SENATE AMENDMENT
    Bill No. CS for SB 2750
    Amendment No. ___   Barcode 225360
                            CHAMBER ACTION
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11  Senator Wasserman Schultz moved the following amendment:
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13         Senate Amendment (with title amendment) 
14         On page 86, line 31,
15  
16  insert:  
17         Section 62.  Section 409.960, Florida Statutes, is
18  created to read:
19         409.960  Popular name.--Sections 409.960-409.982 shall
20  be known by the popular name "LifeSaver Rx Program."
21         Section 63.  Section 409.962, Florida Statutes, is
22  created to read:
23         409.962  LifeSaver Rx Program established; findings;
24  purpose.--
25         (1)  It is the finding of the Legislature that
26  approximately one in four residents of Florida have no
27  prescription drug insurance coverage or wholly inadequate
28  prescription drug insurance coverage. These uninsured
29  residents pay excessive prices for prescription drugs, far
30  higher prices than are paid by managed care organizations,
31  insurance companies, and the Federal Government for the same
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SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 medicines and dosages. In many cases, these excessive drug 2 prices have the effect of denying residents access to 3 medically necessary care, thereby threatening their health and 4 safety. Many Florida residents require repeated doctor or 5 medical clinic appointments, having become sicker because they 6 could not afford to purchase the prescription drugs prescribed 7 for them. Many residents are admitted to or treated at 8 hospitals each year because they cannot afford the 9 prescription drugs that could have prevented the need for 10 hospitalization. Many others enter expensive institutional 11 care settings because they cannot afford the necessary 12 prescription drugs that could have supported them outside of 13 an institution. In each of these circumstances, state medical 14 assistance programs, including the Medicaid program, literally 15 pay the price. One major reason uninsured residents pay such 16 high prices for prescription drugs is that, unlike insured 17 residents, they have no prescription benefits manager 18 negotiating a fair price with drug companies on their behalf. 19 State government currently provides prescription drugs and 20 acts as a prescription benefit manager through a variety of 21 health plans and assistance programs and, in 2001, the 22 Legislature expanded the state's role in negotiating better 23 prescription drug prices for Medicaid. State government is the 24 only agent that, as a practical matter, can play an effective 25 role as a market participant on behalf of all residents who 26 are uninsured or underinsured. The state can and should act as 27 a prescription benefit manager, negotiating drug rebates and 28 using these funds to reimburse retail pharmacies for offering 29 lower drug prices. 30 (2) Recognizing that the state already acts as a 31 prescription benefit manager for a variety of health plans and 2 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 assistance programs, including the Medicaid program, the 2 LifeSaver Rx Program is established within the Agency for 3 Health Care Administration. The purpose of the program is to 4 expand Medicaid eligibility for prescription drug benefits 5 only, at a level that does not exceed available funding, 6 thereby providing prescription drug coverage to new 7 populations by expanding the state's role as a participant in 8 the prescription drug marketplace, negotiating rebates from 9 drug companies, and using the funds from such rebates to make 10 prescription drugs more affordable to Florida residents. Each 11 program participant shall receive a discount toward the 12 purchase of all prescription drugs that are covered by the 13 Florida Medicaid program. The Legislature finds that such a 14 program will improve public health and welfare, promote the 15 economic strength of our society, and substantially benefit 16 state health assistance programs, including the Medicaid 17 program. 18 Section 64. Section 409.964, Florida Statutes, is 19 created to read: 20 409.964 Definitions.--As used in this act, unless the 21 context otherwise indicates, the term: 22 (1) "Agency" means the Agency for Health Care 23 Administration. 24 (2) "Labeler" means an entity or person that receives 25 prescription drugs from a manufacturer or wholesaler and 26 repackages those drugs for later retail sale and that has a 27 labeler code from the federal Food and Drug Administration 28 under 21 C.F.R. s. 207.20 (1999). 29 (3) "Manufacturer" means a manufacturer of 30 prescription drugs and includes a subsidiary or affiliate of a 31 manufacturer. 3 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 (4) "Participating retail pharmacy" means a retail 2 pharmacy or other business licensed to dispense prescription 3 drugs in this state that: 4 (a) Participates in the state Medicaid program; or 5 (b) Agrees to participate in the LifeSaver Rx Program. 6 (5) "Program" means the LifeSaver Rx Program. 7 (6) "Secretary" means the Secretary of Health Care 8 Administration or the secretary's designee. 9 (7) "Qualified resident" means an uninsured resident 10 of the state who has obtained from the agency a LifeSaver Rx 11 Program enrollment card. 12 Section 65. Section 409.966, Florida Statutes, is 13 created to read: 14 409.966 Prescription drug discounts; negotiation of 15 discounts or rebates; calculation of discounts.--The secretary 16 shall operate the program as a state pharmaceutical assistance 17 program under 42 U.S.C. s. 1396r-8(c)(1)(C)(i)(III) to provide 18 discounts to participants for prescription drugs covered by a 19 rebate agreement. 20 (1) The secretary shall negotiate discount prices or 21 rebates for prescription drugs from drug manufacturers and 22 labelers for the program. Using sums from negotiated rebates, 23 the agency shall contract with participating retail pharmacies 24 to deliver discounted prices to program participants. 25 (2) In negotiating discount or rebate terms, the 26 secretary shall take into consideration: 27 (a) The rebate calculated under the Medicaid rebate 28 program pursuant to 42 U.S.C. s. 1396r-8; 29 (b) The price provided to eligible entities under 42 30 U.S.C. s. 256b; and 31 (c) Any other available information on prescription 4 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 drug prices, discounts, and rebates. 2 (3) The secretary may consider any supplemental 3 rebate negotiated pursuant to s. 409.912(38)(a)7. 4 (4) The drug discounts received by program 5 participants shall be calculated by the secretary on a 6 quarterly basis. 7 Section 66. Section 409.968, Florida Statutes, is 8 created to read: 9 409.968 Discounted prices for program participants.-- 10 (1) Each program participant's payment shall be equal 11 to the Medicaid allowable charge for the prescription minus 12 the payment made by the agency. The payment made by the agency 13 shall include the estimated manufacturer rebate plus the state 14 subsidy per prescription as provided under this act and the 15 federal matching share for the state general revenue 16 contribution. 17 (2) A participating retail pharmacy shall charge the 18 Medicaid allowable rate for prescription drugs sold to 19 participants in the program. 20 (3) The participating retail pharmacy shall be 21 reimbursed by the agency at the agency's manufacturer 22 estimated rebate amount. 23 (4) The program as established in s. 409.962 is not an 24 entitlement. 25 Section 67. Section 409.970, Florida Statutes, is 26 created to read: 27 409.970 Program eligibility.-- 28 (1) An individual is eligible to participate in the 29 program if he or she: 30 (a) Is a resident of the state; 31 (b) Is 65 years of age or older and is a Medicare 5 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 participant; 2 (c) Has a net family income at or below 200 percent of 3 the federal poverty level in year 1 and at or below 300 4 percent of the federal poverty level in year 2 and thereafter; 5 (d) Has exhausted all third-party prescription 6 coverage; and 7 (e) Requests to be enrolled in the program. 8 (2) An individual is ineligible to participate in the 9 program if he or she is eligible for assistance under the 10 state's Medicaid program. 11 (3) The agency shall establish simple procedures for 12 enrolling program participants. The agency shall undertake 13 outreach efforts to build public awareness of the program and 14 maximize enrollment by eligible residents. Revenues generated 15 from rebates from drug manufacturers shall be used for, but 16 not be limited to, offsetting state costs to administer the 17 program, the purchase of prescription drugs, and any public 18 awareness campaigns. 19 Section 68. Section 409.972, Florida Statutes, is 20 created to read: 21 409.972 Program operation.-- 22 (1) The Board of Pharmacy, as created by s. 465.004, 23 in consultation with the agency, is authorized to adopt rules 24 pursuant to ss. 120.536(1) and 120.54 requiring disclosure by 25 participating retail pharmacies to program participants of the 26 amount of savings provided as a result of the program. Such 27 rules must protect information that is proprietary in nature. 28 (2) Participating retail pharmacies shall be paid in 29 advance for program discounts or shall be reimbursed by the 30 agency on a weekly or biweekly basis, in accordance with 31 contracts between the agency and such businesses. 6 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 (3) The agency shall collect from the participating 2 retail pharmacies utilization data necessary to calculate the 3 amount of the rebate from the manufacturer or labeler. The 4 agency shall protect the confidentiality of all information 5 subject to confidentiality protection under the laws of this 6 state or federal laws, rules, or regulations. 7 Section 69. Section 409.974, Florida Statutes, is 8 created to read: 9 409.974 Discrepancies in rebate 10 amounts.--Discrepancies in rebate amounts must be resolved 11 using the process established in this section. 12 (1) If there is a discrepancy in the manufacturer's or 13 labeler's favor between the amount claimed by a participating 14 retail pharmacy and the amount rebated by the manufacturer or 15 labeler, the agency, at the agency's expense, may hire a 16 mutually agreed-upon independent auditor. If a discrepancy 17 still exists following the audit, the manufacturer or labeler 18 shall justify the reason for the discrepancy or make payment 19 to the agency for any additional amount due. 20 (2) If there is a discrepancy against the interest of 21 the manufacturer or labeler in the information provided by the 22 agency to the manufacturer or labeler regarding the 23 manufacturer's or labeler's rebate, the manufacturer or 24 labeler, at the manufacturer's or labeler's expense, may hire 25 a mutually agreed-upon independent auditor to verify the 26 accuracy of the data supplied to the agency. If a discrepancy 27 still exists following the audit, the agency shall justify the 28 reason for the discrepancy or refund the manufacturer or 29 labeler. 30 (3) Following the completion of procedures established 31 in subsection (1) or subsection (2), the agency, the 7 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 manufacturer, or the labeler may request a hearing. Hearings 2 shall be conducted pursuant to ss. 120.569 and 120.57. 3 Supporting documentation must accompany the request for a 4 hearing. 5 Section 70. Section 409.976, Florida Statutes, is 6 created to read: 7 409.976 Report.--The agency shall provide a report on 8 the enrollment and financial status of the program to the 9 Governor, the President of the Senate, and the Speaker of the 10 House of Representatives by the second week in January each 11 year. 12 Section 71. Section 409.978, Florida Statutes, is 13 created to read: 14 409.978 Coordination with other programs.--The 15 secretary shall combine drug pricing negotiations to maximize 16 drug rebates when the secretary determines that the 17 combination of such negotiations is beneficial to both the 18 LifeSaver Rx Program and another state program, including the 19 state Medicaid program. 20 Section 72. Section 409.980, Florida Statutes, is 21 created to read: 22 409.980 Rulemaking.--The agency is authorized to adopt 23 rules pursuant to ss. 120.536(1) and 120.54 to implement the 24 provisions of this act. Such rules shall include eligibility 25 requirements, limits on participation, benefit limitations, a 26 requirement for generic drug substitution, and other program 27 parameters comparable to those of the Medicaid program. 28 Individuals eligible to participate in this program shall not 29 be subject to the limit of four brand name drugs per month per 30 recipient as specified in s. 409.912(38)(a). 31 Section 73. Section 409.982, Florida Statutes, is 8 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 created to read: 2 409.982 Waivers.--The agency shall seek any waivers of 3 federal law, rule, or regulation necessary to implement the 4 provisions of this act in year 1. In year 2 and thereafter, 5 the agency shall seek any additional waivers of federal law, 6 rule, or regulation necessary to implement the provisions of 7 this act. 8 Section 74. The agency shall contribute toward the 9 cost of each prescription purchased by the program 10 participant. 11 Section 75. Section 409.9066, Florida Statutes, is 12 amended to read: 13 409.9066 Medicare prescription discount program.-- 14 (1) As a condition of participation in the Florida 15 Medicaid program or the pharmaceutical expense assistance 16 program, a pharmacy must agree to charge any individual who is 17 a Medicare beneficiary and who is a Florida resident showing a 18 Medicare card when he or she presents a prescription, a price 19 no greater than the cost of ingredients equal to the average 20 wholesale price minus 9 percent, and a dispensing fee of 21 $4.50. 22 (2) In lieu of the provisions of subsection (1), and 23 as a condition of participation in the Florida Medicaid 24 program or the pharmaceutical expense assistance program, a 25 pharmacy must agree to: 26 (a) Provide a private voluntary prescription discount 27 program to state residents who are Medicare beneficiaries; or 28 (b) Accept a private voluntary discount prescription 29 program from state residents who are Medicare beneficiaries. 30 31 Discounts under this subsection must be at least as great as 9 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 discounts under subsection (1). 2 (3) The Agency for Health Care Administration shall 3 publish, on a free website available to the public, the most 4 recent average wholesale prices for the 200 drugs most 5 frequently dispensed to the elderly and, to the extent 6 possible, shall provide a mechanism that consumers may use to 7 calculate the retail price that should be paid after the 8 discount required in subsection (1) is applied. 9 Section 76. By January 1, 2004, the Agency for Health 10 Care Administration shall submit to the Legislature a report 11 regarding the cost-effectiveness of, and alternatives to, 12 using average wholesale price in the pricing of pharmaceutical 13 products purchased by the Medicaid program. 14 Section 77. Implementation of the LifeSaver Rx Program 15 is contingent upon a specific appropriation authorized in the 16 General Appropriations Act. The Legislature shall limit 17 annual appropriations to no more than $30 million from state 18 funds to the Agency for Health Care Administration to be used 19 as state matching funds for the LifeSaver Rx Program. This 20 annual appropriation limitation shall not apply to 21 pharmaceutical rebate revenue. 22 Section 78. If any provision of this act or the 23 application thereof to any person or circumstance is held 24 invalid, the invalidity shall not affect other provisions or 25 applications of the act which can be given effect without the 26 invalid provision or application, and to this end the 27 provisions of this act are declared severable. 28 29 (Redesignate subsequent sections.) 30 31 10 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 On page 8, line 30, after the semicolon 4 5 insert: 6 creating s. 409.960, F.S.; providing a popular 7 name; creating s. 409.962, F.S.; creating "The 8 LifeSaver Rx Program"; providing purpose of the 9 program; creating s. 409.964, F.S.; providing 10 definitions; creating s. 409.966, F.S.; 11 providing that the Secretary of Health Care 12 Administration shall operate the LifeSaver Rx 13 Program as a state pharmaceutical assistance 14 program to provide discounts to participants 15 for prescription drugs covered by a rebate 16 agreement; providing that the secretary shall 17 negotiate discount prices or rebates for 18 prescription drugs from manufacturers or 19 labelers; providing that the Agency for Health 20 Care Administration shall contract with 21 participating retail pharmacies to deliver 22 discounted prices to program participants; 23 providing factors to be considered in 24 negotiating discounts or rebates; providing for 25 quarterly calculation of discounts; creating s. 26 409.968, F.S.; providing for calculation of 27 payment by program participants and the agency; 28 requiring participating retail pharmacies in 29 the state to charge the rate allowable under 30 the Medicaid program for prescription drugs 31 sold to program participants; providing for 11 2:02 PM 04/30/03 s2750c1c-3420a
SENATE AMENDMENT Bill No. CS for SB 2750 Amendment No. ___ Barcode 225360 1 rate of reimbursement of participating retail 2 pharmacies; creating s. 409.970, F.S.; 3 providing requirements for program eligibility; 4 requiring the Agency for Health Care 5 Administration to establish enrollment 6 procedures; providing for use of rebates from 7 drug manufacturers; creating s. 409.972, F.S.; 8 providing for operation of the program; 9 authorizing the Board of Pharmacy to adopt 10 certain rules; creating s. 409.974, F.S.; 11 providing procedure for resolution of 12 discrepancies in rebate amounts; creating s. 13 409.976, F.S.; requiring an annual report; 14 creating s. 409.978, F.S.; authorizing 15 coordination with other programs; creating s. 16 409.980, F.S.; authorizing the agency to adopt 17 rules; creating s. 409.982, F.S.; authorizing 18 the agency to seek certain waivers; providing a 19 contribution by the agency toward the cost of 20 prescription drugs purchased by program 21 participants; amending s. 409.9066, F.S.; 22 requiring the Agency for Health Care 23 Administration to publish on a website the 24 average wholesale prices of drugs provided 25 through the program; requiring the agency to 26 publish additional information to assist 27 consumers; requiring a report on methods of 28 pricing pharmaceutical products purchased by 29 the program; providing an appropriation; 30 providing for severability; 31 12 2:02 PM 04/30/03 s2750c1c-3420a