Senate Bill 2376

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



    Florida Senate - 2000                                  SB 2376

    By Senator Grant





    41-1538-00

  1                      A bill to be entitled

  2         An act relating to Medicaid prescribed-drug

  3         services; amending s. 409.912, F.S.; providing

  4         for a Medicaid preferred-drug designation

  5         program and drug cost-containment initiatives;

  6         prescribing criteria for the designation of

  7         preferred drugs; creating a pharmacy and

  8         therapeutics committee for the program and

  9         prescribing its membership and duties;

10         providing for reimbursement of members for

11         travel and expenses; requiring reports;

12         providing an effective date.

13

14  Be It Enacted by the Legislature of the State of Florida:

15

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

17  409.912, Florida Statutes, to read:

18         409.912  Cost-effective purchasing of health care.--The

19  agency shall purchase goods and services for Medicaid

20  recipients in the most cost-effective manner consistent with

21  the delivery of quality medical care.  The agency shall

22  maximize the use of prepaid per capita and prepaid aggregate

23  fixed-sum basis services when appropriate and other

24  alternative service delivery and reimbursement methodologies,

25  including competitive bidding pursuant to s. 287.057, designed

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

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

28  minimize the exposure of recipients to the need for acute

29  inpatient, custodial, and other institutional care and the

30  inappropriate or unnecessary use of high-cost services.

31

                                  1

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






    Florida Senate - 2000                                  SB 2376
    41-1538-00




  1         (37)(a)  The agency may implement a Medicaid

  2  preferred-drug designation program. Prior consultation is

  3  required for prescribed drugs without a preferred-drug

  4  designation. The Medicaid preferred-drug designation program

  5  must be developed and implemented with the advice of the

  6  pharmacy and therapeutics committee. The agency may also

  7  implement prescribed-drug cost-containment initiatives,

  8  including, but not limited to, limits on the number of brand

  9  name prescribed drugs available to adult Medicaid recipients

10  on a monthly basis; capitation of the prescribed-drug benefit

11  for nursing home residents or alternative cost-control

12  measures; negotiating and collecting additional supplemental

13  rebates from pharmaceutical manufacturers; and other

14  initiatives to promote the cost-effective purchasing of

15  prescribed drugs, in accordance with the requirements of

16  federal law. Florida Medicaid shall maintain an open formulary

17  consistent with this subsection.

18         (b)  There is created a pharmacy and therapeutics

19  committee to guide the development and maintenance of the

20  Medicaid preferred-drug designation program. The pharmacy and

21  therapeutics committee shall consist of nine members, as

22  required by federal law, each appointed by the Governor or the

23  Governor's designee to serve a 4-year term. Committee members

24  may be reappointed upon the expiration of their terms. The

25  committee shall consist of four physicians licensed to

26  practice medicine in this state, one of whom as experience in

27  managing a preferred prescribed drug designation program; four

28  pharmacists who are licensed in this state; and one consumer

29  representative. There shall be no liability on the part of,

30  and no cause of action of any nature shall arise against, any

31  member of the pharmacy and therapeutics committee for any

                                  2

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






    Florida Senate - 2000                                  SB 2376
    41-1538-00




  1  action taken by the committee in the performance of its powers

  2  and duties under this subsection. The agency shall provide

  3  staff support to the pharmacy and therapeutics committee in

  4  the performance of its duties.

  5         (c)  The duties of the pharmacy and therapeutics

  6  committee include, but are not limited to:

  7         1.  Initially determining the prescribed drugs that

  8  will receive preferred-drug designations for the Medicaid

  9  preferred-drug designation program. The criteria the committee

10  may use to recommend the prescribed drugs that will receive

11  preferred-drug designations include, but are not limited to:

12         a.  Preferences among physicians and other health care

13  providers who have traditionally prescribed significant

14  numbers of prescribed drugs to Medicaid patients;

15         b.  Preferences among pharmacists who have

16  traditionally provided significant numbers of prescribed drugs

17  to Medicaid patients;

18         c.  The effectiveness of the prescribed drug;

19         d.  The safety of the prescribed drug;

20         e.  The potential for misuse of the prescribed drug;

21         f.  The essential need for and value of the prescribed

22  drug;

23         g.  Comparisons with other prescribed drugs in the same

24  therapeutic class on the criteria listed in this subsection;

25         h.  The therapeutic advantages, if any, as indicated by

26  review of pharmaceutical manufacturer materials filed with the

27  U.S. Food and Drug Administration, review of other

28  pharmacological studies, review of peer-reviewed literature,

29  periodic surveys of Medicaid patients using the drug, surveys

30  of physicians and other prescribers who serve a significant

31

                                  3

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






    Florida Senate - 2000                                  SB 2376
    41-1538-00




  1  number of Medicaid patients, and surveys of pharmacists who

  2  serve a significant number of Medicaid patients;

  3         i.  The potential effects on other Medicaid-program

  4  spending;

  5         j.  Existing or proposed discounts from pharmaceutical

  6  manufacturers through supplemental rebate agreements or other

  7  verifiable cost-reduction proposals; and

  8         k.  The willingness of a pharmaceutical manufacturer to

  9  participate in and finance Medicaid disease-management

10  initiatives;

11         2.  Reviewing and recommending on an ongoing basis

12  additional prescribed drugs to receive preferred-drug

13  designations under subparagraph 1.;

14         3.  Reviewing and recommending on an ongoing basis the

15  removal of preferred-drug designations made under subparagraph

16  1.;

17         4.  Reviewing and conducting special

18  prescribed-drug-therapy evaluations to assess the adequacy of

19  Medicaid preferred-drug designations using an appropriate

20  methodology including, but not limited to, pre-designation and

21  post-designation program-outcome measurements with respect to

22  hospital utilization, physician office visits, emergency-room

23  visits, patient and provider satisfaction, quality-of-life

24  indicators, per capita drug utilization and expenditures,

25  total Medicaid-program costs, and indicators of adequate

26  administrative support; and

27         5.  Assisting the agency in developing clinical

28  guidelines, particularly for prescribed-drug therapies.

29         (d)  Members of the pharmacy and therapeutics committee

30  shall serve without compensation; however, the agency shall

31  reimburse committee members for travel and expenses incurred

                                  4

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






    Florida Senate - 2000                                  SB 2376
    41-1538-00




  1  in the performance of their duties in accordance with s.

  2  112.061.

  3         (e)  The agency shall submit an annual report to the

  4  Governor, the President of the Senate, and the Speaker of the

  5  House of Representatives by January 15 of each year which

  6  includes, but is not limited to, the progress that has been

  7  made to control costs in Medicaid prescribed-drug services.

  8         Section 2.  This act shall take effect July 1, 2000.

  9

10            *****************************************

11                          SENATE SUMMARY

12    Provides for a Medicaid preferred-drug designation
      program and drug cost-containment initiatives. Prescribes
13    criteria for the designation of preferred drugs. Creates
      a pharmacy and therapeutics committee and prescribes its
14    membership and duties. Requires annual reports.

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

30

31

                                  5