REGULAR UPDATE OF PRESCRIPTION DRUG PRICING STANDARD.

SEC. 173. REGULAR UPDATE OF PRESCRIPTION DRUG PRICING STANDARD.(a) Requirement for Prescription Drug Plans.—Section 1860D–12(b) of the Social Security Act (42 U.S.C. 1395w–112(b)), as amended by section 172(a)(1), is amended by adding at the end the following new paragraph:“(6) Regular update of prescription drug pricing standard.—If the PDP sponsor of a prescription drug plan uses a standard for reimbursement of pharmacies based on the cost of a drug, each contract entered into with such sponsor under this part with respect to the plan shall provide that the sponsor shall update such standard not less frequently than once every 7 days, beginning with an initial update on January 1 of each year, to accurately reflect the market price of acquiring the drug.”.(b) Requirement for MA–PD Plans.—Section 1857(f)(3) of the Social Security Act, as amended by section 172(a)(2), is amended by adding at the end the following new subparagraph:“(C) Regular update of prescription drug pricing standard.—Section 1860D–12(b)(6).”.(c) Effective Date.—The amendments made by this section shall apply to plan years beginning on or after January 1, 2009.