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HF 2293

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

KEY: stricken = removed, old language.
underscored = added, new language.

Bill Text Versions

Engrossments
Introduction Posted on 02/19/2004

Current Version - as introduced

  1.1                          A bill for an act 
  1.2             relating to human services; requiring the commissioner 
  1.3             of human services to implement a program to obtain 
  1.4             discounted prescription drugs through Canadian 
  1.5             pharmacies; establishing a Web site for ordering 
  1.6             prescription drugs; providing state and local employee 
  1.7             health plans, state health care programs, health plan 
  1.8             companies, and Minnesota residents access to 
  1.9             discounted prescription drugs; amending Minnesota 
  1.10            Statutes 2002, section 151.19, subdivision 2; 
  1.11            proposing coding for new law in Minnesota Statutes, 
  1.12            chapter 256. 
  1.13  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.14     Section 1.  Minnesota Statutes 2002, section 151.19, 
  1.15  subdivision 2, is amended to read: 
  1.16     Subd. 2.  [NONRESIDENT PHARMACIES.] The board shall require 
  1.17  and provide for an annual nonresident special pharmacy 
  1.18  registration for all pharmacies located outside of this state 
  1.19  that regularly dispense medications for Minnesota residents and 
  1.20  mail, ship, or deliver prescription medications into this state. 
  1.21  Nonresident special pharmacy registration shall be granted by 
  1.22  the board upon the disclosure and certification by a pharmacy: 
  1.23     (1) that it is licensed in the state or Canadian province 
  1.24  in which the dispensing facility is located and from which the 
  1.25  drugs are dispensed; 
  1.26     (2) the location, names, and titles of all principal 
  1.27  corporate officers and all pharmacists who are dispensing drugs 
  1.28  to residents of this state; 
  1.29     (3) that it complies with all lawful directions and 
  2.1   requests for information from the Board of Pharmacy of all 
  2.2   states or Canadian provinces in which it is licensed or 
  2.3   registered, except that it shall respond directly to all 
  2.4   communications from the board concerning emergency circumstances 
  2.5   arising from the dispensing of drugs to residents of this state; 
  2.6      (4) that it maintains its records of drugs dispensed to 
  2.7   residents of this state so that the records are readily 
  2.8   retrievable from the records of other drugs dispensed; 
  2.9      (5) that it cooperates with the board in providing 
  2.10  information to the Board of Pharmacy of the state or Canadian 
  2.11  province in which it is licensed concerning matters related to 
  2.12  the dispensing of drugs to residents of this state; and 
  2.13     (6) that during its regular hours of operation, but not 
  2.14  less than six days per week, for a minimum of 40 hours per week, 
  2.15  a toll-free telephone service is provided to facilitate 
  2.16  communication between patients in this state and a pharmacist at 
  2.17  the pharmacy who has access to the patients' records; the 
  2.18  toll-free number must be disclosed on the label affixed to each 
  2.19  container of drugs dispensed to residents of this state. 
  2.20     Sec. 2.  [256.9552] [PRESCRIPTION DRUG REIMPORTATION 
  2.21  PROGRAM.] 
  2.22     Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
  2.23  services shall develop a program to make discounted prescription 
  2.24  drugs reimported from Canada available to Minnesotans.  The 
  2.25  commissioner shall implement the program by July 1, 2005. 
  2.26     Subd. 2.  [PRICE NEGOTIATION; CONTRACTS.] (a) The 
  2.27  commissioner shall negotiate prescription drug prices with 
  2.28  Canadian pharmacies licensed as nonresident pharmacies under 
  2.29  section 151.19, subdivision 2, and shall contract with the 
  2.30  pharmacies to make these prices available to eligible entities 
  2.31  and individuals.  The commissioner shall require pharmacies, as 
  2.32  a condition of contract, to verify: 
  2.33     (1) business location; 
  2.34     (2) licensure by a Canadian province; 
  2.35     (3) licensed pharmacists are filling prescriptions; and 
  2.36     (4) the prescription drugs being delivered are supplied by 
  3.1   the pharmacy. 
  3.2      (b) The commissioner shall exclude from the reimportation 
  3.3   program those prescription drugs for which: 
  3.4      (1) the commissioner has determined that significant 
  3.5   savings, relative to prices paid by Minnesota purchasers, cannot 
  3.6   be obtained, after accounting for administrative and shipping 
  3.7   costs; or 
  3.8      (2) the commissioner has quality concerns, including 
  3.9   concerns related to preserving drug quality throughout the 
  3.10  mail-order delivery process. 
  3.11     (c) In setting the price of a prescription drug for 
  3.12  purchase on the program Web site, the commissioner may add an 
  3.13  assessment sufficient to cover the costs to the agency of 
  3.14  administering the program and to pay back the agency for 
  3.15  start-up expenses over a six-year period, not to exceed $....... 
  3.16  per prescription.  Contracts with Canadian pharmacies must 
  3.17  require the pharmacy to pay to the commissioner, on a monthly 
  3.18  basis, an amount equal to the total amount of the assessment 
  3.19  fees collected by the pharmacy through orders using the program 
  3.20  Web site. 
  3.21     (d) The commissioner may enter into an agreement with a 
  3.22  pharmacy benefit manager to negotiate prices and administer 
  3.23  contracts with Canadian pharmacies. 
  3.24     Subd. 3.  [ELIGIBLE ENTITIES AND INDIVIDUALS.] The 
  3.25  following entities and individuals are eligible to purchase 
  3.26  prescription drugs under the program: 
  3.27     (1) state and local government employee health care 
  3.28  programs established under sections 43A.23 and 43A.316; 
  3.29     (2) state health care programs administered by the 
  3.30  commissioner under chapters 256B, 256D, and 256L; 
  3.31     (3) health plan companies as defined under section 62Q.01, 
  3.32  subdivision 4; and 
  3.33     (4) all individuals residing in Minnesota, who are not 
  3.34  otherwise able to access prescription drugs through the program. 
  3.35     Subd. 4.  [WEB SITE.] The commissioner shall establish a 
  3.36  Web site, or modify an existing Web site, to allow eligible 
  4.1   entities and individuals to purchase prescription drugs from 
  4.2   Canadian pharmacies at the price negotiated by the commissioner, 
  4.3   plus any assessment for agency administrative costs.  The Web 
  4.4   site must allow individuals to have prescription drugs delivered 
  4.5   to their residence or to a participating Minnesota pharmacy. 
  4.6      Subd. 5.  [PARTICIPATING PHARMACIES; ADMINISTRATIVE AND 
  4.7   COUNSELING FEE.] A Minnesota pharmacy may register with the 
  4.8   commissioner to participate in the program.  A participating 
  4.9   pharmacy must receive and store prescription drugs delivered by 
  4.10  Canadian pharmacies, notify individuals of the arrival of these 
  4.11  prescription drugs, and provide drug counseling at the time a 
  4.12  prescription drug is dispensed.  A participating pharmacy may 
  4.13  charge a consumer a fee not to exceed $....... per prescription 
  4.14  to cover the pharmacy's administrative costs and the cost of 
  4.15  providing drug counseling. 
  4.16     Subd. 6.  [STATE AND LOCAL GOVERNMENT ENROLLEES.] State and 
  4.17  local government employee health care programs established under 
  4.18  sections 43A.23 and 43A.316 shall give enrollees the option of 
  4.19  purchasing prescription drugs through the program's Web site.  
  4.20  State and local government employee health care programs shall 
  4.21  exempt prescription drugs ordered through the Web site from any 
  4.22  applicable enrollee co-payments. 
  4.23     Subd. 7.  [STATE HEALTH CARE PROGRAMS.] The medical 
  4.24  assistance, MinnesotaCare, and general assistance medical care 
  4.25  programs shall give enrollees the option of purchasing 
  4.26  prescription drugs through the program's Web site.  The 
  4.27  commissioner shall exempt prescriptions ordered through the Web 
  4.28  site from any applicable enrollee co-payments. 
  4.29     Subd. 8.  [HEALTH PLAN COMPANIES.] A health plan company, 
  4.30  as defined under section 62Q.01, subdivision 4, must participate 
  4.31  in the program for all of the health plans it offers.  A health 
  4.32  plan company must give enrollees the option of purchasing 
  4.33  prescription drugs through the program Web site but cannot 
  4.34  require enrollees to participate.  The health plan company must 
  4.35  pass on all savings resulting from participating in the program 
  4.36  to enrollees by reducing or eliminating prescription drug 
  5.1   co-payments and shall pass on any remaining savings to 
  5.2   purchasers in the form of reduced premiums. 
  5.3      Subd. 9.  [INDIVIDUALS RESIDING IN MINNESOTA.] Individuals 
  5.4   residing in Minnesota who do not have access to the program 
  5.5   through a state or local government employee health care 
  5.6   program, state health care program administered by the 
  5.7   commissioner, or a health plan company may purchase prescription 
  5.8   drugs through the program Web site.  These individuals must pay 
  5.9   Canadian pharmacies for the full cost of the prescription drug 
  5.10  as listed on the Web site, plus any assessment for agency 
  5.11  administrative costs. 
  5.12     Subd. 10.  [MULTISTATE AGREEMENTS.] The commissioner may 
  5.13  enter into agreements with other states to jointly negotiate 
  5.14  prescription drug prices with Canadian pharmacies and jointly 
  5.15  administer a multistate prescription drug reimportation program. 
  5.16     Subd. 11.  [MINNESOTACARE TAX.] Prescription drugs 
  5.17  reimported under this section are subject to any tax imposed 
  5.18  under section 295.52. 
  5.19     Subd. 12.  [IMPLEMENTATION PLAN.] The commissioner shall 
  5.20  develop an implementation plan for the prescription drug 
  5.21  reimportation program, and shall present this plan, and any 
  5.22  necessary draft legislation, to the legislature by December 15, 
  5.23  2004.  The implementation plan must: 
  5.24     (1) establish a process to identify the prescription drugs 
  5.25  for which the commissioner will negotiate prices; 
  5.26     (2) set criteria for determining when price savings are 
  5.27  significant; 
  5.28     (3) set the amount of each prescription assessment at a 
  5.29  level that covers ongoing agency administrative costs and allows 
  5.30  the general fund appropriation to be paid back over a six-year 
  5.31  period; 
  5.32     (4) propose procedures to ensure the quality of the 
  5.33  prescription drugs imported; 
  5.34     (5) evaluate and address any data privacy concerns; and 
  5.35     (6) recommend any program procedures and modifications 
  5.36  necessary to effectively implement the program.