First Regular Session Seventy-fourth General Assembly STATE OF COLORADO REENGROSSED This Version Includes All Amendments Adopted in the House of Introduction LLS NO. 23-0428.01 Kristen Forrestal x4217 HOUSE BILL 23-1002 House Committees Senate Committees Health & Insurance Appropriations A BILL FOR AN ACT C ONCERNING THE AFFORDABILITY OF EPINEPHRINE AUTO-INJECTORS,101 AND, IN CONNECTION THEREWITH, MAKING AN APPROPRIATION.102 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; HOUSE 3rd Reading Unamended March 8, 2023 HOUSE Amended 2nd Reading March 7, 2023 HOUSE SPONSORSHIP Mabrey and Jodeh, Amabile, Bacon, Bird, Boesenecker, Brown, Daugherty, Dickson, Duran, Froelich, Garcia, Kipp, Lieder, Lindsay, Lukens, Martinez, McCluskie, McCormick, McLachlan, Michaelson Jenet, Parenti, Ricks, Sharbini, Sirota, Snyder, Story, Titone, Valdez, Velasco, Vigil, Weissman, Willford, Woodrow, Young 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 law. Dashes through the words or numbers indicate deletions from existing law. ! Have a prescription for an epinephrine auto-injector; and ! Are not enrolled in prescription drug coverage that limits 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 1002-2- heart, raise dropping blood pressure, prevent airways from closing,1 prevent or decrease shock, reverse hives, and reduce swelling of the face,2 lips, and throat;3 (c) Delay in appropriate treatment for anaphylaxis almost certainly4 contributes to death in individuals, so it is critical that all anaphylaxis5 reactions are treated as a medical emergency;6 (d) In Colorado, there are approximately 565,824 individuals with7 life-threatening food allergies, which is more than the population of8 Colorado Springs; of these individuals, 101,848 are under 18 years of age,9 which means that the number of children with food allergies in Colorado10 is larger than the population of Longmont;11 (e) Epinephrine auto-injectors are essential because they are the12 easiest and most efficient way to potentially save the life of an individual13 exhibiting symptoms of or experiencing anaphylactic shock;14 (f) Many individuals are unable to afford an epinephrine15 auto-injector because they cannnot pay the copayment amount required16 under their insurance plan or, if they are uninsured, the cost of an17 epinephrine auto-injector; these individuals risk their lives every day by18 not having access to this life-saving medicine if faced with an allergic19 reaction; and20 (g) Rising costs of epinephrine auto-injectors make this21 life-saving medication difficult or impossible to obtain for many people,22 even those with private health insurance or who are enrolled in a public23 health benefit program.24 (2) Therefore, it is the intent of the general assembly to establish25 an epinephrine auto-injector affordability program to ensure Colorado26 residents have greater access to epinephrine.27 1002 -3- SECTION 2. In Colorado Revised Statutes, add 10-16-158 as1 follows:2 10-16-158. Cost sharing - prescription epinephrine - limits -3 rules - definition. (1) A S USED IN THIS SECTION, UNLESS THE CONTEXT4 OTHERWISE REQUIRES, "EPINEPHRINE AUTO-INJECTOR" HAS THE SAME5 MEANING AS SET FORTH IN SECTION 12-280-141 (1)(c).6 (2) A CARRIER THAT PROVIDES COVERAGE FOR PRESCRIPTION7 EPINEPHRINE AUTO-INJECTORS PURSUANT TO THE TERMS OF A HEALTH8 COVERAGE PLAN THE CARRIER OFFERS SHALL CAP THE TOTAL AMOUNT9 THAT A COVERED PERSON IS REQUIRED TO PAY FOR ALL COVERED10 PRESCRIPTION EPINEPHRINE AUTO -INJECTORS AT AN AMOUNT NOT TO11 EXCEED SIXTY DOLLARS FOR A TWO -PACK OF EPINEPHRINE12 AUTO-INJECTORS, REGARDLESS OF THE AMOUNT OR TYPE OF EPINEPHRINE13 NEEDED TO FILL THE COVERED PERSON 'S PRESCRIPTION.14 (3) N OTHING IN THIS SECTION PREVENTS A CARRIER FROM15 REDUCING A COVERED PERSON 'S COST SHARING TO AN AMOUNT THAT IS16 LOWER THAN THE AMOUNT SPECIFIED IN SUBSECTION (2) OF THIS SECTION.17 (4) T HE COMMISSIONER MAY USE ANY OF THE COMMISSIONER 'S18 ENFORCEMENT POWERS TO OBTAIN A CARRIER 'S COMPLIANCE WITH THIS19 SECTION.20 (5) T HE COMMISSIONER MAY PROMULGATE RULES AS NECESSARY21 TO IMPLEMENT AND ADMINISTER THIS SECTION AND TO ALIGN WITH22 FEDERAL REQUIREMENTS.23 SECTION 3. In Colorado Revised Statutes, add 12-280-141 as24 follows:25 12-280-141. Epinephrine auto-injector affordability program26 - record keeping - reimbursement - definitions. (1) A S USED IN THIS27 1002 -4- SECTION:1 (a) "C ONSUMER PRICE INDEX " MEANS THE UNITED STATES2 DEPARTMENT OF LABOR'S BUREAU OF LABOR STATISTICS CONSUMER PRICE3 INDEX FOR DENVER-AURORA-LAKEWOOD FOR ALL ITEMS PAID BY ALL4 URBAN CONSUMERS , OR ITS APPLICABLE PREDECESSOR OR SUCCESSOR5 INDEX.6 (b) "D IVISION OF INSURANCE" MEANS THE DIVISION OF INSURANCE7 IN THE DEPARTMENT OF REGULATORY AGENCIES , CREATED IN SECTION8 10-1-103.9 (c) "E PINEPHRINE AUTO-INJECTOR" MEANS AN AUTOMATIC10 INJECTION DEVICE FOR INJECTING A MEASURED DOSE OF EPINEPHRINE11 BASED ON THE WEIGHT OF THE PERSON WHO IS TO RECEIVE THE INJECTION .12 (d) "M ANUFACTURER" MEANS A PERSON ENGAGED IN13 MANUFACTURING EPINEPHRINE AUTO -INJECTORS THAT ARE AVAILABLE14 FOR PURCHASE IN THIS STATE.15 (e) "P HARMACY" MEANS A PHARMACY OUTLET REGISTERED16 PURSUANT TO THIS ARTICLE 280 WHERE PRESCRIPTIONS ARE COMPOUNDED17 AND DISPENSED.18 (f) "P ROGRAM" MEANS THE EPINEPHRINE AUTO -INJECTOR19 AFFORDABILITY PROGRAM CREATED IN SUBSECTION (2) OF THIS SECTION.20 (g) "P ROOF OF RESIDENCY" MEANS A CURRENT AND VALID21 DOCUMENT THAT IS IN ENGLISH, OR IS TRANSLATED INTO ENGLISH AND IS22 UNALTERED, AND THAT INCLUDES THE INDIVIDUAL'S, OR IN THE CASE OF23 A MINOR, THE MINOR'S PARENT'S OR GUARDIAN'S, PRINTED NAME AND24 C OLORADO RESIDENTIAL ADDRESS . DOCUMENTS THAT MAY BE USED FOR25 PROOF OF RESIDENCY ARE:26 (I) A COLORADO-ISSUED DRIVER'S LICENSE OR COLORADO27 1002 -5- IDENTIFICATION CARD;1 (II) A PRINTED BILL, INCLUDING A UTILITY, TELEPHONE, INTERNET,2 CABLE, INSURANCE, MORTGAGE, RENT, WASTE DISPOSAL, WATER OR3 SEWER, MEDICAL, OR OTHER BILL;4 (III) A CREDIT CARD OR BANK STATEMENT ;5 (IV) A PAY STUB OR EARNINGS STATEMENT ;6 (V) A PIECE OF POST-MARKED FIRST-CLASS MAIL OR UNITED7 S TATES POSTAL SERVICE CHANGE OF ADDRESS CONFIRMATION ;8 (VI) A PRINTED RENT RECEIPT OR RESIDENTIAL LEASE;9 (VII) A TRANSCRIPT OR REPORT CARD FROM AN ACCREDITED10 SCHOOL;11 (VIII) A VEHICLE TITLE OR REGISTRATION;12 (IX) A N INSURANCE POLICY;13 (X) A GOVERNMENT-ISSUED LETTER OR STATE OR FEDERAL14 GOVERNMENT-ISSUED CHECK; OR15 (XI) A RECORD OF MEDICAL SERVICE FROM A SHELTER ,16 TREATMENT FACILITY, OR ASSISTED LIVING FACILITY , INCLUDING A17 HOMELESS SHELTER, WOMEN'S SHELTER, OTHER NONPROFIT SHELTER ,18 HALFWAY HOUSE, NURSING HOME, OR REHABILITATION FACILITY.19 20 (2) E FFECTIVE JANUARY 1, 2024, THE EPINEPHRINE21 AUTO-INJECTOR AFFORDABILITY PROGRAM IS CREATED TO PROVIDE22 LOW-COST EPINEPHRINE AUTO-INJECTORS TO ELIGIBLE INDIVIDUALS. BY23 J ANUARY 1, 2024, EACH MANUFACTURER SHALL ESTABLISH PROCEDURES24 TO AND SHALL MAKE EPINEPHRINE AUTO -INJECTORS AVAILABLE IN25 ACCORDANCE WITH THIS SECTION TO ELIGIBLE INDIVIDUALS WHO HOLD A26 VALID PRESCRIPTION FOR EPINEPHRINE AUTO -INJECTORS.27 1002 -6- (3) TO BE ELIGIBLE TO RECEIVE EPINEPHRINE AUTO -INJECTORS1 THROUGH THE PROGRAM , AN INDIVIDUAL MUST:2 (a) D EMONSTRATE PROOF OF RESIDENCY IN COLORADO;3 (b) N OT BE ELIGIBLE FOR ASSISTANCE PROVIDED THROUGH THE4 "C OLORADO MEDICAL ASSISTANCE ACT", ARTICLES 4 TO 6 OF TITLE 25.5,5 OR THE FEDERAL "HEALTH INSURANCE FOR THE AGED ACT", TITLE XVIII6 OF THE FEDERAL "SOCIAL SECURITY ACT", 42 U.S.C. SEC. 1395 ET SEQ.,7 AS AMENDED;8 (c) H AVE A VALID EPINEPHRINE AUTO-INJECTOR PRESCRIPTION;9 AND10 (d) N OT BE ENROLLED IN PRESCRIPTION DRUG COVERAGE THAT11 LIMITS THE TOTAL AMOUNT OF COST SHARING THAT THE ENROLLEE IS12 REQUIRED TO PAY FOR A COVERED PRESCRIPTION TO NOT MORE THAN13 SIXTY DOLLARS FOR A TWO -PACK OF EPINEPHRINE AUTO -INJECTORS,14 REGARDLESS OF THE AMOUNT OR TYPE OF EPINEPHRINE NEEDED TO FILL15 THE PRESCRIPTION.16 (4) (a) T HE DIVISION OF INSURANCE SHALL DEVELOP AN17 APPLICATION FORM TO BE USED BY AN INDIVIDUAL WHO IS SEEKING18 EPINEPHRINE AUTO-INJECTORS THROUGH THE PROGRAM . AT A MINIMUM,19 THE APPLICATION FORM MUST:20 (I) P ROVIDE INFORMATION RELATED TO PROGRAM ELIGIBILITY AND21 COVERAGE IN ENGLISH, SPANISH, AND IN EACH LANGUAGE SPOKEN BY AT22 LEAST TWO AND ONE-HALF PERCENT OF THE POPULATION OF ANY COUNTY23 IN WHICH SUCH POPULATION SPEAKS ENGLISH LESS THAN VERY WELL, AS24 DEFINED BY THE UNITED STATES BUREAU OF THE CENSUS AMERICAN25 COMMUNITY SURVEY OR COMPARABLE CENSUS DATA , AND SPEAKS A26 SHARED MINORITY LANGUAGE AT HOME ; AND27 1002 -7- (II) REQUIRE THE INDIVIDUAL TO SHOW PROOF THAT THE1 INDIVIDUAL MEETS THE REQUIREMENTS OF SUBSECTION (3) OF THIS2 SECTION.3 (b) T HE DIVISION OF INSURANCE AND THE DEPARTMENT OF HEALTH4 CARE POLICY AND FINANCING SHALL MAKE THE APPLICATION FORM5 AVAILABLE ON EACH AGENCY 'S WEBSITE. THE DIVISION OF INSURANCE6 SHALL ALSO MAKE THE APPLICATION FORM AVAILABLE TO PHARMACIES ,7 HEALTH-CARE PROVIDERS, AND HEALTH FACILITIES THAT PRESCRIBE OR8 DISPENSE EPINEPHRINE AUTO-INJECTORS.9 (5) T O ACCESS EPINEPHRINE AUTO -INJECTORS THROUGH THE10 PROGRAM, AN INDIVIDUAL MUST PRESENT , AT A PHARMACY , A11 COMPLETED, SIGNED, AND DATED APPLICATION FORM WITH PROOF OF12 RESIDENCY. IF THE INDIVIDUAL IS UNDER EIGHTEEN YEARS OF AGE , THE13 INDIVIDUAL'S PARENT OR LEGAL GUARDIAN MAY PROVIDE THE14 PHARMACIST WITH PROOF OF RESIDENCY .15 (6) (a) U PON RECEIPT OF AN INDIVIDUAL'S PROOF OF RESIDENCY16 AND COMPLETED , SIGNED, AND DATED APPLICATION FORM17 DEMONSTRATING THAT THE INDIVIDUAL IS ELIGIBLE PURSUANT TO18 SUBSECTION (3) OF THIS SECTION, A PHARMACIST SHALL DISPENSE THE19 PRESCRIBED EPINEPHRINE AUTO -INJECTORS. AN INDIVIDUAL WHO IS20 ELIGIBLE TO RECEIVE EPINEPHRINE AUTO -INJECTORS THROUGH THE21 PROGRAM MAY RECEIVE EPINEPHRINE AUTO -INJECTORS AS PRESCRIBED22 FOR TWELVE MONTHS.23 (b) T HE PHARMACIST IS ENCOURAGED TO INFORM THE INDIVIDUAL :24 (I) T HAT THE INDIVIDUAL MAY BE ELIGIBLE FOR MEDICAL25 ASSISTANCE PROGRAMS PURSUANT TO THE "COLORADO MEDICAL26 A SSISTANCE ACT", ARTICLES 4 TO 6 OF TITLE 25.5, OR AN AFFORDABLE27 1002 -8- INSURANCE PRODUCT ON THE HEALTH BENEFIT EXCHANGE CREATED IN1 SECTION 10-22-104; AND2 (II) O F ANY MANUFACTURER-SPONSORED PROGRAMS THAT ASSIST3 INDIVIDUALS WHO CANNOT AFFORD THEIR PRESCRIPTION EPINEPHRINE4 AUTO-INJECTORS.5 (c) T HE PHARMACIST SHALL RETAIN A COPY OF THE APPLICATION6 FORM SUBMITTED BY THE INDIVIDUAL FOR TWO YEARS AFTER THE DATE7 THE EPINEPHRINE AUTO-INJECTOR WAS INITIALLY DISPENSED.8 (7) A PHARMACY THAT DISPENSES EPINEPHRINE AUTO -INJECTORS9 PURSUANT TO SUBSECTION (6)(a) OF THIS SECTION MAY COLLECT A10 COPAYMENT FROM THE INDIVIDUAL TO COVER THE PHARMACY 'S COSTS OF11 PROCESSING AND DISPENSING THE EPINEPHRINE AUTO -INJECTOR, WHICH12 COPAYMENT AMOUNT MUST NOT EXCEED SIXTY DOLLARS FOR EACH13 TWO-PACK OF EPINEPHRINE AUTO -INJECTORS THAT THE PHARMACY14 DISPENSES TO THE INDIVIDUAL.15 (8) (a) E XCEPT AS PROVIDED IN SUBSECTION (8)(d) OF THIS16 SECTION, UNLESS THE MANUFACTURER AGREES TO SEND TO THE17 PHARMACY A REPLACEMENT SUPPLY OF THE SAME NUMBER OF18 EPINEPHRINE AUTO-INJECTORS DISPENSED THROUGH THE PROGRAM , THE19 PHARMACY MAY SUBMIT TO THE MANUFACTURER OF THE DISPENSED20 EPINEPHRINE AUTO -INJECTORS, DIRECTLY OR THROUGH THE21 MANUFACTURER'S DELEGATED REPRESENTATIVE , SUBCONTRACTOR, OR22 OTHER VENDOR, AN ELECTRONIC CLAIM FOR PAYMENT THAT IS MADE IN23 ACCORDANCE WITH THE NATIONAL COUNCIL FOR PRESCRIPTION DRUG24 P ROGRAMS' STANDARDS FOR ELECTRONIC CLAIMS PROCESSING .25 (b) B Y JANUARY 1, 2024, EACH MANUFACTURER SHALL DEVELOP26 A PROCESS FOR A PHARMACY TO SUBMIT AN ELECTRONIC CLAIM FOR27 1002 -9- REIMBURSEMENT, INCLUDING AN ACCESSIBLE ONLINE APPLICATION FOR1 REIMBURSEMENT CLAIMS FROM PHARMACIES UNDER THE PROGRAM , AS2 PROVIDED IN SUBSECTION (8)(a) OF THIS SECTION.3 (c) I F THE PHARMACY SUBMITS AN ELECTRONIC CLAIM TO THE4 MANUFACTURER PURSUANT TO SUBSECTION (8)(a) OF THIS SECTION, THE5 MANUFACTURER OR THE MANUFACTURER 'S DELEGATED REPRESENTATIVE,6 SUBCONTRACTOR, OR OTHER VENDOR SHALL, WITHIN THIRTY DAYS AFTER7 RECEIPT OF THE CLAIM, REIMBURSE THE PHARMACY THE AMOUNT THAT8 THE PHARMACY PAID THE MANUFACTURER FOR THE NUMBER OF9 EPINEPHRINE AUTO-INJECTORS DISPENSED THROUGH THE PROGRAM .10 (9) T HE DIVISION OF INSURANCE AND THE DEPARTMENT OF HEALTH11 CARE POLICY AND FINANCING SHALL PROMOTE THE AVAILABILITY OF THE12 PROGRAM TO COLORADANS. THE PROMOTIONAL MATERIAL MUST INCLUDE13 INFORMATION ABOUT EACH MANUFACTURER 'S CONSUMER EPINEPHRINE14 AUTO-INJECTOR PROGRAM, AS APPLICABLE. EACH AGENCY MAY SEEK AND15 ACCEPT GIFTS, GRANTS, AND DONATIONS TO FULFILL THE REQUIREMENTS16 OF THIS SUBSECTION (9).17 (10) A MANUFACTURER 'S REIMBURSEMENT PURSUANT TO18 SUBSECTION (8)(c) OF THIS SECTION IS NOT A KICKBACK.19 (11) A MANUFACTURER THAT FAILS TO COMPLY WITH THE20 REQUIREMENTS OF THIS SECTION:21 (a) IS SUBJECT TO A FINE OF TEN THOUSAND DOLLARS FOR EACH22 MONTH OF NONCOMPLIANCE ; AND23 (b) ENGAGES IN A DECEPTIVE TRADE PRACTICE UNDER SECTION24 6-1-105 (1)(uuu).25 SECTION 4. In Colorado Revised Statutes, 6-1-105, amend26 (1)(uuu) as follows:27 1002 -10- 6-1-105. Unfair or deceptive trade practices. (1) A person1 engages in a deceptive trade practice when, in the course of the person's2 business, vocation, or occupation, the person:3 (uuu) FAILS TO COMPLY WITH THE REQUIREMENTS OF SECTION4 12-280-141.5 SECTION 5. Appropriation. For the 2023-24 state fiscal year,6 $58,291 is appropriated to the department of regulatory agencies for use7 by the division of insurance. This appropriation is from the division of8 insurance cash fund created in section 10-1-103 (3), C.R.S. To implement9 this act, the division may use this appropriation as follows:10 (a) $49,176 for personal services, which amount is based on an11 assumption that the division will require an additional 0.7 FTE; and12 (b) $9,115 for operating expenses.13 SECTION 6. 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 1002 -11-