HB 370: "An Act relating to prescription drug discount pricing; placing requirements on pharmacies related to prescription drugs obtained through discount pricing; and requiring the Department of Health and Social Services to conduct a study pertaining to prescription drug discounts and report the results to the legislature."
00 HOUSE BILL NO. 370 01 "An Act relating to prescription drug discount pricing; placing requirements on 02 pharmacies related to prescription drugs obtained through discount pricing; and 03 requiring the Department of Health and Social Services to conduct a study pertaining to 04 prescription drug discounts and report the results to the legislature." 05 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF ALASKA: 06 * Section 1. AS 08.80 is amended by adding a new section to read: 07 Sec. 08.80.168. Prescription drugs obtained through discount pricing. (a) 08 A pharmacy shall segregate prescription drugs purchased through discount pricing 09 under AS 17.20.095 from other drug stock by physical or electronic means and 10 maintain records of the acquisition and disposition of the discounted drugs in a way 11 that is readily retrievable and separate from other records maintained by the pharmacy. 12 (b) A pharmacy may only return prescription drugs obtained through discount 13 pricing under AS 17.20.095 if the discounted drugs cannot be distributed because of a 14 change in circumstances approved by the Department of Health and Social Service. In
01 this subsection, "change in circumstances" includes the termination or expiration of 02 the contract under AS 17.20.095(c) between a pharmacy and an eligible covered 03 entity, closure of the pharmacy, disciplinary action involving the pharmacy, and 04 closure of an eligible covered entity that significantly affects the business of the 05 pharmacy. 06 * Sec. 2. AS 17.20 is amended by adding a new section to read: 07 Sec. 17.20.095. Prescription drug discount pricing. (a) A covered entity may 08 not purchase a covered outpatient drug for a price that is higher than the average 09 manufacturer price for the drug established under 42 U.S.C. 1396 et seq. (title XIX of 10 the Social Security Act) in the preceding calendar quarter, reduced by the rebate 11 percentage described under 42 U.S.C. 256b (Title III, Part D, Subpart VII, sec. 340B 12 of the Social Security Act). 13 (b) The commissioner shall notify all health care providers and facilities in the 14 state that are eligible to participate in prescription drug pricing under 42 U.S.C. 256b 15 of the availability of the discount pricing and of the requirement under (a) of this 16 section. 17 (c) An eligible covered entity may contract with a pharmacy to provide 18 pharmacy services to the entity, including dispensing discount pricing for drugs 19 obtained under 42 U.S.C. 256b. 20 (d) Prescription drugs purchased through discount pricing under this section 21 and records pertaining to those drugs shall be maintained as required under 22 AS 08.80.168. 23 (e) In this section, "covered entity" and "covered outpatient drug" have the 24 meanings given in 42 U.S.C. 256b and as further defined in regulations adopted by the 25 commissioner. 26 * Sec. 3. The uncodified law of the State of Alaska is amended by adding a new section to 27 read: 28 PRESCRIPTION DRUG DISCOUNT PRICING STUDY AND REPORT. (a) The 29 Department of Health and Social Services shall conduct a study of the feasibility of providing 30 discounted prescription drug pricing to every person in the state who is not otherwise covered 31 by a prescription drug plan. In conducting the study, the department shall cooperate with other
01 state agencies and representatives of state employees, health care providers, and health care 02 facilities. The study must include 03 (1) a description of health care providers and facilities in the state that meet 04 the definition of "covered entity" under 42 U.S.C. 256b (Social Security Act); 05 (2) a description of other health care providers and facilities in the state that 06 would benefit from prescription drug discount pricing; 07 (3) a list of potential benefits to public, private, and third-party payors of 08 prescription drug discount pricing; 09 (4) a list of resources and an application process available for entities seeking 10 to be included as a covered entity for purposes of obtaining prescription drug discounts; 11 (5) estimated cost savings for prescription drug discount pricing; and 12 (6) strategies, such as state bulk purchasing initiatives, state-funded managed 13 care plans, and sole source contracting, for obtaining the best prices on chronic use drugs. 14 (b) The Department of Health and Social Services shall, after conducting the study 15 under (a) of this section, prepare a report summarizing the study and submit the report to the 16 legislature on or before January 1, 2011.