Health reform has new drug sales fee
Barker and Thornhill say the aggregate fee is apportioned among covered entities each year based on each entity's relative market share of “branded prescription drug sales” taken into account in the preceding calendar year. Sale or importation of generic drugs is not subject to the fee, nor are orphan drugs.To be counted, the sales must be to a specified government program or pursuant to coverage under such a program. Cited in the law are Medicare Parts B and D, Medicaid, Veterans Affairs programs, Department of Defense programs or the TRICARE retail pharmacy program. Thus, the attorneys say, sales in the private marketplace are excluded in determining the fee amount. A graduated structure determines the proportion of a covered entity's drug sales taken into account in determining the fee.