First Regular Session Seventy-fourth General Assembly STATE OF COLORADO INTRODUCED LLS NO. 23-0428.01 Kristen Forrestal x4217 HOUSE BILL 23-1002 House Committees Senate Committees Health & Insurance A BILL FOR AN ACT C ONCERNING THE AFFORDABILITY OF EPINEPHRINE AUTO -INJECTORS.101 Bill Summary (Note: This summary applies to this bill as introduced and does not reflect any amendments that may be subsequently adopted. If this bill passes third reading in the house of introduction, a bill summary that applies to the reengrossed version of this bill will be available at http://leg.colorado.gov .) Effective January 1, 2024, the bill creates an epinephrine auto-injector affordability program (program) to provide low-cost epinephrine auto-injectors to individuals who: ! Are residents of this state; ! Are not enrolled in the state medicaid program or the federal medicare program; ! Have a prescription for an epinephrine auto-injector; and ! Are not enrolled in prescription drug coverage that limits HOUSE SPONSORSHIP Mabrey, Jodeh SENATE SPONSORSHIP Roberts, Shading denotes HOUSE amendment. Double underlining denotes SENATE amendment. Capital letters or bold & italic numbers indicate new material to be added to existing statute. Dashes through the words indicate deletions from existing statute. the total amount of cost sharing that the enrollee is required to pay for an epinephrine auto-injector. The bill requires the division of insurance in the department of regulatory agencies (division) to create an application for the program and requires the division and the department of health care policy and financing to make the application available on their websites and to promote the availability of the program. The bill requires a carrier that provides coverage for prescription epinephrine auto-injectors to cap the total amount that a covered person is required to pay for all covered prescription epinephrine auto-injectors at an amount not to exceed $60 for a 2-pack of epinephrine auto-injectors. A pharmacy that dispenses epinephrine auto-injectors is authorized to collect a copayment not to exceed $60 from the individual to cover the pharmacy's costs of processing and dispensing a 2-pack of epinephrine auto-injectors. A manufacturer of epinephrine auto-injectors: ! Is required to make epinephrine auto-injectors available to individuals through the program; and ! May be required to reimburse the dispensing pharmacy an amount that covers the difference between the pharmacy's wholesale acquisition cost for the number of epinephrine auto-injectors dispensed through the program and the amount the recipients of the epinephrine auto-injectors paid for the same number of epinephrine auto-injectors or send the pharmacy a replacement supply of the same number of epinephrine auto-injectors. If a manufacturer fails to comply with the requirements of the bill, the manufacturer may be subject to a fine. Be it enacted by the General Assembly of the State of Colorado:1 SECTION 1. Legislative declaration. (1) The general assembly2 finds and declares that:3 (a) Individuals who have moderate to severe allergies, severe4 asthma, or genetic conditions such as angioedema are at risk of reactions5 that can occur within seconds or minutes and that can lead to anaphylaxis,6 a potentially fatal reaction;7 (b) Epinephrine works quickly to improve breathing, stimulate the8 heart, raise dropping blood pressure, prevent airways from closing,9 HB23-1002-2- prevent or decrease shock, reverse hives, and reduce swelling of the face,1 lips, and throat;2 (c) Delay in appropriate treatment for anaphylaxis almost certainly3 contributes to death in individuals, so it is critical that all anaphylaxis4 reactions are treated as a medical emergency;5 (d) In Colorado, there are approximately 565,824 individuals with6 life-threatening food allergies, which is more than the population of7 Colorado Springs; of these individuals, 101,848 are under 18 years of age,8 which means that the number of children with food allergies in Colorado9 is larger than the population of Longmont;10 (e) Epinephrine auto-injectors are essential because they are the11 easiest and most efficient way to potentially save the life of an individual12 exhibiting symptoms of or experiencing anaphylactic shock;13 (f) Many individuals are unable to afford an epinephrine14 auto-injector because they cannnot pay the copayment amount required15 under their insurance plan or, if they are uninsured, the cost of an16 epinephrine auto-injector; these individuals risk their lives every day by17 not having access to this life-saving medicine if faced with an allergic18 reaction; and19 (g) Rising costs of epinephrine auto-injectors make this20 life-saving medication difficult or impossible to obtain for many people,21 even those with private health insurance or who are enrolled in a public22 health benefit program.23 (2) Therefore, it is the intent of the general assembly to establish24 an epinephrine auto-injector affordability program to ensure Colorado25 residents have greater access to epinephrine.26 SECTION 2. In Colorado Revised Statutes, add 10-16-158 as27 HB23-1002 -3- follows:1 10-16-158. Cost sharing - prescription epinephrine - limits -2 rules - definition. (1) A S USED IN THIS SECTION, UNLESS THE CONTEXT3 OTHERWISE REQUIRES, "EPINEPHRINE AUTO-INJECTOR" HAS THE SAME4 MEANING AS SET FORTH IN SECTION 12-280-141 (1)(c).5 (2) A CARRIER THAT PROVIDES COVERAGE FOR PRESCRIPTION6 EPINEPHRINE AUTO-INJECTORS PURSUANT TO THE TERMS OF A HEALTH7 COVERAGE PLAN THE CARRIER OFFERS SHALL CAP THE TOTAL AMOUNT8 THAT A COVERED PERSON IS REQUIRED TO PAY FOR ALL COVERED9 PRESCRIPTION EPINEPHRINE AUTO -INJECTORS AT AN AMOUNT NOT TO10 EXCEED SIXTY DOLLARS FOR A TWO -PACK OF EPINEPHRINE11 AUTO-INJECTORS, REGARDLESS OF THE AMOUNT OR TYPE OF EPINEPHRINE12 NEEDED TO FILL THE COVERED PERSON 'S PRESCRIPTION.13 (3) N OTHING IN THIS SECTION PREVENTS A CARRIER FROM14 REDUCING A COVERED PERSON 'S COST SHARING TO AN AMOUNT THAT IS15 LOWER THAN THE AMOUNT SPECIFIED IN SUBSECTION (2) OF THIS SECTION.16 (4) T HE COMMISSIONER MAY USE ANY OF THE COMMISSIONER 'S17 ENFORCEMENT POWERS TO OBTAIN A CARRIER 'S COMPLIANCE WITH THIS18 SECTION.19 (5) T HE COMMISSIONER MAY PROMULGATE RULES AS NECESSARY20 TO IMPLEMENT AND ADMINISTER THIS SECTION AND TO ALIGN WITH21 FEDERAL REQUIREMENTS.22 SECTION 3. In Colorado Revised Statutes, add 12-280-141 as23 follows:24 12-280-141. Epinephrine auto-injector affordability program25 - record keeping - reimbursement - definitions. (1) A S USED IN THIS26 SECTION:27 HB23-1002 -4- (a) "CONSUMER PRICE INDEX " MEANS THE UNITED STATES1 DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS CONSUMER PRICE2 INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY ALL3 URBAN CONSUMERS , OR ITS APPLICABLE PREDECESSOR OR SUCCESSOR4 INDEX.5 (b) "D IVISION OF INSURANCE" MEANS THE DIVISION OF INSURANCE6 IN THE DEPARTMENT OF REGULATORY AGENCIES , CREATED IN SECTION7 10-1-103.8 (c) "E PINEPHRINE AUTO-INJECTOR" MEANS AN AUTOMATIC9 INJECTION DEVICE FOR INJECTING A MEASURED DOSE OF EPINEPHRINE10 BASED ON THE WEIGHT OF THE PERSON WHO IS TO RECEIVE THE INJECTION .11 (d) "M ANUFACTURER" MEANS A PERSON ENGAGED IN12 MANUFACTURING EPINEPHRINE AUTO -INJECTORS THAT ARE AVAILABLE13 FOR PURCHASE IN THIS STATE.14 (e) "P HARMACY" MEANS A PHARMACY OUTLET REGISTERED15 PURSUANT TO THIS ARTICLE 280 WHERE PRESCRIPTIONS ARE COMPOUNDED16 AND DISPENSED.17 (f) "P ROGRAM" MEANS THE EPINEPHRINE AUTO -INJECTOR18 AFFORDABILITY PROGRAM CREATED IN SUBSECTION (2) OF THIS SECTION.19 (g) "P ROOF OF RESIDENCY" MEANS A CURRENT AND VALID20 DOCUMENT THAT IS IN ENGLISH, OR IS TRANSLATED INTO ENGLISH AND IS21 UNALTERED, AND THAT INCLUDES THE INDIVIDUAL'S, OR IN THE CASE OF22 A MINOR, THE MINOR'S PARENT'S OR GUARDIAN'S, PRINTED NAME AND23 C OLORADO RESIDENTIAL ADDRESS . DOCUMENTS THAT MAY BE USED FOR24 PROOF OF RESIDENCY ARE:25 (I) A COLORADO-ISSUED DRIVER'S LICENSE OR COLORADO26 IDENTIFICATION CARD;27 HB23-1002 -5- (II) A PRINTED BILL, INCLUDING A UTILITY, TELEPHONE, INTERNET,1 CABLE, INSURANCE, MORTGAGE, RENT, WASTE DISPOSAL, WATER OR2 SEWER, MEDICAL, OR OTHER BILL;3 (III) A CREDIT CARD OR BANK STATEMENT ;4 (IV) A PAY STUB OR EARNINGS STATEMENT ;5 (V) A PIECE OF POST-MARKED FIRST-CLASS MAIL OR UNITED6 S TATES POSTAL SERVICE CHANGE OF ADDRESS CONFIRMATION ;7 (VI) A PRINTED RENT RECEIPT OR RESIDENTIAL LEASE;8 (VII) A TRANSCRIPT OR REPORT CARD FROM AN ACCREDITED9 SCHOOL;10 (VIII) A VEHICLE TITLE OR REGISTRATION;11 (IX) A N INSURANCE POLICY;12 (X) A GOVERNMENT-ISSUED LETTER OR STATE OR FEDERAL13 GOVERNMENT-ISSUED CHECK; OR14 (XI) A RECORD OF MEDICAL SERVICE FROM A SHELTER ,15 TREATMENT FACILITY, OR ASSISTED LIVING FACILITY , INCLUDING A16 HOMELESS SHELTER, WOMEN'S SHELTER, OTHER NONPROFIT SHELTER ,17 HALFWAY HOUSE, NURSING HOME, OR REHABILITATION FACILITY.18 (h) "W HOLESALE ACQUISITION COST" MEANS A MANUFACTURER 'S19 LIST PRICE FOR AN EPINEPHRINE AUTO -INJECTOR TO WHOLESALERS OR20 DIRECT PURCHASERS IN THE UNITED STATES FOR THE MOST RECENT21 MONTH FOR WHICH THE INFORMATION IS REPORTED IN WHOLESALE PRICE22 GUIDES OR OTHER PUBLICATIONS OF DRUG OR BIOLOGICAL PRICING DATA .23 (2) E FFECTIVE JANUARY 1, 2024, THE EPINEPHRINE24 AUTO-INJECTOR AFFORDABILITY PROGRAM IS CREATED TO PROVIDE25 LOW-COST EPINEPHRINE AUTO-INJECTORS TO ELIGIBLE INDIVIDUALS. BY26 J ANUARY 1, 2024, EACH MANUFACTURER SHALL ESTABLISH PROCEDURES27 HB23-1002 -6- TO AND SHALL MAKE EPINEPHRINE AUTO -INJECTORS AVAILABLE IN1 ACCORDANCE WITH THIS SECTION TO ELIGIBLE INDIVIDUALS WHO HOLD A2 VALID PRESCRIPTION FOR EPINEPHRINE AUTO -INJECTORS.3 (3) T O BE ELIGIBLE TO RECEIVE EPINEPHRINE AUTO -INJECTORS4 THROUGH THE PROGRAM , AN INDIVIDUAL MUST:5 (a) D EMONSTRATE PROOF OF RESIDENCY IN COLORADO;6 (b) N OT BE ELIGIBLE FOR ASSISTANCE PROVIDED THROUGH THE7 "C OLORADO MEDICAL ASSISTANCE ACT", ARTICLES 4 TO 6 OF TITLE 25.5,8 OR THE FEDERAL "HEALTH INSURANCE FOR THE AGED ACT", TITLE XVIII9 OF THE FEDERAL "SOCIAL SECURITY ACT", 42 U.S.C. SEC. 1395 ET SEQ.,10 AS AMENDED;11 (c) H AVE A VALID EPINEPHRINE AUTO-INJECTOR PRESCRIPTION;12 AND13 (d) N OT BE ENROLLED IN PRESCRIPTION DRUG COVERAGE THAT14 LIMITS THE TOTAL AMOUNT OF COST SHARING THAT THE ENROLLEE IS15 REQUIRED TO PAY FOR A COVERED PRESCRIPTION TO NOT MORE THAN16 SIXTY DOLLARS FOR A TWO -PACK OF EPINEPHRINE AUTO -INJECTORS,17 REGARDLESS OF THE AMOUNT OR TYPE OF EPINEPHRINE NEEDED TO FILL18 THE PRESCRIPTION.19 (4) (a) T HE DIVISION OF INSURANCE SHALL DEVELOP AN20 APPLICATION FORM TO BE USED BY AN INDIVIDUAL WHO IS SEEKING21 EPINEPHRINE AUTO-INJECTORS THROUGH THE PROGRAM . AT A MINIMUM,22 THE APPLICATION FORM MUST:23 (I) P ROVIDE INFORMATION RELATED TO PROGRAM ELIGIBILITY AND24 COVERAGE IN ENGLISH, SPANISH, AND IN EACH LANGUAGE SPOKEN BY AT25 LEAST TWO AND ONE-HALF PERCENT OF THE POPULATION OF ANY COUNTY26 IN WHICH SUCH POPULATION SPEAKS ENGLISH LESS THAN VERY WELL, AS27 HB23-1002 -7- DEFINED BY THE UNITED STATES BUREAU OF THE CENSUS AMERICAN1 COMMUNITY SURVEY OR COMPARABLE CENSUS DATA , AND SPEAKS A2 SHARED MINORITY LANGUAGE AT HOME ; AND3 (II) R EQUIRE THE INDIVIDUAL TO SHOW PROOF THAT THE4 INDIVIDUAL MEETS THE REQUIREMENTS OF SUBSECTION (3) OF THIS5 SECTION.6 (b) T HE DIVISION OF INSURANCE AND THE DEPARTMENT OF HEALTH7 CARE POLICY AND FINANCING SHALL MAKE THE APPLICATION FORM8 AVAILABLE ON EACH AGENCY 'S WEBSITE. THE DIVISION OF INSURANCE9 SHALL ALSO MAKE THE APPLICATION FORM AVAILABLE TO PHARMACIES ,10 HEALTH-CARE PROVIDERS, AND HEALTH FACILITIES THAT PRESCRIBE OR11 DISPENSE EPINEPHRINE AUTO-INJECTORS.12 (5) T O ACCESS EPINEPHRINE AUTO -INJECTORS THROUGH THE13 PROGRAM, AN INDIVIDUAL MUST PRESENT , AT A PHARMACY , A14 COMPLETED, SIGNED, AND DATED APPLICATION FORM WITH PROOF OF15 RESIDENCY. IF THE INDIVIDUAL IS UNDER EIGHTEEN YEARS OF AGE , THE16 INDIVIDUAL'S PARENT OR LEGAL GUARDIAN MAY PROVIDE THE17 PHARMACIST WITH PROOF OF RESIDENCY .18 (6) (a) U PON RECEIPT OF AN INDIVIDUAL'S PROOF OF RESIDENCY19 AND COMPLETED , SIGNED, AND DATED APPLICATION FORM20 DEMONSTRATING THAT THE INDIVIDUAL IS ELIGIBLE PURSUANT TO21 SUBSECTION (3) OF THIS SECTION, A PHARMACIST SHALL DISPENSE THE22 PRESCRIBED EPINEPHRINE AUTO -INJECTORS. AN INDIVIDUAL WHO IS23 ELIGIBLE TO RECEIVE EPINEPHRINE AUTO -INJECTORS THROUGH THE24 PROGRAM MAY RECEIVE EPINEPHRINE AUTO -INJECTORS AS PRESCRIBED25 FOR TWELVE MONTHS.26 (b) T HE PHARMACIST IS ENCOURAGED TO INFORM THE INDIVIDUAL :27 HB23-1002 -8- (I) THAT THE INDIVIDUAL MAY BE ELIGIBLE FOR MEDICAL1 ASSISTANCE PROGRAMS PURSUANT TO THE "COLORADO MEDICAL2 A SSISTANCE ACT", ARTICLES 4 TO 6 OF TITLE 25.5, OR AN AFFORDABLE3 INSURANCE PRODUCT ON THE HEALTH BENEFIT EXCHANGE CREATED IN4 SECTION 10-22-104; AND5 (II) O F ANY MANUFACTURER-SPONSORED PROGRAMS THAT ASSIST6 INDIVIDUALS WHO CANNOT AFFORD THEIR PRESCRIPTION EPINEPHRINE7 AUTO-INJECTORS.8 (c) T HE PHARMACIST SHALL RETAIN A COPY OF THE APPLICATION9 FORM SUBMITTED BY THE INDIVIDUAL FOR TWO YEARS AFTER THE DATE10 THE EPINEPHRINE AUTO-INJECTOR WAS INITIALLY DISPENSED.11 (7) A PHARMACY THAT DISPENSES EPINEPHRINE AUTO -INJECTORS12 PURSUANT TO SUBSECTION (6)(a) OF THIS SECTION MAY COLLECT A13 COPAYMENT FROM THE INDIVIDUAL TO COVER THE PHARMACY 'S COSTS OF14 PROCESSING AND DISPENSING THE EPINEPHRINE AUTO -INJECTOR, WHICH15 COPAYMENT AMOUNT MUST NOT EXCEED SIXTY DOLLARS FOR EACH16 TWO-PACK OF EPINEPHRINE AUTO -INJECTORS THAT THE PHARMACY17 DISPENSES TO THE INDIVIDUAL.18 (8) (a) E XCEPT AS PROVIDED IN SUBSECTION (8)(d) OF THIS19 SECTION, UNLESS THE MANUFACTURER AGREES TO SEND TO THE20 PHARMACY A REPLACEMENT SUPPLY OF THE SAME NUMBER OF21 EPINEPHRINE AUTO-INJECTORS DISPENSED THROUGH THE PROGRAM , THE22 PHARMACY MAY SUBMIT TO THE MANUFACTURER OF THE DISPENSED23 EPINEPHRINE AUTO -INJECTORS, DIRECTLY OR THROUGH THE24 MANUFACTURER'S DELEGATED REPRESENTATIVE , SUBCONTRACTOR, OR25 OTHER VENDOR, AN ELECTRONIC CLAIM FOR PAYMENT THAT IS MADE IN26 ACCORDANCE WITH THE NATIONAL COUNCIL FOR PRESCRIPTION DRUG27 HB23-1002 -9- PROGRAMS' STANDARDS FOR ELECTRONIC CLAIMS PROCESSING .1 (b) B Y JANUARY 1, 2024, EACH MANUFACTURER SHALL DEVELOP2 A PROCESS FOR A PHARMACY TO SUBMIT AN ELECTRONIC CLAIM FOR3 REIMBURSEMENT AS PROVIDED IN SUBSECTION (8)(a) OF THIS SECTION.4 (c) I F THE PHARMACY SUBMITS AN ELECTRONIC CLAIM TO THE5 MANUFACTURER PURSUANT TO SUBSECTION (8)(a) OF THIS SECTION, THE6 MANUFACTURER OR THE M ANUFACTURER 'S DELEGATED REPRESENTATIVE,7 SUBCONTRACTOR, OR OTHER VENDOR SHALL, WITHIN THIRTY DAYS AFTER8 RECEIPT OF THE CLAIM, EITHER:9 (I) R EIMBURSE THE PHARMACY IN AN AMOUNT THAT COVERS THE10 DIFFERENCE BETWEEN THE PHARMACY 'S WHOLESALE ACQUISITION COST11 FOR THE NUMBER OF EPINEPHRINE AUTO -INJECTORS DISPENSED THROUGH12 THE PROGRAM AND THE AMOUNT THE INDIVIDUAL PAID FOR THE SAME13 NUMBER OF EPINEPHRINE AUTO-INJECTORS PURSUANT TO SUBSECTION (7)14 OF THIS SECTION; OR15 (II) S END THE PHARMACY A REPLACEMENT SUPPLY OF THE SAME16 NUMBER OF EPINEPHRINE AUTO -INJECTORS IN AN AMOUNT EQUAL TO OR17 GREATER THAN THE AMOUNT THAT COVERS THE DIFFERENCE BETWEEN18 THE PHARMACY'S WHOLESALE ACQUISITION COST FOR THE NUMBER OF19 EPINEPHRINE AUTO-INJECTORS DISPENSED THROUGH THE PROGRAM AND20 THE AMOUNT THE INDIVIDUAL PAID FOR THE SAME NUMBER OF21 EPINEPHRINE AUTO-INJECTORS PURSUANT TO SUBSECTION (7) OF THIS22 SECTION.23 (d) A PHARMACY SHALL NOT SUBMIT A CLAIM FOR PAYMENT FOR24 EPINEPHRINE AUTO-INJECTORS WITH A WHOLESALE ACQUISITION COST OF25 TWENTY DOLLARS OR LESS PER TWO -PACK OF EPINEPHRINE26 AUTO-INJECTORS, ADJUSTED ANNUALLY BASED ON THE ANNUAL27 HB23-1002 -10- PERCENTAGE CHANGE IN THE CONSUMER PRICE INDEX .1 (9) T HE DIVISION OF INSURANCE AND THE DEPARTMENT OF HEALTH2 CARE POLICY AND FINANCING SHALL PROMOTE THE AVAILABILITY OF THE3 PROGRAM TO COLORADANS. THE PROMOTIONAL MATERIAL MUST INCLUDE4 INFORMATION ABOUT EACH MANUFACTURER 'S CONSUMER EPINEPHRINE5 AUTO-INJECTOR PROGRAM, AS APPLICABLE. EACH AGENCY MAY SEEK AND6 ACCEPT GIFTS, GRANTS, AND DONATIONS TO FULFILL THE REQUIREMENTS7 OF THIS SUBSECTION (9).8 (10) A MANUFACTURER 'S REIMBURSEMENT PURSUANT TO9 SUBSECTION (8)(c) OF THIS SECTION IS NOT A KICKBACK.10 (11) A MANUFACTURER THAT FAILS TO COMPLY WITH THE11 REQUIREMENTS OF THIS SECTION IS SUBJECT TO A FINE OF TEN THOUSAND12 DOLLARS FOR EACH MONTH OF NONCOMPLIANCE .13 SECTION 4. Act subject to petition - effective date. This act14 takes effect at 12:01 a.m. on the day following the expiration of the15 ninety-day period after final adjournment of the general assembly; except16 that, if a referendum petition is filed pursuant to section 1 (3) of article V17 of the state constitution against this act or an item, section, or part of this18 act within such period, then the act, item, section, or part will not take19 effect unless approved by the people at the general election to be held in20 November 2024 and, in such case, will take effect on the date of the21 official declaration of the vote thereon by the governor.22 HB23-1002 -11-