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



                                                  SENATE AMENDMENT

    Bill No. CS for SB 2034, 1st Eng.

    Amendment No. ___

                            CHAMBER ACTION
              Senate                               House
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11  Senator Silver moved the following amendment:

12

13         Senate Amendment (with title amendment) 

14         On page 66, between lines 22 and 23,

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16  insert:

17         Section 38.  Subsection (37) is added to section

18  409.912, Florida Statutes, to read:

19         409.912  Cost-effective purchasing of health care.--The

20  agency shall purchase goods and services for Medicaid

21  recipients in the most cost-effective manner consistent with

22  the delivery of quality medical care.  The agency shall

23  maximize the use of prepaid per capita and prepaid aggregate

24  fixed-sum basis services when appropriate and other

25  alternative service delivery and reimbursement methodologies,

26  including competitive bidding pursuant to s. 287.057, designed

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

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

29  minimize the exposure of recipients to the need for acute

30  inpatient, custodial, and other institutional care and the

31  inappropriate or unnecessary use of high-cost services.

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 2034, 1st Eng.

    Amendment No. ___





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

  2  prescribed-drug spending-control program that includes the

  3  following components:

  4         1.  Medicaid prescribed-drug coverage for brand-name

  5  drugs for adult Medicaid recipients not residing in nursing

  6  homes or other institutions is limited to the dispensing of

  7  four brand-name drugs per month per recipient. Children and

  8  institutionalized adults are exempt from this restriction.

  9  Antiretroviral agents are excluded from this limitation. No

10  requirements for prior authorization or other restrictions on

11  medications used to treat mental illnesses such as

12  schizophrenia, severe depression, or bipolar disorder may be

13  imposed on Medicaid recipients. Medications that will be

14  available without restriction for persons with mental

15  illnesses include atypical antipsychotic medications,

16  conventional antipsychotic medications, selective serotonin

17  re-uptake inhibitors, and other medications used for the

18  treatment of serious mental illnesses. The agency shall also

19  limit the amount of a prescribed drug dispensed to no more

20  than a 34-day supply. The agency shall continue to provide

21  unlimited generic drugs, contraceptive drugs and items, and

22  diabetic supplies. The agency may authorize exceptions to the

23  brand-name-drug restriction, based upon the treatment needs of

24  the patients, only when such exceptions are based on prior

25  consultation provided by the agency or an agency contractor,

26  but the agency must establish procedures to ensure that:

27         a.  There will be a response to a request for prior

28  consultation by telephone or other telecommunication device

29  within 24 hours after receipt of a request for prior

30  consultation; and

31         b.  A 72-hour supply of the drug prescribed will be

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 2034, 1st Eng.

    Amendment No. ___





  1  provided in an emergency or when the agency does not provide a

  2  response within 24 hours as required by sub-subparagraph a.

  3         2.  Reimbursement to pharmacies for Medicaid prescribed

  4  drugs shall be set at the average wholesale price less 13.25

  5  percent.

  6         3.  The agency shall develop and implement a process

  7  for managing the drug therapies of Medicaid recipients who are

  8  using significant numbers of prescribed drugs each month. The

  9  management process may include, but is not limited to,

10  comprehensive, physician-directed medical-record reviews,

11  claims analyses, and case evaluations to determine the medical

12  necessity and appropriateness of a patient's treatment plan

13  and drug therapies. The agency may contract with a private

14  organization to provide drug-program-management services.

15         4.  The agency may limit the size of its pharmacy

16  network based on need, competitive bidding, price

17  negotiations, credentialing, or similar criteria. The agency

18  shall give special consideration to rural areas in determining

19  the size and location of pharmacies included in the Medicaid

20  pharmacy network. A pharmacy credentialing process may include

21  criteria such as a pharmacy's full-service status, location,

22  size, patient educational programs, patient consultation,

23  disease-management services, and other characteristics. The

24  agency may impose a moratorium on Medicaid pharmacy enrollment

25  when it is determined that it has a sufficient number of

26  Medicaid-participating providers.

27         5.  The agency shall develop and implement a program

28  that requires Medicaid practitioners who prescribe drugs to

29  use a counterfeit-proof prescription pad for Medicaid

30  prescriptions. The agency shall require the use of

31  standardized counterfeit-proof prescription pads by

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 2034, 1st Eng.

    Amendment No. ___





  1  Medicaid-participating prescribers. The agency may implement

  2  the program in targeted geographic areas or statewide.

  3         6.  The agency may enter into arrangements that require

  4  manufacturers of generic drugs prescribed to Medicaid

  5  recipients to provide rebates of at least 15.1 percent of the

  6  average manufacturer price for the manufacturer's generic

  7  products. These arrangements shall require that if a

  8  generic-drug manufacturer pays federal rebates for

  9  Medicaid-reimbursed drugs at a level below 15.1 percent, the

10  manufacturer must provide a supplemental rebate to the state

11  in an amount necessary to achieve a 15.1-percent rebate level.

12  If a generic-drug manufacturer raises its price in excess of

13  the Consumer Price Index (Urban), the excess amount shall be

14  included in the supplemental rebate to the state.

15         (b)  The agency shall implement this subsection to the

16  extent that funds are appropriated to administer the Medicaid

17  prescribed-drug spending-control program. The agency may

18  contract all or any part of this program to private

19  organizations.

20         (c)  The agency shall submit a report to the Governor,

21  the President of the Senate, and the Speaker of the House of

22  Representatives by January 15 of each year. The report must

23  include, but need not be limited to, the progress made in

24  implementing Medicaid cost-containment measures and their

25  effect on Medicaid prescribed-drug expenditures.

26         Section 39.  There is created a Medicaid Pharmaceutical

27  and Therapeutics Committee. The committee shall develop and

28  implement a voluntary Medicaid preferred prescribed drug

29  designation program. The program shall provide information to

30  Medicaid providers on medically appropriate and cost efficient

31  prescription drug therapies through the development and

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 2034, 1st Eng.

    Amendment No. ___





  1  publication of a voluntary Medicaid preferred prescribed-drug

  2  list.

  3         (1)  The Medicaid Pharmaceutical and Therapeutics

  4  Committee shall be comprised of nine members appointed as

  5  follows:  one practicing physician licensed under chapter 458,

  6  Florida Statutes, appointed by the Speaker of the House of

  7  Representatives from a list of recommendations from the

  8  Florida Medical Association; one practicing physician licensed

  9  under chapter 459, Florida Statutes, appointed by the Speaker

10  of the House of Representatives from a list of recommendations

11  from the Florida Osteopathic Medical Association; one

12  practicing physician licensed under chapter 458, Florida

13  Statutes, appointed by the President of the Senate from a list

14  of recommendations from the Florida Academy of Family

15  Physicians; one practicing podiatric physician licensed under

16  chapter 461, Florida Statutes, appointed by the President of

17  the Florida Senate from a list of recommendations from the

18  Florida Podiatric Medical Association; one trauma surgeon

19  licensed under chapter 458, Florida Statutes, appointed by the

20  Speaker of the House of Representatives from a list of

21  recommendations from the American College of Surgeons; one

22  practicing dentist licensed under chapter 466, Florida

23  Statutes, appointed by the President of the Senate from a list

24  of recommendations from the Florida Dental Association; one

25  practicing pharmacist licensed under chapter 465, Florida

26  Statutes, appointed by the Governor from a list of

27  recommendations from the Florida Pharmacy Association; one

28  practicing pharmacist licensed under chapter 465, Florida

29  Statutes, appointed by the Governor from a list of

30  recommendations from the Florida Society of Health System

31  Pharmacists; and one health care professional with expertise

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 2034, 1st Eng.

    Amendment No. ___





  1  in clinical pharmacology appointed by the Governor from a list

  2  of recommendations from the Pharmaceutical Research and

  3  Manufacturers Association. The members shall be appointed to

  4  serve for terms of 2 years from the date of their appointment.

  5  Members may be appointed to more than one term. The Agency for

  6  Health Care Administration shall serve as staff for the

  7  committee and assist them with all ministerial duties.

  8         (2)  Upon recommendation by the committee, the Agency

  9  for Health Care Administration shall establish the voluntary

10  Medicaid preferred prescribed-drug list. Upon further

11  recommendation by the committee, the agency shall add to,

12  delete from, or modify the list. The committee shall also

13  review requests for additions to, deletions from, or

14  modifications of the list. The list shall be adopted by the

15  committee in consultation with medical specialists, when

16  appropriate, using the following criteria:  use of the list

17  shall be voluntary by providers and the list must provide for

18  medically appropriate drug therapies for Medicaid patients

19  which achieve cost savings in the Medicaid program.

20         (3)  The Agency for Health Care Administration shall

21  publish and disseminate the voluntary Medicaid preferred

22  prescribed drug list to all Medicaid providers in the state.

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24  (Redesignate subsequent sections.)

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27  ================ T I T L E   A M E N D M E N T ===============

28  And the title is amended as follows:

29         On page 6, line 4, following the semicolon

30

31  insert:

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                                                  SENATE AMENDMENT

    Bill No. CS for SB 2034, 1st Eng.

    Amendment No. ___





  1         amending s. 409.912, F.S., relating to

  2         cost-effective purchasing of health care under

  3         the Medicaid program; requiring the agency to

  4         implement a Medicaid prescribed-drug

  5         spending-control program; specifying program

  6         components; providing for implementation to the

  7         extent funds are appropriated; authorizing

  8         contracts; requiring an annual report; creating

  9         the Medicaid Pharmaceutical Therapeutics

10         Committee; providing for membership; providing

11         for the adoption of a voluntary preferred

12         prescribed-drug list by the committee;

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