House Bill 0769c1

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    Florida House of Representatives - 2000              CS/HB 769

        By the Committee on Health Care Services and
    Representatives Argenziano, Byrd, Harrington, Dockery, Fasano,
    Morroni, Detert, Murman, Littlefield, Kelly, K. Smith,
    Sublette, Lynn, Russell, Waters, Rubio, Chestnut, Fiorentino,
    (Additional Sponsors on Last Printed Page)


  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 medication

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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  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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  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 which is designed to provide

24  prescription drug coverage to a limited group of most needy

25  individuals. The program is to be administered by the Agency

26  for Health Care Administration, under the authority provided

27  in s. 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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  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 that 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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  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 Florida with

  8  the Indigent Drug Program of the Pharmaceutical Research and

  9  Manufacturers of America and the pharmacy benefit counseling

10  and assistance program as established under s. 430.072,

11  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 is authorized to adopt rules to

18  implement the provisions of 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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  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 which 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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  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, "family unit" means one or more

10  individuals whose primary residence is with a homebound

11  elderly individual specifically for the purpose of providing

12  care for that homebound elderly individual. The family unit

13  does not necessarily need to be related by blood or marriage

14  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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  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 implement the provisions of this

  5  section.

  6         Section 4.  Medication cost-reduction program.--

  7         (1)  Notwithstanding any other general or special law

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

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

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

11  Group Insurance of the Department of Management Services

12  shall, within 180 days after the effective date of this act,

13  develop a program to aggregate the purchase of prescription

14  drugs for residents of the state who are 65 years of age and

15  older, or who are disabled as defined in s. 415.102; to

16  provide for qualification of the state as a most favored

17  customer in the purchase of prescription drugs; and to pass

18  the cost savings resulting from this most favored customer

19  status on to such state residents.

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

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

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

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

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

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

26  drugs covered under this section shall be conducted annually.

27         (3)  The administrative costs attendant to the

28  provision of benefits pursuant to this section shall be

29  covered by a participation or membership charge to those

30  elderly and disabled persons electing participation.

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

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

  3  Care Administration may enter into an agreement with one or

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

  5  managing this program. The director shall prepare a request

  6  for proposals for the purpose of selecting the entity or

  7  entities which shall provide prescription drug benefit

  8  management services to members of the coverage group. The

  9  selection process shall include criteria designed to select

10  that entity best able to provide a prescription drug benefit

11  program for the coverage group in a way that maximizes savings

12  for the state and participants without reducing the quality of

13  any prescription drug benefits now being provided to persons

14  included in the coverage group.

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

16  prescription drug benefit management services, the director

17  shall make a determination in writing that the proposal

18  maximizes savings to the state, or provides other substantial

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

20  existing prescription drug services for any persons included

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

22  containing his or her selection, along with the basis

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

24  agreement, to the Speaker of the House of Representatives and

25  the President of the Senate. The accepted proposal shall not

26  terminate any contract currently in existence with any agency

27  or program affected hereunder which cannot be favorably

28  renegotiated.

29         Section 5.  The Agency for Health Care Administration

30  shall pursue with the federal Health Care Financing

31  Administration any possible waivers that might be used to

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  1  obtain federal financial participation for any aspects of the

  2  pharmacy benefit program or the pharmacy benefit counseling

  3  and assistance program as created by this act.

  4         Section 6.  There is hereby appropriated from the

  5  General Revenue Fund to the Agency for Health Care

  6  Administration the sum of $40 million to fund the pharmacy

  7  benefit program established under this act.

  8         Section 7.  There is hereby appropriated from the

  9  General Revenue Fund to the Agency for Health Care

10  Administration the sum of $250,000 for implementation of the

11  medication cost-reduction program provided for under this act.

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

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17                       ADDITIONAL SPONSORS

18
    Jacobs, Crow, Bullard, Ritter, Wasserman Schultz, Greenstein,
19
    Sobel, Kosmas, Peaden, Fuller, Wallace, Futch, Brown, Rayson,
20
    Goode, Levine, Heyman, Melvin, Ogles, Kilmer, Argenio,
21
    Goodlette, Trovillion, Crist, Andrews, Merchant, Feeney,
22
    Putnam, Hart, Brummer, C. Green, Bilirakis, Sorensen,
23
    Prieguez, Barreiro, J. Miller, Edwards, Ritchie and Ball
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