Sec. 1. 22 MRSA §2698-B is enacted to read:

§2698-B.__Actual price disclosure and certification

1.__Quarterly report.__A manufacturer of prescription drugs dispensed in this State shall, on a quarterly basis, report by National Drug Code the following pharmaceutical pricing criteria to the commissioner for each of its drugs:

A.__The average wholesale price;

B.__The wholesale acquisition cost;

C.__The average manufacturer price as defined in 42 United States Code, Section 1396r-8(k); and

D.__The best price as defined in 42 United States Code, Section 1396r-8(c)(1)(C).

2.__Calculation.__The calculation of average wholesale price and wholesale acquisition cost must be the net of all volume discounts, prompt payment discounts, charge-backs, short-dated product discounts, cash discounts, free goods, rebates and all other price concessions or incentives provided to a purchaser that result in a reduction in the ultimate cost to the purchaser.

3.__Description of methodology.__When reporting the average wholesale price, wholesale acquisition cost, average manufacturer price and best price, a manufacturer of prescription drugs dispensed in this State shall also include a detailed description of the methodologies by which the prices were calculated.

4.__Certification.__When a manufacturer of prescription drugs dispensed in this State reports the average wholesale price, wholesale acquisition cost, average manufacturer price or best price, the president or chief executive officer of the manufacturer shall certify to the department, on a form provided by the commissioner, that the reported prices are accurate.

SUMMARY

This bill requires that drug manufacturers doing business in the State report and certify to the Department of Human Services, for each of their drugs, the actual average wholesale price and the wholesale acquisition cost and the average manufacturer price and the best price as defined by federal law.