Title 42 › CHAPTER 7 — SOCIAL SECURITY › SUBCHAPTER XI — GENERAL PROVISIONS, PEER REVIEW, AND ADMINISTRATIVE SIMPLIFICATION › Part E — Price Negotiation Program To Lower Prices for Certain High-Priced Single Source Drugs › § 1320f–2
The Secretary must make price agreements with a drug’s maker by February 28 after the drug is named a selected drug. The maker and the Secretary must negotiate, and by the end of the negotiation period agree on a maximum fair price for the drug. They must also renegotiate and agree on that price in later renegotiation periods. The agreed price must be available to two groups: people who get the drug at pharmacies or by mail (and those pharmacies or dispensers), and people who get the drug in hospitals or from doctors and other providers. The price must be provided at the point of sale and to the providers who give or administer the drug. The maker must give the Secretary information needed for the talks, including the non‑Federal average manufacturer price and rebate data, in the form the Secretary requires. The maker must follow rules the Secretary sets to run and check the program. The agreement stays in effect until the drug is no longer a selected drug. Any proprietary data the maker gives the Secretary can only be used by the Secretary or shared with the Comptroller General for running the program. If a 340B covered entity already gets a lower 340B ceiling price, the maker does not have to offer the maximum fair price there; if the maximum fair price is lower than the 340B ceiling, the maker must provide the lower amount without duplicating the 340B benefit.
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The Public Health and Welfare, Source: USLM XML via OLRC
Legislative History
Reference
Citation
42 U.S.C. § 1320f–2
Title 42, The Public Health and Welfare
Last Updated
Sep 22, 2026
Release point: 119-110