Senate Bill sb0904c1

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    Florida Senate - 2001                            CS for SB 904

    By the Committee on Health, Aging and Long-Term Care; and
    Senators Garcia and Silver




    317-1764-01

  1                      A bill to be entitled

  2         An act relating to public records and meetings;

  3         providing an exemption from the public records

  4         law for certain records relating to

  5         supplemental drug rebates; providing an

  6         exemption from the public meetings law for

  7         certain portions of meetings of the Medicaid

  8         Pharmaceutical and Therapeutics Committee;

  9         providing for future legislative review and

10         repeal; providing a statement of public

11         necessity; providing a contingent effective

12         date.

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

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16         Section 1.  (1)  Trade secrets, rebate amount, percent

17  of rebate, manufacturer's pricing, and supplemental rebates

18  which are contained in records of the Agency for Health Care

19  Administration and its agents with respect to supplemental

20  rebate negotiations and which are prepared pursuant to a

21  supplemental rebate agreement under section 409.91195, Florida

22  Statutes, are confidential and exempt from section 119.07,

23  Florida Statutes, and Section 24(a) of Article I of the State

24  Constitution.

25         (2)  Those portions of meetings of the Medicaid

26  Pharmaceutical and Therapeutics Committee at which trade

27  secrets, rebate amount, percent of rebate, manufacturer's

28  pricing, and supplemental rebates are disclosed for discussion

29  or negotiation of a supplemental rebate agreement under

30  section 409.91195, Florida Statutes, are exempt from section

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    Florida Senate - 2001                            CS for SB 904
    317-1764-01




  1  286.011, Florida Statutes, and Section 24(b) of Article I of

  2  the State Constitution.

  3         Section 2.  The Legislature finds that it is a public

  4  necessity that trade secrets, rebate amount, percent of

  5  rebate, manufacturer's pricing, supplemental rebates that are

  6  contained in records, as well as meetings of the Medicaid

  7  Pharmaceutical and Therapeutics Committee at which this

  8  information is negotiated or discussed, pursuant to a

  9  supplemental rebate agreement under section 409.91195, Florida

10  Statutes, are confidential and exempt from sections 119.07 and

11  286.011, Florida Statutes, and Section 24(a) and (b) of

12  Article I of the State Constitution. Information pertaining to

13  similar agreements negotiated by pharmaceutical manufacturers

14  and the Federal Government is confidential under 42 U.S.C. s.

15  1396r-8. A supplemental rebate as a percentage of average

16  manufacture price is confidential under federal law and the

17  federal rebate could be made known if not protected in

18  Florida. Because of the protection afforded by federal law, if

19  this information is not protected in Florida, manufacturers

20  would not be willing to offer a rebate in Florida. Further,

21  the Legislature finds that the number and value of

22  supplemental rebates obtained by the agency will increase, to

23  the benefit of Medicaid recipients, if information related to

24  state supplemental rebates is protected in the records

25  received by the agency and if the meetings at which this

26  information is discussed or negotiated are closed because

27  manufacturers will be assured that they will not be placed at

28  a competitive disadvantage by the exposure of this

29  information. As a result, the agency and pharmaceutical

30  manufacturers will have frank and open communication regarding

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    Florida Senate - 2001                            CS for SB 904
    317-1764-01




  1  rebates, causing the number of rebates to increase, thereby

  2  benefiting Medicaid recipients and the public.

  3         Section 3.  Section (1) of this act is subject to the

  4  Open Government Sunset Review Act of 1995 in accordance with

  5  section 119.15, Florida Statutes, and shall stand repealed on

  6  October 2, 2006, unless reviewed and saved from repeal through

  7  reenactment by the Legislature.

  8         Section 4.  This act shall take effect on the same date

  9  that Committee Substitute for Senate Bill 792, or similar

10  legislation authorizing the Agency for Health Care

11  Administration to negotiate supplemental drug rebates for the

12  Medicaid program, takes effect, if such legislation is adopted

13  in the same legislative session or an extension thereof.

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15          STATEMENT OF SUBSTANTIAL CHANGES CONTAINED IN
                       COMMITTEE SUBSTITUTE FOR
16                         Senate Bill 904

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18  The Committee Substitute for SB 904 makes information
    regarding supplemental rebates from pharmaceutical
19  manufacturers under the Florida Medicaid Program confidential
    and exempt from public disclosure. Portions of meetings of the
20  Medicaid Pharmaceutical and Therapeutics Committee at which
    this information is disclosed for discussion or negotiation
21  are made exempt from Florida's open meetings requirements. The
    bill provides legislative findings that these exemptions are a
22  public necessity in that disclosure of similar information is
    prohibited under federal law, and that the exemptions will
23  enable the state to negotiate supplemental pharmaceutical
    manufacturer rebates for the ultimate benefit of Medicaid
24  recipients. The exemptions are subject to the Open Government
    Sunset Review Act of 1995 and will be repealed on October 2,
25  2006, unless reenacted by the Legislature.

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