1. Short title This Act may be cited as the Right Rebate Act of 2018 . 2. Preventing the misclassification of drugs under the Medicaid drug rebate program (a) Application of civil money penalty for misclassification of covered outpatient drugs (1) In general Section 1927(b)(3) of the Social Security Act ( 42 U.S.C. 1396r–8(b)(3) ) is amended— (A) in the paragraph heading, by inserting and drug product after price ; (B) in subparagraph (A)— (i) in clause (ii), by striking ; and at the end and inserting a semicolon; (ii) in clause (iii), by striking the period at the end and inserting a semicolon; (iii) in clause (iv), by striking the semicolon at the end and inserting ; and ; and (iv) by inserting after clause (iv) the following new clause: (v) not later than 30 days after the last day of each month of a rebate period under the agreement, such drug product information as the Secretary shall require for each of the manufacturer's covered outpatient drugs. ; and (C) in subparagraph (C)— (i) in clause (ii), by inserting including information related to drug pricing, drug product information, and data related to drug pricing or drug product information, after provides false information, ; (ii) by adding at the end the following new clauses: (iii) Misclassified or misreported information (I) In general Any manufacturer with an agreement under this section that knowingly (as defined in section 1003.110 of title 42, Code of Federal Regulations (or any successor regulation)) misclassifies a covered outpatient drug, such as by knowingly submitting incorrect drug category information, is subject to a civil money penalty for each covered outpatient drug that is misclassified in an amount not to exceed 2 times the amount of the difference, as determined by the Secretary, between— (aa) the total amount of rebates that the manufacturer paid with respect to the drug to all States for all rebate periods during which the drug was misclassified