SEC. 1743. EXTENSION OF PRESCRIPTION DRUG DISCOUNTS TO ENROLLEES OF MEDICAID MANAGED CARE ORGANIZATIONS.

[a] In General- Section- 1903[m][2][A] of the Social Security Act [42 U.S.C. 1396b[m][2][A]] is amended--

[1] in clause [xi], by striking 'and' at the end;

[2] in clause [xii], by striking the period at the end and inserting '; and'; and

[3] by adding at the end the following:

'[xiii] such contract provides that the entity shall report to the State such information, on such timely and periodic basis as specified by the Secretary, as the State may require in order to include, in the information submitted by the State to a manufacturer under section 1927[b][2][A], information on covered outpatient drugs dispensed to individuals eligible for medical assistance who are enrolled with the entity and for which the entity is responsible for coverage of such drugs under this subsection.'.

[b] Conforming Amendments- Section- 1927 of such Act [42 U.S.C. 1396r-8] is amended----

[1] in the first sentence of subsection [b][1][A], by inserting before the period at the end the following: ', including such drugs dispensed to individuals enrolled with a medicaid managed care organization if the organization is responsible for coverage of such drugs';

[2] in subsection [b][2], by adding at the end the following new subparagraph:

'[C] REPORTING ON MMCO DRUGS- On a quarterly basis, each State shall report to the Secretary the total amount of rebates in dollars received from pharmacy manufacturers for drugs provided to individuals enrolled with Medicaid managed care organizations that contract under section 1903[m].'; and

[3] in subsection [j]--

[A] in the heading by striking 'Exemption' and inserting 'Special Rules'; and

[B] in paragraph [1], by striking 'not'.

[c] Effective Date- The amendments made by this section take effect on July 1, 2010, and shall apply to drugs dispensed on or after such date, without regard to whether or not final regulations to carry out such amendments have been promulgated by such date.