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House File 2177

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  249A.20A  PREFERRED DRUG
  1  2 FORMULARY SPENDING CONTROL PROGRAM.
  1  3    1.  The department shall establish and implement a
  1  4 preferred drug formulary spending control program applicable
  1  5 to the provision of medical assistance in accordance with this
  1  6 section.
  1  7    2.  a.  A medical assistance pharmaceutical and
  1  8 therapeutics committee is created within the department for
  1  9 the purpose of developing a preferred drug formulary pursuant
  1 10 to 42 U.S.C. } 1396r-8.
  1 11    b.  The committee shall be comprised as specified in 42
  1 12 U.S.C. } 1396r-8 and shall consist of eleven members appointed
  1 13 by the governor.  Four members shall be physicians, licensed
  1 14 pursuant to chapter 148 or 150A, five members shall be
  1 15 pharmacists licensed pursuant to chapter 155A, one member
  1 16 shall be a consumer representative, and one member shall
  1 17 represent the interests of pharmaceutical manufacturers.  A
  1 18 portion of the appointees shall include representatives of
  1 19 medical assistance program participating physicians and
  1 20 pharmacists who have experience in either developing or
  1 21 practicing under a preferred drug formulary.
  1 22    c.  The members shall be appointed to terms of two years.
  1 23 Members may be appointed to more than one term.  The
  1 24 department shall provide staff for the committee.
  1 25    d.  Committee members shall select a chairperson and a vice
  1 26 chairperson annually from the committee membership.
  1 27    e.  The committee shall meet at least quarterly and may
  1 28 meet at other times at the discretion of the chairperson.
  1 29    3.  a.  The committee shall recommend a preferred drug
  1 30 formulary to the department established in accordance with 42
  1 31 U.S.C. } 1396r-8.  The committee shall develop the preferred
  1 32 drug formulary recommendations by considering the drug's
  1 33 clinically meaningful therapeutic advantage in terms of
  1 34 safety, effectiveness, or clinical outcome.
  1 35    b.  The department shall adopt by rule a preferred drug
  2  1 formulary applicable to the provision of medical assistance
  2  2 based upon the recommendations of the committee.
  2  3    c.  To the extent possible, the committee shall review all
  2  4 drug classes included in the formulary at least every twelve
  2  5 months, and may recommend additions to and deletions from the
  2  6 formulary, so that the formulary provides for medically
  2  7 appropriate drug therapies for medical assistance recipients
  2  8 and achieves cost savings to the medical assistance program.
  2  9    4.  a.  The department may negotiate supplemental rebates
  2 10 from manufacturers that are in addition to those required by
  2 11 Title XIX of the federal Social Security Act and at no less
  2 12 than ten percent of the average manufacturer price as defined
  2 13 in 42 U.S.C. } 1396r-8(k)(1) on the last day of a quarter,
  2 14 unless the federal or supplemental rebate, or both, equals or
  2 15 exceeds twenty-five percent.  An upper limit on the
  2 16 supplemental rebates the department may negotiate shall not be
  2 17 established.
  2 18    b.  The department may determine that specific products,
  2 19 brand-name or generic, are competitive at lower rebate
  2 20 percentages.  Agreement to pay the minimum supplemental rebate
  2 21 percentage shall guarantee a manufacturer that the committee
  2 22 will consider a product for inclusion on the preferred drug
  2 23 formulary.  However, a pharmaceutical manufacturer is not
  2 24 guaranteed placement on the formulary simply by paying the
  2 25 minimum supplemental rebate.
  2 26    c.  The department may contract with an outside entity or
  2 27 contractor to conduct negotiations for supplemental rebates.
  2 28    d.  For the purposes of this subsection, the term
  2 29 "supplemental rebates" may include, at the department's
  2 30 discretion, cash rebates and other program benefits that
  2 31 offset a medical assistance expenditure.  The program benefits
  2 32 may include, but are not limited to, disease management
  2 33 programs, drug product donation programs, drug utilization
  2 34 control programs, prescriber and beneficiary counseling and
  2 35 education, fraud and abuse initiatives, and other services or
  3  1 administrative investments with guaranteed savings to the
  3  2 medical assistance program.
  3  3    5.  With the exception of mental health-related drugs,
  3  4 antiretroviral drugs, and drugs for health care facility
  3  5 residents, reimbursement of drugs not included in the
  3  6 formulary is subject to prior authorization.
  3  7    6.  The department shall publish and disseminate the
  3  8 preferred drug formulary to all medical assistance providers
  3  9 in the state.
  3 10    7.  The committee shall ensure that pharmaceutical
  3 11 manufacturers agreeing to provide a supplemental rebate as
  3 12 provided in this section have an opportunity to present
  3 13 evidence supporting inclusion of a product on the preferred
  3 14 drug formulary.  Upon timely notice, the department shall
  3 15 ensure that any drug that has been approved or had any of its
  3 16 particular uses approved by the United States food and drug
  3 17 administration under a priority review classification will be
  3 18 reviewed by the committee at the next regularly scheduled
  3 19 meeting.  To the extent possible, upon notice by a
  3 20 manufacturer, the department shall also schedule a product
  3 21 review for any new product at the next regularly scheduled
  3 22 meeting.
  3 23    8.  The committee may also make recommendations to the
  3 24 department regarding the prior authorization of any prescribed
  3 25 drug covered under the medical assistance program.
  3 26    9.  The department shall seek any federal waivers necessary
  3 27 to implement this program.  
  3 28                           EXPLANATION
  3 29    This bill directs the department of human services to
  3 30 establish and implement a preferred drug formulary spending
  3 31 control program applicable to the provision of medical
  3 32 assistance.  The bill creates the medical assistance
  3 33 pharmaceutical and therapeutics committee, within the
  3 34 department, to develop a preferred drug formulary in
  3 35 accordance with federal law.  The committee is comprised of 11
  4  1 members appointed by the governor.  Four members are to be
  4  2 physicians, five members are to be pharmacists, one member is
  4  3 to be a consumer representative, and one member is to be a
  4  4 representative of the interests of pharmaceutical
  4  5 manufacturers.  A portion of the appointees is to include
  4  6 representatives of medical assistance program participating
  4  7 physicians and pharmacists.  The bill provides procedural
  4  8 requirements for the committee.
  4  9    The committee is directed to recommend a preferred drug
  4 10 formulary to the department in accordance with federal law.
  4 11 The recommendations are to be developed by the committee
  4 12 considering the drug's clinically meaningful therapeutic
  4 13 advantage in terms of safety, effectiveness, or clinical
  4 14 outcome.  The bill directs the department to adopt by rule a
  4 15 preferred drug formulary applicable to the provision of
  4 16 medical assistance based upon the recommendations of the
  4 17 committee.  The bill directs the committee, to the extent
  4 18 possible, to review all drug classes included in the formulary
  4 19 at least every 12 months, and to recommend additions to and
  4 20 deletions from the formulary.
  4 21    The bill authorizes the department to negotiate
  4 22 supplemental rebates from manufacturers that are in addition
  4 23 to those required by Title XIX of the federal Social Security
  4 24 Act based upon a rebate percentage.  Under the bill, an
  4 25 agreement to pay the minimum supplemental rebate percentage
  4 26 guarantees a manufacturer that the committee will consider a
  4 27 product for inclusion on the preferred drug formulary, but a
  4 28 manufacturer is not guaranteed placement on the formulary
  4 29 solely by paying the minimum supplemental rebate.
  4 30 "Supplemental rebate" may include cash rebates and other
  4 31 program benefits such as disease management programs, drug
  4 32 product donation programs, drug utilization control programs,
  4 33 prescriber and beneficiary counseling and education, fraud and
  4 34 abuse initiatives, and other services or administrative
  4 35 investments with guaranteed savings to the medical assistance
  5  1 program.  The bill authorizes the department to contract with
  5  2 an outside entity or contractor to conduct negotiations for
  5  3 supplemental rebates.  The bill provides that with few
  5  4 exceptions, reimbursement of drugs not included in the
  5  5 formulary is subject to prior authorization.
  5  6    The bill directs the department to seek any federal waivers
  5  7 necessary to implement the program, and provides that the
  5  8 committee may also make recommendations to the department
  5  9 regarding the prior authorization of any prescribed drug
  5 10 covered under the medical assistance program.  
  5 11 LSB 5636YH 79
  5 12 pf/cf/24
     

Text: HF02176                           Text: HF02178
Text: HF02100 - HF02199                 Text: HF Index
Bills and Amendments: General Index     Bill History: General Index

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