1. Short title This Act may be cited as the American Made Pharmaceuticals Act of 2023 . 2. Demonstration program to test providing preferential treatment under the Medicare, Medicaid, and CHIP programs for certain drugs and biologicals manufactured in the United States Part A of title XI of the Social Security Act ( 42 U.S.C. 1301 et seq. ) is amended by inserting after section 1150C the following: 1150D. Demonstration program to test providing preferential treatment under the Medicare, Medicaid, and CHIP programs for certain drugs and biologicals manufactured in the United States (a) In general Not later than 1 year after the date of enactment of this section, the Secretary shall conduct a demonstration program (in this section referred to as the Program ) under which U.S. manufactured drugs are given preference under titles XVIII, XIX, and XXI compared to drugs that are not U.S. manufactured drugs through the use of applicable tools. (b) Sites The Program shall be conducted in at least 8 States. (c) Duration The Secretary shall conduct the Program for a period of not less than 7 years. (d) Definitions In this section: (1) Applicable drug The term applicable drug means— (A) a drug that is approved and marketed under section 505(j) of the Federal Food, Drug, and Cosmetic Act; (B) a biological product that is licensed and marketed under section 351(k) of the Public Health Service Act; or (C) a critical drug. (2) Applicable U.S.-based pharmaceutical company The term applicable U.S.-based pharmaceutical company means a manufacturer (as defined in section 1860D–14A(g)(5))— (A) that has a manufacturing location in the United States for an applicable drug; (B) beginning 3 years after the date of the implementation of the Program, for which at least 50 percent of the starter products, by weight, for the applicable drugs manufactured by the manufacturer are derived from countries other than covered nations (as defined in section 4872(d)(2) of title 10, United States Code)