly basis to states and are shared between the 
states and the federal government to partially offset the overall cost 
of prescription drugs under the Medicaid Program.

II. Provisions of the Proposed Notice

    We are updating the NDRA to reflect the changes in the Covered 
Outpatient Drug final rule with comment period that was published in 
the February 1, 2016 Federal Register (81 FR 5170), as well as 
operational and other legislative changes that have occurred over the 
last 20 plus years since the NDRA was first issued in 1991. A sample of 
the finalized NDRA would be posted on the CMS Web site after we have 
considered the public comments and published the final notice. Once 
finalized, the updated NDRA would need to be signed by all 
participating manufacturers, as well as new manufacturers joining the 
program. Manufacturers with an active NDRA at the time the updated NDRA 
is to be executed would not be subject to verification of their 
proposed covered outpatient drug list. However, prospective 
manufacturers that request a new NDRA, or reinstatement of a previously 
active NDRA once the updated NDRA is available, would be subject to the 
current process of data submission and verification prior to the 
execution of an NDRA. We intend to provide additional instructions and 
guidance pertaining to how to execute new and renewal signatures of the 
finalized NDRA.
    In the Addendum to this notice with comment period, we provide a 
draft of the updated NDRA that we would use in the MDRP. If adopted, a 
drug manufacturer that seeks Medicaid coverage for its drugs would need 
to enter into the NDRA with the Secretary agreeing to provide the 
applicable rebate on those drugs for which payment was made under the 
state plan. We intend to use the updated NDRA as a standard agreement 
that will not be subject to further revisions based on negotiations 
with individual manufacturers.

III. Collection of Information Requirements

    As stated in section 4711(f) of the Omnibus Budget Reconciliation 
Act of 1990, Chapter 35 of title 44, United States Code, and Executive 
Order 12291 shall not apply to information and regulations required for 
purposes of carrying out this Act and implementing the amendments made 
by this Act. Consequently, there is no need for review by the Office of 
Management and Budget under the authority of the Paperwork Reduction 
Act of 1995 (44 U.S.C. 3501 et seq.).

IV. Response to Comments

    Because of the large number of public comments we normally receive 
on Federal Register documents, we are not able to acknowledge or 
respond to them individually. We will consider all comments we receive 
by the date and time specified in the DATES section of this preamble, 
and, when we proceed with a subsequent document, we will respond to the 
comments in the preamble to that document.

[[Page 78818]]

Addendum--Draft Agreement: National Drug Rebate Agreement Between the 
Secretary of Health and Human Services (Hereinafter referred to as 
``the Secretary'') and the Manufacturer

    The Secretary, on behalf of the U.S. Department of Health and Human 
Services and all states which have a Medicaid State Plan approved under 
42 U.S.C. 1396a, and the manufacturer, on its own behalf, for purposes 
of section 1927 of the Social Security Act (``the Act''), 42 U.S.C. 
1396r-8, hereby agree to the following:

I. Definitions

    The terms defined in this section will, for the purposes of this 
agreement, have the meanings specified in section 1927 of the Act and 
implementing Federal regulations, as interpreted and applied herein:
    (a) ``Average Manufacturer Price (AMP)'' will have the meaning set 
forth in section 1927(k)(1) of the Act as implemented by 42 CFR 
447.504.
    (b) ``Base Consumer Price Index-Urban (CPI-U)'' is the CPI-U for 
September, 1990. For drugs approved by the Food and Drug Administration 
(FDA) after October 1, 1990, ``Base CPI-U'' means the CPI-U for the 
month before the month in which the drug was first marketed.
    (c) ``Base Date AMP'' will have the meaning set forth in sections 
1927(c)(2)(A)(ii)(II) and 1927(c)(2)(B) of the Act.
    (d) ``Best Price'' will have the meaning set forth in section 
1927(c)(1)(C) of the Act as implemented by 42 CFR 447.505.
    (e) ``Bundled Sale'' will have the meaning set forth in 42 CFR 
447.502.
    (f) ``Centers for Medicare & Medicaid Services (CMS)'' means the 
agency of the U.S. Department of Health and Human Services having the 
delegated authority to operate the Medicaid Program.
    (g) ``Consumer Price Index-Urban (CPI-U)'' will have the meaning 
set forth in 42 CFR 447.502.
    (h) ``Covered Outpatient Drug'' will have the meaning set forth in 
sections 1927(k)(2), (k)(3) and (k)(4) of the Act as implemented by 42 
CFR 447.502.
    (i) ``Innovator Multiple Source Drug'' will have the meaning as set 
forth in section 1927(k)(7)(A)(ii) of the Act as implemented by 42 CFR 
447.502.
    (j) ``Manufacturer'' will have the meaning as set forth in section 
1927(k)(5) of the Act as implemented by 42 CFR 447.502.
    (k) Marketed'' means that a covered outpatient drug is available 
for sale by a manufacturer in the states.
    (l) ``Monthly AMP'' will have the meaning as set forth in 42 CFR 
447.510.
    (m) ``Multiple Source Drug'' will have the meaning as set forth in 
section 1927(k)(7)(A)(i) of the Act as implemented by 42 CFR 447.502.
    (n) ``National Drug Code (NDC)'' will have the meaning as set forth 
in 42 CFR 447.502.
    (o) ``Non-innovator Multiple Source Drug'' will have the meaning as 
set forth in section 1927(k)(7)(A)(iii) of the Act as implemented by 42 
CFR 447.502.
    (p) ``Quarterly AMP'' will have the meaning as set forth in 42 CFR 
447.504.
    (q) ``Rebate period'' will have the meaning as set forth in 42 CFR 
447.502.
    (r) ``Secretary'' means the Secretary of the U.S. Department of 
Health and Human Services, or any successor thereto, or any officer or 
employee of the U.S. Department of Health and Human Services or 
successor agency to whom the authority to implement this agreement has 
been delegated. In this agreement, references to CMS indicate such 
successor authority.
    (s) ``Single Source Drug'' will have the meaning set forth in 
section 1927(k)(7)(A)(iv) of the Act as implemented by 42 CFR 447.502.
    (t) ``State Drug Utilization Data'' means the total number of both 
fee-for-service (FFS) and managed care organization (MCO) units of each 
dosage form and strength of the manufacturer's covered outpatient drugs 
reimbursed during a rebate period under a Medicaid State Plan, other 
than units dispensed to Medicaid beneficiaries that were purchased by 
covered entities through the drug discount program under section 340B 
of the Public Health Service Act; state utilization data is supplied on 
the CMS-R-144 form (that is, the state rebate invoice).
    (u) ``States'' will have the meaning as set forth in 42 CFR 
447.502.
    (v) ``State Medicaid Agency'' means the agency designated by a 
state under sections 1902(a)(5) to administer or supervise the 
administration of the Medicaid program.
    (w) ``Unit'' means drug unit in the lowest dispensable amount. The 
manufacturer will specify the unit information associated with each 
covered outpatient drug per the instructions provided in CMS-367c.
    (x) ``Unit Rebate Amount (URA)'' means the computed amount to which 
the state drug utilization data is applied by states in invoicing the 
manufacturer for the rebate payment due.
    (y) ``United States'' will have the meaning as set forth in 42 CFR 
447.502.
    (z) ``Wholesaler'' will have the meaning as set forth in section 
1927(k)(11) of the Act as implemented by 42 CFR 447.502.

II. Manufacturer's Responsibilities

    In order for the Secretary to authorize that a state receive 
payment for the manufacturer's drugs under Title XIX of the Act, 42 
U.S.C. Section 1396 et seq., the manufacturer agrees to the 
requirements as implemented by 42 CFR 447.510 and the following:
    (a) The manufacturer shall identify an individual point of contact 
at a United States address to facilitate the necessary communications 
with states with respect to rebate invoice issues.
    (b) Beginning with the quarter in which the National Drug Rebate 
Agreement (rebate agreement) is signed, calculate, and report all 
required pricing data on every covered outpatient drug by NDC in 
accordance with section 1927 of the Act and as implemented by 42 CFR 
447.510. Furthermore, except as provided under section V(b) of this 
agreement, manufacturers are required to make a rebate payment in 
accordance with each calculated URA to each State Medicaid Agency for 
the manufacturer's covered outpatient drug(s) by NDC paid for by the 
state during a rebate period.
    (c) In accordance with the specifications pursuant to Office of 
Management and Budget (OMB)-approved CMS-367c form, report all covered 
outpatient drugs and corresponding drug product, pricing, and related 
data to the Secretary, upon entering into this agreement. This 
information is to be updated as necessary to include new NDCs and 
updates to existing NDCs. CMS uses drug information listed with FDA, 
such as Marketing Category and Drug Type, to be able to verify in some 
cases that an NDC meets the definition of a covered outpatient drug, 
therefore, manufacturers should ensure that their NDCs are 
electronically listed with FDA. Reports to CMS should include all 
applicable NDCs identifying the drug product which may be dispensed to 
a beneficiary, including package NDCs (outer package NDCs and inner 
package NDCs).
    (d) Beginning with the effective date quarter and in accordance 
with the specifications pursuant to OMB-approved CMS-367a form, report 
quarterly pricing data to the Secretary for all covered outpatient 
drugs in accordance with 42 CFR 447.510. This includes reporting for 
any package size which may be dispensed to the beneficiary. The 
manufacturer agrees to provide such information within 30 days of the 
last day of each rebate period beginning with the effective date 
quarter. Adjustments to all quarterly pricing data shall be reported on 
at least a quarterly basis.

[[Page 78819]]

    (e) In accordance with the OMB-approved CMS-367b form, report 
information including monthly AMPs and monthly AMP units for all 
covered outpatient drugs in accordance with 42 CFR 447.510. The 
manufacturer agrees to provide such information within 30 days of the 
end of the month of the effective date, and within 30 days of each 
month thereafter.
    (f) Except as provided under V(b), to make rebate payments within 
30 days after receiving the state rebate invoice. The manufacturer is 
responsible for timely payment of the rebate within 30 days so long as 
the state invoice contains, at a minimum, the number of units paid by 
NDC in accordance with 1927(b)(1) of the Act. To the extent that 
changes in product, pricing, or related data cause increases to 
previously submitted total rebate amounts, the manufacturer will be 
responsible for timely payment of those increases in the same 30 day 
time frame as the current rebate invoice.
    (g) To comply with the conditions of 42 U.S.C. section 1396r-8, 
changes thereto, implementing regulations, agency guidance and this 
Agreement.
    (h) In accordance with 1927(a)(1) of the Act, rebate agreements 
between the Secretary and the manufacturer entered into before March 1, 
1991 are retroactive to January 1, 1991. Rebate agreements entered into 
on or after March 1, 1991 shall have a mandatory effective date equal 
to the first day of the rebate period that begins more than 60 days 
after the date the agreement is entered into. Rebate agreements entered 
into on or after November 29, 1999 will also have an effective date 
equal to the date the rebate agreement is entered into that will permit 
optional state coverage of the manufacturer's NDCs as of that date.
    (i) To obtain and maintain access to the system used by the 
Medicaid Drug Rebate program, use that system to report required data 
to CMS, and ensure that their contact information is kept updated as 
required in the OMB-approved CMS-367d form.
    (j) To continue to make a rebate payment on all of its covered 
outpatient drugs for as long as an agreement with the Secretary is in 
force and state utilization data reports that payment was made for that 
drug, regardless of whether the manufacturer continues to market that 
drug. If there are no sales by the manufacturer during a rebate period, 
the AMP and best price reported in the prior rebate period should be 
used in calculating rebates.
    (k) To keep records (written or electronic) of the data and any 
other material from which the calculations of AMP and best price were 
derived in accordance with 42 CFR 447.510, and make such records 
available to the Secretary upon request. In the absence of specific 
guidance in section 1927 of the Act, federal regulations and the terms 
of this agreement, the manufacturer may make reasonable assumptions in 
its calculations of AMP and best price, consistent with the purpose of 
section 1927 of the Act, federal regulations and the terms of this 
agreement. A record (written or electronic) explaining these 
assumptions must also be maintained by the manufacturer in accordance 
with the recordkeeping requirements in 42 CFR 447.534, and such records 
must be made available to the Secretary upon request.
    (l) To notify CMS of any filing of bankruptcy, and to transmit such 
filing to CMS within seven days of the date of filing.

III. Secretary's Responsibilities

    (a) The Secretary will employ best efforts to ensure the State 
Medicaid Agency shall report to the manufacturer, within 60 days of the 
last day of each rebate period, the rebate invoice (CMS-R-144) or the 
minimum utilization information as described in section II(f) of this 
agreement, that is, information about Medicaid utilization of covered 
outpatient drugs that were paid for during the rebate period. 
Additionally, the Secretary will expect any changes to prior quarterly 
state drug utilization data to be reported at the same time.
    (b) The Secretary may survey those wholesalers and manufacturers 
that directly distribute their covered outpatient drugs to verify 
manufacturer prices and may impose civil monetary penalties as set 
forth in section 1927(b)(3)(B) of the Act and section IV of this 
agreement.
    (c) The Secretary may audit manufacturer information reported under 
section 1927(b)(3)(A) of the Act.

IV. Penalty Provisions

    (a) The Secretary may impose a civil monetary penalty under section 
III(b), as set forth in 1927(b)(3)(B) of the Act and applicable 
regulations, on a wholesaler, manufacturer, or direct seller of a 
covered outpatient drug, if a wholesaler, manufacturer, or direct 
seller of a covered outpatient drug refuses a request by the Secretary, 
or the Secretary's designee, for information about covered outpatient 
drug charges or prices or knowingly provides false information, 
including in any of its quarterly reports to the Secretary. The 
provisions of section 1128A of the Act (other than subsection (a) (with 
respect to amounts of penalties or additional assessments) and (b)) 
shall apply as set forth in section 1927(b)(3)(B) of the Act and 
applicable regulations.
    (b) The Secretary may impose a civil monetary penalty, for each 
item of false information as set forth in 1927(b)(3)(C)(ii) of the Act 
and applicable regulations.
    (c) The Secretary may impose a civil monetary penalty for failure 
to provide timely information on AMP, best price or base date AMP. The 
amount of the penalty shall be determined as set forth in 
1927(b)(3)(C)(i) of the Act and applicable regulations.
    (d) Nothing in this Agreement shall be construed to limit the 
remedies available to the United States or the states for a violation 
of this Agreement or any other provision of law.

V. Dispute Resolution

    (a) In the event a manufacturer discovers a potential discrepancy 
with state drug utilization data on the rebate invoice, which the 
manufacturer and state in good faith are unable to resolve prior to the 
payment due date, the manufacturer will submit a Reconciliation of 
State Invoice (ROSI) form, the CMS-304, to the state. If such a 
discrepancy is discovered for a prior rebate period's invoice, the 
manufacturer will submit a Prior Quarter Adjustment Statement (PQAS) 
form, CMS-304a, to the state.
    (b) If the manufacturer disputes in good faith any part of the 
state drug utilization data on the rebate invoice, the manufacturer 
shall pay the state for the rebate units not in dispute within the 
required due date in II(f). Upon resolution of the dispute, the 
manufacturer will either pay the balance due, if any, plus interest as 
set forth in section 1903(d)(5) of the Act, or be issued a credit by 
the state by the due date of the next quarterly payment in II(f).
    (c) The state and the manufacturer will use their best efforts to 
resolve a dispute arising under (a) or (b) above within 60 days of the 
state's receipt of the manufacturer's ROSI/PQAS. In the event that the 
state and manufacturer are not able to resolve the dispute within 60 
days, CMS shall require the state to make available to the manufacturer 
the same state hearing mechanism available to providers for Medicaid 
payment disputes.
    (d) Nothing in this section shall preclude the right of the 
manufacturer to audit the state drug utilization data reported (or 
required to be reported) by the state. The Secretary encourages the 
manufacturer and the state to develop mutually beneficial audit 
procedures.
    (e) The state hearing mechanism is not binding on the Secretary for

[[Page 78820]]

purposes of the Secretary's authority to implement the civil money 
penalty provisions of the statute or this agreement.

VI. Confidentiality Provisions

    (a) Pursuant to section 1927(b)(3)(D) of the Act and this 
agreement, information disclosed by the manufacturer in connection with 
this agreement is confidential and, notwithstanding other laws, will 
not be disclosed by the Secretary or State Medicaid Agency in a form 
which reveals the manufacturer, or prices charged by the manufacturer, 
except as authorized under section 1927(b)(3)(D).
    (b) The manufacturer will hold state drug utilization data 
confidential. If the manufacturer audits this information or receives 
further information on such data, that information shall also be held 
confidential. Except where otherwise specified in the Act or agreement, 
the manufacturer will observe confidentiality statutes, regulations, 
and other properly promulgated policy concerning such data.
    (c) Notwithstanding the nonrenewal or termination of this agreement 
for any reason, these confidentiality provisions will remain in full 
force and effect.

VII. Nonrenewal and Termination

    (a) Unless otherwise terminated by either party pursuant to the 
terms of this agreement, the agreement shall be effective beginning on 
the date specified in section II(h) of this agreement and shall be 
automatically renewed for additional successive terms of one year 
unless the manufacturer gives written notice of intent not to renew the 
agreement at least 90 days before the end of the current period.
    (b) In accordance with section VII(a) of this agreement, the 
manufacturer may terminate the agreement for any reason, and such 
termination shall become effective the later of the first day of the 
first rebate period beginning 60 days after the manufacturer gives 
written notice requesting termination, or CMS initiates termination via 
written notice to the manufacturer.
    The Secretary may terminate the agreement for failure of a 
manufacturer to make rebate payments to the state(s), failure to report 
required data, for other violations of this agreement, or other good 
cause upon 60 days prior written notice to the manufacturer of the 
existence of such violation or other good cause. The Secretary shall 
provide, upon request, a manufacturer with a hearing concerning such a 
termination, but such hearing shall not delay the effective date of the 
termination.
    (c) Manufacturers on the Office of Inspector General's (OIG's) List 
of Excluded Individuals/Entities (Exclusion List) will be subject to 
immediate termination from the Medicaid drug rebate program unless and 
until the manufacturer is reinstated by the OIG. Appeals of exclusion 
and any reinstatement will be handled in accordance with section 1128 
of the Act and applicable regulations. Manufacturers that are on the 
OIG Exclusion List and are reinstated by the OIG under certain 
circumstances may be evaluated for reinstatement to the Medicaid drug 
rebate program by CMS. Reinstatement to the Medicaid drug rebate 
program would be for the next rebate period that begins more than 60 
days from the date of the OIG's reinstatement of the manufacturer after 
exclusion.
    (d) If this rebate agreement is terminated, the manufacturer is 
prohibited from entering into another rebate agreement as set forth in 
section 1927(b)(4)(C) of the Act for at least one rebate period from 
the effective date of the termination, and the manufacturer addresses 
to the satisfaction of CMS any outstanding violations from any previous 
rebate agreement(s), including, but not limited to, payment of any 
outstanding rebates and good faith efforts to appeal or resolve matters 
pending with the OIG, unless the Secretary finds good cause for earlier 
reinstatement.
    (e) Any nonrenewal or termination will not affect rebates due 
before the effective date of termination.

VIII. General Provisions

    (a) This agreement is subject to any changes in the Medicaid 
statute or regulations that affect the rebate program.
    (b) Any notice required to be given pursuant to the terms and 
provisions of this agreement will be permitted in writing or 
electronically.
    Notice to the Secretary will be sent to: Centers for Medicaid and 
CHIP Services, Disabled & Elderly Health Programs Group, Division of 
Pharmacy, Mail Stop S2-14-26, 7500 Security Blvd., Baltimore, MD 21244.
    The CMS address may be updated upon notice to the manufacturer.
    Notice to the manufacturer will be sent to the email and/or 
physical mailing address as provided under section X of this agreement 
and updated upon manufacturer notification to CMS at the email and/or 
address in this agreement.
    (c) In the event of a transfer in ownership of the manufacturer, 
this agreement and any outstanding rebate liability are automatically 
assigned to the new owner subject to the conditions as set forth in 
section 1927 of the Act.
    (d) Nothing in this agreement will be construed to require or 
authorize the commission of any act contrary to law. If any provision 
of this agreement is found to be invalid by a court of law, this 
agreement will be construed in all respects as if any invalid or 
unenforceable provision were eliminated, and without any effect on any 
other provision.
    (e) Nothing in this agreement shall be construed as a waiver or 
relinquishment of any legal rights of the manufacturer or the Secretary 
under the Constitution, the Act, other federal laws, or state laws.
    (f) The rebate agreement shall be construed in accordance with 
Federal law and ambiguities shall be interpreted in the manner which 
best effectuates the statutory scheme.
    (g) The terms ``State Medicaid Agency'' and ``Manufacturer'' 
incorporate any contractors which fulfill responsibilities pursuant to 
the agreement unless specifically provided for in the rebate agreement 
or specifically agreed to by an appropriate CMS official.
    (h) Except for the conditions specified in II(g) and VIII(a), this 
agreement will not be altered except by an amendment in writing signed 
by both parties. No person is authorized to alter or vary the terms 
unless the alteration appears by way of a written amendment, signed by 
duly appointed representatives of the Secretary and the manufacturer.
    (i) In the event that a due date falls on a weekend or Federal 
holiday, the report or other item will be due on the first business day 
following that weekend or Federal holiday.

IX. CMS-367

    CMS-367 attached hereto is part of this agreement.

X. Signatures

FOR THE SECRETARY OF HEALTH AND HUMAN SERVICES

By:--------------------------------------------------------------------

     (signature)

Date:------------------------------------------------------------------

Title: Director
Disabled and Elderly Health Programs Group
Center for Medicaid and CHIP Services
Centers for Medicare & Medicaid Services
U.S. Department of Health and Human Services

ACCEPTED FOR THE MANUFACTURER


[[Page 78821]]


I certify that I have made no alterations, amendments or other changes 
to this rebate agreement.

By:--------------------------------------------------------------------

     (signature)

(please print name)----------------------------------------------------

Title:-----------------------------------------------------------------

Name of Manfacturer:---------------------------------------------------

Manufacturer Address---------------------------------------------------
-----------------------------------------------------------------------

Manufacturer Labeler Code(s):------------------------------------------

Date:------------------------------------------------------------------

BILLING CODE 4120-01-P

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BILLING CODE 4120-01-C

    CMS-367d (Exp. 03/31/2019), OMB No. 0938-0578 According to the 
Paperwork Reduction Act of 1995, no persons are required to respond to 
a collection of information unless it displays a valid OMB control 
number. The valid OMB control number for this information collection is 
0938-0578. The time required to complete this information collection is 
estimated to average 1 hour per response, including the time to review 
instructions, gather the data needed, and complete and review the 
information collection. If you have comments concerning the accuracy of 
the time estimate or suggestions for improving this form, please write 
to: CMS, 7500 Security Boulevard, Attn: PRA Reports Clearance Officer, 
Baltimore, Maryland 21244-1850.

    Dated: August 11, 2016.
Andrew M. Slavitt,
Acting Administrator, Centers for Medicare & Medicaid Services.
    Approved: October 18, 2016.
Sylvia Burwell,
Secretary, Department of Health and Human Services.
[FR Doc. 2016-26834 Filed 11-7-16; 11:15 am]
 BILLING CODE 4120-01-P



                                                78816                    Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices

                                                or webinar. Information on the option to                is assigned a host (in accordance with                  Dated: October 27, 2016.
                                                participate via live streaming                          the Department Foreign Visitor                        Andrew M. Slavitt,
                                                technology or webinar will be provided                  Management Policy, Appendix C,                        Acting Administrator, Centers for Medicare
                                                through an upcoming listserv notice and                 Guidelines for Hosts and Escorts). The                & Medicaid Services.
                                                posted on the New Technology Web site                   host/hosting official is required to                  [FR Doc. 2016–27007 Filed 11–8–16; 8:45 am]
                                                at http://www.cms.gov/Medicare/                         inform the Division of Physical Security              BILLING CODE 4120–01–P
                                                Medicare-Fee-for-Service-Payment/                       and Strategic Information (DPPSI) at
                                                AcuteInpatientPPS/newtech.html.                         least 12 business days in advance of any
                                                Continue to check the Web site for                      visit by a foreign national. Foreign                  DEPARTMENT OF HEALTH AND
                                                updates.                                                nationals will be required to produce a               HUMAN SERVICES
                                                                                                        valid passport at the time of entry.
                                                C. Disclaimer                                              Attendees that are foreign nationals               Centers for Medicare & Medicaid
                                                   We cannot guarantee reliability for                  need to identify themselves as such, and              Services
                                                live streaming technology or a webinar.                 make a request for a special                          [CMS–2397–PN]
                                                III. Registration Instructions                          accommodation. Foreign national
                                                                                                        visitors are defined as non-U.S. citizens;            RIN–0938–ZB29
                                                   The Division of Acute Care in CMS is                 and non-lawful permanent residents,
                                                coordinating the meeting registration for                                                                     Medicaid Program; Announcement of
                                                                                                        non-resident aliens or non-green card                 Medicaid Drug Rebate Program
                                                the Town Hall Meeting on substantial                    holders. Foreign nationals must provide
                                                clinical improvement. While there is no                                                                       National Rebate Agreement
                                                                                                        the following information for security
                                                registration fee, individuals planning to               clearance to staff listed in the FOR                  AGENCY:  Centers for Medicare &
                                                attend the Town Hall Meeting in person                  FURTHER INFORMATION CONTACT section of                Medicaid Services (CMS), HHS.
                                                must register to attend.                                this notice by the date for requesting                ACTION: Proposed notice.
                                                   Registration may be completed on-                    special accommodations specified in the
                                                line at the following web address:                      DATES section of this notice:                         SUMMARY:    This proposed notice with
                                                http://www.cms.gov/Medicare/                               ++ Visitor’s full name (as it appears              comment period announces changes
                                                Medicare-Fee-for-Service-Payment/                       on passport).                                         that would be made to the Medicaid
                                                AcuteInpatientPPS/newtech.html.                            ++ Gender.                                         National Drug Rebate Agreement
                                                Select the link at the bottom of the page                  ++ Country of origin and citizenship.              (NDRA) for use by the Secretary of the
                                                ‘‘Register to Attend the New Technology                    ++ Date of birth.                                  Department of Health and Human
                                                Town Hall Meeting’’. After completing                      ++ Place of birth.                                 Services (HHS) and manufacturers
                                                the registration, on-line registrants                      ++ Passport number.                                under the Medicaid Drug Rebate
                                                should print the confirmation page(s)                      ++ Passport issue date.                            Program (MDRP). We are updating the
                                                and bring it with them to the meeting.                     ++ Passport expiration date.                       NDRA to incorporate legislative and
                                                   If you are unable to register online,                   ++ Visa type.                                      regulatory changes that have occurred
                                                you may register by sending an email to                    ++ Date(s) of visit(s).                            since the agreement was published in
                                                newtech@cms.hhs.gov. Please include                        ++ Company name.                                   the February 21, 1991 Federal Register
                                                your name, address, telephone number,                      ++ Position/Title.                                 (56 FR 7049). We are also updating the
                                                email address and fax number. If seating                   • Inspection of vehicle’s interior and             NDRA to make editorial and structural
                                                capacity has been reached, you will be                  exterior (this includes engine and trunk              revisions, such as references to the
                                                notified that the meeting has reached                   inspection) at the entrance to the                    updated Office of Management and
                                                capacity.                                               grounds. Parking permits and                          Budget (OMB)-approved data collection
                                                                                                        instructions will be issued after the                 forms and electronic data reporting.
                                                IV. Security, Building, and Parking                     vehicle inspection.                                   DATES: To be assured consideration,
                                                Guidelines                                                 • Inspection, via metal detector or
                                                                                                                                                              comments must be received at one of
                                                   Because the meeting will be located                  other applicable means of all persons
                                                                                                                                                              the addresses provided below, no later
                                                on Federal property, for security                       entering the building. We note that all
                                                                                                                                                              than 5 p.m. on February 7, 2017.
                                                reasons, any persons wishing to attend                  items brought to CMS, whether personal
                                                                                                                                                              ADDRESSES: In commenting, refer to file
                                                this meeting must register by the date                  or for the purpose of presentation or to
                                                                                                        support a presentation, are subject to                code CMS–2397–PN. Because of staff
                                                specified in the DATES section of this                                                                        and resource limitations, we cannot
                                                notice. Please allow sufficient time to go              inspection. We cannot assume
                                                                                                                                                              accept comments by facsimile (FAX)
                                                through the security checkpoints. It is                 responsibility for coordinating the
                                                                                                                                                              transmission.
                                                suggested that you arrive at 7500                       receipt, transfer, transport, storage, set-
                                                                                                                                                                 You may submit comments in one of
                                                Security Boulevard no later than 8:30                   up, safety, or timely arrival of any                  four ways (please choose only one of the
                                                a.m. e.s.t. if you are attending the Town               personal belongings or items used for                 ways listed):
                                                Hall Meeting in person so that you will                 presentation or to support a                             1. Electronically. You may submit
                                                be able to arrive promptly for the                      presentation.                                         electronic comments on this regulation
                                                meeting.                                                  Note: Individuals who are not registered in         to http://www.regulations.gov. Follow
                                                   Security measures include the                        advance will not be permitted to enter the            the ‘‘Submit a comment’’ instructions.
                                                following:                                              building and will be unable to attend the                2. By regular mail. You may mail
                                                   • Presentation of government-issued                  meeting in person. The public may not enter           written comments to the following
                                                                                                        the building earlier than 45 minutes prior to
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                                                photographic identification to the                                                                            address ONLY: Centers for Medicare &
                                                Federal Protective Service or Guard                     the convening of the meeting.
                                                                                                                                                              Medicaid Services, Department of
                                                Service personnel.                                        All visitors must be escorted in all                Health and Human Services, Attention:
                                                   • CMS policy requires that every                     areas other than the lower level lobby                CMS–2397–PN, P.O. Box 8016,
                                                foreign national (defined by the                        and cafeteria area and first floor                    Baltimore, MD 21244–8016.
                                                Department of Homeland Security is                      auditorium and conference areas in the                   Please allow sufficient time for mailed
                                                ‘‘an individual who is a citizen of any                 Central Building. Seating capacity is                 comments to be received before the
                                                country other than the United States’’)                 limited to the first 250 registrants.                 close of the comment period.


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                                                                         Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices                                           78817

                                                   3. By express or overnight mail. You                 of a document, at the headquarters of                 final notice. Once finalized, the updated
                                                may send written comments to the                        the Centers for Medicare & Medicaid                   NDRA would need to be signed by all
                                                following address ONLY: Centers for                     Services, 7500 Security Boulevard,                    participating manufacturers, as well as
                                                Medicare & Medicaid Services,                           Baltimore, Maryland 21244, Monday                     new manufacturers joining the program.
                                                Department of Health and Human                          through Friday of each week from 8:30                 Manufacturers with an active NDRA at
                                                Services, Attention: CMS–2397–PN,                       a.m. to 4 p.m. To schedule an                         the time the updated NDRA is to be
                                                Mail Stop C4–26–05, 7500 Security                       appointment to view public comments,                  executed would not be subject to
                                                Boulevard, Baltimore, MD 21244–1850.                    phone 1–800–743–3951.                                 verification of their proposed covered
                                                   4. By hand or courier. Alternatively,                I. Background                                         outpatient drug list. However,
                                                you may deliver (by hand or courier)                                                                          prospective manufacturers that request a
                                                your written comments ONLY to the                          Under the Medicaid Program, states
                                                                                                        may provide coverage of outpatient                    new NDRA, or reinstatement of a
                                                following addresses:
                                                                                                        drugs furnished to eligible individuals               previously active NDRA once the
                                                   a. For delivery in Washington, DC—
                                                                                                        as an optional benefit under section                  updated NDRA is available, would be
                                                Centers for Medicare & Medicaid
                                                Services, Department of Health and                      1905(a)(12) of the Social Security Act                subject to the current process of data
                                                Human Services, Room 445–G, Hubert                      (the Act). Section 1903(a) of the Act                 submission and verification prior to the
                                                H. Humphrey Building, 200                               provides for federal financial                        execution of an NDRA. We intend to
                                                Independence Avenue SW.,                                participation (FFP) in state expenditures             provide additional instructions and
                                                Washington, DC 20201.                                   for these drugs. In general, for payment              guidance pertaining to how to execute
                                                   (Because access to the interior of the               to be made available under section 1903               new and renewal signatures of the
                                                Hubert H. Humphrey Building is not                      of the Act for most drugs, manufacturers              finalized NDRA.
                                                readily available to persons without                    must enter into, and have in effect, a
                                                                                                                                                                 In the Addendum to this notice with
                                                Federal government identification,                      Medicaid National Drug Rebate
                                                                                                                                                              comment period, we provide a draft of
                                                commenters are encouraged to leave                      Agreement (NDRA) with the Secretary
                                                                                                        of the Department of Health and Human                 the updated NDRA that we would use
                                                their comments in the CMS drop slots                                                                          in the MDRP. If adopted, a drug
                                                located in the main lobby of the                        Services (HHS) as set forth in section
                                                                                                        1927(a) of the Act.                                   manufacturer that seeks Medicaid
                                                building. A stamp-in clock is available                                                                       coverage for its drugs would need to
                                                                                                           Authorized under section 1927 of the
                                                for persons wishing to retain a proof of                                                                      enter into the NDRA with the Secretary
                                                                                                        Act, the Medicaid Drug Rebate Program
                                                filing by stamping in and retaining an                                                                        agreeing to provide the applicable rebate
                                                                                                        (MDRP) is a program that includes CMS,
                                                extra copy of the comments being filed.)
                                                                                                        State Medicaid Agencies, and                          on those drugs for which payment was
                                                   b. For delivery in Baltimore, MD—
                                                                                                        participating drug manufacturers that                 made under the state plan. We intend to
                                                Centers for Medicare & Medicaid
                                                                                                        helps to partially offset the federal and             use the updated NDRA as a standard
                                                Services, Department of Health and
                                                                                                        state costs of most outpatient                        agreement that will not be subject to
                                                Human Services, 7500 Security
                                                                                                        prescriptions drugs dispensed to                      further revisions based on negotiations
                                                Boulevard, Baltimore, MD 21244–1850.
                                                                                                        Medicaid patients. Currently there are                with individual manufacturers.
                                                   If you intend to deliver your
                                                                                                        more than 600 drug manufacturers who
                                                comments to the Baltimore address, call                                                                       III. Collection of Information
                                                                                                        participate in the MDRP. The NDRA
                                                telephone number (410) 786–9994 in                                                                            Requirements
                                                                                                        provides that manufacturers are
                                                advance to schedule your arrival with
                                                                                                        responsible for notifying states of a new
                                                one of our staff members.                                                                                       As stated in section 4711(f) of the
                                                                                                        drug’s coverage. Additionally,
                                                   Comments erroneously mailed to the                                                                         Omnibus Budget Reconciliation Act of
                                                                                                        manufacturers are required to report all
                                                addresses indicated as appropriate for                                                                        1990, Chapter 35 of title 44, United
                                                                                                        covered outpatient drugs under their
                                                hand or courier delivery may be delayed                                                                       States Code, and Executive Order 12291
                                                                                                        labeler code to the MDRP and may not
                                                and received after the comment period.                                                                        shall not apply to information and
                                                                                                        be selective in reporting their NDCs to
                                                   For information on viewing public                                                                          regulations required for purposes of
                                                                                                        the program. Manufacturers are then
                                                comments, see the beginning of the                                                                            carrying out this Act and implementing
                                                                                                        responsible for paying a rebate on those
                                                SUPPLEMENTARY INFORMATION section.                                                                            the amendments made by this Act.
                                                                                                        drugs for which payment was made
                                                FOR FURTHER INFORMATION CONTACT:                        under the state plan. These rebates are               Consequently, there is no need for
                                                Terry Simananda, (410) 786–8144.                        paid by manufacturers on a quarterly                  review by the Office of Management and
                                                SUPPLEMENTARY INFORMATION:                              basis to states and are shared between                Budget under the authority of the
                                                   Inspection of Public Comments: All                   the states and the federal government to              Paperwork Reduction Act of 1995 (44
                                                comments received before the close of                   partially offset the overall cost of                  U.S.C. 3501 et seq.).
                                                the comment period are available for                    prescription drugs under the Medicaid
                                                viewing by the public, including any                    Program.                                              IV. Response to Comments
                                                personally identifiable or confidential
                                                                                                        II. Provisions of the Proposed Notice                   Because of the large number of public
                                                business information that is included in
                                                a comment. We post all comments                            We are updating the NDRA to reflect                comments we normally receive on
                                                received before the close of the                        the changes in the Covered Outpatient                 Federal Register documents, we are not
                                                comment period on the following Web                     Drug final rule with comment period                   able to acknowledge or respond to them
                                                site as soon as possible after they have                that was published in the February 1,                 individually. We will consider all
                                                been received: http://                                  2016 Federal Register (81 FR 5170), as                comments we receive by the date and
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                                                www.regulations.gov. Follow the search                  well as operational and other legislative             time specified in the DATES section of
                                                instructions on that Web site to view                   changes that have occurred over the last              this preamble, and, when we proceed
                                                public comments.                                        20 plus years since the NDRA was first                with a subsequent document, we will
                                                   Comments received timely will also                   issued in 1991. A sample of the                       respond to the comments in the
                                                be available for public inspection as                   finalized NDRA would be posted on the                 preamble to that document.
                                                they are received, generally beginning                  CMS Web site after we have considered
                                                approximately 3 weeks after publication                 the public comments and published the


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                                                78818                    Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices

                                                Addendum—Draft Agreement: National                         (m) ‘‘Multiple Source Drug’’ will have             II. Manufacturer’s Responsibilities
                                                Drug Rebate Agreement Between the                       the meaning as set forth in section                     In order for the Secretary to authorize
                                                Secretary of Health and Human                           1927(k)(7)(A)(i) of the Act as                        that a state receive payment for the
                                                Services (Hereinafter referred to as ‘‘the              implemented by 42 CFR 447.502.                        manufacturer’s drugs under Title XIX of
                                                Secretary’’) and the Manufacturer                          (n) ‘‘National Drug Code (NDC)’’ will              the Act, 42 U.S.C. Section 1396 et seq.,
                                                   The Secretary, on behalf of the U.S.                 have the meaning as set forth in 42 CFR               the manufacturer agrees to the
                                                Department of Health and Human                          447.502.                                              requirements as implemented by 42 CFR
                                                Services and all states which have a                       (o) ‘‘Non-innovator Multiple Source                447.510 and the following:
                                                Medicaid State Plan approved under 42                   Drug’’ will have the meaning as set forth               (a) The manufacturer shall identify an
                                                U.S.C. 1396a, and the manufacturer, on                  in section 1927(k)(7)(A)(iii) of the Act as           individual point of contact at a United
                                                its own behalf, for purposes of section                 implemented by 42 CFR 447.502.                        States address to facilitate the necessary
                                                1927 of the Social Security Act (‘‘the                     (p) ‘‘Quarterly AMP’’ will have the                communications with states with
                                                Act’’), 42 U.S.C. 1396r–8, hereby agree                 meaning as set forth in 42 CFR 447.504.               respect to rebate invoice issues.
                                                to the following:                                          (q) ‘‘Rebate period’’ will have the                  (b) Beginning with the quarter in
                                                                                                        meaning as set forth in 42 CFR 447.502.               which the National Drug Rebate
                                                I. Definitions                                             (r) ‘‘Secretary’’ means the Secretary of           Agreement (rebate agreement) is signed,
                                                   The terms defined in this section will,              the U.S. Department of Health and                     calculate, and report all required pricing
                                                for the purposes of this agreement, have                Human Services, or any successor                      data on every covered outpatient drug
                                                the meanings specified in section 1927                  thereto, or any officer or employee of                by NDC in accordance with section 1927
                                                of the Act and implementing Federal                     the U.S. Department of Health and                     of the Act and as implemented by 42
                                                regulations, as interpreted and applied                 Human Services or successor agency to                 CFR 447.510. Furthermore, except as
                                                herein:                                                 whom the authority to implement this                  provided under section V(b) of this
                                                   (a) ‘‘Average Manufacturer Price                     agreement has been delegated. In this                 agreement, manufacturers are required
                                                (AMP)’’ will have the meaning set forth                 agreement, references to CMS indicate                 to make a rebate payment in accordance
                                                in section 1927(k)(1) of the Act as                     such successor authority.                             with each calculated URA to each State
                                                implemented by 42 CFR 447.504.                             (s) ‘‘Single Source Drug’’ will have the           Medicaid Agency for the manufacturer’s
                                                   (b) ‘‘Base Consumer Price Index-                     meaning set forth in section                          covered outpatient drug(s) by NDC paid
                                                Urban (CPI–U)’’ is the CPI–U for                        1927(k)(7)(A)(iv) of the Act as                       for by the state during a rebate period.
                                                September, 1990. For drugs approved by                  implemented by 42 CFR 447.502.                          (c) In accordance with the
                                                the Food and Drug Administration                           (t) ‘‘State Drug Utilization Data’’                specifications pursuant to Office of
                                                (FDA) after October 1, 1990, ‘‘Base CPI–                means the total number of both fee-for-               Management and Budget (OMB)-
                                                U’’ means the CPI–U for the month                       service (FFS) and managed care                        approved CMS–367c form, report all
                                                before the month in which the drug was                  organization (MCO) units of each dosage               covered outpatient drugs and
                                                first marketed.                                         form and strength of the manufacturer’s               corresponding drug product, pricing,
                                                   (c) ‘‘Base Date AMP’’ will have the                  covered outpatient drugs reimbursed                   and related data to the Secretary, upon
                                                meaning set forth in sections                           during a rebate period under a Medicaid               entering into this agreement. This
                                                1927(c)(2)(A)(ii)(II) and 1927(c)(2)(B) of              State Plan, other than units dispensed to             information is to be updated as
                                                the Act.                                                Medicaid beneficiaries that were                      necessary to include new NDCs and
                                                   (d) ‘‘Best Price’’ will have the meaning             purchased by covered entities through                 updates to existing NDCs. CMS uses
                                                set forth in section 1927(c)(1)(C) of the               the drug discount program under                       drug information listed with FDA, such
                                                Act as implemented by 42 CFR 447.505.                   section 340B of the Public Health                     as Marketing Category and Drug Type,
                                                   (e) ‘‘Bundled Sale’’ will have the                   Service Act; state utilization data is                to be able to verify in some cases that
                                                meaning set forth in 42 CFR 447.502.                    supplied on the CMS–R–144 form (that
                                                   (f) ‘‘Centers for Medicare & Medicaid                                                                      an NDC meets the definition of a
                                                                                                        is, the state rebate invoice).                        covered outpatient drug, therefore,
                                                Services (CMS)’’ means the agency of
                                                                                                           (u) ‘‘States’’ will have the meaning as            manufacturers should ensure that their
                                                the U.S. Department of Health and
                                                                                                        set forth in 42 CFR 447.502.                          NDCs are electronically listed with
                                                Human Services having the delegated
                                                                                                           (v) ‘‘State Medicaid Agency’’ means                FDA. Reports to CMS should include all
                                                authority to operate the Medicaid
                                                                                                        the agency designated by a state under                applicable NDCs identifying the drug
                                                Program.
                                                   (g) ‘‘Consumer Price Index-Urban                     sections 1902(a)(5) to administer or                  product which may be dispensed to a
                                                (CPI–U)’’ will have the meaning set forth               supervise the administration of the                   beneficiary, including package NDCs
                                                in 42 CFR 447.502.                                      Medicaid program.                                     (outer package NDCs and inner package
                                                   (h) ‘‘Covered Outpatient Drug’’ will                    (w) ‘‘Unit’’ means drug unit in the                NDCs).
                                                have the meaning set forth in sections                  lowest dispensable amount. The                          (d) Beginning with the effective date
                                                1927(k)(2), (k)(3) and (k)(4) of the Act as             manufacturer will specify the unit                    quarter and in accordance with the
                                                implemented by 42 CFR 447.502.                          information associated with each                      specifications pursuant to OMB-
                                                   (i) ‘‘Innovator Multiple Source Drug’’               covered outpatient drug per the                       approved CMS–367a form, report
                                                will have the meaning as set forth in                   instructions provided in CMS–367c.                    quarterly pricing data to the Secretary
                                                section 1927(k)(7)(A)(ii) of the Act as                    (x) ‘‘Unit Rebate Amount (URA)’’                   for all covered outpatient drugs in
                                                implemented by 42 CFR 447.502.                          means the computed amount to which                    accordance with 42 CFR 447.510. This
                                                   (j) ‘‘Manufacturer’’ will have the                   the state drug utilization data is applied            includes reporting for any package size
                                                                                                        by states in invoicing the manufacturer               which may be dispensed to the
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                                                meaning as set forth in section
                                                1927(k)(5) of the Act as implemented by                 for the rebate payment due.                           beneficiary. The manufacturer agrees to
                                                42 CFR 447.502.                                            (y) ‘‘United States’’ will have the                provide such information within 30
                                                   (k) Marketed’’ means that a covered                  meaning as set forth in 42 CFR 447.502.               days of the last day of each rebate
                                                outpatient drug is available for sale by                   (z) ‘‘Wholesaler’’ will have the                   period beginning with the effective date
                                                a manufacturer in the states.                           meaning as set forth in section                       quarter. Adjustments to all quarterly
                                                   (l) ‘‘Monthly AMP’’ will have the                    1927(k)(11) of the Act as implemented                 pricing data shall be reported on at least
                                                meaning as set forth in 42 CFR 447.510.                 by 42 CFR 447.502.                                    a quarterly basis.


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                                                                         Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices                                            78819

                                                   (e) In accordance with the OMB-                      accordance with 42 CFR 447.510, and                   forth in section 1927(b)(3)(B) of the Act
                                                approved CMS–367b form, report                          make such records available to the                    and applicable regulations.
                                                information including monthly AMPs                      Secretary upon request. In the absence                  (b) The Secretary may impose a civil
                                                and monthly AMP units for all covered                   of specific guidance in section 1927 of               monetary penalty, for each item of false
                                                outpatient drugs in accordance with 42                  the Act, federal regulations and the                  information as set forth in
                                                CFR 447.510. The manufacturer agrees                    terms of this agreement, the                          1927(b)(3)(C)(ii) of the Act and
                                                to provide such information within 30                   manufacturer may make reasonable                      applicable regulations.
                                                days of the end of the month of the                     assumptions in its calculations of AMP                  (c) The Secretary may impose a civil
                                                effective date, and within 30 days of                   and best price, consistent with the                   monetary penalty for failure to provide
                                                each month thereafter.                                  purpose of section 1927 of the Act,                   timely information on AMP, best price
                                                   (f) Except as provided under V(b), to                federal regulations and the terms of this             or base date AMP. The amount of the
                                                make rebate payments within 30 days                     agreement. A record (written or                       penalty shall be determined as set forth
                                                after receiving the state rebate invoice.               electronic) explaining these                          in 1927(b)(3)(C)(i) of the Act and
                                                The manufacturer is responsible for                     assumptions must also be maintained by                applicable regulations.
                                                timely payment of the rebate within 30                  the manufacturer in accordance with the                 (d) Nothing in this Agreement shall be
                                                days so long as the state invoice                       recordkeeping requirements in 42 CFR                  construed to limit the remedies
                                                contains, at a minimum, the number of                   447.534, and such records must be made                available to the United States or the
                                                units paid by NDC in accordance with                    available to the Secretary upon request.              states for a violation of this Agreement
                                                1927(b)(1) of the Act. To the extent that                  (l) To notify CMS of any filing of                 or any other provision of law.
                                                changes in product, pricing, or related                 bankruptcy, and to transmit such filing               V. Dispute Resolution
                                                data cause increases to previously                      to CMS within seven days of the date of
                                                submitted total rebate amounts, the                     filing.                                                  (a) In the event a manufacturer
                                                manufacturer will be responsible for                                                                          discovers a potential discrepancy with
                                                                                                        III. Secretary’s Responsibilities                     state drug utilization data on the rebate
                                                timely payment of those increases in the
                                                same 30 day time frame as the current                      (a) The Secretary will employ best                 invoice, which the manufacturer and
                                                rebate invoice.                                         efforts to ensure the State Medicaid                  state in good faith are unable to resolve
                                                   (g) To comply with the conditions of                 Agency shall report to the manufacturer,              prior to the payment due date, the
                                                42 U.S.C. section 1396r–8, changes                      within 60 days of the last day of each                manufacturer will submit a
                                                thereto, implementing regulations,                      rebate period, the rebate invoice (CMS–               Reconciliation of State Invoice (ROSI)
                                                agency guidance and this Agreement.                     R–144) or the minimum utilization                     form, the CMS–304, to the state. If such
                                                   (h) In accordance with 1927(a)(1) of                 information as described in section II(f)             a discrepancy is discovered for a prior
                                                the Act, rebate agreements between the                  of this agreement, that is, information               rebate period’s invoice, the
                                                Secretary and the manufacturer entered                  about Medicaid utilization of covered                 manufacturer will submit a Prior
                                                into before March 1, 1991 are retroactive               outpatient drugs that were paid for                   Quarter Adjustment Statement (PQAS)
                                                to January 1, 1991. Rebate agreements                   during the rebate period. Additionally,               form, CMS–304a, to the state.
                                                entered into on or after March 1, 1991                  the Secretary will expect any changes to                 (b) If the manufacturer disputes in
                                                shall have a mandatory effective date                   prior quarterly state drug utilization                good faith any part of the state drug
                                                equal to the first day of the rebate period             data to be reported at the same time.                 utilization data on the rebate invoice,
                                                that begins more than 60 days after the                    (b) The Secretary may survey those                 the manufacturer shall pay the state for
                                                date the agreement is entered into.                     wholesalers and manufacturers that                    the rebate units not in dispute within
                                                Rebate agreements entered into on or                    directly distribute their covered                     the required due date in II(f). Upon
                                                after November 29, 1999 will also have                  outpatient drugs to verify manufacturer               resolution of the dispute, the
                                                an effective date equal to the date the                 prices and may impose civil monetary                  manufacturer will either pay the balance
                                                rebate agreement is entered into that                   penalties as set forth in section                     due, if any, plus interest as set forth in
                                                will permit optional state coverage of                  1927(b)(3)(B) of the Act and section IV               section 1903(d)(5) of the Act, or be
                                                the manufacturer’s NDCs as of that date.                of this agreement.                                    issued a credit by the state by the due
                                                   (i) To obtain and maintain access to                    (c) The Secretary may audit                        date of the next quarterly payment in
                                                the system used by the Medicaid Drug                    manufacturer information reported                     II(f).
                                                Rebate program, use that system to                      under section 1927(b)(3)(A) of the Act.                  (c) The state and the manufacturer
                                                report required data to CMS, and ensure                                                                       will use their best efforts to resolve a
                                                                                                        IV. Penalty Provisions
                                                that their contact information is kept                                                                        dispute arising under (a) or (b) above
                                                updated as required in the OMB-                           (a) The Secretary may impose a civil                within 60 days of the state’s receipt of
                                                approved CMS–367d form.                                 monetary penalty under section III(b), as             the manufacturer’s ROSI/PQAS. In the
                                                   (j) To continue to make a rebate                     set forth in 1927(b)(3)(B) of the Act and             event that the state and manufacturer
                                                payment on all of its covered outpatient                applicable regulations, on a wholesaler,              are not able to resolve the dispute
                                                drugs for as long as an agreement with                  manufacturer, or direct seller of a                   within 60 days, CMS shall require the
                                                the Secretary is in force and state                     covered outpatient drug, if a wholesaler,             state to make available to the
                                                utilization data reports that payment                   manufacturer, or direct seller of a                   manufacturer the same state hearing
                                                was made for that drug, regardless of                   covered outpatient drug refuses a                     mechanism available to providers for
                                                whether the manufacturer continues to                   request by the Secretary, or the                      Medicaid payment disputes.
                                                market that drug. If there are no sales by              Secretary’s designee, for information                    (d) Nothing in this section shall
                                                                                                        about covered outpatient drug charges
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                                                the manufacturer during a rebate period,                                                                      preclude the right of the manufacturer
                                                the AMP and best price reported in the                  or prices or knowingly provides false                 to audit the state drug utilization data
                                                prior rebate period should be used in                   information, including in any of its                  reported (or required to be reported) by
                                                calculating rebates.                                    quarterly reports to the Secretary. The               the state. The Secretary encourages the
                                                   (k) To keep records (written or                      provisions of section 1128A of the Act                manufacturer and the state to develop
                                                electronic) of the data and any other                   (other than subsection (a) (with respect              mutually beneficial audit procedures.
                                                material from which the calculations of                 to amounts of penalties or additional                    (e) The state hearing mechanism is
                                                AMP and best price were derived in                      assessments) and (b)) shall apply as set              not binding on the Secretary for


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                                                78820                    Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices

                                                purposes of the Secretary’s authority to                   (c) Manufacturers on the Office of                 liability are automatically assigned to
                                                implement the civil money penalty                       Inspector General’s (OIG’s) List of                   the new owner subject to the conditions
                                                provisions of the statute or this                       Excluded Individuals/Entities                         as set forth in section 1927 of the Act.
                                                agreement.                                              (Exclusion List) will be subject to                      (d) Nothing in this agreement will be
                                                                                                        immediate termination from the                        construed to require or authorize the
                                                VI. Confidentiality Provisions
                                                                                                        Medicaid drug rebate program unless                   commission of any act contrary to law.
                                                  (a) Pursuant to section 1927(b)(3)(D)                 and until the manufacturer is reinstated              If any provision of this agreement is
                                                of the Act and this agreement,                          by the OIG. Appeals of exclusion and                  found to be invalid by a court of law,
                                                information disclosed by the                            any reinstatement will be handled in                  this agreement will be construed in all
                                                manufacturer in connection with this                    accordance with section 1128 of the Act               respects as if any invalid or
                                                agreement is confidential and,                          and applicable regulations.                           unenforceable provision were
                                                notwithstanding other laws, will not be                 Manufacturers that are on the OIG                     eliminated, and without any effect on
                                                disclosed by the Secretary or State                     Exclusion List and are reinstated by the              any other provision.
                                                Medicaid Agency in a form which                         OIG under certain circumstances may be                   (e) Nothing in this agreement shall be
                                                reveals the manufacturer, or prices                     evaluated for reinstatement to the                    construed as a waiver or relinquishment
                                                charged by the manufacturer, except as                  Medicaid drug rebate program by CMS.                  of any legal rights of the manufacturer
                                                authorized under section 1927(b)(3)(D).                 Reinstatement to the Medicaid drug                    or the Secretary under the Constitution,
                                                  (b) The manufacturer will hold state                  rebate program would be for the next                  the Act, other federal laws, or state laws.
                                                drug utilization data confidential. If the              rebate period that begins more than 60                   (f) The rebate agreement shall be
                                                manufacturer audits this information or                 days from the date of the OIG’s                       construed in accordance with Federal
                                                receives further information on such                    reinstatement of the manufacturer after               law and ambiguities shall be interpreted
                                                data, that information shall also be held               exclusion.                                            in the manner which best effectuates the
                                                confidential. Except where otherwise                       (d) If this rebate agreement is                    statutory scheme.
                                                specified in the Act or agreement, the                  terminated, the manufacturer is                          (g) The terms ‘‘State Medicaid
                                                manufacturer will observe                               prohibited from entering into another                 Agency’’ and ‘‘Manufacturer’’
                                                confidentiality statutes, regulations, and              rebate agreement as set forth in section              incorporate any contractors which fulfill
                                                other properly promulgated policy                       1927(b)(4)(C) of the Act for at least one             responsibilities pursuant to the
                                                concerning such data.                                   rebate period from the effective date of              agreement unless specifically provided
                                                  (c) Notwithstanding the nonrenewal                    the termination, and the manufacturer                 for in the rebate agreement or
                                                or termination of this agreement for any                addresses to the satisfaction of CMS any              specifically agreed to by an appropriate
                                                reason, these confidentiality provisions                outstanding violations from any                       CMS official.
                                                will remain in full force and effect.                   previous rebate agreement(s), including,
                                                                                                                                                                 (h) Except for the conditions specified
                                                                                                        but not limited to, payment of any
                                                VII. Nonrenewal and Termination                                                                               in II(g) and VIII(a), this agreement will
                                                                                                        outstanding rebates and good faith
                                                                                                                                                              not be altered except by an amendment
                                                   (a) Unless otherwise terminated by                   efforts to appeal or resolve matters
                                                                                                                                                              in writing signed by both parties. No
                                                either party pursuant to the terms of this              pending with the OIG, unless the
                                                                                                                                                              person is authorized to alter or vary the
                                                agreement, the agreement shall be                       Secretary finds good cause for earlier
                                                                                                                                                              terms unless the alteration appears by
                                                effective beginning on the date specified               reinstatement.
                                                                                                           (e) Any nonrenewal or termination                  way of a written amendment, signed by
                                                in section II(h) of this agreement and                                                                        duly appointed representatives of the
                                                shall be automatically renewed for                      will not affect rebates due before the
                                                                                                        effective date of termination.                        Secretary and the manufacturer.
                                                additional successive terms of one year                                                                          (i) In the event that a due date falls
                                                unless the manufacturer gives written                   VIII. General Provisions                              on a weekend or Federal holiday, the
                                                notice of intent not to renew the                                                                             report or other item will be due on the
                                                                                                           (a) This agreement is subject to any
                                                agreement at least 90 days before the                                                                         first business day following that
                                                                                                        changes in the Medicaid statute or
                                                end of the current period.                                                                                    weekend or Federal holiday.
                                                                                                        regulations that affect the rebate
                                                   (b) In accordance with section VII(a)
                                                                                                        program.                                              IX. CMS–367
                                                of this agreement, the manufacturer may                    (b) Any notice required to be given
                                                terminate the agreement for any reason,                 pursuant to the terms and provisions of                 CMS–367 attached hereto is part of
                                                and such termination shall become                       this agreement will be permitted in                   this agreement.
                                                effective the later of the first day of the             writing or electronically.
                                                first rebate period beginning 60 days                                                                         X. Signatures
                                                                                                           Notice to the Secretary will be sent to:
                                                after the manufacturer gives written                    Centers for Medicaid and CHIP Services,               FOR THE SECRETARY OF HEALTH
                                                notice requesting termination, or CMS                   Disabled & Elderly Health Programs                    AND HUMAN SERVICES
                                                initiates termination via written notice                Group, Division of Pharmacy, Mail Stop                By: llllllllllllllll
                                                to the manufacturer.                                    S2–14–26, 7500 Security Blvd.,
                                                   The Secretary may terminate the                                                                                      (signature)
                                                                                                        Baltimore, MD 21244.
                                                agreement for failure of a manufacturer                    The CMS address may be updated                     Date: llllllllllllllll
                                                to make rebate payments to the state(s),                upon notice to the manufacturer.                      Title: Director
                                                failure to report required data, for other                 Notice to the manufacturer will be                 Disabled and Elderly Health Programs
                                                violations of this agreement, or other                  sent to the email and/or physical                       Group
                                                good cause upon 60 days prior written
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                                                                                                        mailing address as provided under                     Center for Medicaid and CHIP Services
                                                notice to the manufacturer of the                       section X of this agreement and updated               Centers for Medicare & Medicaid
                                                existence of such violation or other good               upon manufacturer notification to CMS                   Services
                                                cause. The Secretary shall provide,                     at the email and/or address in this                   U.S. Department of Health and Human
                                                upon request, a manufacturer with a                     agreement.                                              Services
                                                hearing concerning such a termination,                     (c) In the event of a transfer in
                                                but such hearing shall not delay the                    ownership of the manufacturer, this                   ACCEPTED FOR THE
                                                effective date of the termination.                      agreement and any outstanding rebate                  MANUFACTURER


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                                                                         Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices                            78821

                                                I certify that I have made no alterations,              (please print name) lllllllll lllllllllllllllllll
                                                amendments or other changes to this                     Title:   lllllllllllllll Manufacturer Labeler Code(s): llll
                                                rebate agreement.
                                                                                                        Name of Manfacturer: llllllll Date: llllllllllllllll
                                                By: llllllllllllllll
                                                                                                        Manufacturer Address llllllll BILLING CODE 4120–01–P
                                                           (signature)
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                                                78822                    Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices

                                                                                                                             CMS-367a

                                                                                                       CMS RECORD SPECIFICATION
                                                                                                      DDR QUARTERLY PRICING DATA
                                                                                                     TEXT FILE FOR TRANSFER TO CMS

                                                           Source: Drug Manufacturers
                                                           Target: CMS



                                                             RecordiD                                              1                 1- 1             Constant of "Q"

                                                             Labeler Code                                         5                  2-6              NDC#l
                                                             Product Code                                         4                  7- 10            NDC#2
                                                             Package Size                                         2              11- 12               NDC#3
                                                             Period Covered                                       5              13- 17               QYYYY (Qtr/Yr)
                                                             Average Mfr Price                                    12             18-29                99999.999999
                                                             Best Price                                           12             30-41                99999.999999

                                                             Nominal Price                                        9              42-50
                                                                                                                                                      999999999

                                                             Customary Prompt Pay Disc.                           9              51-59
                                                                                                                                                      999999999

                                                             Initial Drug Available for LE                         1                 60-60
                                                                                                                                                      Y, N, X or Z

                                                             Initial Drug                                         9                  61-69
                                                                                                                                                      9 digits alpha-numeric


                                                           CMS-367a (Exp. 03/31/2019), OMB No. 0938-0578 According to the Paperwork Reduction

                                                           Act of 1995, no persons are required to respond to a collection of information unless it

                                                           displays a valid OMB control number. The valid OMB control number for this information

                                                           coUection is 0938-0578. The time required to complete this information collection is

                                                           estimated to average 34.8 hours per response, including the time to review instructions,

                                                           gather the data needed, and complete and review the information collection. If you have
sradovich on DSK3GMQ082PROD with NOTICES




                                                                                                                                                                                EN09NO16.000</GPH>




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                                                                         Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices                            78823

                                                        comments concerning the accuracy of the time estimate or suggestions for improving thi.s

                                                        form, please write to: CMS, 7500 Security Boulevard,. Attn: PRA Reports Clearance

                                                        Officer, Baltimore, Maryland 21244-1850.




                                                                                      QUARTERLY PRICING DATA FIELDS- CMS-367a

                                                                   Labeler Code: First segment of National Drug Code that identifies the labeler. Numeric
                                                                   values only, 5-digit field, right-justified and zero-filled.

                                                                   Product Code: Second segment ofNational Drug Code. Alpha-numeric values, 4-digit
                                                                   field, right justified, zero-filled.

                                                                   Package Size Code: Third segment ofNational Drug Code. Alpha-numeric values, 2-
                                                                   digit field, right justified, zero-filled.

                                                                   Period Covered: Calendar quarter and year covered by data submission. Numeric 5-
                                                                   digit field, QYYYY.
                                                                                       Valid values for Q:

                                                                                                      1 =January 1 -March 31
                                                                                                      2 =April 1 -June 30
                                                                                                      3 =July 1 - September 30
                                                                                                      4 = October 1 - December 31

                                                                                                      Valid values for YYYY: 4-digit calendar year.

                                                                   Average Manufacturer's Price (AMP): The AMP per unit per product code for the
                                                                   period covered. If a drug is distributed in multiple package sizes, there will be one
                                                                   "weighted" AMP for the product, which is the same for all package sizes. Compute to 7
                                                                   decimal places, and round to 6 decimal places. Numeric values, 12-digit field: 5 whole
                                                                   numbers, the decimal place('.') and 6 decimal places; right-justified, zero-filled.

                                                                   Best Price: Per the statute and rebate agreement, the lowest price available per product
                                                                   code, regardless of package size. Compute to 7 decimal places and round to 6 decimal
                                                                   places. Zero-fill for Non-Innovator Multiple Source drugs. Numeric values, 12-digit
                                                                   field: 5 whole numbers, the decimal ('. ') and 6 decimal places; right-justified, zero-filled.

                                                                   Nominal Price (NP): Sales that meet the statutory/regulatory definition ofNP. Total
                                                                   dollar figure per 11-digit NDC, rounded to nearest dollar. 9-digit field; 9 whole numbers;
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                                                                   right-justified, 0-filled. If no sales for a package size, fill with all zeroes.
                                                                                                                                                                                        EN09NO16.001</GPH>




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                                                78824                    Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices

                                                             Customary Prompt Pay Discount (CPP): Labelers may 1) allocate an individual CPP
                                                             discount dollar amount per 11-digit NDC in each package size's record, or 2) report an
                                                             aggregate discount dollar amount, by adding up all package sizes, and report this
                                                             aggregate CPP discount dollar amount in one package size record and zero-fill the
                                                             remaining package sizes. 9-digit field; 9 whole numbers; right-justified, 0-filled.

                                                             Initial Drug Available for LE: Identifies whether a line extension drug has an Initial
                                                             Drug available for the quarter/year being reported.
                                                                                    Valid Values:

                                                                                                   Y=Yes
                                                                                                   N=No
                                                                                                   X= X-Not an LE Drug
                                                                                                   Z =Not Applicable (for quarters prior to 2Q2016, or for quarters in
                                                                                                      which the NDC or labeler was not active).

                                                             Initial Drug: Identifies the drug (from which a line extension drug is derived) with the
                                                             highest additional rebate ratio (calculated as a percentage of AMP) for the quarter/year
                                                             being reported. The Initial Drug's additional rebate ratio is then used in the alternative
                                                             URA calculation for the line extension drug. The Initial Drug should fall under the same
                                                             corporation as the corresponding line extension drug, and must be active within the MDR
                                                             Program at the time it is reported as an Initial Drug. Numeric values only, 9-digit field,
                                                             right-justified and zero-filled.
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                                                                                                                                                                                EN09NO16.002</GPH>




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         Federal Register/Vol. 81, No. 217 /Wednesday, November 9, 2016 /Notices           78825

                                         CMS—367b

                             CMS RECORD SPECIFICATION
                             DDR MONTHLY PRICING DATA
                           TEXT FILE FOR TRANSFER TO CMS

Source: Drug Manufacturers
T       : CMS



 Record ID                          1          1 —1        Constant of "M"

 Labeler Code                       5          2 —6        NDC #1

 Product Code                       4         7 —10        NDC #2

 Package Size                       2         11— 12       NDC #3

 Month                              2         13 — 14      MM

 Year                               4         15— 18       YYYY

 Average Mfr Price                 12         19 —30       99999.999999
 AMP Units                         14         31 — 44      9999999999999

 5i Threshold                       1         45 — 45      Y, N, X, or Z


CMS—367b (Exp. 03/31/2019), OMB No, 0938—0578 According to the Paperwork Reduction

Act of1995, no persons are required to respond to a collection ofinformation unlessit

displaysa valid OMBcontrol number. The valid OMB control number for this information

collection is 0938—0578. The time requiredto complete this informationcollection is

estimated to average 44.8 hours per response, including the time to review instructions,

gather thedata needed, and complete andreview the informationcollection. If you have

comments concerning the accuracy ofthe timeestimate or suggestions for improving this

form, pleasewrite to: CMS, 7500 Security Boulevard, Attn: PRA Reports Clearance

Officer, Baltimore, Maryland21244—1850.


78826            Federal Register/Vol. 81, No. 217 /Wednesday, November 9, 2016 /Notices

                                             CMS—367¢

                             CMS RECORD SPECIFICATION
                               DDR DRUG PRODUCT DATA
                           TEXT FILE FOR TRANFER TO CMS
    Source: Drug Manufacturers

    Target: CMS



        Record ID                            1         1 —1      Constant of "P"

        Labeler Code                         5         2 —6      NDC #1

        Product Code                         4        7 — 10     NDC #2

        Package Size Code                    2        11 — 12    NDC #3

        Drug Category                        1        13 — 13    See Data Element Definitions

        Unit Type                            3        14 — 16    See Data Element Definitions

        FDA Approval Date                    8        17 — 24    MMDDYYYY

        FDA Thera. Eq. Code                  2        25 — 26    See Data Element Definitions

        Market Date                          8        27 — 34    MMDDYYYY

        Termination Date                     8        35 — 42    MMDDYYYY

        Drug Type Indicator                  1                   See Data Element Definitions
                                                     43 — 43
            ,         .                              44 — 55
        OBRA ‘90 Baseline AMP               12                   99999.999999

        Units Per Pkg Size                  11       56 —66      9999999.999
        FDA Product Name                    63       67— 129     FDA Product Name
        DRA Baseline AMP                    12      130 — 141    99999.999999
        Package Size Intro Date              8      142 — 149    MMDDYYYY
        Purchased Product Date               8      150 —157     MMDDYYYY
        5i Drug Indicator                    1      158 — 158    See Data Element Definitions
        5i Route of Administration           3      159 — 161    See Data Element Definitions
        ACA Baseline AMP                    12       162 — 173   99999.999999
        COD Status                           2      174 — 175    See Data Element Definitions


                                                                         Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices                                  78827

                                                          FDA Appl. No./OTC Mono. No.                                 7              176- 182          See Data Element Definitions
                                                          Line Extension Drug Indicator                               1              183- 183          See Data Element Definitions




                                                        CMS-367c (Exp. 03/31/2019), OMB No. 0938-0578 According to the Paperwork Reduction

                                                        Act of 1995, no persons are required to respond to a collection of information unless it

                                                        displays a valid OMB control number. The valid OMB control number for this information

                                                        collection is 0938-0578. The time required to complete this information collection is

                                                        estimated to average 435 hours per response, including the time to review instructions,

                                                        gather the data needed, and complete and review the information collection. If you have

                                                        comments concerning the accuracy of the time estimate or suggestions for improving this

                                                        form, please write to: CMS, 7500 Security Boulevard, Attn: PRA Reports Clearance

                                                        Officer, Baltimore, Maryland 21244-1850.


                                                                                                   DRUG PRODUCT DATA FIELDS- CMS-367c

                                                                   Labeler Code: First segment of National Drug Code that identifies the labeler. Numeric
                                                                   values only, 5-digit field, right-justified and zero-filled.

                                                                   Product Code: Second segment ofNational Drug Code. Alpha-numeric values, 4-digit
                                                                   field, right justified, zero-filled.

                                                                   Package Size Code: Third segment ofNational Drug Code. Alpha-numeric values, 2-
                                                                   digit field, right justified, zero-filled.

                                                                   Drug Category: Alpha-numeric values, 1 character.

                                                                                                      Valid values:
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                                                                                                      S = Single source
                                                                                                      I = Innovator multiple source
                                                                                                                                                                                              EN09NO16.005</GPH>




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                                                78828                     Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices

                                                                                                    N =Non-innovator multiple source

                                                             Unit Type: One of the 8 unit types by which the drug is dispensed. Alpha-numeric
                                                             values, 3-character field, left justified.

                                                                                                    Valid values:

                                                                                                    AHF =Injectable Anti-Hemophilic Factor
                                                                                                    CAP = Capsule
                                                                                                    SUP = Suppository
                                                                                                    GM =Gram
                                                                                                    ML =Milliliter
                                                                                                    TAB= Tablet
                                                                                                    TDP = Transdermal Patch
                                                                                                    EA =EACH

                                                                 FDA Approval Date: NDA or monograph approval date. Numeric values, 8-digit field,
                                                                 format: MMDDYYYY.

                                                                 FDA TEC: FDA-assigned Therapeutic Equivalence Codes. Alpha-numeric values, 2
                                                                 character field.


                                                                                                    Valid values:

                                                                                                    AA         BC          BS
                                                                                                    AB         BD          BT
                                                                                                    AN         BE          BX
                                                                                                    AO         BN          NR - Not rated
                                                                                                    AP         BP          AI thru A9 = AB value
                                                                                                    AT         BR

                                                             Market Date: For Sand I drugs, the date the drug was first marketed by the original
                                                             labeler (i.e., NDA holder). For N drugs, the date the drug was first marketed under the
                                                             labeler' s rebate agreement. If a Market Date falls on a date that is earlier than 9/30/1990,
                                                             CMS will change it to 9/30/1990 in both the Medicaid Drug Rebate (MDR) system and
                                                             the Drug Data Reporting for Medicaid (DDR) system since dates earlier than the start of
                                                             the Drug Rebate Program have no bearing on the program. Numeric values, 8-digit field,
                                                             format: MMDDYYYY.

                                                             Termination Date: The date a drug is withdrawn from the market or the drug's last lot
                                                             expiration date. (Note: Initial termination date submissions may be provided via file
                                                             transfer; however, subsequent changes to this field may only be submitted online via
                                                             DDR.) Zero or blank fill if not present. Numeric values, 8-digit field, format:
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                                                             MMDDYYYY.
                                                                                                                                                                                  EN09NO16.006</GPH>




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                                                                          Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices                            78829

                                                             Drug Type Indicator: Identifies a drug as prescription (Rx) or over-the-counter (OTC).

                                                                                                    Valid Values:
                                                                                                    1 =Rx
                                                                                                    2=0TC

                                                             OBRA'90 Baseline AMP: The AMP per unit for the period that establishes the
                                                             OBRA'90 Baseline AMP for innovator drugs. There will be one weighted baseline AMP
                                                             for the product, which will be the same for all package sizes. Compute to 7 decimal
                                                             places and round to 6 decimal places. Numeric values, 12-digit field: 5 whole numbers,
                                                             the decimal ('. ') and 6 decimal places; right-justified, zero-filled.

                                                             Units Per Package Size: Total number of units in the smallest dispensable amount for
                                                             the 11-digit NDC. Numeric values, 11-digit field: 7 whole numbers, the decimal('.')
                                                             and 3 decimal places; right-justified, zero-filled.

                                                             FDA Product Name: Drug name as it appears on FDA listing form. Alpha-numeric
                                                             values, 63 characters, left justified, blank-fill unused positions.

                                                             DRA Baseline AMP (optional): For active innovator drugs with a Market Date less
                                                             than July 1, 2007, the OBRA'90 or OBRA'93 Baseline AMP revised in accordance with
                                                             relevant regulations and program guidance. There will be one weighted DRA Baseline
                                                             AMP for the product, which will be the same for all package sizes. Per CMS-2238-FC,
                                                             labelers had 4 quarters (i.e., January 2, 2008- October 30, 2008) to report this optional
                                                             field. Numeric values, 12-digit field; 5 whole numbers, the decimal ('. ') and 6 decimal
                                                             places, right- justified, zero-filled. Compute to 7 decimal places and round to 6 decimal
                                                             places.

                                                             Package Size Introduction Date: The date the package size is first available on the
                                                             market. Numeric values, 8-digit field, format: MMDDYYYY

                                                             Purchased Product Date: The date the company currently holding legal title to the
                                                             NDC first markets the drug under this NDC (this date can result, for example, from the
                                                             purchase of an NDC from one company by another company, the re-designation of an
                                                             NDC from one of a company's labeler codes to another ofthat same company's labeler
                                                             codes, cross-licensing arrangements, etc.). Zero or blank fill if not applicable. Numeric
                                                             values, 8-digit field, format: MMDDYYYY

                                                                 5i Drug Indicator: Identifies whether a product is a 5i Drug. Alpha-numeric values; 1-
                                                                 digit field.
                                                                                     Valid Values:

                                                                                                Y=Yes
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                                                78830                    Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices

                                                                                                     N=No

                                                                   5i Route of Administration: Identifies the method by which the 5i drug is administered
                                                                   to a patient. If a product is not a 5i drug, a value of "000" (Not Applicable) should be
                                                                   entered. Numeric values; 3-digit field.

                                                                                                     Valid Values:

                                                                                                   000 =       Not Applicable
                                                                                                   001 =       Implanted
                                                                                                   002 =       Infused
                                                                                                   003 =       Inhaled
                                                                                                   004 =       Injected
                                                                                                   005 =       Instilled

                                                        ACA Baseline AMP (Optional): For active innovator drugs, the OBRA'90, OBRA'93 or DRA
                                                        Baseline AMP revised in accordance with the statute and relevant program guidance. There will
                                                        be one weighted ACA Baseline AMP for the product, which will be the same for all package
                                                        sizes. Numeric values, 12-digit field; 5 whole numbers, the decimal (' .') and 6 decimal places;
                                                        right-justified; zero-filled. Compute to 7 decimal places and round to 6 decimal places.


                                                        Covered Outpatient Drug (COD) Status: A category that identifies whether or not a product
                                                        meets the statutory definition of a covered outpatient drug in accordance with sections
                                                        1927(k)(2) to 1927(k)(4) of the Social Security Act. Numeric values, 2-character field.
                                                                               Valid Values:

                                                                              01 =Abbreviated New Drug Application (ANDA)
                                                                              02 =Biologics License Application (BLA)
                                                                              03 =New Drug Application (NDA)
                                                                              04 = NDA Authorized Generic
                                                                              05 = DESI 5*- LTE/IRS drug for all indications
                                                                              06 = DESI 6* - LTE/IRS drug withdrawn from market
                                                                              07 =Prescription Pre-Natal Vitamin or Fluoride
                                                                              08 =Prescription Dietary Supplement/Vitamin/Mineral (Other than Prescription
                                                                              Pre-Natal Vitamin or Fluoride)
                                                                              09 = OTC Monograph Tentative
                                                                              10 = OTC Monograph Final
                                                                              11 =Unapproved Drug- Drug Shortage
                                                                              12 =Unapproved Drug- Per 1927(k)(2)(A)(ii)
                                                                              13 =Unapproved Drug- Per 1927(k)(2)(A)(iii)

                                                                            *NDCs with a COD Status ofDESI 5/6 are not eligible for coverage or rebates
                                                                            under the Medicaid Drug Rebate Program.
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                                                                          Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices                            78831

                                                                 FDA Application Number/OTC Monograph Number: For drugs with a COD status
                                                                 of ANDA, BLA, NDA, or NDA Authorized Generic, this is the seven-digit application
                                                                 number that is assigned by the FDA for approval to market a generic drug or new drug in
                                                                 the United States. Numeric field; 7 characters, fill with leading zeros as needed.

                                                                 For drugs with a COD status of OTC Monograph Tentative or Final, this is the FDA's
                                                                 regulatory citation for the OTC. 7 alpha-numeric characters. For drugs with a COD
                                                                 Status ofOTC Monograph Final, the first four characters are a constant of"PART"; the
                                                                 last three characters are the numeric values for the appropriate regulatory citation for the
                                                                 product (for example, "225"). For drugs with a COD Status of OTC Monograph
                                                                 Tentative, the first four characters are a constant of"PART"; the last three characters are
                                                                 the numeric values for the appropriate regulatory citation for the product, or 3 zeros if a
                                                                 Monograph Number is not available.

                                                                 For drugs with a COD Status other than ANDA, BLA, NDA, NDA Authorized Generic,
                                                                 OTC Monograph Final, or OTC Monograph Tentative, the FDA Application No./OTC
                                                                 Monograph No. field should be zero-filled.

                                                                 Reactivation Date: The date on which a terminated product is re-introduced to the
                                                                 market. (Note: This field may only be submitted online via DDR and is NOT part of the
                                                                 actual File Transfer Layout.)

                                                                 Line Extension Drug Indicator: Identifies whether a product is a line extension drug as
                                                                 defined in Section 1927 (c)(2)(C) of the Social Security Act.

                                                                                                                       Valid Values:

                                                                                                                       Y=Yes
                                                                                                                       N=No
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                                                78832                    Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices

                                                                                                                              CMS-367d

                                                                                                   MEDICAID DRUG REBATE AGREEMENT
                                                                                                      ENCLOSURE B (PAGE 1 OF 2)
                                                                                                        SUPPLEMENTAL DATA
                                                             LABELER CODE (as assigned by FDA)


                                                             LABELER NAME (Corporate name associated with labeler code)


                                                             LEGAL CONTACT -Person to contact for legal issues concerning the rebate agreement

                                                             NAME OF CONTACT

                                                                                                                     AREA            PHONE NUMBER                        EXTENSION
                                                             EMAIL ADDRESS:



                                                             NAME OF CORPORATION



                                                             STREET ADDRESS


                                                             CITY                                                                          STATE                                ZIP CODE


                                                             INVOICE CONTACT- Person responsible for processing invoice utilization data


                                                             NAME OF CONTACT

                                                                                                                     AREA            PHONE NUMBER                        EXTENSION
                                                             EMAIL ADDRESS:



                                                             NAME OF CORPORATION
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                                                                         Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices                                  78833




                                                                  STREET ADDRESS


                                                                  CITY                                                                     STATE                           ZIP CODE

                                                                 Note: This sheet is to be returned with the signed rebate agreement. If more than one

                                                                 labeler code, attach one sheet for each code.




                                                                 CMS-367d (Exp. 03/31/2019), OMB No. 0938-0578 According to the Paperwork Reduction

                                                                 Act of 1995, no persons are required to respond to a collection of information unless it

                                                                 displays a valid OMB control number. The valid OMB control number for this information

                                                                 collection is 0938-0578. The time required to complete this information collection is

                                                                 estimated to average 1 hour per response, including the time to review instructions, gather

                                                                 the data needed, and complete and review the information collection. If you have comments

                                                                 concerning the accuracy of the time estimate or suggestions for improving this form, please

                                                                 write to: CMS, 7500 Security Boulevard, Attn: PRA Reports Clearance Officer, Baltimore,

                                                                 Maryland 21244-1850.
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                                                78834                     Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices

                                                                                                    MEDICAID DRUG REBATE AGREEMENT
                                                                                                        ENCLOSURE B (PAGE 2 OF 2)
                                                                                                          SUPPLEMENTAL DATA
                                                                 LABELER CODE (as assigned by FDA)


                                                                 LABELER NAME (Corporate name associated with labeler code)


                                                                 TECHNICAL CONTACT -Person responsible for sending and receiving data


                                                                 NAME OF CONTACT

                                                                                                                       AREA            PHONE NUMBER                       EXTENSION
                                                                 FAX#



                                                                 EMAIL ADDRESS:



                                                                 NAME OF CORPORATION




                                                                 STREET ADDRESS


                                                                 CITY                                                                        STATE                               ZIP CODE



                                                           Note: This sheet is to be returned with the signed rebate agreement. If more than one

                                                           labeler code, attach one sheet for each code.



                                                           CMS-367d (Exp. 03/31/2019), OMB No. 0938-0578 According to the Paperwork Reduction

                                                           Act of 1995, no persons are required to respond to a collection of information unless it

                                                           displays a valid OMB control number. The valid OMB control number for this information
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                                                                                 Federal Register / Vol. 81, No. 217 / Wednesday, November 9, 2016 / Notices                                                            78835




                                                BILLING CODE 4120–01–C                                                                                                           program participants. The objective of
                                                                                                                        DEPARTMENT OF HEALTH AND
                                                  CMS–367d (Exp. 03/31/2019), OMB                                       HUMAN SERVICES                                           the proposed data collection is to test
                                                No. 0938–0578 According to the                                                                                                   and validate IPV and TDV screening
                                                Paperwork Reduction Act of 1995, no                                     Administration for Children and                          instruments among HMRE program
                                                persons are required to respond to a                                    Families                                                 participants. Findings from this data
                                                collection of information unless it                                                                                              collection will be used to develop
                                                                                                                        Submission for OMB Review;                               practical, responsive guidance on IPV
                                                displays a valid OMB control number.                                    Comment Request
                                                The valid OMB control number for this                                                                                            and TDV screening and surrounding
                                                information collection is 0938–0578.                                                                                             protocols for HMRE programs.
                                                                                                                          Title: Responding to Intimate
                                                The time required to complete this                                      Violence in Relationship Programs                          Data collection will entail testing
                                                information collection is estimated to                                  (RIViR).                                                 eight screening instruments: Six closed-
                                                average 1 hour per response, including                                    OMB No.: New Collection.                               ended screening instruments (three for
                                                the time to review instructions, gather                                   Description: The Administration for                    IPV, three for TDV), and two open-
                                                the data needed, and complete and                                       Children and Families (ACF), U.S.                        ended instruments (one for IPV, one for
                                                review the information collection. If you                               Department of Health and Human                           TDV). Trained HMRE grantee staff at
                                                have comments concerning the accuracy                                   Services (HHS) is proposing a data                       approximately 6 grant programs will
                                                of the time estimate or suggestions for                                 collection as part of the ‘‘Responding to                implement the four IPV screening tools
                                                improving this form, please write to:                                   Intimate Violence in Relationship                        among approximately 600 adult
                                                CMS, 7500 Security Boulevard, Attn:                                     programs’’ (RIViR) study. This notice                    participants and the four TDV screening
                                                PRA Reports Clearance Officer,                                          addresses testing of intimate partner                    tools among approximately 600 youth
                                                Baltimore, Maryland 21244–1850.                                         violence (IPV) and teen dating violence                  participants. It is anticipated that each
                                                  Dated: August 11, 2016.                                               (TDV) screener/protocols, to be                          participant will engage in four rounds of
                                                                                                                        conducted with approximately 1,200                       data collection, one round for each IPV
                                                Andrew M. Slavitt,
                                                                                                                        participants from approximately six                      or TDV instrument, at least two weeks
                                                Acting Administrator, Centers for Medicare                                                                                       apart. Data collection is expected to
                                                & Medicaid Services.
                                                                                                                        Healthy Marriage and Relationship
                                                                                                                        Education (HMRE) grantees funded by                      occur through Spring 2019.
                                                  Approved: October 18, 2016.
                                                                                                                        the Office of Family Assistance (OFA).                     Respondents: HMRE grantee program
                                                Sylvia Burwell,                                                           There is little consensus on how                       participants: 600 youth (approximately
                                                Secretary, Department of Health and Human                               HMRE programs should address IPV or                      ages 14–18) will participate in the TDV
                                                Services.                                                               TDV in their programs. To date, no IPV                   screener testing and 600 adults (ages 18
                                                [FR Doc. 2016–26834 Filed 11–7–16; 11:15 am]                            or TDV screening tools have been                         and older) will participate in the IPV
                                                BILLING CODE 4120–01–P                                                  empirically tested among HMRE                            screener testing.

                                                                                                                                  ANNUAL BURDEN ESTIMATES
                                                                                                                                                                                                     Average
                                                                                                                                             Total              Annual           Number of            burden       Total annual
                                                                                      Activity                                             number of          number of        responses per       per response    burden hours
                                                                                                                                          respondents        respondents         respondent         (in hours)

                                                IPV Screener 1 ....................................................................                    600              300                 1              .167              50
                                                IPV Screener 2 ....................................................................                    600              300                 1              .167              50
                                                IPV Screener 3 ....................................................................                    600              300                 1               .25              75
                                                TDV Screener 1 ...................................................................                     600              300                 1              .167              50
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                                                TDV Screener 2 ...................................................................                     600              300                 1              .167              50
                                                TDV Screener 3 ...................................................................                     600              300                 1               .25              75
                                                Locator section for adults ....................................................                        600              300                 1                .1              30
                                                Contact information form for parents of youth younger
                                                  than 18 .............................................................................                600              300                 1                 .1             30
                                                Post screener questions for adults ......................................                              600              300                 1                 .1             30
                                                Post screener questions for youth .......................................                              600              300                 1                 .1             30
                                                Participant recruitment .........................................................                      600              300                 1                 .1             30
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Document Created: 2016-11-09 01:39:27
Document Modified: 2016-11-09 01:39:27
CategoryRegulatory Information
CollectionFederal Register
sudoc ClassAE 2.7:
GS 4.107:
AE 2.106:
PublisherOffice of the Federal Register, National Archives and Records Administration
SectionNotices
ActionProposed notice.
DatesTo be assured consideration, comments must be received at one of
ContactTerry Simananda, (410) 786-8144.
FR Citation81 FR 78816 

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