---
kind: "section"
citation: "42 U.S.C. § 1320f–4"
title: "42"
title_heading: "The Public Health and Welfare"
number: "1320f–4"
heading: "Publication of maximum fair prices"
release: "119-102"
url: "https://uscodex.org/usc/42/1320f-4"
units:
  - "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–4. Publication of maximum fair prices

- (a) **In general—** With respect to an [initial price applicability year](/usc/42/1320f.md?p=b-1) and a selected [drug](/usc/42/282.md?p=j-1-A-vii) with respect to such year—
  - (1) not later than November 30 of the year that is 2 years prior to such [initial price applicability year](/usc/42/1320f.md?p=b-1), the [Secretary](/usc/42/1301.md?p=a-6) shall publish the [maximum fair price](/usc/42/1320f.md?p=c-3) for such [drug](/usc/42/282.md?p=j-1-A-vii) negotiated with the [manufacturer](/usc/42/300aa–33.md?p=3) of such [drug](/usc/42/282.md?p=j-1-A-vii) under this part; and
  - (2) not later than March 1 of the year prior to such [initial price applicability year](/usc/42/1320f.md?p=b-1), the [Secretary](/usc/42/1301.md?p=a-6) shall publish, subject to [section 1320f–2(c) of this title](/usc/42/1320f–2.md?p=c), the explanation for the [maximum fair price](/usc/42/1320f.md?p=c-3) with respect to the factors as applied under [section 1320f–3(e) of this title](/usc/42/1320f–3.md?p=e) for such [drug](/usc/42/282.md?p=j-1-A-vii) described in [paragraph (1)](#a-1).
- (b) **Updates—**
  - (1) **Subsequent year maximum fair prices—** For a selected [drug](/usc/42/282.md?p=j-1-A-vii), for each year subsequent to the first [initial price applicability year](/usc/42/1320f.md?p=b-1) of the [price applicability period](/usc/42/1320f.md?p=b-2) with respect to such [drug](/usc/42/282.md?p=j-1-A-vii), with respect to which an [agreement](/usc/42/1320b–8.md?p=a-3-A) for such [drug](/usc/42/282.md?p=j-1-A-vii) is in effect under [section 1320f–2 of this title](/usc/42/1320f–2.md), not later than November 30 of the year that is 2 years prior to such subsequent year, the [Secretary](/usc/42/1301.md?p=a-6) shall publish the [maximum fair price](/usc/42/1320f.md?p=c-3) applicable to such [drug](/usc/42/282.md?p=j-1-A-vii) and year, which shall be—
    - (A) subject to [subparagraph (B)](#b-1-B), the amount equal to the [maximum fair price](/usc/42/1320f.md?p=c-3) published for such [drug](/usc/42/282.md?p=j-1-A-vii) for the previous year, increased by the annual percentage increase in the consumer price index for all urban consumers (all items; [United States](/usc/42/1301.md?p=a-2) [city](/usc/42/12902.md?p=11) average) for the 12-month period ending with the July immediately preceding such November 30; or
    - (B) in the case the [maximum fair price](/usc/42/1320f.md?p=c-3) for such [drug](/usc/42/282.md?p=j-1-A-vii) was renegotiated, for the first year for which such price as so renegotiated applies, such renegotiated [maximum fair price](/usc/42/1320f.md?p=c-3).
  - (2) **Prices negotiated after deadline—** In the case of a selected [drug](/usc/42/282.md?p=j-1-A-vii) with respect to an [initial price applicability year](/usc/42/1320f.md?p=b-1) for which the [maximum fair price](/usc/42/1320f.md?p=c-3) is determined under this part after the date of publication under this section, the [Secretary](/usc/42/1301.md?p=a-6) shall publish such [maximum fair price](/usc/42/1320f.md?p=c-3) by not later than 30 days after the date such maximum price is so determined.

## Source credit

(Aug. 14, 1935, ch. 531, title XI, § 1195, as added Pub. L. 117–169, title I, § 11001(a), Aug. 16, 2022, 136 Stat. 1849.)