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A bill to be entitled

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An act relating to pharmaceutical drugs; creating s.

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409.9305, F.S.; providing legislative findings; requiring

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the Agency for Health Care Administration to establish the

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Florida Saves on Rx Program; providing definitions;

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providing eligibility requirements for participation in

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the program; requiring the Secretary of Health Care

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Administration to contract with a program administrator to

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develop a system to purchase prescription medications from

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authorized pharmacies and pharmacies outside the United

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States; requiring the agency to verify program eligibility

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and ensure against illicit diversion of prescription

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drugs; requiring the agency and the program administrator

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to adopt a preferred drug list or formulary for the

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program; authorizing the secretary or the program

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administrator to negotiate rebates for the inclusion of

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drugs on the preferred drug list or formulary; requiring

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the agency to adopt rules to administer the program;

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requiring the agency to submit an annual report to the

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Legislature; providing a list of prescription medications

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that are excluded from the preferred drug list; specifying

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that the program is not an entitlement; providing an

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effective date.

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

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     Section 1.  Section 1.  Section 409.9305, Florida Statutes,

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is created to read:

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     409.9305 The Florida Saves on Rx Program.--

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     (1) FINDINGS.--

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     (a) High prescription drug prices force many residents of

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this state to go without proper medication or other necessities,

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thereby affecting their health and safety.

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     (b) Reducing the price of prescription drugs would benefit

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the health and well-being of Florida residents by providing more

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affordable access to needed drugs.

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     (c) The federal Congressional Budget Office estimates that

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manufacturer prices of patented brand name drugs average 35 to 50

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percent less in other industrialized countries compared to those

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sold in the United States.

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     (2) PROGRAM ESTABLISHED.--The Agency for Health Care

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Administration shall establish and administer the Florida Saves

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on Rx Program that will enable eligible residents of this state

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to purchase prescription drugs at discounted prices from outside

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the United States.

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     (3) DEFINITIONS.--As used in this section, the term:

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     (a) "Agency" means the Agency for Health Care

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Administration.

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     (b) "Authorized pharmacy" means any pharmacy registered in

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this state under the Florida Pharmacy Act or approved by the

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Agency for Health Care Administration or its program

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administrator to participate in the Florida Saves on Rx Program.

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     (c) "Covered medication" means any medication included on

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the Florida Saves on Rx Program's preferred drug list or program

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administrator's formulary.

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     (d) "Drug manufacturer" means any entity that is located

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within or outside the state and that is engaged in the

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production, preparation, propagation, compounding, conversion, or

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processing of prescription drug products covered under the

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program, directly or indirectly, by extraction from substances of

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natural origin, independently by means of chemical synthesis, or

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by a combination of extraction and chemical synthesis. However,

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the term does not include a wholesale distributor of drugs or a

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retail pharmacy licensed under state law.

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     (e) "Prescription drug" means any prescribed drug that may

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be legally dispensed by an authorized pharmacy under the program.

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     (f) "Program" means the Florida Saves on Rx Program created

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under this section.

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     (g) "Program administrator" means the entity that is

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selected by the agency to administer the program. The program

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administrator may be the Secretary of Health Care Administration

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or a pharmacy benefits manager chosen to contract with the

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agency.

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     (4) ELIGIBILITY REQUIREMENTS.--Eligibility for the program

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is limited to an individual who:

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     (a) Is a resident of this state;

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     (b) Is not eligible for Medicaid; and

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     (c) Is not enrolled in an employer sponsored health plan.

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     (5) ADMINISTRATION.--

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     (a) The Secretary of Health Care Administration shall

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contract with a program administrator to create a system for

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state residents to fill their prescription medications through

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authorized pharmacies and other pharmaceutical distributors

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outside the United States.

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     (b) The program administrator shall establish a method for

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eligible residents to submit their prescriptions for covered

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medications to be filled by authorized pharmacies and other

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pharmaceutical distributors that mail or otherwise ship all

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filled prescriptions directly to the program participant.

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     (c) The agency and the program administrator shall verify

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participant eligibility for the program and establish a system to

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ensure that illicit diversion of prescription drugs does not

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occur through the program.

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     (d) The agency and the program administrator shall develop

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a preferred drug list or formulary of covered medications in the

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program. Each drug manufacturer shall agree to negotiated cash

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rebates for inclusion of any of its medications on the preferred

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drug list or formulary adopted by the agency and the program

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administrator.

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     (e) The agency and the program administrator shall develop

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a system to identify and authorize the participation of

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authorized pharmacies and other pharmaceutical distributors in

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the program.

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     (f) The Secretary of Health Care Administration, or the

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program administrator, may enter into negotiations with

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pharmaceutical manufacturers to obtain rebates on the covered

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medications distributed through the Florida Saves on Rx Program

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which shall be used to offset the cost of the covered medications

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and to fund any administrative costs associated with the program.

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     (g) The agency shall adopt rules pursuant to ss. 120.536(1)

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and 120.54 to administer this section.

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     (h) By January 1 of each year, the agency shall submit a

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report to the President of the Senate and the Speaker of the

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House of Representatives on the operation of the program. The

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report shall include information on the number of individuals

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being served, average cost savings based on comparative pricing

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in the market in the United States, and administrative

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expenditures under the program.

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     (6) EXCLUSIONS.--The following medications may not be

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included on any preferred drug list or formulary adopted by the

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agency and the program administrator:

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     (a) Medications requiring refrigeration which may spoil

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during transit;

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     (b) Narcotics, depressants, stimulants, hallucinogens, and

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anabolic steroids as regulated by the federal Controlled

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Substances Act; and

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     (c) Medications that must be taken immediately to prevent

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the spread of infectious diseases or that treat infections that

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may worsen due to the time required to process the prescription

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through the program.

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     (7) NONENTITLEMENT.--The Florida Saves on Rx Program

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established by this section is not an entitlement.

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     Section 2.  This act shall take effect July 1, 2008.