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B-330938 1 (2019-04-22)

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GAO U.S. GOVERNMENT ACCOUNTABILITY OFFICE
441 G St. N.W.
Washington, DC 20548


B-330938


April 22, 2019

The Honorable Chuck Grassley
Chairman
The Honorable Ron Wyden
Ranking Member
Committee on Finance
United States Senate

The Honorable Frank Pallone, Jr.
Chairman
The Honorable Greg Walden
Ranking Member
Committee on Energy and Commerce
House of Representatives

The Honorable Richard Neal
Chairman
The Honorable Kevin Brady
Ranking Member
Committee on Ways  and Means
House of Representatives

Subject: Department of Health and Human Services, Centers for Medicare and Medicaid
        Services: Medicaid Program; Covered Outpatient Drug; Line Extension Definition; and
        Change to the Rebate Calculation for Line Extension Drugs

Pursuant to section 801 (a)(2)(A) of title 5, United States Code, this is our report on a major rule
promulgated by the Department of Health and Human Services, Centers for Medicare and
Medicaid Services (CMS) entitled Medicaid Program; Covered Outpatient Drug; Line Extension
Definition; and Change to the Rebate Calculation for Line Extension Drugs (RIN: 0938-AT09).
We  received the rule on April 5, 2019. It was published in the Federal Register as a final rule
and interim final rule with comment period on April 1, 2019. 84 Fed. Reg. 12130. The effective
date of the rule is April 1, 2019.

According to CMS, the interim final rule revises the regulatory text to reflect the applicable
statutory language describing the rebate calculation for the line extension drugs which was
revised by the Bipartisan Budget Act of 2018. See Bipartisan Budget Act of 2018, Pub. L. No.
115-123, 132 Stat. 64 (2018). Additionally, the final rule responds to comments on the definition
and identification of line extension drugs for which CMS requested additional comments in the
Covered Outpatient Drugs final rule with comment period published in the February 1, 2016,
Federal Register.

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