Section 1927 requires drug manufactures to enter into and have in effect a rebate agreement with the Federal Government for States to receive funding for drugs dispensed to Medicaid recipients. In order for payment to be made under Medicaid, the drug labeler must complete and sign a drug rebate agreement and fillin the information on the related documents. The Affordable Care Act (ACA) added two new data elements to potentially be reported by manufacturers, a Pediatric Exclusivity product indicator and a new optional "ACA base AMP" field. Additionally, per the ACA, the Federal upper limit (FUL) will be calculated as no less than 175 percent of the weighted average of the most recently reported monthly AMP. Section 1927 of the Act requires manufacturers to report the total number of units that are used to calculate monthly AMP for each covered outpatient drug no later than 30 days after the last day of the month. We plan to require manufacturers to report these units by the same unit type used to calculate the AMP and to use these units to calculate the weighted-AMP-based FULs prices.
There are no new systems collections or program changes. The number of labelers has increased from 580 to 590 labelers, thereby causing a corresponding rise in our burden estimates.
The cost burden has been adjusted downward to zero as it was erroneously included in previous submissions. There are no costs, other than labor costs, associated with this information collection request at this time.
On behalf of this Federal agency, I certify that the collection of information encompassed by this request complies with 5 CFR 1320.9 and the related provisions of 5 CFR 1320.8(b)(3).
The following is a summary of the topics, regarding the proposed collection of information, that the certification covers:
(i) Why the information is being collected;
(ii) Use of information;
(iii) Burden estimate;
(iv) Nature of response (voluntary, required for a benefit, or mandatory);
(v) Nature and extent of confidentiality; and
(vi) Need to display currently valid OMB control number;
If you are unable to certify compliance with any of these provisions, identify the item by leaving the box unchecked and explain the reason in the Supporting Statement.