135.132  Interagency pharmaceuticals bulk purchasing council.
  1.  For the purposes of this section, “interagency pharmaceuticals bulk purchasing council” or “council” means the interagency pharmaceuticals bulk purchasing council created in this section.
  2.  An interagency pharmaceuticals bulk purchasing council is created within the Iowa department of public health. The department shall provide staff support to the council and the department of pharmaceutical care of the university of Iowa hospitals and clinics shall act in an advisory capacity to the council. The council shall be composed of all of the following members:
  a.  The director of public health, or the director’s designee.
  b.  The director of human services, or the director’s designee.
  c.  The director of the department of administrative services, or the director’s designee.
  d.  A representative of the state board of regents.
  e.  The director of the department of corrections, or the director’s designee.
  f.  The director, or the director’s designee, of any other agency that purchases pharmaceuticals designated to be included as a member by the director of public health.
  3.  The council shall select a chairperson annually from its membership. A majority of the members of the council shall constitute a quorum.
  4.  The council shall do all of the following:
  a.  Develop procedures that member agencies must follow in purchasing pharmaceuticals. However, a member agency may elect not to follow the council’s procedures if the agency is able to purchase the pharmaceuticals for a lower price than the price available through the council. An agency that does not follow the council’s procedures shall report all of the following to the council:
  (1)  The purchase price for the pharmaceuticals.
  (2)  The name of the wholesaler, retailer, or manufacturer selling the pharmaceuticals.
  b.  Designate a member agency as the central purchasing agency for purchasing of pharmaceuticals.
  c.  Use existing distribution networks, including wholesale and retail distributors, to distribute the pharmaceuticals.
  d.  Investigate options that maximize purchasing power, including expanding purchasing under the medical assistance program, qualifying for participation in purchasing programs under 42 U.S.C. §  256b, as amended, and utilizing rebate programs, hospital disproportionate share purchasing, multistate purchasing alliances, and health department and federally qualified health center purchasing.
  e.  In collaboration with the department of pharmaceutical care of the university of Iowa hospitals and clinics, make recommendations to member agencies regarding drug utilization review, prior authorization, the use of restrictive formularies, the use of mail order programs, and copayment structures. This paragraph shall not apply to the medical assistance program but only to the operations of the member agencies.
  5.  The central purchasing agency may enter into agreements with a local governmental entity to purchase pharmaceuticals for the local governmental entity.
  6.  The council shall develop procedures under which the council may disclose information relating to the prices manufacturers or wholesalers charge for pharmaceuticals by category of pharmaceutical. The procedure shall prohibit the council from disclosing information that identifies a specific manufacturer or wholesaler or the prices charged by a specific manufacturer or wholesaler for a specific pharmaceutical.
2003 Acts, ch 112, §1; 2003 Acts, ch 145, §286