---
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"
date: "2026-07-12"
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 and a selected [drug](/usc/42/11851.md?p=4) 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, the [Secretary](/usc/42/1301.md?p=a-6) shall publish the maximum fair price for such [drug](/usc/42/11851.md?p=4) negotiated with the manufacturer of such [drug](/usc/42/11851.md?p=4) under this part; and
  - (2) not later than March 1 of the year prior to such initial price applicability year, 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 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/42/11851.md?p=4) described in [paragraph (1)](#a-1).
- (b) **Updates—**
  - (1) **Subsequent year maximum fair prices—** For a selected [drug](/usc/42/11851.md?p=4), for each year subsequent to the first initial price applicability year of the price applicability period with respect to such [drug](/usc/42/11851.md?p=4), with respect to which an agreement for such [drug](/usc/42/11851.md?p=4) 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 applicable to such [drug](/usc/42/11851.md?p=4) and year, which shall be—
    - (A) subject to [subparagraph (B)](#b-1-B), the amount equal to the maximum fair price published for such [drug](/usc/42/11851.md?p=4) 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 average) for the 12-month period ending with the July immediately preceding such November 30; or
    - (B) in the case the maximum fair price for such [drug](/usc/42/11851.md?p=4) was renegotiated, for the first year for which such price as so renegotiated applies, such renegotiated maximum fair price.
  - (2) **Prices negotiated after deadline—** In the case of a selected [drug](/usc/42/11851.md?p=4) with respect to an initial price applicability year for which the maximum fair price 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 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.)