3 | 2 | | *ANS226* 02/21/2023 02:36:48 PM ANS226 |
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4 | 3 | | |
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5 | 4 | | State of Arkansas 1 |
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6 | 5 | | 94th General Assembly A Bill 2 |
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7 | 6 | | Regular Session, 2023 HOUSE BILL 1481 3 |
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8 | 7 | | 4 |
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9 | 8 | | By: Representative Achor 5 |
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10 | 9 | | By: Senator J. Boyd 6 |
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11 | 10 | | 7 |
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12 | 11 | | For An Act To Be Entitled 8 |
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13 | 12 | | AN ACT TO CREATE THE HEALTHCARE INSURER S HARE THE 9 |
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14 | 13 | | SAVINGS ACT; TO CREA TE THE ARKANSAS PHAR MACY BENEFITS 10 |
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15 | 14 | | MANAGER SHARE THE SA VINGS ACT; AND FOR O THER 11 |
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16 | 15 | | PURPOSES. 12 |
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17 | 16 | | 13 |
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18 | 17 | | 14 |
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19 | 18 | | Subtitle 15 |
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20 | 19 | | TO CREATE THE HEALTHCARE INSURER SHARE 16 |
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21 | 20 | | THE SAVINGS ACT; AND TO CREATE THE 17 |
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22 | 21 | | ARKANSAS PHARMACY BENEFITS MANAGER SHARE 18 |
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23 | 22 | | THE SAVINGS ACT. 19 |
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24 | 23 | | 20 |
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25 | 24 | | 21 |
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26 | 25 | | BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF ARKANSAS: 22 |
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27 | 26 | | 23 |
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28 | 27 | | SECTION 1. Arkansas Code Title 23, Chapter 79, is amended to add an 24 |
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29 | 28 | | additional subchapter to read as follows: 25 |
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30 | 29 | | 26 |
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31 | 30 | | Subchapter 24 — Healthcare Insurer Share the Savings Act 27 |
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32 | 31 | | 28 |
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33 | 32 | | 23-79-2401. Title. 29 |
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34 | 33 | | This subchapter shall be known and may be cited as the "Healthcare 30 |
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35 | 34 | | Insurer Share the Savings Act". 31 |
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36 | 35 | | 32 |
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37 | 36 | | 23-79-2402. Definitions. 33 |
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38 | 37 | | As used in this subchapter: 34 |
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39 | 38 | | (1) "Defined cost sharing" means a deductible payment or 35 |
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40 | 39 | | coinsurance amount imposed on an enrollee for a covered prescription drug 36 HB1481 |
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41 | 40 | | |
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42 | 41 | | 2 02/21/2023 02:36:48 PM ANS226 |
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43 | 42 | | |
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44 | 43 | | |
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45 | 44 | | under the enrollee’s health benefit plan; 1 |
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46 | 45 | | (2) "Enrollee” means an individual entitled to coverage of 2 |
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47 | 46 | | healthcare services from a healthcare insurer; 3 |
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48 | 47 | | (3)(A) "Health benefit plan" means any individual, blanket, or 4 |
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49 | 48 | | group plan, policy, or contract for healthcare services issued or delivered 5 |
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50 | 49 | | by a healthcare insurer in this state. 6 |
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51 | 50 | | (B) "Health benefit plan" does not include: 7 |
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52 | 51 | | (i) Accident-only plans; 8 |
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53 | 52 | | (ii) Specified disease plans; 9 |
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54 | 53 | | (iii) Disability income plans; 10 |
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55 | 54 | | (iv) Plans that provide only for indemnity for 11 |
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56 | 55 | | hospital confinement; 12 |
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57 | 56 | | (v) Long-term-care-only plans that do not include 13 |
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58 | 57 | | pharmacy benefits; 14 |
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59 | 58 | | (vi) Other limited-benefit health insurance policies 15 |
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60 | 59 | | or plans; 16 |
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61 | 60 | | (vii) Health benefit plans provided under Arkansas 17 |
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62 | 61 | | Constitution, Article 5, § 32, the Workers' Compensation Law, § 11 -9-101 et 18 |
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63 | 62 | | seq., or the Public Employee Workers' Compensation Act, § 21 -5-601 et seq.; 19 |
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64 | 63 | | or 20 |
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65 | 64 | | (viii) Any state or local governmental employee 21 |
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66 | 65 | | plan; 22 |
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67 | 66 | | (4)(A) "Healthcare insurer" means a: 23 |
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68 | 67 | | (i) Health insurance issuer that: 24 |
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69 | 68 | | (a) Is subject to state law regulating 25 |
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70 | 69 | | insurance; and 26 |
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71 | 70 | | (b) Offers health insurance coverage under 42 27 |
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72 | 71 | | U.S.C. § 300gg-91, as it existed on January 1, 2023; 28 |
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73 | 72 | | (ii) Health maintenance organization; or 29 |
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74 | 73 | | (iii) Hospital and medical service corporation. 30 |
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75 | 74 | | (B) "Healthcare insurer" does not include an entity that 31 |
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76 | 75 | | provides only dental benefits or eye and vision care benefits ; 32 |
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77 | 76 | | (5) "Price protection rebate" means a negotiated price 33 |
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78 | 77 | | concession that accrues directly or indirectly to a healthcare insurer, or 34 |
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79 | 78 | | other party on behalf of the healthcare insurer, if there is an increase in 35 |
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80 | 79 | | the wholesale acquisition cost of a prescrip tion drug above a specified 36 HB1481 |
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81 | 80 | | |
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83 | 82 | | |
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84 | 83 | | |
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85 | 84 | | threshold; and 1 |
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86 | 85 | | (6) "Rebate" means: 2 |
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87 | 86 | | (A) A negotiated price concession, including without 3 |
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88 | 87 | | limitation base price concessions, whether described as a rebate or not, 4 |
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89 | 88 | | reasonable estimates of any price protection rebates, and p erformance-based 5 |
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90 | 89 | | price concessions that may accrue, directly or indirectly, to the healthcare 6 |
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91 | 90 | | insurer during the coverage year from a manufacturer or other party in 7 |
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92 | 91 | | connection with the dispensing or administration of a prescription drug; and 8 |
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93 | 92 | | (B) Any reasonable estimate of a negotiated price 9 |
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94 | 93 | | concession, fee, and other administrative cost that is passed through, or is 10 |
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95 | 94 | | reasonably anticipated to be passed through, to the healthcare insurer and 11 |
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96 | 95 | | serves to reduce the healthcare insurer’s liabilities for a pres cription 12 |
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97 | 96 | | drug. 13 |
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98 | 97 | | 14 |
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99 | 98 | | 23-79-2403. Implementation of subchapter — Requirements. 15 |
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100 | 99 | | (a) An enrollee’s defined cost sharing for a prescription drug shall 16 |
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101 | 100 | | be calculated at the point -of-sale based on a price that is reduced by an 17 |
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102 | 101 | | amount equal to at least one hundred percent (100%) of all rebates received, 18 |
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103 | 102 | | or to be received, in connection with the dispensing or administration of the 19 |
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104 | 103 | | prescription drug. 20 |
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105 | 104 | | (b) This subchapter shall not preclude a healthcare insurer from 21 |
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106 | 105 | | decreasing an enrollee's defined cost sharing by an amount greater than that 22 |
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107 | 106 | | required under subsection (a) of this section. 23 |
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108 | 107 | | (c) In implementing the requirements of this section, the state shall 24 |
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109 | 108 | | only regulate a healthcare insurer to the extent permissible under applicable 25 |
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110 | 109 | | law. 26 |
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111 | 110 | | (d)(1) In complying with t his section, a healthcare insurer or its 27 |
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112 | 111 | | agents shall not publish or otherwise reveal information regarding the actual 28 |
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113 | 112 | | amount of rebates a healthcare insurer receives on a product or therapeutic 29 |
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114 | 113 | | class of products, manufacturer, or pharmacy -specific basis. 30 |
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115 | 114 | | (2) The information described in subdivision (d)(1) of this 31 |
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116 | 115 | | section is: 32 |
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117 | 116 | | (A) Protected as a trade secret; 33 |
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118 | 117 | | (B) Considered proprietary and confidential under § 23 -61-34 |
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119 | 118 | | 107(a)(4) and § 23-61-207; 35 |
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120 | 119 | | (C) Not subject to disclosure under the Freedom of 36 HB1481 |
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121 | 120 | | |
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123 | 122 | | |
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124 | 123 | | |
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125 | 124 | | Information Act of 1967, § 25 -19-101 et seq.; and 1 |
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126 | 125 | | (D) Not to be disclosed: 2 |
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127 | 126 | | (i) Directly or indirectly; or 3 |
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128 | 127 | | (ii) In a manner that would: 4 |
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129 | 128 | | (a) Allow for the identification of an 5 |
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130 | 129 | | individual product, therapeutic class of products, or manufacturer; or 6 |
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131 | 130 | | (b) Have the potential to compromise the 7 |
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132 | 131 | | financial, competitive, or proprietary nature of the information. 8 |
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133 | 132 | | (3) A healthcare insurer shall impose the confidentiality 9 |
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134 | 133 | | protections of this section on any vendor or downstream third party that 10 |
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135 | 134 | | performs healthcare or administrative services on behalf of the healthcare 11 |
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136 | 135 | | insurer that may receive or have access to rebate information. 12 |
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137 | 136 | | 13 |
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138 | 137 | | SECTION 2. Arkansas Code Title 23, Chapter 92, is amended to add an 14 |
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139 | 138 | | additional subchapter to read as fol lows: 15 |
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140 | 139 | | 16 |
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141 | 140 | | Subchapter 7 — Arkansas Pharmacy Benefits Manager Share the Savings Act 17 |
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142 | 141 | | 18 |
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143 | 142 | | 23-92-701. Title. 19 |
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144 | 143 | | This subchapter shall be known and may be cited as the "Arkansas 20 |
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145 | 144 | | Pharmacy Benefits Manager Share the Savings Act". 21 |
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146 | 145 | | 22 |
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147 | 146 | | 23-92-702. Purpose. 23 |
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148 | 147 | | The purpose of this subchapter is to require pharmacy benefits managers 24 |
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149 | 148 | | to share the benefit of rebates with enrollees in this state. 25 |
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150 | 149 | | 26 |
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151 | 150 | | 23-92-703. Definitions. 27 |
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152 | 151 | | As used in this subchapter: 28 |
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153 | 152 | | (1) "Defined cost sharing" means a deductible payment or 29 |
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154 | 153 | | coinsurance amount imp osed on an enrollee for a covered prescription drug 30 |
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155 | 154 | | under the enrollee’s health benefit plan; 31 |
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156 | 155 | | (2) "Enrollee” means an individual entitled to coverage of 32 |
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157 | 156 | | healthcare services from a healthcare insurer; 33 |
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158 | 157 | | (3)(A) "Health benefit plan" means any individual, blanket, or 34 |
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159 | 158 | | group plan, policy, or contract for healthcare services issued or delivered 35 |
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160 | 159 | | by a healthcare insurer in this state. 36 HB1481 |
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161 | 160 | | |
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162 | 161 | | 5 02/21/2023 02:36:48 PM ANS226 |
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163 | 162 | | |
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164 | 163 | | |
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165 | 164 | | (B) "Health benefit plan" does not include: 1 |
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166 | 165 | | (i) Accident-only plans; 2 |
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167 | 166 | | (ii) Specified disease plans; 3 |
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168 | 167 | | (iii) Disability income plans; 4 |
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169 | 168 | | (iv) Plans that provide only for indemnity for 5 |
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170 | 169 | | hospital confinement; 6 |
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171 | 170 | | (v) Long-term-care-only plans that do not include 7 |
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172 | 171 | | pharmacy benefits; 8 |
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173 | 172 | | (vi) Other limited-benefit health insurance policies 9 |
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174 | 173 | | or plans; 10 |
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175 | 174 | | (vii) Health benefit plans provided under Arkansas 11 |
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176 | 175 | | Constitution, Article 5, § 32, the Workers' Compensation Law, § 11 -9-101 et 12 |
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177 | 176 | | seq., or the Public Employee Workers' Compensation Act, § 21 -5-601 et seq.; 13 |
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178 | 177 | | or 14 |
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179 | 178 | | (viii) Any state or local governmental employee 15 |
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180 | 179 | | plan; 16 |
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181 | 180 | | (4) "Healthcare insurer" means an insurance company that is 17 |
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182 | 181 | | subject to state law regulating insurance including without limitation a 18 |
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183 | 182 | | health maintenance organization or a hospital and medical service 19 |
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184 | 183 | | corporation; 20 |
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185 | 184 | | (5) "Pharmacy benefits management servi ce" means a service to: 21 |
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186 | 185 | | (A) Negotiate the price of prescription drugs, including 22 |
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187 | 186 | | negotiating and contracting for direct or indirect rebates, discounts, or 23 |
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188 | 187 | | other price concessions; 24 |
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189 | 188 | | (B) Manage any aspect of a prescription drug benefit, 25 |
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190 | 189 | | including without limitation: 26 |
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191 | 190 | | (i) Claims processing services; 27 |
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192 | 191 | | (ii) The performance of drug utilization review; 28 |
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193 | 192 | | (iii) The processing of drug prior authorization 29 |
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194 | 193 | | requests; 30 |
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195 | 194 | | (iv) The adjudication of appeals or grievances 31 |
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196 | 195 | | related to a prescription drug b enefit; 32 |
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197 | 196 | | (v) Controlling the cost of covered prescription 33 |
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198 | 197 | | drugs; or 34 |
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199 | 198 | | (vi) The provision of services related to the 35 |
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200 | 199 | | services described under this subdivision (5)(B); 36 HB1481 |
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201 | 200 | | |
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203 | 202 | | |
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204 | 203 | | |
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205 | 204 | | (C) Disburse or distribute rebates, manage or participate 1 |
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206 | 205 | | in incentive program s or arrangements for pharmacist services, negotiate or 2 |
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207 | 206 | | enter into contractual arrangements with pharmacists or pharmacies, or both, 3 |
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208 | 207 | | develop formularies, or employ advertising or promotional services; 4 |
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209 | 208 | | (D) Perform any other administrative, managerial, 5 |
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210 | 209 | | clinical, pricing, financial, reimbursement, or billing service; and 6 |
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211 | 210 | | (E) Perform any other services as the Insurance 7 |
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212 | 211 | | Commissioner may include by rule; 8 |
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213 | 212 | | (6)(A) "Pharmacy benefits manager" means a person, business, or 9 |
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214 | 213 | | entity that, pursuant to a written agreement with a healthcare insurer or 10 |
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215 | 214 | | health benefit plan, either directly or indirectly provides one (1) or more 11 |
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216 | 215 | | pharmacy benefits management services on behalf of the healthcare insurer or 12 |
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217 | 216 | | health benefit plan, and any agent, contractor, intermediary, af filiate, 13 |
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218 | 217 | | subsidiary, or related entity of the person, business, or entity that 14 |
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219 | 218 | | facilitates, provides, directs, or oversees the provision of the pharmacy 15 |
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220 | 219 | | benefits management service or services. 16 |
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221 | 220 | | (B) "Pharmacy benefits manager" does not include a: 17 |
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222 | 221 | | (i) Healthcare facility licensed in Arkansas; 18 |
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223 | 222 | | (ii) Healthcare professional licensed in Arkansas; 19 |
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224 | 223 | | or 20 |
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225 | 224 | | (iii) Consultant who only provides advice as to the 21 |
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226 | 225 | | selection or performance of a pharmacy benefits manager; 22 |
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227 | 226 | | (7) "Price protection rebate" m eans a negotiated price 23 |
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228 | 227 | | concession that accrues directly or indirectly to a healthcare insurer, or 24 |
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229 | 228 | | other party on behalf of the healthcare insurer, if there is an increase in 25 |
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230 | 229 | | the wholesale acquisition cost of a prescription drug above a specified 26 |
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231 | 230 | | threshold; and 27 |
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232 | 231 | | (8) "Rebate" means: 28 |
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233 | 232 | | (A) A negotiated price concession including without 29 |
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234 | 233 | | limitation base price concessions, whether described as a rebate or not, 30 |
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235 | 234 | | reasonable estimates of any price protection rebates, and performance -based 31 |
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236 | 235 | | price concessions that may accrue, directly or indirectly, to the healthcare 32 |
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237 | 236 | | insurer during the coverage year from a manufacturer or other party in 33 |
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238 | 237 | | connection with the dispensing or administration of a prescription drug; and 34 |
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239 | 238 | | (B) Any reasonable estimate of a negotiated price 35 |
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240 | 239 | | concession, fee, and other administrative cost that is passed through, or is 36 HB1481 |
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241 | 240 | | |
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242 | 241 | | 7 02/21/2023 02:36:48 PM ANS226 |
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243 | 242 | | |
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244 | 243 | | |
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245 | 244 | | reasonably anticipated to be passed through, to the healthcare insurer and 1 |
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246 | 245 | | serves to reduce the healthcare insurer’s liabilities for a prescription 2 |
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247 | 246 | | drug. 3 |
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248 | 247 | | 4 |
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249 | 248 | | 23-92-704. Implementation of subchapter — Requirements. 5 |
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250 | 249 | | (a) An enrollee’s defined cost sharing for a prescription drug shall 6 |
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251 | 250 | | be calculated at the point -of-sale based on a price that is reduced by an 7 |
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252 | 251 | | amount equal to at least one hundred percent (100%) of all rebates received, 8 |
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253 | 252 | | or to be received, in connection with the dispensing or administration of the 9 |
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254 | 253 | | prescription drug. 10 |
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255 | 254 | | (b) This subchapter shall not preclude a pharmacy benefits manager 11 |
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256 | 255 | | from decreasing an enrollee’s defined cost sharing by an amount greater than 12 |
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257 | 256 | | that required under subsection (a) of this section. 13 |
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258 | 257 | | (c)(1) A pharmacy benefits manager shall submit a certification to the 14 |
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259 | 258 | | Insurance Commissioner by January 1 of each calendar year certifying that the 15 |
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260 | 259 | | pharmacy benefits manager has complied with the requirements of this section 16 |
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261 | 260 | | during the previous calendar year. 17 |
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262 | 261 | | (2) The certification under subdivision (c)(1) of this section 18 |
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263 | 262 | | shall be signed by the chief executive officer or chief financial officer of 19 |
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264 | 263 | | the pharmacy benefits manager. 20 |
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265 | 264 | | (3) The form of the certific ation shall: 21 |
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266 | 265 | | (A) Be in a format approved or established by the 22 |
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267 | 266 | | commissioner; and 23 |
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268 | 267 | | (B) Include the pharmacy benefits manager’s best estimate 24 |
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269 | 268 | | of the aggregate amount of rebates used to reduce enrollee -defined cost 25 |
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270 | 269 | | sharing for prescription drugs in the previous calendar year based on 26 |
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271 | 270 | | information known to the pharmacy benefits manager as of the date of the 27 |
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272 | 271 | | certification. 28 |
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273 | 272 | | (d)(1) In complying with this section, a pharmacy benefits manager or 29 |
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274 | 273 | | its agents shall not publish or otherwise reveal information r egarding the 30 |
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275 | 274 | | actual amount of rebates a pharmacy benefits manager receives on a product or 31 |
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276 | 275 | | therapeutic class of products, manufacturer, or pharmacy -specific basis. 32 |
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277 | 276 | | (2) The information described in subdivision (d)(1) of this 33 |
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278 | 277 | | section is: 34 |
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279 | 278 | | (A) Protected as a trade secret; 35 |
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280 | 279 | | (B) Considered proprietary and confidential under § 23 -61-36 HB1481 |
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281 | 280 | | |
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282 | 281 | | 8 02/21/2023 02:36:48 PM ANS226 |
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283 | 282 | | |
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284 | 283 | | |
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285 | 284 | | 107(a)(4) and § 23-61-207; 1 |
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286 | 285 | | (C) Not subject to disclosure under the Freedom of 2 |
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287 | 286 | | Information Act of 1967, § 25 -19-101 et seq.; and 3 |
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288 | 287 | | (D) Not to be disclosed: 4 |
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289 | 288 | | (i) Directly or indirectly; or 5 |
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290 | 289 | | (ii) In a manner that would: 6 |
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291 | 290 | | (a) Allow for the identification of an 7 |
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292 | 291 | | individual product, therapeutic class of products, or manufacturer; or 8 |
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293 | 292 | | (b) Have the potential to compromise the 9 |
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294 | 293 | | financial, competitive, or proprieta ry nature of the information. 10 |
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295 | 294 | | (3) A pharmacy benefits manager shall impose the confidentiality 11 |
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296 | 295 | | protections of this section on any vendor or downstream third party that 12 |
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297 | 296 | | performs healthcare services or administrative services on behalf of the 13 |
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298 | 297 | | pharmacy benefits manager that may receive or have access to rebate 14 |
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299 | 298 | | information. 15 |
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300 | 299 | | 16 |
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301 | 300 | | SECTION 3. DO NOT CODIFY. Severability. 17 |
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302 | 301 | | (a) In implementing this act, the state shall regulate a health 18 |
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303 | 302 | | benefit plan, healthcare insurer, or pharmacy benefits manager only to the 19 |
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304 | 303 | | extent permissible under applicable law. 20 |
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305 | 304 | | (b)(1) The provisions of this act are severable. 21 |
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306 | 305 | | (2) The invalidity of any provision of this act shall not affect 22 |
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307 | 306 | | other provisions of this act that can be given effect without the invalid 23 |
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308 | 307 | | provision. 24 |
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309 | 308 | | 25 |
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310 | 309 | | 26 |
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