; and . (3) Effective date The amendments made by this subsection apply with respect to items and services furnished on or after the date that is 30 days after the date of the enactment of this Act. (b) Medicaid (1) In general Section 1927(k)(6) of the Social Security Act ( 42 U.S.C. 1396r–8(k)(6) ) is amended to read as follows: (6) Medically accepted indication The term medically accepted indication means any use for a covered drug— (A) which is approved under the Federal Food, Drug, and Cosmetic Act; (B) which is supported by one or more citations included or approved for inclusion in any of the compendia described in subsection (g)(1)(B)(i); or (C) in the case of a drug used to treat or manage a disease or condition affecting 200,000 or fewer individuals in the United States— (i) the use of such drug is supported by peer-reviewed medical literature, including clinical guidelines; and (ii) is not reviewed unfavorably in the compendia described in subsection (g)(1)(B)(i), or listed as a contraindication in the FDA-approved labeling. . (2) Conforming amendment Section 1927(d)(4)(C) of the Social Security Act ( 42 U.S.C. 1396r–8(d)(4)(C) ) is amended by striking compendia and inserting sources . (3) Effective date The amendments made by this subsection apply with respect to covered outpatient drugs furnished on or after the date that is 30 days after the date of the enactment of this Act. (c) Private health insurance (1) In general Subpart II of part A of title XXVII of the Public Health Service Act ( 42 U.S.C. 300gg–19 ) is amended by adding at the end the following new section: 2730. Expedited processes for review associated with certain drugs used in treatment or management of a rare disease or condition A group health plan or a health insurance issuer offering group or individual health insurance coverage shall provide a mechanism for expedited formulary exception, reconsideration, and appeal of any denial of coverage for a drug or biological— (1) approved by the Food and Drug Administration