76 1 2 are widely and consistently available in the locality involved except to the extent and under the circumstances specified 3 by the Administration. 4 "SPECIAL PROVISIONS RELATING TO OUTPATIENT DRUGS 5 6 7 AND BIOLOGICALS "National Health Insurance Formulary Committee "SEC. 2047. (a) (1) (A) There is hereby established, 8 within the Social Security Administration a National Health 9 Insurance Formulary Committee (hereinafter referred to as 10 the 'Committee'), a majority of whose members shall be 11 physicians and which shall consist of the Commissioner of 12 Food and Drugs and of four individuals (not otherwise in 13 the employ of the Federal Government) who do not have 14 a direct or indirect financial interest in the compensation of 15 the Formulary established under this section and who are of recognized professional standing and distinction in the fields 17 of medicine, pharmacology, or pharmacy, to be appointed by 18 the Administration without regard to the provisions of title 19 5, United States Code, governing appointments in the com20 petitive service. The Chairman of the Committee shall be 21 elected annually from the appointed members thereof, by 22 majority vote of the members of the Committee. 23 "(B) Each appointed member of the Committee shall 24 hold office for a term of five years, except that any member 25 appointed to fill a vacancy occurring prior to the expiration 34-007 - 74 vol. 1-7 77 1 of the term for which his predecessor was appointed shall be 2 appointed for the remainder of such term, and except that 3 the terms of office of the members first taking office shall ex4 pire, as designated by the Administration at the time of 5 appointment, one at the end of each of the first five years. 6 A member shall not be eligible to serve continuously for 7 more than two terms. 8 "(2) Appointed members of the Committee, while at9 tending meetings or conferences thereof or otherwise serv10 ing on business of the Committee, shall be entitled to receive 11 compensation at rates fixed by the Administration (but not 12 in excess of the daily rate paid under GS-18 of the General 13 Schedule under section 5332 of title 5, United States Code), 14 including traveltime, and while so serving away from their 15 homes or regular places of business they may be allowed 16 travel expenses, as authorized by section 5703 of title 5, 17 United States Code, for persons in the Government service. "(3) (A) The Committee is authorized, with the ap19 proval of the Administration, to engage or contract for such 20 technical assistance as may be required to carry out its func21 tions, and the Administration shall, in addition, make avail22 able to the Committee such secretarial, clerical, and other 23 assistance as the Formulary Committee may require to carry 24 out its functions. 18 25 "(B) The Administration shall furnish to the Com 78 1 mittee such office space, materials, and equipment as may 2 be necessary for the Formulary Committee to carry out its 3 functions. 4 5 “Formulary “(b) (1) (A) The Committee shall compile, publish, and make available a National Health Insurance Formulary 7 (hereinafter in this section referred to as the 'Formulary'). 8 "(B) The Committee shall periodically revise the For 9 mulary and the listing of drugs so as to maintain currency 10 in the contents thereof. 11 "(2) (A) The Formulary shall contain an alphabeti 12 cally arranged listing, by established name, of those drug 13 entities within the following therapeutic categories: 8 which the Committee decides are necessary for individuals 9 using such drugs. The Committee shall exclude from the 10 Formulary any drug entities (or dosage forms and strengths 11 thereof) which the Committee decides are not necessary for 12 proper patient care, taking into account other drug entities 13 (or dosage forms and strengths thereof) which are included 14 in the Formulary. 15 18 66 '(B) Such listing shall include the specific dosage forms 16 and strengths of each drug entity (included in the Formulary 17 in accordance with subparagraph (A)) which the Committee decides are necessary for individuals using such drugs. "(C) Such listing shall include the prices at which the 20 products (in the same dosage form and strength) of such 21 drug entities are generally sold by the suppliers thereof and 22 the limit applicable under subsection (e) for purposes of 23 determining the reasonable allowance. 19 24 "(D) The Committee may also include in the Formu 25 lary, either as a separate part (or parts) thereof or as a 80 1 supplement (or supplements) thereto, any or all of the 2 following information: 3 4 5 6 7 8 9 10 11 1272 13 14 15 16 18 19 "(i) A supplemental list or lists, arranged by diagnostic, prophylactic, therapeutic, or other classifications, of the drug entities (and dosage forms and strengths thereof) included in the listing referred to in subparagraph (A). "(ii) The proprietary names under which products of a drug entity listed in the Formulary by established name (and dosage form and strength) are sold and the names of each supplier thereof. "(iii) Any other information with respect to eligible drug entities which in the judgment of the Committee would be useful in carrying out the purposes of this part. "(3) In considering whether a particular drug entity 17 (or strength or dosage form thereof) shall be included in or excluded from the Formulary, the Committee is authorized to obtain (upon request therefor) any record per20 taining to the characteristics of such drug entity which is 21 available to any other department, agency, or instrumen22 tality of the Federal Government, and to request suppliers or manufacturers of drugs and other knowledgeable persons or organizations to make available to the Committee in 23 24 25 formation relating to such drug. If any such record or infor |