CODING: Words stricken are deletions; words underlined are additions.





                                                  SENATE AMENDMENT

    Bill No. HB 2151, 1st Eng.

    Amendment No. 1

                            CHAMBER ACTION
              Senate                               House
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11  The Committee on Fiscal Policy recommended the following

12  amendment:

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14         Senate Amendment (with title amendment) 

15         Delete everything after the enacting clause

16

17  and insert:

18         Section 1.  Subsection (37) is added to section

19  409.912, Florida Statutes, to read:

20         409.912  Cost-effective purchasing of health care.--The

21  agency shall purchase goods and services for Medicaid

22  recipients in the most cost-effective manner consistent with

23  the delivery of quality medical care.  The agency shall

24  maximize the use of prepaid per capita and prepaid aggregate

25  fixed-sum basis services when appropriate and other

26  alternative service delivery and reimbursement methodologies,

27  including competitive bidding pursuant to s. 287.057, designed

28  to facilitate the cost-effective purchase of a case-managed

29  continuum of care. The agency shall also require providers to

30  minimize the exposure of recipients to the need for acute

31  inpatient, custodial, and other institutional care and the

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                                                  SENATE AMENDMENT

    Bill No. HB 2151, 1st Eng.

    Amendment No. 1





 1  inappropriate or unnecessary use of high-cost services.

 2         (37)(a)  The agency shall implement a Medicaid

 3  prescribed-drug spending-control program that includes the

 4  following components:

 5         1.  Medicaid prescribed-drug coverage for brand-name

 6  drugs for adult Medicaid recipients not residing in nursing

 7  homes or other institutions is limited to the dispensing of

 8  four brand-name drugs per month per recipient. Children and

 9  institutionalized adults are exempt from this restriction.

10  Antiretroviral agents are excluded from this limitation. No

11  requirements for prior authorization or other restrictions on

12  medications used to treat mental illnesses such as

13  schizophrenia, severe depression, or bipolar disorder may be

14  imposed on Medicaid recipients. Medications that will be

15  available without restriction for persons with mental

16  illnesses include atypical antipsychotic medications,

17  conventional antipsychotic medications, selective serotonin

18  re-uptake inhibitors, and other medications used for the

19  treatment of serious mental illnesses. The agency shall also

20  limit the amount of a prescribed drug dispensed to no more

21  than a 34-day supply. The agency shall continue to provide

22  unlimited generic drugs, contraceptive drugs and items, and

23  diabetic supplies. The agency may authorize exceptions to the

24  brand-name-drug restriction only when such exceptions are

25  based on prior consultation provided by the agency or an

26  agency contractor, but the agency must establish procedures to

27  ensure that:

28         a.  There will be a response to a request for prior

29  consultation by telephone or other telecommunication device

30  within 24 hours after receipt of a request for prior

31  consultation; and

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                                                  SENATE AMENDMENT

    Bill No. HB 2151, 1st Eng.

    Amendment No. 1





 1         b.  A 72-hour supply of the drug prescribed will be

 2  provided in an emergency or when the agency does not provide a

 3  response within 24 hours as required by sub-subparagraph a.

 4         2.  Reimbursement to pharmacies for Medicaid prescribed

 5  drugs shall be set at the average wholesale price less 13.25

 6  percent.

 7         3.  The agency shall develop and implement a process

 8  for managing the drug therapies of Medicaid recipients who are

 9  using significant numbers of prescribed drugs each month. The

10  management process may include, but is not limited to,

11  comprehensive, physician-directed medical-record reviews,

12  claims analyses, and case evaluations to determine the medical

13  necessity and appropriateness of a patient's treatment plan

14  and drug therapies. The agency may contract with a private

15  organization to provide drug-program-management services.

16         4.  The agency may limit the size of its pharmacy

17  network based on need, competitive bidding, price

18  negotiations, credentialing, or similar criteria. The agency

19  shall give special consideration to rural areas in determining

20  the size and location of pharmacies included in the Medicaid

21  pharmacy network. A pharmacy credentialing process may include

22  criteria such as a pharmacy's full-service status, location,

23  size, patient educational programs, patient consultation,

24  disease-management services, and other characteristics. The

25  agency may impose a moratorium on Medicaid pharmacy enrollment

26  when it is determined that it has a sufficient number of

27  Medicaid-participating providers.

28         5.  The agency shall develop and implement a program

29  that requires Medicaid practitioners who prescribe drugs to

30  use a counterfeit-proof prescription pad for Medicaid

31  prescriptions. The agency shall require the use of

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                                                  SENATE AMENDMENT

    Bill No. HB 2151, 1st Eng.

    Amendment No. 1





 1  standardized counterfeit-proof prescription pads by

 2  Medicaid-participating prescribers. The agency may implement

 3  the program in targeted geographic areas or statewide.

 4         6.  The agency may enter into arrangements that require

 5  manufacturers of generic drugs prescribed to Medicaid

 6  recipients to provide rebates of at least 15.1 percent of the

 7  average manufacturer price for the manufacturer's generic

 8  products. These arrangements shall require that if a

 9  generic-drug manufacturer pays federal rebates for

10  Medicaid-reimbursed drugs at a level below 15.1 percent, the

11  manufacturer must provide a supplemental rebate to the state

12  in an amount necessary to achieve a 15.1-percent rebate level.

13  If a generic-drug manufacturer raises its price in excess of

14  the Consumer Price Index (Urban), the excess amount shall be

15  included in the supplemental rebate to the state.

16         (b)  The agency shall implement this subsection to the

17  extent that funds are appropriated to administer the Medicaid

18  prescribed-drug spending-control program. The agency may

19  contract all or any part of this program to private

20  organizations.

21         (c)  The agency shall submit a report to the Governor,

22  the President of the Senate, and the Speaker of the House of

23  Representatives by January 15 of each year. The report must

24  include, but need not be limited to, the progress made in

25  implementing Medicaid cost-containment measures and their

26  effect on Medicaid prescribed-drug expenditures.

27         Section 2.  There is created a Medicaid Pharmaceutical

28  and Therapeutics Committee. The committee shall develop and

29  implement a voluntary Medicaid preferred prescribed drug

30  designation program. The program shall provide information to

31  Medicaid providers on medically appropriate and cost efficient

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                                                  SENATE AMENDMENT

    Bill No. HB 2151, 1st Eng.

    Amendment No. 1





 1  prescription drug therapies through the development and

 2  publication of a voluntary Medicaid preferred prescribed-drug

 3  list.

 4         (1)  The Medicaid Pharmaceutical and Therapeutics

 5  Committee shall be comprised of nine members appointed as

 6  follows:  one practicing physician licensed under chapter 458,

 7  Florida Statutes, appointed by the Speaker of the House of

 8  Representatives from a list of recommendations from the

 9  Florida Medical Association; one practicing physician licensed

10  under chapter 459, Florida Statutes, appointed by the Speaker

11  of the House of Representatives from a list of recommendations

12  from the Florida Osteopathic Medical Association; one

13  practicing physician licensed under chapter 458, Florida

14  Statutes, appointed by the President of the Senate from a list

15  of recommendations from the Florida Academy of Family

16  Physicians; one practicing podiatric physician licensed under

17  chapter 461, Florida Statutes, appointed by the President of

18  the Florida Senate from a list of recommendations from the

19  Florida Podiatric Medical Association; one trauma surgeon

20  licensed under chapter 458, Florida Statutes, appointed by the

21  Speaker of the House of Representatives from a list of

22  recommendations from the American College of Surgeons; one

23  practicing dentist licensed under chapter 466, Florida

24  Statutes, appointed by the President of the Senate from a list

25  of recommendations from the Florida Dental Association; one

26  practicing pharmacist licensed under chapter 465, Florida

27  Statutes, appointed by the Governor from a list of

28  recommendations from the Florida Pharmacy Association; one

29  practicing pharmacist licensed under chapter 465, Florida

30  Statutes, appointed by the Governor from a list of

31  recommendations from the Florida Society of Health System

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                                                  SENATE AMENDMENT

    Bill No. HB 2151, 1st Eng.

    Amendment No. 1





 1  Pharmacists; and one health care professional with expertise

 2  in clinical pharmacology appointed by the Governor from a list

 3  of recommendations from the Pharmaceutical Research and

 4  Manufacturers Association. The members shall be appointed to

 5  serve for terms of 2 years from the date of their appointment.

 6  Members may be appointed to more than one term. The Agency for

 7  Health Care Administration shall serve as staff for the

 8  committee and assist them with all ministerial duties.

 9         (2)  Upon recommendation by the committee, the Agency

10  for Health Care Administration shall establish the voluntary

11  Medicaid preferred prescribed-drug list. Upon further

12  recommendation by the committee, the agency shall add to,

13  delete from, or modify the list. The committee shall also

14  review requests for additions to, deletions from, or

15  modifications of the list. The list shall be adopted by the

16  committee in consultation with medical specialists, when

17  appropriate, using the following criteria:  use of the list

18  shall be voluntary by providers and the list must provide for

19  medically appropriate drug therapies for Medicaid patients

20  which achieve cost savings in the Medicaid program.

21         (3)  The Agency for Health Care Administration shall

22  publish and disseminate the voluntary Medicaid preferred

23  prescribed drug list to all Medicaid providers in the state.

24         Section 3.  This act shall take effect July 1, 2000.

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27  ================ T I T L E   A M E N D M E N T ===============

28  And the title is amended as follows:

29         Delete everything before the enacting clause

30

31  and insert:

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                                                  SENATE AMENDMENT

    Bill No. HB 2151, 1st Eng.

    Amendment No. 1





 1                      A bill to be entitled

 2         An act relating to the Agency for Health Care

 3         Administration; amending s. 409.912, F.S.,

 4         relating to cost-effective purchasing of health

 5         care under the Medicaid program; requiring the

 6         agency to implement a Medicaid prescribed-drug

 7         spending-control program; specifying program

 8         components; providing for implementation to the

 9         extent funds are appropriated; authorizing

10         contracts; requiring an annual report; creating

11         the Medicaid Pharmaceutical Therapeutics

12         Committee; providing for membership; providing

13         for the adoption of a voluntary preferred

14         prescribed-drug list by the committee;

15         providing an effective date.

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