; and (2) by adding at the end the following new subparagraph: (D) Models of negotiating drug and biological prices to improve value The models described in this subparagraph are the following models for negotiating drug and biological prices under the applicable titles (including under both parts B and D of title XVIII) in order to improve the value of payments for such drugs and biologicals under such titles: (i) Discounting or eliminating patient cost-sharing on high-value drugs and biologicals. (ii) Value-based formularies. (iii) Indications-based pricing. (iv) Reference pricing. (v) Risk-sharing agreements based on outcomes. (vi) Pricing based on comparative effectiveness research. (vii) Episode-based payments for chemotherapy and other conditions determined appropriate by the Secretary. (viii) Alternative ways of paying for drugs and biologicals under part B of title XVIII. (ix) Other models determined appropriate by the Secretary. . 202. Prescription drug price spikes (a) Identification of prescription drug price spikes (1) Definitions In this subsection: (A) Applicable entity The term applicable entity means the holder of an application approved under subsection (c) or (j) of section 505 of the Federal Food, Drug, and Cosmetic Act ( 21 U.S.C. 355 ) or of a license issued under subsection (a) or (k) of section 351 of the Public Health Service Act ( 42 U.S.C. 262 ) for a prescription drug. (B) Average price The term average price means— (i) the average manufacturer price, as defined in section 1927(k)(1) of the Social Security Act ( 42 U.S.C. 1396r–8(k)(1) )