SENATE AMENDMENT
    Bill No. CS for SB 2322, 1st Eng.
    Amendment No. ___   Barcode 840164
                            CHAMBER ACTION
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       04/30/2003 05:24 PM         .                    
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11  Senator Wasserman Schultz moved the following amendment to
12  House amendment (119969):
13  
14         Senate Amendment (with title amendment) 
15         Lines 105-222, delete those lines
16  
17  and insert:  
18         Section 5.  Section 409.960, Florida Statutes, is
19  created to read:
20         409.960  Popular name.--Sections 409.960-409.982 shall
21  be known by the popular name "LifeSaver Rx Program."
22         Section 6.  Section 409.962, Florida Statutes, is
23  created to read:
24         409.962  LifeSaver Rx Program established; findings;
25  purpose.--
26         (1)  It is the finding of the Legislature that
27  approximately one in four residents of Florida have no
28  prescription drug insurance coverage or wholly inadequate
29  prescription drug insurance coverage. These uninsured
30  residents pay excessive prices for prescription drugs, far
31  higher prices than are paid by managed care organizations,
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SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 insurance companies, and the Federal Government for the same 2 medicines and dosages. In many cases, these excessive drug 3 prices have the effect of denying residents access to 4 medically necessary care, thereby threatening their health and 5 safety. Many Florida residents require repeated doctor or 6 medical clinic appointments, having become sicker because they 7 could not afford to purchase the prescription drugs prescribed 8 for them. Many residents are admitted to or treated at 9 hospitals each year because they cannot afford the 10 prescription drugs that could have prevented the need for 11 hospitalization. Many others enter expensive institutional 12 care settings because they cannot afford the necessary 13 prescription drugs that could have supported them outside of 14 an institution. In each of these circumstances, state medical 15 assistance programs, including the Medicaid program, literally 16 pay the price. One major reason uninsured residents pay such 17 high prices for prescription drugs is that, unlike insured 18 residents, they have no prescription benefits manager 19 negotiating a fair price with drug companies on their behalf. 20 State government currently provides prescription drugs and 21 acts as a prescription benefit manager through a variety of 22 health plans and assistance programs and, in 2001, the 23 Legislature expanded the state's role in negotiating better 24 prescription drug prices for Medicaid. State government is the 25 only agent that, as a practical matter, can play an effective 26 role as a market participant on behalf of all residents who 27 are uninsured or underinsured. The state can and should act as 28 a prescription benefit manager, negotiating drug rebates and 29 using these funds to reimburse retail pharmacies for offering 30 lower drug prices. 31 (2) Recognizing that the state already acts as a 2 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 prescription benefit manager for a variety of health plans and 2 assistance programs, including the Medicaid program, the 3 LifeSaver Rx Program is established within the Agency for 4 Health Care Administration. The purpose of the program is to 5 expand Medicaid eligibility for prescription drug benefits 6 only, at a level that does not exceed available funding, 7 thereby providing prescription drug coverage to new 8 populations by expanding the state's role as a participant in 9 the prescription drug marketplace, negotiating rebates from 10 drug companies, and using the funds from such rebates to make 11 prescription drugs more affordable to Florida residents. Each 12 program participant shall receive a discount toward the 13 purchase of all prescription drugs that are covered by the 14 Florida Medicaid program. The Legislature finds that such a 15 program will improve public health and welfare, promote the 16 economic strength of our society, and substantially benefit 17 state health assistance programs, including the Medicaid 18 program. 19 Section 7. Section 409.964, Florida Statutes, is 20 created to read: 21 409.964 Definitions.--As used in this act, unless the 22 context otherwise indicates, the term: 23 (1) "Agency" means the Agency for Health Care 24 Administration. 25 (2) "Labeler" means an entity or person that receives 26 prescription drugs from a manufacturer or wholesaler and 27 repackages those drugs for later retail sale and that has a 28 labeler code from the federal Food and Drug Administration 29 under 21 C.F.R. s. 207.20 (1999). 30 (3) "Manufacturer" means a manufacturer of 31 prescription drugs and includes a subsidiary or affiliate of a 3 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 manufacturer. 2 (4) "Participating retail pharmacy" means a retail 3 pharmacy or other business licensed to dispense prescription 4 drugs in this state that: 5 (a) Participates in the state Medicaid program; or 6 (b) Agrees to participate in the LifeSaver Rx Program. 7 (5) "Program" means the LifeSaver Rx Program. 8 (6) "Secretary" means the Secretary of Health Care 9 Administration or the secretary's designee. 10 (7) "Qualified resident" means an uninsured resident 11 of the state who has obtained from the agency a LifeSaver Rx 12 Program enrollment card. 13 Section 8. Section 409.966, Florida Statutes, is 14 created to read: 15 409.966 Prescription drug discounts; negotiation of 16 discounts or rebates; calculation of discounts.--The secretary 17 shall operate the program as a state pharmaceutical assistance 18 program under 42 U.S.C. s. 1396r-8(c)(1)(C)(i)(III) to provide 19 discounts to participants for prescription drugs covered by a 20 rebate agreement. 21 (1) The secretary shall negotiate discount prices or 22 rebates for prescription drugs from drug manufacturers and 23 labelers for the program. Using sums from negotiated rebates, 24 the agency shall contract with participating retail pharmacies 25 to deliver discounted prices to program participants. 26 (2) In negotiating discount or rebate terms, the 27 secretary shall take into consideration: 28 (a) The rebate calculated under the Medicaid rebate 29 program pursuant to 42 U.S.C. s. 1396r-8; 30 (b) The price provided to eligible entities under 42 31 U.S.C. s. 256b; and 4 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 (c) Any other available information on prescription 2 drug prices, discounts, and rebates. 3 (3) The secretary may consider any supplemental 4 rebate negotiated pursuant to s. 409.912(38)(a)7. 5 (4) The drug discounts received by program 6 participants shall be calculated by the secretary on a 7 quarterly basis. 8 Section 9. Section 409.968, Florida Statutes, is 9 created to read: 10 409.968 Discounted prices for program participants.-- 11 (1) Each program participant's payment shall be equal 12 to the Medicaid allowable charge for the prescription minus 13 the payment made by the agency. The payment made by the agency 14 shall include the estimated manufacturer rebate plus the state 15 subsidy per prescription as provided under this act and the 16 federal matching share for the state general revenue 17 contribution. 18 (2) A participating retail pharmacy shall charge the 19 Medicaid allowable rate for prescription drugs sold to 20 participants in the program. 21 (3) The participating retail pharmacy shall be 22 reimbursed by the agency at the agency's manufacturer 23 estimated rebate amount. 24 (4) The program as established in s. 409.962 is not an 25 entitlement. 26 Section 10. Section 409.970, Florida Statutes, is 27 created to read: 28 409.970 Program eligibility.-- 29 (1) An individual is eligible to participate in the 30 program if he or she: 31 (a) Is a resident of the state; 5 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 (b) Is 65 years of age or older and is a Medicare 2 participant; 3 (c) Has a net family income at or below 200 percent of 4 the federal poverty level in year 1 and at or below 300 5 percent of the federal poverty level in year 2 and thereafter; 6 (d) Has exhausted all third-party prescription 7 coverage; and 8 (e) Requests to be enrolled in the program. 9 (2) An individual is ineligible to participate in the 10 program if he or she is eligible for assistance under the 11 state's Medicaid program. 12 (3) The agency shall establish simple procedures for 13 enrolling program participants. The agency shall undertake 14 outreach efforts to build public awareness of the program and 15 maximize enrollment by eligible residents. Revenues generated 16 from rebates from drug manufacturers shall be used for, but 17 not be limited to, offsetting state costs to administer the 18 program, the purchase of prescription drugs, and any public 19 awareness campaigns. 20 Section 11. Section 409.972, Florida Statutes, is 21 created to read: 22 409.972 Program operation.-- 23 (1) The Board of Pharmacy, as created by s. 465.004, 24 in consultation with the agency, is authorized to adopt rules 25 pursuant to ss. 120.536(1) and 120.54 requiring disclosure by 26 participating retail pharmacies to program participants of the 27 amount of savings provided as a result of the program. Such 28 rules must protect information that is proprietary in nature. 29 (2) Participating retail pharmacies shall be paid in 30 advance for program discounts or shall be reimbursed by the 31 agency on a weekly or biweekly basis, in accordance with 6 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 contracts between the agency and such businesses. 2 (3) The agency shall collect from the participating 3 retail pharmacies utilization data necessary to calculate the 4 amount of the rebate from the manufacturer or labeler. The 5 agency shall protect the confidentiality of all information 6 subject to confidentiality protection under the laws of this 7 state or federal laws, rules, or regulations. 8 Section 12. Section 409.974, Florida Statutes, is 9 created to read: 10 409.974 Discrepancies in rebate 11 amounts.--Discrepancies in rebate amounts must be resolved 12 using the process established in this section. 13 (1) If there is a discrepancy in the manufacturer's or 14 labeler's favor between the amount claimed by a participating 15 retail pharmacy and the amount rebated by the manufacturer or 16 labeler, the agency, at the agency's expense, may hire a 17 mutually agreed-upon independent auditor. If a discrepancy 18 still exists following the audit, the manufacturer or labeler 19 shall justify the reason for the discrepancy or make payment 20 to the agency for any additional amount due. 21 (2) If there is a discrepancy against the interest of 22 the manufacturer or labeler in the information provided by the 23 agency to the manufacturer or labeler regarding the 24 manufacturer's or labeler's rebate, the manufacturer or 25 labeler, at the manufacturer's or labeler's expense, may hire 26 a mutually agreed-upon independent auditor to verify the 27 accuracy of the data supplied to the agency. If a discrepancy 28 still exists following the audit, the agency shall justify the 29 reason for the discrepancy or refund the manufacturer or 30 labeler. 31 (3) Following the completion of procedures established 7 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 in subsection (1) or subsection (2), the agency, the 2 manufacturer, or the labeler may request a hearing. Hearings 3 shall be conducted pursuant to ss. 120.569 and 120.57. 4 Supporting documentation must accompany the request for a 5 hearing. 6 Section 13. Section 409.976, Florida Statutes, is 7 created to read: 8 409.976 Report.--The agency shall provide a report on 9 the enrollment and financial status of the program to the 10 Governor, the President of the Senate, and the Speaker of the 11 House of Representatives by the second week in January each 12 year. 13 Section 14. Section 409.978, Florida Statutes, is 14 created to read: 15 409.978 Coordination with other programs.--The 16 secretary shall combine drug pricing negotiations to maximize 17 drug rebates when the secretary determines that the 18 combination of such negotiations is beneficial to both the 19 LifeSaver Rx Program and another state program, including the 20 state Medicaid program. 21 Section 15. Section 409.980, Florida Statutes, is 22 created to read: 23 409.980 Rulemaking.--The agency is authorized to adopt 24 rules pursuant to ss. 120.536(1) and 120.54 to implement the 25 provisions of this act. Such rules shall include eligibility 26 requirements, limits on participation, benefit limitations, a 27 requirement for generic drug substitution, and other program 28 parameters comparable to those of the Medicaid program. 29 Individuals eligible to participate in this program shall not 30 be subject to the limit of four brand name drugs per month per 31 recipient as specified in s. 409.912(38)(a). 8 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 Section 16. Section 409.982, Florida Statutes, is 2 created to read: 3 409.982 Waivers.--The agency shall seek any waivers of 4 federal law, rule, or regulation necessary to implement the 5 provisions of this act in year 1. In year 2 and thereafter, 6 the agency shall seek any additional waivers of federal law, 7 rule, or regulation necessary to implement the provisions of 8 this act. 9 Section 17. The agency shall contribute toward the 10 cost of each prescription purchased by the program 11 participant. 12 Section 18. Section 409.9066, Florida Statutes, is 13 amended to read: 14 409.9066 Medicare prescription discount program.-- 15 (1) As a condition of participation in the Florida 16 Medicaid program or the pharmaceutical expense assistance 17 program, a pharmacy must agree to charge any individual who is 18 a Medicare beneficiary and who is a Florida resident showing a 19 Medicare card when he or she presents a prescription, a price 20 no greater than the cost of ingredients equal to the average 21 wholesale price minus 9 percent, and a dispensing fee of 22 $4.50. 23 (2) In lieu of the provisions of subsection (1), and 24 as a condition of participation in the Florida Medicaid 25 program or the pharmaceutical expense assistance program, a 26 pharmacy must agree to: 27 (a) Provide a private voluntary prescription discount 28 program to state residents who are Medicare beneficiaries; or 29 (b) Accept a private voluntary discount prescription 30 program from state residents who are Medicare beneficiaries. 31 9 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 Discounts under this subsection must be at least as great as 2 discounts under subsection (1). 3 (3) The Agency for Health Care Administration shall 4 publish, on a free website available to the public, the most 5 recent average wholesale prices for the 200 drugs most 6 frequently dispensed to the elderly and, to the extent 7 possible, shall provide a mechanism that consumers may use to 8 calculate the retail price that should be paid after the 9 discount required in subsection (1) is applied. 10 Section 19. By January 1, 2004, the Agency for Health 11 Care Administration shall submit to the Legislature a report 12 regarding the cost-effectiveness of, and alternatives to, 13 using average wholesale price in the pricing of pharmaceutical 14 products purchased by the Medicaid program. 15 Section 20. Implementation of the LifeSaver Rx Program 16 is contingent upon a specific appropriation authorized in the 17 General Appropriations Act. The Legislature shall limit 18 annual appropriations to no more than $30 million from state 19 funds to the Agency for Health Care Administration to be used 20 as state matching funds for the LifeSaver Rx Program. This 21 annual appropriation limitation shall not apply to 22 pharmaceutical rebate revenue. 23 Section 21. If any provision of this act or the 24 application thereof to any person or circumstance is held 25 invalid, the invalidity shall not affect other provisions or 26 applications of the act which can be given effect without the 27 invalid provision or application, and to this end the 28 provisions of this act are declared severable. 29 30 (Redesignate subsequent sections.) 31 10 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 ================ T I T L E A M E N D M E N T =============== 2 And the title is amended as follows: 3 Lines 232-235, delete those lines 4 5 and insert: 6 application; creating s. 409.960, F.S.; 7 providing a popular name; creating s. 409.962, 8 F.S.; creating "The LifeSaver Rx Program"; 9 providing purpose of the program; creating s. 10 409.964, F.S.; providing definitions; creating 11 s. 409.966, F.S.; providing that the Secretary 12 of Health Care Administration shall operate the 13 LifeSaver Rx Program as a state pharmaceutical 14 assistance program to provide discounts to 15 participants for prescription drugs covered by 16 a rebate agreement; providing that the 17 secretary shall negotiate discount prices or 18 rebates for prescription drugs from 19 manufacturers or labelers; providing that the 20 Agency for Health Care Administration shall 21 contract with participating retail pharmacies 22 to deliver discounted prices to program 23 participants; providing factors to be 24 considered in negotiating discounts or rebates; 25 providing for quarterly calculation of 26 discounts; creating s. 409.968, F.S.; providing 27 for calculation of payment by program 28 participants and the agency; requiring 29 participating retail pharmacies in the state to 30 charge the rate allowable under the Medicaid 31 program for prescription drugs sold to program 11 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 participants; providing for rate of 2 reimbursement of participating retail 3 pharmacies; creating s. 409.970, F.S.; 4 providing requirements for program eligibility; 5 requiring the Agency for Health Care 6 Administration to establish enrollment 7 procedures; providing for use of rebates from 8 drug manufacturers; creating s. 409.972, F.S.; 9 providing for operation of the program; 10 authorizing the Board of Pharmacy to adopt 11 certain rules; creating s. 409.974, F.S.; 12 providing procedure for resolution of 13 discrepancies in rebate amounts; creating s. 14 409.976, F.S.; requiring an annual report; 15 creating s. 409.978, F.S.; authorizing 16 coordination with other programs; creating s. 17 409.980, F.S.; authorizing the agency to adopt 18 rules; creating s. 409.982, F.S.; authorizing 19 the agency to seek certain waivers; providing a 20 contribution by the agency toward the cost of 21 prescription drugs purchased by program 22 participants; amending s. 409.9066, F.S.; 23 requiring the Agency for Health Care 24 Administration to publish on a website the 25 average wholesale prices of drugs provided 26 through the program; requiring the agency to 27 publish additional information to assist 28 consumers; requiring a report on methods of 29 pricing pharmaceutical products purchased by 30 the program; providing an appropriation; 31 providing for severability; providing 12 11:34 AM 04/30/03 s2322c1c-34k6u
SENATE AMENDMENT Bill No. CS for SB 2322, 1st Eng. Amendment No. ___ Barcode 840164 1 effective dates. 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 13 11:34 AM 04/30/03 s2322c1c-34k6u