A bill to amend title XIX of the Social Security Act to provide for waivers to allow States that meet certain criteria to operate pharmaceutical benefit programs independent of the medicaid drug purchasing requirements.

Amends title XIX (Medicaid) of the Social Security Act to direct the Secretary of Health and Human Services to provide for waivers from Medicaid drug rebate program requirements for States with approved plans that manage payment for covered outpatient drugs for which payments are made under Medicaid.