Senate Bill 2536

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    Florida Senate - 2000                                  SB 2536

    By Senator Brown-Waite





    10-307A-00

  1                      A bill to be entitled

  2         An act relating to pharmacy benefits;

  3         establishing a pharmacy benefit program for

  4         certain low-income persons, under the Agency

  5         for Health Care Administration; providing

  6         eligibility; providing program parameters;

  7         providing for processing and payment of claims;

  8         providing requirements for participation by

  9         pharmaceutical manufacturers; providing for the

10         purchase of medications from foreign sources;

11         providing rulemaking authority; providing for a

12         Medicare prescription discount as a condition

13         for pharmacy participation in the pharmacy

14         benefit program and the Medicaid program;

15         creating s. 430.072, F.S.; creating the

16         pharmacy benefit counseling and assistance

17         program, under the Department of Elderly

18         Affairs; providing for delivery of pharmacy

19         benefit counseling to elderly persons;

20         providing eligibility; providing for funding;

21         providing for staff assistance from the Agency

22         for Health Care Administration and the

23         Department of Health; providing rulemaking

24         authority; establishing a Medicaid

25         cost-reduction program; providing for

26         aggregation of the state purchase of certain

27         prescription drugs for distribution at a

28         described rate for elderly or disabled state

29         residents; providing for a participation charge

30         to cover administrative costs; authorizing a

31         management agreement for program development

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    Florida Senate - 2000                                  SB 2536
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  1         and management services; providing a procedure

  2         for the selection of managing entities;

  3         requiring a report; directing the agency to

  4         pursue certain federal waivers to obtain

  5         funding for the pharmacy benefit program and

  6         the pharmacy benefit counseling and assistance

  7         program; providing appropriations; providing an

  8         effective date.

  9

10         WHEREAS, numerous studies have concluded that many

11  older Americans have difficulty paying for required

12  prescription drugs, and

13         WHEREAS, a recent Congressional study found that older

14  Americans and others who pay for their own drugs are charged

15  far more than are the drug companies' most favored customers,

16  such as large insurance companies, health maintenance

17  organizations, and those entities trading on the international

18  market, and

19         WHEREAS, according to the National Institute on Aging,

20  "as a group, older people tend to have more long-term

21  illnesses--such as arthritis, diabetes, high blood pressure,

22  and heart disease--than do younger people," and

23         WHEREAS, older Americans spend almost three times as

24  much of their income (21 percent) on health care as those

25  under the age of 65 (8 percent), and more than three-quarters

26  of Americans age 65 and over are taking prescription drugs,

27  and

28         WHEREAS, although the elderly have the greatest need

29  for prescription drugs, insurance coverage frequently fails to

30  pay for such drugs, and

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    Florida Senate - 2000                                  SB 2536
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  1         WHEREAS, although Medicare beneficiaries can purchase

  2  supplemental "Medigap" insurance privately, these policies are

  3  often prohibitively expensive or inadequate, and

  4         WHEREAS, the high cost of prescription drugs and the

  5  lack of insurance coverage directly affect the health and

  6  welfare of older Americans, with a significant number of older

  7  Americans forced to choose between buying food and buying

  8  medicine, and

  9         WHEREAS, it is the intent of the Legislature to assist

10  elderly persons and the disabled, and their physicians and

11  families, in obtaining necessary prescription medications,

12  NOW, THEREFORE,

13

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

15

16         Section 1.  Pharmacy benefit program.--

17         (1)  INTENT.--It is the intent of the Legislature to

18  initiate a pharmacy benefit program for those persons with

19  very low incomes who are most in need. It is further the

20  intent of the Legislature to attempt to leverage maximum

21  pharmaceutical manufacturer participation in this program.

22         (2)  PROGRAM ESTABLISHED.--There is established a

23  pharmacy benefit program designed to provide prescription drug

24  coverage to a limited group of most needy individuals. The

25  program is to be administered by the Agency for Health Care

26  Administration, under the authority provided in section

27  409.914(1), Florida Statutes, in conjunction with the

28  Department of Elderly Affairs and the Department of Health.

29         (3)  ELIGIBILITY.--Eligibility for the program is

30  limited to those individuals who qualify for limited

31  assistance under the Florida Medicaid program as a result of

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    Florida Senate - 2000                                  SB 2536
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  1  being dually eligible for both Medicare and Medicaid, but

  2  whose limited assistance does not include any pharmacy

  3  benefit. Specifically eligible are the following low-income

  4  senior citizens:

  5         (a)  Those with incomes between 90 percent and 100

  6  percent of the federal poverty level, the so-called qualified

  7  Medicare beneficiaries.

  8         (b)  Those with incomes between 100 percent and 120

  9  percent of the federal poverty level, the so-called specified

10  low-income Medicare beneficiaries.

11         (4)  PROGRAM PARAMETERS.--

12         (a)  The program shall make available the same

13  formulary of prescription medications which is made available

14  to Medicaid recipients. Medications shall be provided in the

15  generic equivalent if a generic equivalent exists, except when

16  a brand-name medication is available at a cost lower than its

17  generic equivalent or when a physician has determined that the

18  brand-name medication is necessary to achieve the desired

19  therapeutic effect and the agency approves.

20         (b)  The agency shall, by rule, determine an

21  eligibility process, a 20-percent copayment requirement, an

22  annual limit of $1,000 per beneficiary, and other program

23  parameters as necessary.

24         (c)  The Medicaid fiscal agent or a separately

25  contracted pharmacy benefits manager, or both, shall be used

26  for the processing and payment of claims.

27         (5)  PHARMACEUTICAL MANUFACTURER PARTICIPATION.--In

28  order for a drug product to be covered under this program, the

29  product's manufacturer shall:

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    Florida Senate - 2000                                  SB 2536
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  1         (a)  Provide the maximum rebate to the state as

  2  authorized in federal Medicaid regulations or other applicable

  3  federal drug regulations or guidelines.

  4         (b)  Make the drug product available to the program for

  5  the best price that the manufacturer makes the drug product

  6  available under any purchasing arrangement.

  7         (c)  Agree to be an active participant in this state

  8  with the Indigent Drug Program of the Pharmaceutical Research

  9  and Manufacturers of America and the pharmacy benefit

10  counseling and assistance program as established under section

11  430.072, Florida Statutes.

12         (6)  PURCHASE OF FOREIGN MEDICATIONS.--The agency may

13  petition the United States Food and Drug Administration for

14  approval to purchase otherwise prohibited medications from

15  foreign sources for purposes of distribution under this

16  program.

17         (7)  RULES.--The agency may adopt rules to administer

18  this section.

19         Section 2.  Medicare prescription discount.--As a

20  condition for participation in either the pharmacy benefit

21  program established in section 1 or the Florida Medicaid

22  program, a pharmacy must agree that the charge to any Medicare

23  beneficiary showing a Medicare card when presenting a

24  prescription shall be equal to the amount paid to that

25  pharmacy for filling a prescription under the Florida Medicaid

26  program.

27         Section 3.  Section 430.072, Florida Statutes, is

28  created to read:

29         430.072  Pharmacy benefit counseling and assistance

30  program.--

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    Florida Senate - 2000                                  SB 2536
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  1         (1)  There is created within the Office of Volunteer

  2  Community Service the pharmacy benefit counseling and

  3  assistance program. The program is created to assist elderly

  4  persons in obtaining prescription medications that they would

  5  otherwise not be able to afford to purchase. The Office of

  6  Volunteer Community Service shall also implement, monitor, and

  7  evaluate the delivery of pharmacy benefit counseling services

  8  under this program. The office shall:

  9         (a)  Provide the services through a multigenerational

10  corps of volunteers, including, but not limited to, pharmacy

11  students, retired professional pharmacists, other health

12  professionals, and other suitably trained persons.

13         (b)  Work collaboratively with local, state, and

14  national organizations to promote the use of volunteers to

15  offer counseling services under this program, including, but

16  not limited to, the Pharmaceutical Research and Manufacturers

17  of America, to persons who are unable to afford necessary

18  prescription medications.

19         (c)  Encourage contributions and grants through public

20  and private sources to promote the delivery of pharmacy

21  benefit counseling and access to necessary prescription

22  medications for elderly individuals qualified under this

23  program.

24         (2)  To receive assistance from the pharmacy benefit

25  counseling and assistance program, the family unit must be

26  assessed according to the following guidelines developed by

27  the department to determine the need for pharmacy services.

28  This assessment must determine, at a minimum, that:

29         (a)  The family unit is unable to pay for required

30  prescription medications without jeopardizing other basic

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    Florida Senate - 2000                                  SB 2536
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  1  needs, including, but not limited to, food, shelter, and

  2  medications.

  3         (b)  The elderly individual for whom the family unit is

  4  caring is 60 years of age or older and requires the use of

  5  maintenance prescription medications to remain in the home,

  6  and without the prescribed medication the elderly individual

  7  would need to move to an institutional setting.

  8

  9  For purposes of this section, the term "family unit" means one

10  or more individuals whose primary residence is with a

11  homebound elderly individual specifically for the purpose of

12  providing care for that homebound elderly individual. The

13  family unit does not necessarily need to be related by blood

14  or marriage to the homebound elderly individual.

15         (3)  A family unit that receives services from the

16  pharmacy benefit counseling and assistance program is not

17  excluded from receiving assistance from other governmental

18  programs.

19         (4)  The department shall accept and encourage

20  contributions and grants through public and private sources to

21  promote the delivery of pharmacy benefit counseling services

22  to assist family units providing care for homebound elderly

23  individuals.

24         (5)  The Director of Health Care Administration and the

25  Secretary of Health shall assign staff with expertise in the

26  areas of pharmacy benefit medication management or chronic

27  disease management to assist the Office of Volunteer Community

28  Service in establishing and operating this program. The Agency

29  for Health Care Administration shall assign a professional

30  pharmacist licensed pursuant to chapter 465, within existing

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    Florida Senate - 2000                                  SB 2536
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  1  resources, to the Office of Volunteer Community Service to

  2  assist in establishing and operating this program.

  3         (6)  The department shall adopt rules pursuant to ss.

  4  120.536(1) and 120.54 to administer this section.

  5         Section 4.  Medicaid cost-reduction program.--

  6         (1)  Notwithstanding any other general or special law

  7  to the contrary, the Director of Health Care Administration,

  8  in consultation with the Secretary of Health, the Secretary of

  9  Elderly Affairs, and the director of the Division of State

10  Group Insurance of the Department of Management Services

11  shall, by January 1, 2001, develop a program to aggregate the

12  purchase of prescription drugs for residents of the state who

13  are 65 years of age and older, or who are disabled as defined

14  in section 415.102, Florida Statutes; to provide for

15  qualification of the state as a most-favored customer in the

16  purchase of prescription drugs; and to pass the cost savings

17  resulting from this most-favored-customer status on to such

18  state residents.

19         (2)  This program shall provide for the distribution of

20  prescription drugs to residents of the state who are 65 years

21  of age and older, or disabled, at the most-favored-customer

22  status rate, and shall be limited to those 25 drugs most

23  prescribed to the 65-years-of-age-and-older cohort, and those

24  25 drugs most prescribed to the disabled cohort. Review of the

25  drugs covered under this section shall be conducted annually.

26         (3)  The administrative costs attendant to the

27  provision of benefits pursuant to this section shall be

28  covered by a participation or membership charge to those

29  elderly and disabled persons electing participation.

30         (4)  In order to ensure the timely performance of his

31  or her obligations under this section, the Director of Health

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    Florida Senate - 2000                                  SB 2536
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  1  Care Administration may enter into an agreement with one or

  2  more not-for-profit entities for the purpose of developing and

  3  managing this program. The director shall prepare a request

  4  for proposals for the purpose of selecting the entity or

  5  entities which shall provide prescription drug

  6  benefit-management services to members of the coverage group.

  7  The selection process shall include criteria designed to

  8  select that entity best able to provide a prescription drug

  9  benefit program for the coverage group in a way that maximizes

10  savings for the state and participants without reducing the

11  quality of any prescription drug benefits now being provided

12  to persons included in the coverage group.

13         (5)  Prior to accepting a proposal for the provision of

14  prescription drug benefit-management services, the director

15  shall make a determination in writing that the proposal

16  maximizes savings to the state, or provides other substantial

17  public benefits, in a way that does not reduce the quality of

18  existing prescription drug services for any persons included

19  in the coverage group. The director shall submit a report

20  containing his or her selection, along with the basis

21  therefor, at least 30 days before entering into the management

22  agreement, to the President of the Senate and the Speaker of

23  the House of Representatives. The accepted proposal does not

24  terminate any contract currently in existence with any agency

25  or program affected under this section which cannot be

26  favorably renegotiated.

27         Section 5.  The Agency for Health Care Administration

28  shall pursue with the federal Health Care Financing

29  Administration any possible waivers that might be used to

30  obtain federal financial participation for any aspects of the

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    Florida Senate - 2000                                  SB 2536
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  1  pharmacy benefit program or the pharmacy benefit counseling

  2  and assistance program as created by this act.

  3         Section 6.  There is appropriated from the General

  4  Revenue Fund to the Agency for Health Care Administration the

  5  sum of $40 million to fund the pharmacy benefit program

  6  established under this act.

  7         Section 7.  There is appropriated from the General

  8  Revenue Fund to the Agency for Health Care Administration the

  9  sum of $250,000 for implementation of the Medicaid

10  cost-reduction program provided for under this act.

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

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14                          SENATE SUMMARY

15    Establishes a pharmacy benefit program to be operated by
      the Agency for Health Care Administration, in conjunction
16    with the Department of Elderly Affairs and the Department
      of Health. Provides eligibility requirements. Provides
17    requirements for pharmaceutical manufacturers that
      participate in the program. Creates a pharmacy benefit
18    counseling and assistance program within the Office of
      Volunteer Community Service of the Department of Elderly
19    Affairs. Requires that the Director of Health Care
      Administration develop a Medicaid cost-reduction program.
20    Provides for the 25 most-prescribed drugs to be available
      to elderly and disabled persons who participate in the
21    program. Requires a report to the Legislature.

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