40 | 42 | | (8) "Program" means the Connecticut Prescription Drug Program 17 |
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41 | 43 | | established by the Comptroller pursuant to subsection (b) of this 18 |
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42 | 44 | | section; and 19 |
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43 | 45 | | (9) "Program price" means the reimbursement rates and prescription 20 |
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44 | 46 | | drug prices established under the program. 21 |
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45 | 47 | | (b) The Comptroller shall, within available appropriations, establish 22 |
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46 | 48 | | the Connecticut Prescription Drug Program. The purposes of the 23 |
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47 | 49 | | program shall be to: (1) Purchase outpatient prescription drugs, 24 |
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48 | 50 | | replenish supplies of outpatient prescription drugs or reimburse 25 |
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49 | 51 | | participating pharmacies and participating pharmacists for outpatient 26 |
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50 | 52 | | prescription drugs in order to secure the lowest possible prices and 27 |
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51 | 53 | | greatest possible rebates for outpatient prescription drugs prescribed 28 |
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52 | 54 | | to participating individuals; (2) make outpatient prescription drugs 29 |
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53 | 55 | | available at the lowest possible cost to participating individuals; (3) 30 |
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54 | 56 | | maintain a list of the most cost-effective and therapeutically effective 31 |
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55 | 57 | | outpatient prescription drugs available to participating individuals; (4) 32 |
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56 | 58 | | purchase and provide discounted outpatient prescription drugs to 33 |
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57 | 59 | | participating individuals; and (5) coordinate a comprehensive 34 |
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58 | 60 | | pharmacy benefit for participating individuals. 35 |
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59 | 61 | | (c) (1) As part of the program, the Comptroller shall: (A) Establish 36 |
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60 | 62 | | eligibility criteria for individual residents of this state, as well as 37 |
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61 | 63 | | pharmacies and pharmacists, to participate in the program; (B) 38 |
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62 | 64 | | prescribe an application form for (i) individual residents of this state to 39 |
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63 | 65 | | become participating individuals, (ii) pharmacists to become 40 |
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64 | 66 | | participating pharmacists, and (iii) pharmacies to become participating 41 |
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65 | 67 | | pharmacies; (C) issue to participating individuals a prescription drug 42 |
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66 | 68 | | identification card containing the information necessary for claims 43 |
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67 | 69 | | processing; (D) establish a list of preferred outpatient prescription 44 |
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68 | 70 | | drugs for the program; (E) negotiate with pharmaceutical 45 |
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79 | 80 | | for allocating and distributing the operational costs of the program, as 50 |
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80 | 81 | | well as any rebates, to participating individuals; and (I) charge 51 |
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81 | 82 | | administrative fees to participating individuals, participating 52 |
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82 | 83 | | pharmacists and participating pharmacies to cover the operational 53 |
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83 | 84 | | costs of the program, and deposit such fees in the account established 54 |
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84 | 85 | | under section 2 of this act. 55 |
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85 | 86 | | (2) As part of the program, the Comptroller may: (A) Purchase 56 |
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86 | 87 | | outpatient prescription drugs on behalf of participating individuals; or 57 |
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87 | 88 | | (B) cooperate with other states or regional consortia to purchase 58 |
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88 | 89 | | outpatient prescription drugs on behalf of participating individuals. 59 |
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89 | 90 | | (3) The Comptroller may enter into a contract with a pharmacy 60 |
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90 | 91 | | benefits manager to perform the Comptroller's duties under 61 |
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91 | 92 | | subdivisions (1) and (2) of this subsection, provided the Comptroller 62 |
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92 | 93 | | shall require the pharmacy benefits manager to charge such pharmacy 63 |
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93 | 94 | | benefits manager's lowest available rate to perform such duties. 64 |
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94 | 95 | | (d) The Comptroller may adopt regulations, in accordance with 65 |
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95 | 96 | | chapter 54 of the general statutes, to implement the provisions of this 66 |
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96 | 97 | | section. 67 |
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97 | 98 | | Sec. 2. (NEW) (Effective October 1, 2019) There is established an 68 |
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98 | 99 | | account to be known as the "Connecticut prescription drug program 69 |
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99 | 100 | | account" which shall be a separate, nonlapsing account within the 70 |
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100 | 101 | | General Fund. The account shall contain any moneys required by law 71 |
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101 | 102 | | to be deposited in the account. Moneys in the account shall be 72 |
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102 | 103 | | expended by the Comptroller for the purposes of the Connecticut 73 |
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103 | 104 | | Prescription Drug Program established pursuant to section 1 of this 74 |
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104 | 105 | | act. 75 |
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105 | 106 | | Sec. 3. (NEW) (Effective October 1, 2019) (a) Each pharmaceutical 76 |
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106 | 107 | | manufacturer doing business in this state that manufactures a brand 77 |
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116 | 116 | | substitute for such drug into the marketplace shall, not later than thirty 81 |
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117 | 117 | | days after entering into such agreement, send notice to the Insurance 82 |
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118 | 118 | | Commissioner, in a form and manner prescribed by the commissioner, 83 |
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119 | 119 | | disclosing the name of such drug. 84 |
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120 | 120 | | (b) (1) The commissioner shall, not later than thirty days after 85 |
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121 | 121 | | receiving a notice pursuant to subsection (a) of this section, send notice 86 |
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122 | 122 | | to each health carrier, as defined in section 38a-1080 of the general 87 |
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123 | 123 | | statutes, and pharmacy benefits manager, as defined in section 38a-88 |
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124 | 124 | | 479aaa of the general statutes, doing business in this state. Such notice 89 |
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125 | 125 | | shall, at a minimum: 90 |
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126 | 126 | | (A) Disclose the name of the brand name prescription drug that is 91 |
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127 | 127 | | the subject of the notice the commissioner received pursuant to 92 |
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128 | 128 | | subsection (a) of this section; and 93 |
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129 | 129 | | (B) Instruct such health carrier, if such health carrier includes such 94 |
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130 | 130 | | drug on such health carrier's drug formulary or list of covered drugs, 95 |
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131 | 131 | | or pharmacy benefits manager, if such pharmacy benefits manager 96 |
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132 | 132 | | administers a prescription drug benefit that includes such drug, to 97 |
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133 | 133 | | immediately reduce the cost of such drug to covered individuals by an 98 |
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134 | 134 | | amount that is equal to fifty per cent of the manufacturer's wholesale 99 |
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135 | 135 | | list price for such drug. 100 |
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152 | 151 | | thereof (Effective October 1, 2019): 111 |
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153 | 152 | | (3) (A) [(i)] For the purposes of this subdivision: 112 |
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154 | 153 | | (i) "Nonstate public employer" means (I) a municipality or other 113 |
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155 | 154 | | political subdivision of the state, including a board of education, quasi-114 |
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156 | 155 | | public agency or public library, as defined in section 11-24a, or (II) the 115 |
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157 | 156 | | Teachers' Retirement Board; and 116 |
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158 | 157 | | (ii) "Qualified private employer" means a self-insured private 117 |
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159 | 158 | | employer doing business in this state. 118 |
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160 | 159 | | (B) The Comptroller shall offer nonstate public employers and 119 |
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161 | 160 | | qualified private employers the option to purchase prescription drugs 120 |
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162 | 161 | | for their employees, employees' dependents and retirees under the 121 |
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163 | 162 | | purchasing authority of the state pursuant to section 1 of public act 09-122 |
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164 | 163 | | 206, subject to the provisions of subparagraph [(E)] (F) of this 123 |
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186 | 184 | | |
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187 | 185 | | [(D)] (E) Two or more nonstate public employers or qualified 140 |
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188 | 186 | | private employers may join together for the purpose of purchasing 141 |
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189 | 187 | | prescription drugs for their employees, employees' dependents and 142 |
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190 | 188 | | retirees. Such arrangement shall not constitute a multiple employer 143 |
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191 | 189 | | welfare arrangement, as defined in Section 3 of the Employee 144 |
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192 | 190 | | Retirement Income Security Act of 1974, as amended from time to 145 |
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193 | 191 | | time. 146 |
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194 | 192 | | [(E)] (F) (i) The Comptroller shall offer nonstate public employers 147 |
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195 | 193 | | and qualified private employers the option to purchase prescription 148 |
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196 | 194 | | drugs through the plan set forth in the State Employees' Bargaining 149 |
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197 | 195 | | Agent Coalition's collective bargaining agreement with the state only if 150 |
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198 | 196 | | the Health Care Cost Containment Committee, established in 151 |
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199 | 197 | | accordance with the ratified agreement between the state and said 152 |
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200 | 198 | | coalition pursuant to subsection (f) of section 5-278, has indicated in 153 |
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201 | 199 | | writing to the Comptroller that allowing such nonstate public 154 |
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202 | 200 | | employers and qualified private employers such option is consistent 155 |
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203 | 201 | | with said coalition's collective bargaining agreement. 156 |
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204 | 202 | | (ii) Such writing shall not be required if the Comptroller establishes 157 |
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205 | 203 | | a separate prescription drugs purchasing plan or plans for nonstate 158 |
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206 | 204 | | public employers and qualified private employers. 159 |
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207 | 205 | | (iii) Nonstate public employers and qualified private employers that 160 |
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208 | 206 | | purchase prescription drugs pursuant to this subdivision shall pay the 161 |
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209 | 207 | | full cost of their own claims and prescription drugs. 162 |
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210 | 208 | | Sec. 5. Section 38a-477cc of the general statutes is repealed and the 163 |
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211 | 209 | | following is substituted in lieu thereof (Effective October 1, 2019): 164 |
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212 | 210 | | (a) [On and after January 1, 2018, no] No contract for pharmacy 165 |
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213 | 211 | | services entered into in the state between a health carrier, as defined in 166 |
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214 | 212 | | section 38a-591a, or pharmacy benefits manager, as defined in section 167 |
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215 | 213 | | 38a-479aaa, and a pharmacy or pharmacist shall: 168 |
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216 | 214 | | (1) On and after January 1, 2018, contain a provision prohibiting or 169 |
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226 | | - | regarding: [(1) the] (A) The cost of the prescription medication to the 173 |
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227 | | - | individual; [,] or [(2) the] (B) The availability of any therapeutically 174 |
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228 | | - | equivalent alternative medications or alternative methods of 175 |
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229 | | - | purchasing the prescription medication, including, but not limited to, 176 |
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230 | | - | paying a cash price, that are less expensive than the cost of the 177 |
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231 | | - | prescription medication to the individual; [.] and 178 |
---|
232 | | - | (2) On and after January 1, 2020, contain a provision permitting the 179 |
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233 | | - | health carrier or pharmacy benefits manager to recoup, directly or 180 |
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234 | | - | indirectly, from a pharmacy or pharmacist any portion of a claim that 181 |
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235 | | - | such health carrier or pharmacy benefits manager has paid to the 182 |
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236 | | - | pharmacy or pharmacist, unless such recoupment is permitted under 183 |
---|
237 | | - | section 38a-479iii or required by applicable law. 184 |
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238 | | - | (b) (1) On and after January 1, 2018, no health carrier or pharmacy 185 |
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239 | | - | benefits manager shall require an individual to make a payment at the 186 |
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240 | | - | point of sale for a covered prescription medication in an amount 187 |
---|
241 | | - | greater than the lesser of: 188 |
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242 | | - | [(1) the] (A) The applicable copayment for such prescription 189 |
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243 | | - | medication; [, (2) the] (B) The allowable claim amount for the 190 |
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244 | | - | prescription medication; [,] or [(3) the] (C) The amount an individual 191 |
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245 | | - | would pay for the prescription medication if the individual purchased 192 |
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246 | | - | the prescription medication without using a health benefit plan, as 193 |
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247 | | - | defined in section 38a-591a, or any other source of prescription 194 |
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248 | | - | medication benefits or discounts. 195 |
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249 | | - | (2) For the purposes of this subsection, "allowable claim amount" 196 |
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250 | | - | means the amount the health carrier or pharmacy benefits manager 197 |
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251 | | - | has agreed to pay the pharmacy for the prescription medication. 198 |
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252 | | - | (c) Any provision of a contract that violates the provisions of this 199 |
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253 | | - | section shall be void and unenforceable. Any general business practice 200 |
---|
254 | | - | that violates the provisions of this section shall constitute an unfair 201 Substitute Bill No. 7174 |
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| 223 | + | regarding: 173 |
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| 224 | + | [(1) the] (A) The cost of the prescription medication to the 174 |
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| 225 | + | individual; [,] or 175 |
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| 226 | + | [(2) the] (B) The availability of any therapeutically equivalent 176 |
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| 227 | + | alternative medications or alternative methods of purchasing the 177 |
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| 228 | + | prescription medication, including, but not limited to, paying a cash 178 |
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| 229 | + | price, that are less expensive than the cost of the prescription 179 |
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| 230 | + | medication to the individual; [.] and 180 |
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| 231 | + | (2) On and after January 1, 2020, contain a provision permitting the 181 |
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| 232 | + | health carrier or pharmacy benefits manager to recoup, directly or 182 |
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| 233 | + | indirectly, from a pharmacy or pharmacist any portion of a claim that 183 |
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| 234 | + | such health carrier or pharmacy benefits manager has paid to the 184 |
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| 235 | + | pharmacy or pharmacist, unless such recoupment is permitted under 185 |
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| 236 | + | section 38a-479iii or required by applicable law. 186 |
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| 237 | + | (b) (1) On and after January 1, 2018, no health carrier or pharmacy 187 |
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| 238 | + | benefits manager shall require an individual to make a payment at the 188 |
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| 239 | + | point of sale for a covered prescription medication in an amount 189 |
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| 240 | + | greater than the lesser of: 190 |
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| 241 | + | [(1) the] (A) The applicable copayment for such prescription 191 |
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| 242 | + | medication; [,] 192 |
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| 243 | + | [(2) the] (B) The allowable claim amount for the prescription 193 |
---|
| 244 | + | medication; [,] or 194 |
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| 245 | + | [(3) the] (C) The amount an individual would pay for the 195 |
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| 246 | + | prescription medication if the individual purchased the prescription 196 |
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| 247 | + | medication without using a health benefit plan, as defined in section 197 |
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| 248 | + | 38a-591a, or any other source of prescription medication benefits or 198 |
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| 249 | + | discounts. 199 |
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| 250 | + | (2) For the purposes of this subsection, "allowable claim amount" 200 Raised Bill No. 7174 |
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261 | | - | trade practice pursuant to chapter 735a. The inva lidity or 202 |
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262 | | - | unenforceability of any contract provision under this subsection shall 203 |
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263 | | - | not affect any other provision of the contract. 204 |
---|
264 | | - | (d) The Insurance Commissioner may: [, (1) pursuant to the 205 |
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265 | | - | provisions of chapter 697, enforce] 206 |
---|
266 | | - | (1) Enforce the provisions of this section [,] pursuant to chapter 697; 207 |
---|
267 | | - | and 208 |
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268 | | - | (2) [upon] Upon request, audit a contract for pharmacy services for 209 |
---|
269 | | - | compliance with the provisions of this section. 210 |
---|
270 | | - | Sec. 6. (Effective from passage) (a) There is established a task force to 211 |
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271 | | - | study drug reimportation. Such study shall include, but need not be 212 |
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272 | | - | limited to, an examination of the feasibility of implementing a drug 213 |
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273 | | - | reimportation program for the purpose of lowering the cost of 214 |
---|
274 | | - | prescription drugs and health insurance in this state. 215 |
---|
275 | | - | (b) The task force shall consist of the following members: 216 |
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276 | | - | (1) Two appointed by the speaker of the House of Representatives; 217 |
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277 | | - | (2) Two appointed by the president pro tempore of the Senate; 218 |
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278 | | - | (3) One appointed by the majority leader of the House of 219 |
---|
279 | | - | Representatives; 220 |
---|
280 | | - | (4) One appointed by the majority leader of the Senate; 221 |
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281 | | - | (5) One appointed by the minority leader of the House of 222 |
---|
282 | | - | Representatives; 223 |
---|
283 | | - | (6) One appointed by the minority leader of the Senate; 224 |
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284 | | - | (7) The Attorney General, or the Attorney General's designee; 225 |
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285 | | - | (8) The Comptroller, or the Comptroller's designee; 226 Substitute Bill No. 7174 |
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| 254 | + | LCO No. 4454 8 of 10 |
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| 255 | + | |
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| 256 | + | means the amount the health carrier or pharmacy benefits manager 201 |
---|
| 257 | + | has agreed to pay the pharmacy for the prescription medication. 202 |
---|
| 258 | + | (c) Any provision of a contract that violates the provisions of this 203 |
---|
| 259 | + | section shall be void and unenforceable. Any general business practice 204 |
---|
| 260 | + | that violates the provisions of this section shall constitute an unfair 205 |
---|
| 261 | + | trade practice pursuant to chapter 735a. The invalidity or 206 |
---|
| 262 | + | unenforceability of any contract provision under this subsection shall 207 |
---|
| 263 | + | not affect any other provision of the contract. 208 |
---|
| 264 | + | (d) The Insurance Commissioner may: [, (1) pursuant to the 209 |
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| 265 | + | provisions of chapter 697, enforce] 210 |
---|
| 266 | + | (1) Enforce the provisions of this section [,] pursuant to chapter 697; 211 |
---|
| 267 | + | and 212 |
---|
| 268 | + | (2) [upon] Upon request, audit a contract for pharmacy services for 213 |
---|
| 269 | + | compliance with the provisions of this section. 214 |
---|
| 270 | + | Sec. 6. (Effective from passage) (a) There is established a task force to 215 |
---|
| 271 | + | study drug reimportation. Such study shall include, but need not be 216 |
---|
| 272 | + | limited to, an examination of the feasibility of implementing a drug 217 |
---|
| 273 | + | reimportation program for the purpose of lowering the cost of 218 |
---|
| 274 | + | prescription drugs and health insurance in this state. 219 |
---|
| 275 | + | (b) The task force shall consist of the following members: 220 |
---|
| 276 | + | (1) Two appointed by the speaker of the House of Representatives; 221 |
---|
| 277 | + | (2) Two appointed by the president pro tempore of the Senate; 222 |
---|
| 278 | + | (3) One appointed by the majority leader of the House of 223 |
---|
| 279 | + | Representatives; 224 |
---|
| 280 | + | (4) One appointed by the majority leader of the Senate; 225 |
---|
| 281 | + | (5) One appointed by the minority leader of the House of 226 |
---|
| 282 | + | Representatives; 227 Raised Bill No. 7174 |
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292 | | - | (9) The Insurance Commissioner, or the commissioner's designee; 227 |
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293 | | - | (10) The Commissioner of Public Health, or the commissioner's 228 |
---|
294 | | - | designee; 229 |
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295 | | - | (11) The Commissioner of Social Services, or the commissioner's 230 |
---|
296 | | - | designee; 231 |
---|
297 | | - | (12) The executive director of the Office of Health Strategy, or the 232 |
---|
298 | | - | executive director's designee; 233 |
---|
299 | | - | (13) The Healthcare Advocate, or the Healthcare Advocate's 234 |
---|
300 | | - | designee; and 235 |
---|
301 | | - | (14) Two persons appointed by the Governor. 236 |
---|
302 | | - | (c) Any member of the task force appointed under subdivision (1), 237 |
---|
303 | | - | (2), (3), (4), (5) or (6) of subsection (b) of this section may be a member 238 |
---|
304 | | - | of the General Assembly. 239 |
---|
305 | | - | (d) All appointments to the task force shall be made not later than 240 |
---|
306 | | - | thirty days after the effective date of this section. Any vacancy shall be 241 |
---|
307 | | - | filled by the appointing authority. 242 |
---|
308 | | - | (e) The speaker of the House of Representatives and the president 243 |
---|
309 | | - | pro tempore of the Senate shall select the chairpersons of the task force 244 |
---|
310 | | - | from among the members of the task force. Such chairpersons shall 245 |
---|
311 | | - | schedule the first meeting of the task force, which shall be held not 246 |
---|
312 | | - | later than sixty days after the effective date of this section. 247 |
---|
313 | | - | (f) The administrative staff of the joint standing committee of the 248 |
---|
314 | | - | General Assembly having cognizance of matters relating to insurance 249 |
---|
315 | | - | shall serve as administrative staff of the task force. 250 |
---|
316 | | - | (g) Not later than January 1, 2020, the task force shall submit a 251 |
---|
317 | | - | report on its findings and recommendations to the joint standing 252 |
---|
318 | | - | committee of the General Assembly having cognizance of matters 253 |
---|
319 | | - | relating to insurance, in accordance with the provisions of section 11-254 Substitute Bill No. 7174 |
---|
| 286 | + | LCO No. 4454 9 of 10 |
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| 287 | + | |
---|
| 288 | + | (6) One appointed by the minority leader of the Senate; 228 |
---|
| 289 | + | (7) The Attorney General, or the Attorney General's designee; 229 |
---|
| 290 | + | (8) The Comptroller, or the Comptroller's designee; 230 |
---|
| 291 | + | (9) The Insurance Commissioner, or the commissioner's designee; 231 |
---|
| 292 | + | (10) The Commissioner of Public Health, or the commissioner's 232 |
---|
| 293 | + | designee; 233 |
---|
| 294 | + | (11) The Commissioner of Social Services, or the commissioner's 234 |
---|
| 295 | + | designee; 235 |
---|
| 296 | + | (12) The executive director of the Office of Health Strategy, or the 236 |
---|
| 297 | + | executive director's designee; 237 |
---|
| 298 | + | (13) The Healthcare Advocate, or the Healthcare Advocate's 238 |
---|
| 299 | + | designee; and 239 |
---|
| 300 | + | (14) Two persons appointed by the Governor. 240 |
---|
| 301 | + | (c) Any member of the task force appointed under subdivision (1), 241 |
---|
| 302 | + | (2), (3), (4), (5) or (6) of subsection (b) of this section may be a member 242 |
---|
| 303 | + | of the General Assembly. 243 |
---|
| 304 | + | (d) All appointments to the task force shall be made not later than 244 |
---|
| 305 | + | thirty days after the effective date of this section. Any vacancy shall be 245 |
---|
| 306 | + | filled by the appointing authority. 246 |
---|
| 307 | + | (e) The speaker of the House of Representatives and the president 247 |
---|
| 308 | + | pro tempore of the Senate shall select the chairpersons of the task force 248 |
---|
| 309 | + | from among the members of the task force. Such chairpersons shall 249 |
---|
| 310 | + | schedule the first meeting of the task force, which shall be held not 250 |
---|
| 311 | + | later than sixty days after the effective date of this section. 251 |
---|
| 312 | + | (f) The administrative staff of the joint standing committee of the 252 |
---|
| 313 | + | General Assembly having cognizance of matters relating to insurance 253 |
---|
| 314 | + | shall serve as administrative staff of the task force. 254 Raised Bill No. 7174 |
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338 | | - | Statement of Legislative Commissioners: |
---|
339 | | - | In Section 3(b)(2), "subdivision" was changed to "subsection" for |
---|
340 | | - | accuracy. |
---|
341 | | - | |
---|
342 | | - | INS Joint Favorable Subst. -LCO |
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| 336 | + | Statement of Purpose: |
---|
| 337 | + | To: (1) Establish the "Connecticut Prescription Drug Program" and the |
---|
| 338 | + | "Connecticut prescription drug program account"; (2) require |
---|
| 339 | + | pharmaceutical manufacturers to send notice to the Insurance |
---|
| 340 | + | Commissioner regarding "pay-for-delay" agreements, and require |
---|
| 341 | + | health carriers and pharmacy benefits managers to reduce the cost of |
---|
| 342 | + | brand name prescription drugs that are the subject of such agreements; |
---|
| 343 | + | (3) require the Comptroller to offer qualified private employers the |
---|
| 344 | + | option to purchase prescription drugs for their employees, employees' |
---|
| 345 | + | dependents and retirees through the Comptroller's purchasing |
---|
| 346 | + | authority; (4) prohibit any health carrier or pharmacy benefits manager |
---|
| 347 | + | from recouping any portion of a claim that such carrier or manager has |
---|
| 348 | + | paid to a pharmacy or pharmacist; and (5) establish a task force to |
---|
| 349 | + | study drug reimportation. |
---|
| 350 | + | [Proposed deletions are enclosed in brackets. Proposed additions are indicated by underline, |
---|
| 351 | + | except that when the entire text of a bill or resolution or a section of a bill or resolution is new, it is |
---|
| 352 | + | not underlined.] |
---|