HF 1837

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act
  1.2             relating to health; requiring reporting by wholesale 
  1.3             drug distributors; establishing a program to provide 
  1.4             prescription drugs at reduced prices to eligible 
  1.5             senior citizens; appropriating money; proposing coding 
  1.6             for new law in Minnesota Statutes, chapters 151; and 
  1.7             256. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [151.471] [BEST PRICE REPORTING REQUIREMENT.] 
  1.10     As a condition of licensure under section 151.47, a 
  1.11  wholesale drug distributor shall report to the commissioner of 
  1.12  human services, in the manner prescribed by that commissioner, 
  1.13  the best price for each prescription drug sold or distributed in 
  1.14  Minnesota.  For purposes of this requirement, "best price" means 
  1.15  the lowest price at which the wholesale drug distributor sells 
  1.16  or distributes the prescription drug to a pharmacy or pharmacy 
  1.17  chain or purchasing group.  When reporting the best price to the 
  1.18  commissioner, a wholesale drug distributor shall also include 
  1.19  information on the quantity of prescription drugs to which the 
  1.20  best price applies, and information on how a pharmacy or 
  1.21  pharmacy chain or purchasing group can purchase prescription 
  1.22  drugs at the best price. 
  1.23     Sec. 2.  [256.9773] [PRESCRIPTION DRUG PROGRAM FOR SENIOR 
  1.24  CITIZENS.] 
  1.25     Subdivision 1.  [PURPOSE.] The purpose of the program 
  1.26  established by this section is to provide pharmacies, especially 
  2.1   independent pharmacies with small profit margins on prescription 
  2.2   drugs, with the ability to provide prescription drugs to 
  2.3   eligible senior citizens at lower prices than they would 
  2.4   normally be able to charge, through the provision of 
  2.5   supplemental payments.  The intent of the program is to allow 
  2.6   each pharmacy to determine what level of price reduction is 
  2.7   appropriate, based upon their economic situation and market 
  2.8   competition. 
  2.9      Subd. 2.  [ESTABLISHMENT.] The commissioner of human 
  2.10  services, in consultation with county social services agencies, 
  2.11  shall establish a program to provide supplemental payments for 
  2.12  pharmacies that sell prescription drugs to eligible senior 
  2.13  citizens.  The commissioner, through county social services 
  2.14  agencies, shall determine eligibility for the program, issue 
  2.15  eligible seniors a program identification card, and make 
  2.16  available to eligible senior citizens information on the best 
  2.17  price, as defined in section 151.471. 
  2.18     Subd. 3.  [ELIGIBLE SENIOR CITIZEN.] For purposes of this 
  2.19  section, an eligible senior citizen is a person who is age 65 or 
  2.20  older who: 
  2.21     (1) does not have coverage for prescription drugs under a 
  2.22  health plan, as defined in section 62Q.01, subdivision 3; a 
  2.23  Medicare supplement plan, as defined in sections 62A.31 to 
  2.24  62A.44; or a policy, contract, or certificate that supplements 
  2.25  Medicare issued by a health maintenance organization; 
  2.26     (2) has a household income that does not exceed 200 percent 
  2.27  of the federal poverty guidelines; 
  2.28     (3) is not eligible for medical assistance or general 
  2.29  assistance medical care, without a spenddown; 
  2.30     (4) is a resident of Minnesota, as determined using the 
  2.31  procedures in chapter 256B; and 
  2.32     (5) does not own assets in excess of $100,000, using the 
  2.33  method for determining assets in chapter 256B. 
  2.34     Subd. 4.  [SUPPLEMENTAL PAYMENTS.] The commissioner of 
  2.35  human services shall pay a supplemental payment to each pharmacy 
  2.36  registered under subdivision 5, for each prescription drug 
  3.1   covered under medical assistance that is purchased from the 
  3.2   pharmacy by an eligible senior citizen.  Supplemental payments 
  3.3   shall be available only for prescription drugs purchased in 
  3.4   quantities that do not exceed a 30-day supply.  The supplemental 
  3.5   payment shall be equal to the best price for the prescription 
  3.6   drug, as defined in section 151.471, prorated for the quantity 
  3.7   purchased by the eligible senior citizen, plus a $4.50 
  3.8   dispensing fee for each prescription, and minus the applicable 
  3.9   copayment under subdivision 6.  Supplemental payments shall be 
  3.10  provided beginning January 1, 1998. 
  3.11     Subd. 5.  [PHARMACY REGISTRATION.] To receive supplemental 
  3.12  payments, a pharmacy must register with the commissioner of 
  3.13  human services using the forms and procedures prescribed by the 
  3.14  commissioner.  To register, a pharmacy must agree to provide the 
  3.15  commissioner with monthly information on prescription drug 
  3.16  purchases by eligible senior citizens, the price charged by the 
  3.17  pharmacy for the prescription drugs purchased by eligible senior 
  3.18  citizens, and any information the commissioner determines is 
  3.19  necessary to verify these purchases and to evaluate the program 
  3.20  as required under subdivision 7. 
  3.21     Subd. 6.  [COST-SHARING REQUIREMENT.] Eligible senior 
  3.22  citizens shall be responsible for the following copayments, 
  3.23  based upon household income: 
  3.24     (1) $2 per prescription for eligible seniors with household 
  3.25  incomes greater than 100 percent but not exceeding 125 percent 
  3.26  of the federal poverty guidelines; 
  3.27     (2) $4 per prescription for eligible seniors with household 
  3.28  incomes greater than 125 percent but not exceeding 150 percent 
  3.29  of the federal poverty guidelines; 
  3.30     (3) $6 per prescription for eligible seniors with household 
  3.31  incomes greater than 150 percent but not exceeding 175 percent 
  3.32  of the federal poverty guidelines; or 
  3.33     (4) $8 per prescription for eligible seniors with household 
  3.34  incomes greater than 175 percent but not exceeding 200 percent 
  3.35  of the federal poverty guidelines. 
  3.36     Subd. 7.  [REPORT.] The commissioner of human services 
  4.1   shall determine whether the program established by this section 
  4.2   results in a significant reduction in the price of prescription 
  4.3   drugs paid by eligible seniors and shall report to the 
  4.4   legislature by January 15, 1999.  The report must also include 
  4.5   recommendations on whether the health care access fund is an 
  4.6   appropriate funding source for the program and whether 
  4.7   transferring tax revenues paid by wholesale drug distributors 
  4.8   and pharmacies into the health care access fund would provide 
  4.9   sufficient funding for the program. 
  4.10     Sec. 3.  [APPROPRIATION.] 
  4.11     $....... is appropriated from the health care access fund 
  4.12  to the commissioner of human services for the biennium ending 
  4.13  June 30, 1999, to implement section 2.