Florida 2022 2022 Regular Session

Florida House Bill H1183 Introduced / Bill

Filed 01/05/2022

                       
 
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A bill to be entitled 1 
An act relating to prescription drug price 2 
transparency; amending s. 499.012, F.S.; prohibiting 3 
permits for prescription drug manufacturers and 4 
nonresident prescription drug manufacturers and for 5 
certain wholesale distributors of prescription drugs 6 
from being renewed unless specified requirements are 7 
met; authorizing the Department of Business and 8 
Professional Regulation to suspend or revoke 9 
manufacturer permits and wholesale distributor permits 10 
under specified circumstances; amending s. 499.0121, 11 
F.S.; defining the term "price"; providing reporting 12 
requirements for certain entities that engage in 13 
wholesale distributions of prescription drugs; 14 
authorizing the department to request certain 15 
documentation and information; requiring the 16 
department to prescribe b y rule specified timeframes; 17 
authorizing the department to extend specified 18 
timeframes; specifying what constitutes violations of 19 
specified laws; providing penalties and fines for 20 
violations; providing disposition of such fines; 21 
creating s. 499.026, F.S.; providing definitions; 22 
providing requirements for notifications by 23 
manufacturers of prescription drug price increases 24 
under certain circumstances; providing reporting 25     
 
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requirements; requiring the department to compile a 26 
list of specified drugs; authorizing the department to 27 
request certain documentation and information; 28 
requiring the department to prescribe by rule 29 
specified timeframes; authorizing the department to 30 
extend specified timeframes; providing duties of the 31 
department; specifying what constitutes violations of 32 
specified laws; prohibiting certain prescription drugs 33 
from being included in specified drug formularies; 34 
providing an exception; providing penalties and fines 35 
for violations; providing disposition of such fines; 36 
requiring the department to a dopt rules; amending s. 37 
499.05, F.S.; requiring the department to adopt rules; 38 
conforming provisions to changes made by the act; 39 
amending s. 624.490, F.S.; providing definitions; 40 
providing reporting requirements for registered 41 
pharmacy benefit managers; au thorizing the Office of 42 
Insurance Regulation to request certain documentation 43 
and information; requiring the Financial Services 44 
Commission to prescribe by rule specified timeframes; 45 
authorizing the office to extend specified timeframes; 46 
requiring registered pharmacy benefit managers to 47 
maintain a website for a specified purpose and to 48 
update the information on the website under certain 49 
circumstances; specifying what constitutes violations 50     
 
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of specified laws; providing penalties and fines for 51 
violations; providing disposition of such fines; 52 
creating ss. 627.42384 and 641.3131, F.S.; requiring 53 
certain health insurers and health maintenance 54 
organizations, respectively, to submit and update 55 
contact information for single points of contact for a 56 
specified use; requiring the office to maintain and 57 
publish such points of contact; requiring such health 58 
insurers and health maintenance organizations to 59 
notify certain insureds and subscribers, respectively, 60 
within a specified timeframe of drug formulary 61 
changes; providing applicability; amending ss. 62 
627.64741, 627.6572, and 641.314, F.S.; defining the 63 
term "net price"; providing additional requirements 64 
for contracts between pharmacy benefit managers and 65 
individual health insurers, group health insurers, and 66 
health maintenance organizations, respectively; 67 
providing applicability; amending ss. 110.12315, 68 
409.815, 409.91195, 409.912, and 499.067, F.S.; 69 
conforming provisions to changes made by the act; 70 
providing an effective date. 71 
 72 
Be It Enacted by the Legislature of the S tate of Florida: 73 
 74 
 Section 1.  Paragraph (f) is added to subsection (1) of 75     
 
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section 499.012, Florida Statutes, to read: 76 
 499.012  Permit application requirements. — 77 
 (1) 78 
 (f)1.  A permit for a prescription drug manufacturer or 79 
nonresident prescription drug manufacturer may not be renewed 80 
unless the prescription drug manufacturer or nonresident 81 
prescription drug manufacturer meets the requirements of s. 82 
499.026. The department may suspend or revoke the permit of a 83 
manufacturer that fails to comply with the r equirements of s. 84 
499.026. 85 
 2.  A permit for a prescription drug wholesale distributor, 86 
out-of-state prescription drug wholesale distributor, retail 87 
pharmacy drug wholesale distributor, veterinary prescription 88 
drug wholesale distributor, or limited prescri ption drug 89 
veterinary wholesale distributor may not be renewed unless the 90 
wholesale distributor meets the requirements of s. 499.0121(16). 91 
The department may suspend or revoke the permit of a wholesale 92 
distributor that fails to comply with the requirements of s. 93 
499.0121(16). 94 
 Section 2.  Subsection (16) is added to section 499.0121, 95 
Florida Statutes, to read: 96 
 499.0121  Storage and handling of prescription drugs; 97 
recordkeeping; prescription drug price report requirements; 98 
penalties for noncompliance .—The department shall adopt rules to 99 
implement this section as necessary to protect the public 100     
 
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health, safety, and welfare. Such rules shall include, but not 101 
be limited to, requirements for the storage and handling of 102 
prescription drugs and for the establishme nt and maintenance of 103 
prescription drug distribution records. 104 
 (16)  PRESCRIPTION DRUG PRICE REPORT AND PENALTIES FOR 105 
NONCOMPLIANCE.— 106 
 (a)  As used in this subsection, the term "price" means the 107 
manufacturer's list price for a prescription drug to wholesal ers 108 
or direct purchasers in the United States, not including prompt 109 
pay or other discounts, rebates, or reductions in price, for the 110 
most recent month for which the information is available, as 111 
reported in wholesale price guides or other publications of dr ug 112 
or biological pricing data. 113 
 (b)  By July 1 of each year, each prescription drug 114 
wholesale distributor, out -of-state prescription drug wholesale 115 
distributor, retail pharmacy drug wholesale distributor, 116 
prescription drug wholesale distributor, veterinary prescription 117 
drug wholesale distributor, or limited prescription drug 118 
veterinary wholesale distributor, or each manufacturer or 119 
repackager that engages in the wholesale distribution of 120 
prescription drugs, shall submit a report to the department on 121 
each prescription drug for which the price, during the previous 122 
calendar year: 123 
 1.  Was $100 or more for a 30 -day supply or for a course of 124 
treatment lasting less than 30 days; or 125     
 
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 2.  Increased by at least 10 percent over the previous 126 
price. 127 
 (c)  The report must include, at a minimum, the following 128 
information: 129 
 1.  The name and the price at the time of the report of 130 
each prescription drug specified in paragraph (b) and the 131 
cumulative percentage price increase during the previous 132 
calendar year. 133 
 2.  The length of time the prescription drug has been on 134 
the market. 135 
 3.  The factors that contributed to the price increase. 136 
 4. The name of any generic version of the prescription drug 137 
available on the market. 138 
 5.  The total sales revenue for the prescription drug 139 
during the previous calendar year. 140 
 6.  The introductory price of the prescription drug when it 141 
was approved by the United States Food and Drug Administration 142 
and the cumulative yearly increase, by calendar year, in the 143 
price of the drug during the previous 5 years or during the 144 
number of years the drug has been on the market, whichever is 145 
less. 146 
 7.  Any prompt pay or discount, rebate, or reduction in 147 
price provided by the reporting wholesale distributor or 148 
manufacturer or repackager that engages in the wholesa le 149 
distribution of prescription drugs when selling a prescription 150     
 
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drug to a manufacturer, pharmacy, pharmacy benefit manager, and 151 
other entities. 152 
 8.  The documentation necessary to support the information 153 
reported under this paragraph. 154 
 (d)  The department may make a written request to the 155 
reporting wholesale distributor, manufacturer, or repackager for 156 
supporting documentation or additional information concerning 157 
the report. The department shall prescribe by rule the 158 
timeframes for the department's reques t for documentation or 159 
information and for the response by the reporting wholesale 160 
distributor, manufacturer, or repackager. The department may 161 
extend the timeframe, if necessary, for the response by the 162 
wholesale distributor, manufacturer, or repackager. 163 
 (e)  A wholesale distributor, or a manufacturer or 164 
repackager that engages in the wholesale distribution of 165 
prescription drugs, violates this subsection if the wholesale 166 
distributor, manufacturer, or repackager: 167 
 1.  Fails to timely submit the report requ ired under this 168 
subsection; 169 
 2.  Fails to provide information required under this 170 
subsection; 171 
 3.  Fails to timely respond to a written request by the 172 
department with regard to the report required under this 173 
subsection; or 174 
 4.  Provides inaccurate or incom plete information in the 175     
 
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report required under this subsection. 176 
 (f)1.  The department may deny an application for a renewal 177 
permit or registration or suspend or revoke a registration 178 
certificate or a permit of a prescription drug wholesale 179 
distributor, or a manufacturer or repackager that engages in the 180 
wholesale distribution of prescription drugs, for violating this 181 
subsection. 182 
 2.a.  The department may also impose an administrative 183 
fine, not to exceed $5,000 per violation per day, for a 184 
violation of this subsection or a rule adopted to administer 185 
this subsection. Each day the violation continues constitutes a 186 
separate violation, and each such separate violation is subject 187 
to a separate fine. 188 
 b.  In determining the amount of fine to be levied for a 189 
violation of this subsection, the department must consider the 190 
following factors: 191 
 (I)  The severity of the violation. 192 
 (II)  Any action taken by the permittee to correct the 193 
violation or to remedy complaints. 194 
 (III)  Any previous violation. 195 
 c.  All fines collected under this subparagraph shall be 196 
deposited into the Public Medical Assistance Trust Fund 197 
administered by the Agency for Health Care Administration, to be 198 
used to help the uninsured pay for health care. 199 
 Section 3.  Section 499.026, Florida Statutes, is created 200     
 
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to read: 201 
 499.026  Prescription drug price transparency. — 202 
 (1)  As used in this section, the term: 203 
 (a)  "Agency" means the Agency for Health Care 204 
Administration. 205 
 (b)  "Division" means the Division of Consumer Services of 206 
the Department of Agr iculture and Consumer Services. 207 
 (c)  "Drug" means a prescription drug. 208 
 (d)  "Health insurer" means a health insurer issuing major 209 
medical coverage through an individual or group policy or a 210 
health maintenance organization issuing major medical coverage 211 
through an individual or group contract, regulated under chapter 212 
627 or chapter 641. 213 
 (e)  "Medicaid" means the Agency for Health Care 214 
Administration Medicaid program. 215 
 (f)  "Office" means the Office of Insurance Regulation of 216 
the Financial Services Commission. 217 
 (g)  "Price" means the manufacturer's list price for a drug 218 
to wholesalers or direct purchasers in the United States, not 219 
including prompt pay or other discounts, rebates, or reductions 220 
in price, for the most recent month for which the informa tion is 221 
available, as reported in wholesale price guides or other 222 
publications of drug or biological pricing data. 223 
 (2)(a)  At least 120 days before the effective date of any 224 
single manufacturer increase of at least 10 percent in the price 225     
 
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of a drug, a manufacturer must provide notice of the upcoming 226 
drug price increase to: 227 
 1.  The department, the Department of Health, the agency, 228 
the division, and the office. 229 
 2.  Every health insurer that covers the drug. The 230 
manufacturer shall use the contact list published by the office 231 
under ss. 627.42384 and 641.3131 to provide notice to health 232 
insurers. Notification shall be presumed to occur on the date 233 
that the manufacturer attempts to communicate with the 234 
applicable point of contact published by the office. 235 
 (b)  The notices must include, at a minimum, the following 236 
information: 237 
 1.  The name and current price of the drug. 238 
 2.  The date that the increase will become effective. 239 
 3.  The dollar amount of the intended increase in the price 240 
of the drug. 241 
 4.  The percentage price increase. 242 
 5.  A statement of whether the price increase is 243 
necessitated by a change or improvement of the drug and, if so, 244 
a description of the change or improvement. 245 
 6.  A description of any other factors that contributed to 246 
the price increase. 247 
 7.  The documentation necessary to support the information 248 
reported under subparagraphs 5. and 6. 249 
 (3)(a)  By July 1 of each year, a manufacturer shall submit 250     
 
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a report to the department, the Department of Health, the 251 
agency, the division, and the office on each drug for which the 252 
price, during the previous calendar year: 253 
 1.  Was $100 or more for a 30 -day supply or for a course of 254 
treatment lasting less than 30 days; or 255 
 2.  Increased by at least 10 percent over the previous 256 
price in a single manuf acturer price. 257 
 (b)  The report must include, at a minimum, the following 258 
information: 259 
 1.  The name and the price at the time of the report of 260 
each drug specified in paragraph (a) and the cumulative 261 
percentage price increase during the previous calendar y ear. 262 
 2.  The length of time the drug has been on the market. 263 
 3.  The factors that contributed to the price increase. 264 
 4. The name of any generic version of the drug available on 265 
the market. 266 
 5.  The research and development costs associated with the 267 
drug that were paid using public funds. 268 
 6.  The direct costs incurred by the manufacturer to 269 
manufacture, market, and distribute the drug and to ensure 270 
ongoing safety and effectiveness research associated with the 271 
drug. 272 
 7.  The total sales revenue for the dr ug during the 273 
previous calendar year. 274 
 8.  The manufacturer's profit attributable to the drug 275     
 
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during the previous calendar year. 276 
 9.  The introductory price of the drug when it was approved 277 
by the United States Food and Drug Administration and the 278 
cumulative yearly increase, by calendar year, in the price of 279 
the drug during the previous 5 years or during the number of 280 
years the drug has been on the market, whichever is less. 281 
 10.  The 10 highest prices paid for the drug during the 282 
previous year in other cou ntries. 283 
 11.  The documentation necessary to support the information 284 
reported under this paragraph. 285 
 (4)(a)  Before reviewing the data in the report filed under 286 
subsection (3), the department, in consultation with the 287 
Department of Health, the agency, and the office, shall compile 288 
a list of drugs that have a significant cost to the state or 289 
that are designated as being critical to public health. Such 290 
drugs may be sourced from the Medicaid drug utilization data and 291 
drug spending data, the division's drug spe nding data, and the 292 
drug spending data of health insurers and health plans and their 293 
pharmacy benefit managers. 294 
 (b)  After receiving the report required under subsection 295 
(3), the department: 296 
 1.  May make a written request to the manufacturer for 297 
supporting documentation or additional information concerning 298 
the report. The department shall prescribe by rule the 299 
timeframes for the department's request for documentation or 300     
 
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information and for the manufacturer's response to the request. 301 
The department may extend the timeframe, if necessary, for the 302 
manufacturer's response. 303 
 2.  Shall review the costs and the factors contributing to 304 
each drug price or drug price increase in the report. 305 
 3.  Shall review the price and price increase of each drug 306 
on the list compiled under paragraph (a) and each drug on the 307 
lists reported by wholesale distributors and other entities 308 
engaged in wholesale distribution of prescription drugs and by 309 
registered pharmacy bene fit managers under ss. 499.0121(16) and 310 
624.490(6)(b), respectively, to make sure that any drug on the 311 
compiled and reported lists which fits the criterion in 312 
subparagraph (3)(a)1. or subparagraph (3)(a)2. is also reported 313 
by the drug's manufacturer under subsection (3). 314 
 4.  Shall, in consultation with the Department of Health, 315 
the division, and the office, determine whether the manufacturer 316 
has violated this section. 317 
 (5)  A manufacturer violates this section if the 318 
manufacturer: 319 
 (a)  Fails to timely sub mit notices or reports required 320 
under this section; 321 
 (b)  Fails to provide information required under this 322 
section; 323 
 (c)  Fails to timely respond to a written request by the 324 
department with regard to the notices or report required under 325     
 
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this section; or 326 
 (d)  Provides inaccurate or incomplete information in the 327 
notices or report required under this section. 328 
 (6)  A drug for which the manufacturer does not comply with 329 
the notification or reporting requirements under this section 330 
may not be included in the Me dicaid's and state group health 331 
insurance's drug formularies unless the drug is the most 332 
clinically appropriate, clinically effective, and lowest net -333 
cost drug. 334 
 (7)(a)  The department may deny an application for a 335 
renewal permit or suspend or revoke a per mit of a prescription 336 
drug manufacturer or nonresident prescription drug manufacturer 337 
for violating this section. 338 
 (b)1.  The department may also impose an administrative 339 
fine, not to exceed $5,000 per violation per day, for a 340 
violation of this section or a rule adopted under this section. 341 
Each day the violation continues constitutes a separate 342 
violation, and each such separate violation is subject to a 343 
separate fine. 344 
 2.  In determining the amount of fine to be levied for a 345 
violation of this section, the d epartment, in consultation with 346 
the Department of Health, the agency, the division, and the 347 
office, must consider the following factors: 348 
 a.  The severity of the violation. 349 
 b.  Any action taken by the permittee to correct the 350     
 
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violation or to remedy compla ints. 351 
 c.  Any previous violation. 352 
 3.  All fines collected under this section shall be 353 
deposited into the Public Medical Assistance Trust Fund 354 
administered by the agency, to be used to help the uninsured pay 355 
for health care. 356 
 (8)  The department shall ado pt rules to administer this 357 
section. 358 
 Section 4.  Paragraph (m) of subsection (1) of section 359 
499.05, Florida Statutes, is amended, and paragraph (o) is added 360 
to that subsection, to read: 361 
 499.05  Rules.— 362 
 (1)  The department shall adopt rules to implemen t and 363 
enforce this chapter with respect to: 364 
 (m)  Wholesale distributor reporting requirements of s. 365 
499.0121(14) and (16) s. 499.0121(14). 366 
 (o)  Manufacturer notification and reporting requirements 367 
of s. 499.026(2) and (3). 368 
 Section 5.  Subsection (6) of section 624.490, Florida 369 
Statutes, is renumbered as subsection (7), and a new subsection 370 
(6) is added to that section, to read: 371 
 624.490  Registration of pharmacy benefit managers ; 372 
prescription drug price report and public access requirements; 373 
penalties for noncompliance.— 374 
 (6)(a)  As used in this subsection, the term: 375     
 
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 1.  "Negotiated price" means the value at which a 376 
prescription drug is sold by a prescription drug manufacturer, 377 
prescription drug wholesale distributor, or pharmacy, under a 378 
prescription drug benefits coverage administered by a pharmacy 379 
benefit manager, before any tax or cost is added and any 380 
discount, rebate, or reduction in price, including a rebate 381 
offered to the pharmacy benefit manager, is subtracted. 382 
 2.  "Net price" means the value at which a prescription 383 
drug is sold by a prescription drug manufacturer, prescription 384 
drug wholesale distributor, or pharmacy, under a prescription 385 
drug benefits coverage administered by a pharmacy benefit 386 
manager, after all taxes and other costs are add ed and all 387 
discounts, rebates, and reductions in price are subtracted, 388 
including any rebate offered to the pharmacy benefit manager 389 
which is passed on to the health insurer or health maintenance 390 
organization. 391 
 3.  "Rebate offered to a pharmacy benefit manager" means a 392 
direct payment by a prescription drug manufacturer, prescription 393 
drug wholesale distributor, or pharmacy to a pharmacy benefit 394 
manager for a prescription drug dispensed to an insured or 395 
subscriber. Such payment serves an incentive for the pharmacy 396 
benefit manager to promote use of the prescription drug, and the 397 
pharmacy benefit manager may choose to keep the payment or to 398 
pass it on, in full or in part, to the health insurer or health 399 
maintenance organization. 400     
 
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 (b)1.  By July 1 of each year , a registered pharmacy 401 
benefit manager shall submit a report to the office on each 402 
prescription drug for which the negotiated price, during the 403 
previous calendar year: 404 
 a.  Was $100 or more for a 30 -day supply or for a course of 405 
treatment lasting less tha n 30 days; or 406 
 b.  Increased by at least 10 percent over the previous 407 
negotiated price. 408 
 2.  The report must include, at a minimum, the following 409 
information: 410 
 a.  The name and the negotiated price at the time of the 411 
report of each prescription drug specif ied in subparagraph 1. 412 
and the cumulative percentage negotiated price increase during 413 
the previous calendar year. 414 
 b. The name of any generic version of the prescription drug 415 
available on the market. 416 
 c.  The total sales revenue of the pharmacy benefit man ager 417 
for the prescription drug during the previous calendar year. 418 
 d.  The documentation necessary to support the information 419 
reported under this paragraph. 420 
 3.  The office may make a written request to the pharmacy 421 
benefit manager for supporting documenta tion or additional 422 
information concerning the report. The commission shall 423 
prescribe by rule the timeframes for the office's request for 424 
documentation or information and for the pharmacy benefit 425     
 
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manager's response to the request. The office may extend the 426 
timeframe, if necessary, for the pharmacy benefit manager's 427 
response. 428 
 (c)  A registered pharmacy benefit manager shall maintain a 429 
website that provides public access to the net price of each 430 
prescription drug. The registered pharmacy benefit manager shall 431 
update the net price of a prescription drug on the website at 432 
least 90 days before the net price of the prescription drug 433 
changes. 434 
 (d)  A registered pharmacy benefit manager violates this 435 
subsection if the registered pharmacy benefit manager: 436 
 1.  Fails to timely submit the report required under 437 
paragraph (b); 438 
 2.  Fails to provide information required under paragraph 439 
(b); 440 
 3.  Fails to timely respond to a written request by the 441 
office with regard to the report required under paragraph (b); 442 
 4.  Provides inaccurate or incomplete information in the 443 
report required under paragraph (b); or 444 
 5.  Fails to maintain a website for access to net prices of 445 
prescription drugs or to update the net prices on the website, 446 
as required under paragraph (c). 447 
 (e)1.  The office may deny an application for renewal 448 
registration or suspend or revoke a registration certificate of 449 
a pharmacy benefit manager for violating this subsection. 450     
 
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 2.a.  The office may also impose an administrative fine, 451 
not to exceed $5,000 per violation p er day, for a violation of 452 
this subsection or a rule adopted to administer this subsection. 453 
Each day the violation continues constitutes a separate 454 
violation, and each such separate violation is subject to a 455 
separate fine. 456 
 b.  In determining the amount of fine to be levied for a 457 
violation of this subsection, the office must consider the 458 
following factors: 459 
 (I)  The severity of the violation. 460 
 (II)  Any action taken by the pharmacy benefit manager to 461 
correct the violation or to remedy complaints. 462 
 (III)  Any previous violation. 463 
 c.  All fines collected under this subsection shall be 464 
deposited into the Public Medical Assistance Trust Fund 465 
administered by the Agency for Health Care Administration, to be 466 
used to help the uninsured pay for health care. 467 
 Section 6.  Section 627.42384, Florida Statutes, is created 468 
to read: 469 
 627.42384  Formulary changes resulting from drug price 470 
increases.— 471 
 (1)  A health insurer issuing a major medical individual or 472 
group policy shall submit, and update as necessary, contact 473 
information for a single point of contact for use by 474 
prescription drug manufacturers to comply with s. 499.026. The 475     
 
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office shall maintain and publish on its website a list of such 476 
points of contact. 477 
 (2)  A health insurer issuing a major medical individual or 478 
group policy must provide written notice to each affected 479 
insured and each prescribing health care provider at least 90 480 
days before making a drug formulary change that results from a 481 
prescription drug price increase reported by a drug manufacturer 482 
under s. 499.026(2). 483 
 (3)  This section applies to policies entered into or 484 
renewed on or after January 1, 2023. 485 
 Section 7.  Paragraph (b) of subsection (1) of section 486 
627.64741, Florida Statutes, is redesignated as paragraph (c), 487 
subsection (5) is amended, a new paragraph (b) is added to 488 
subsection (1), and paragraphs (c) through (f) are added to 489 
subsection (2) of that section, to read: 490 
 627.64741  Pharmacy benefit manager contracts. — 491 
 (1)  As used in this section, the term: 492 
 (b)  "Net price" means the value a t which a prescription 493 
drug is sold by a prescription drug manufacturer, prescription 494 
drug wholesale distributor, or pharmacy, under a prescription 495 
drug benefits coverage administered by a pharmacy benefit 496 
manager, after all taxes and other costs are added and all 497 
discounts, rebates, and reductions in price are subtracted, 498 
including any rebate offered to the pharmacy benefit manager 499 
which is passed on to the health insurer. 500     
 
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 (2)  A contract between a health insurer and a pharmacy 501 
benefit manager must requir e that the pharmacy benefit manager: 502 
 (c)  Maintain a website that provides public access to the 503 
net price of each covered prescription drug and update the net 504 
price of a covered prescription drug on the website at least 90 505 
days before the net price of the covered prescription drug 506 
changes. 507 
 (d)  Provide written notice to each affected insured and 508 
each prescribing health care provider at least 90 days before 509 
making a change in the drug formulary or in the net price of a 510 
covered prescription drug, including a change that results from 511 
a price increase of a covered prescription drug reported by a 512 
drug manufacturer under s. 499.026(2). 513 
 (e)  Inform an affected insured, in writing, of the net 514 
price of each covered prescription drug for which the insured 515 
has made a payment. 516 
 (f)  Provide in writing to each insured and each 517 
prescribing health care provider the address of the pharmacy 518 
benefit manager's website where the list of the net prices of 519 
all prescription drugs is posted. 520 
 (5)  This section applies to contract s entered into or 521 
renewed on or after July 1, 2022 July 1, 2018. 522 
 Section 8.  Paragraph (b) of subsection (1) of section 523 
627.6572, Florida Statutes, is redesignated as paragraph (c), 524 
subsection (5) is amended, a new paragraph (b) is added to 525     
 
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subsection (1), and paragraphs (c) through (f) are added to 526 
subsection (2) of that section, to read: 527 
 627.6572  Pharmacy benefit manager contracts. — 528 
 (1)  As used in this section, the term: 529 
 (b)  "Net price" means the value at which a prescription 530 
drug is sold by a prescription drug manufacturer, prescription 531 
drug wholesale distributor, or pharmacy, under a prescription 532 
drug benefits coverage administered by a pharmacy benefit 533 
manager, after all taxes and other costs are added and all 534 
discounts, rebates, and reductio ns in price are subtracted, 535 
including any rebate offered to the pharmacy benefit manager 536 
which is passed on to the health insurer. 537 
 (2)  A contract between a health insurer and a pharmacy 538 
benefit manager must require that the pharmacy benefit manager: 539 
 (c) Maintain a website that provides public access to the 540 
net price of each covered prescription drug and update the net 541 
price of a covered prescription drug on the website at least 90 542 
days before the net price of the covered prescription drug 543 
changes. 544 
 (d)  Provide written notice to each affected insured and 545 
each prescribing health care provider at least 90 days before 546 
making a change in the drug formulary or in the net price of a 547 
covered prescription drug, including a change that results from 548 
a price increase of a covered prescription drug reported by a 549 
drug manufacturer under s. 499.026(2). 550     
 
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 (e)  Inform an insured, in writing, of the net price of 551 
each covered prescription drug for which the insured has made a 552 
payment. 553 
 (f)  Provide in writing to each insure d and each 554 
prescribing health care provider the address of the pharmacy 555 
benefit manager's website where the list of the net prices of 556 
all covered prescription drugs is posted. 557 
 (5)  This section applies to contracts entered into or 558 
renewed on or after July 1, 2022 July 1, 2018. 559 
 Section 9.  Section 641.3131, Florida Statutes, is created 560 
to read: 561 
 641.3131  Formulary changes resulting from drug price 562 
increases.— 563 
 (1)  A health maintenance organization issuing a major 564 
medical or other comprehensive coverage contract shall submit, 565 
and update as necessary, contact information for a single point 566 
of contact for use by prescription drug manufacturers to comply 567 
with s. 499.026. The office shall maintain and publish on its 568 
website a list of such points of contact. 569 
 (2)  A health maintenance organization issuing a major 570 
medical or other comprehensive coverage contract must provide 571 
written notice to each affected subscriber and each prescribing 572 
health care provider at least 90 days before making a drug 573 
formulary change that results from a prescription drug price 574 
increase reported by a drug manufacturer under s. 499.026(2). 575     
 
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 (3)  This section applies to contracts entered into or 576 
renewed on or after January 1, 2023. 577 
 Section 10.  Paragraph (b) of subsection (1) of 641. 314, 578 
Florida Statutes, is redesignated as paragraph (c), subsection 579 
(5) is amended, a new paragraph (b) is added to subsection (1), 580 
and paragraphs (c) through (f) are added to subsection (2) of 581 
that section, to read: 582 
 641.314  Pharmacy benefit manager cont racts.— 583 
 (1)  As used in this section, the term: 584 
 (b)  "Net price" means the value at which a prescription 585 
drug is sold by a prescription drug manufacturer, prescription 586 
drug wholesale distributor, or pharmacy, under a prescription 587 
drug benefits coverage a dministered by a pharmacy benefit 588 
manager, after all taxes and other costs are added and all 589 
discounts, rebates, and reductions in price are subtracted, 590 
including any rebate offered to the pharmacy benefit manager 591 
which is passed on to the health maintenan ce organization. 592 
 (2)  A contract between a health maintenance organization 593 
and a pharmacy benefit manager must require that the pharmacy 594 
benefit manager: 595 
 (c)  Maintain a website that provides public access to the 596 
net price of each covered prescription drug and update the net 597 
price of a covered prescription drug on the website at least 90 598 
days before the net price of the covered prescription drug 599 
changes. 600     
 
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 (d)  Provide written notice to each affected subscriber and 601 
each prescribing health care provider a t least 90 days before 602 
making a change in the drug formulary or in the net price of a 603 
covered prescription drug, including a change that results from 604 
a price increase of a covered prescription drug reported by a 605 
drug manufacturer under s. 499.026(2). 606 
 (e)  Inform a subscriber in writing of the net price of 607 
each covered prescription drug for which the subscriber has made 608 
a payment. 609 
 (f)  Provide in writing to each subscriber and each 610 
prescribing health care provider the address of the pharmacy 611 
benefit manager's website where the list of the net prices of 612 
all prescription drugs is posted. 613 
 (5)  This section applies to contracts entered into or 614 
renewed on or after July 1, 2022 July 1, 2018. 615 
 Section 11.  Subsections (3) and (4) and paragraph (a) of 616 
subsection (9) of section 110.12315, Florida Statutes, are 617 
amended to read: 618 
 110.12315  Prescription drug program. —The state employees' 619 
prescription drug program is established. This program shall be 620 
administered by the Department of Management Services, according 621 
to the terms and conditions of the plan as established by the 622 
relevant provisions of the annual General Appropriations Act and 623 
implementing legislation, subject to the following conditions: 624 
 (3)  The department shall maintain the generic, preferred 625     
 
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brand name, and the nonpreferred brand name lists of drugs and 626 
supplies to be used in the administration of the state 627 
employees' prescription drug program. These lists may not 628 
include a prescription drug for which the prescription drug 629 
manufacturer does not comply with the requirements of s. 499.026 630 
unless the prescription drug is the most clinically appropriate, 631 
clinically effective, and lowest net -cost prescription drug. 632 
 (4)  The department shall maintain a list of maintenance 633 
drugs and supplies. The list may not include a drug for which 634 
the prescription drug manufacturer does not comply with the 635 
requirements of s. 499.026 unless the prescription drug is the 636 
most clinically appropriate, clinically effective, and lowest 637 
net-cost prescription drug. 638 
 (a)  Preferred provider organization health plan members 639 
may have prescriptions for maintenance drugs and supplies filled 640 
up to three times as a supply for up to 30 days through a retail 641 
pharmacy; thereafter, prescriptions for the same maintenance 642 
drug or supply must be filled for up to 90 days either through 643 
the department's contracted mail order pharmacy or through a 644 
retail pharmacy. 645 
 (b)  Health maintenance organization health plan members 646 
may have prescriptions for maintenance drugs and supplies filled 647 
for up to 90 days either through a mail order pharmacy or 648 
through a retail pharmacy. 649 
 (9)(a)  Beginning with the 2020 plan year, the department 650     
 
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must implement formulary management for prescription drugs and 651 
supplies. Such management practices must require prescription 652 
drugs to be subject to formulary inclusion or exclusion and, 653 
beginning with the 2023 plan year, must require a prescription 654 
drug for which the prescription drug manufacturer does not 655 
comply with the requirements of s. 499.026 to be subject to 656 
formulary exclusion, but may not restrict access to the most 657 
clinically appropriate, clinically effective, and lowest net -658 
cost prescription drugs and supplies. Drugs excluded from the 659 
formulary must be available for inclusion if a physician, 660 
advanced practice registered nurse, or physician assistant 661 
prescribing a pharmaceutical clearly states on the prescription 662 
that the excluded drug is medically necessary. Prescription 663 
drugs and supplies first made available in the marketplace after 664 
January 1, 2020, may not be covered b y the prescription drug 665 
program until specifically included in the list of covered 666 
prescription drugs and supplies. 667 
 Section 12.  Paragraph (n) of subsection (2) of section 668 
409.815, Florida Statutes, is amended to read: 669 
 409.815  Health benefits coverage ; limitations.— 670 
 (2)  BENCHMARK BENEFITS. —In order for health benefits 671 
coverage to qualify for premium assistance payments for an 672 
eligible child under ss. 409.810 -409.821, the health benefits 673 
coverage, except for coverage under Medicaid and Medikids, must 674 
include the following minimum benefits, as medically necessary. 675     
 
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 (n)  Prescribed drugs. — 676 
 1.  Coverage shall include drugs prescribed for the 677 
treatment of illness or injury when prescribed by a licensed 678 
health practitioner acting within the scope of his or her 679 
practice. 680 
 2.  Prescribed drugs may be limited to generics if 681 
available and brand name products if a generic substitution is 682 
not available, unless the prescribing licensed health 683 
practitioner indicates that a brand name is medically necessary. 684 
 3.  Prescribed drugs covered under this section shall 685 
include all prescribed drugs covered under the Florida Medicaid 686 
program. 687 
 4.  Prescribed drugs may not include a prescription drug 688 
for which the manufacturer does not comply with the requirements 689 
of s. 499.026 unless the prescription drug is the most 690 
clinically appropriate, clinically effective, and lowest net -691 
cost prescription drug or unless a physician, advanced practice 692 
registered nurse, or physician assistant prescribing the drug 693 
clearly states on the pres cription that the excluded drug is 694 
medically necessary. 695 
 Section 13.  Subsection (8) of section 409.91195, Florida 696 
Statutes, is amended to read: 697 
 409.91195  Medicaid Pharmaceutical and Therapeutics 698 
Committee.—There is created a Medicaid Pharmaceutical an d 699 
Therapeutics Committee within the agency for the purpose of 700     
 
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developing a Medicaid preferred drug list. 701 
 (8)  The committee shall develop its preferred drug list 702 
recommendations by considering the clinical efficacy, safety, 703 
and cost-effectiveness of a pro duct and the manufacturer's 704 
prescription drug price transparency, as required under s. 705 
499.012. 706 
 Section 14.  Paragraph (a) of subsection (5) of section 707 
409.912, Florida Statutes, is amended to read: 708 
 409.912  Cost-effective purchasing of health care. —The 709 
agency shall purchase goods and services for Medicaid recipients 710 
in the most cost-effective manner consistent with the delivery 711 
of quality medical care. To ensure that medical services are 712 
effectively utilized, the agency may, in any case, require a 713 
confirmation or second physician's opinion of the correct 714 
diagnosis for purposes of authorizing future services under the 715 
Medicaid program. This section does not restrict access to 716 
emergency services or poststabilization care services as defined 717 
in 42 C.F.R. s. 438.114. Such confirmation or second opinion 718 
shall be rendered in a manner approved by the agency. The agency 719 
shall maximize the use of prepaid per capita and prepaid 720 
aggregate fixed-sum basis services when appropriate and other 721 
alternative service deliv ery and reimbursement methodologies, 722 
including competitive bidding pursuant to s. 287.057, designed 723 
to facilitate the cost -effective purchase of a case -managed 724 
continuum of care. The agency shall also require providers to 725     
 
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minimize the exposure of recipient s to the need for acute 726 
inpatient, custodial, and other institutional care and the 727 
inappropriate or unnecessary use of high -cost services. The 728 
agency shall contract with a vendor to monitor and evaluate the 729 
clinical practice patterns of providers in order to identify 730 
trends that are outside the normal practice patterns of a 731 
provider's professional peers or the national guidelines of a 732 
provider's professional association. The vendor must be able to 733 
provide information and counseling to a provider whose pract ice 734 
patterns are outside the norms, in consultation with the agency, 735 
to improve patient care and reduce inappropriate utilization. 736 
The agency may mandate prior authorization, drug therapy 737 
management, or disease management participation for certain 738 
populations of Medicaid beneficiaries, certain drug classes, or 739 
particular drugs to prevent fraud, abuse, overuse, and possible 740 
dangerous drug interactions. The Pharmaceutical and Therapeutics 741 
Committee shall make recommendations to the agency on drugs for 742 
which prior authorization is required. The agency shall inform 743 
the Pharmaceutical and Therapeutics Committee of its decisions 744 
regarding drugs subject to prior authorization. The agency is 745 
authorized to limit the entities it contracts with or enrolls as 746 
Medicaid providers by developing a provider network through 747 
provider credentialing. The agency may competitively bid single -748 
source-provider contracts if procurement of goods or services 749 
results in demonstrated cost savings to the state without 750     
 
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limiting access to car e. The agency may limit its network based 751 
on the assessment of beneficiary access to care, provider 752 
availability, provider quality standards, time and distance 753 
standards for access to care, the cultural competence of the 754 
provider network, demographic chara cteristics of Medicaid 755 
beneficiaries, practice and provider -to-beneficiary standards, 756 
appointment wait times, beneficiary use of services, provider 757 
turnover, provider profiling, provider licensure history, 758 
previous program integrity investigations and find ings, peer 759 
review, provider Medicaid policy and billing compliance records, 760 
clinical and medical record audits, and other factors. Providers 761 
are not entitled to enrollment in the Medicaid provider network. 762 
The agency shall determine instances in which allo wing Medicaid 763 
beneficiaries to purchase durable medical equipment and other 764 
goods is less expensive to the Medicaid program than long -term 765 
rental of the equipment or goods. The agency may establish rules 766 
to facilitate purchases in lieu of long -term rentals in order to 767 
protect against fraud and abuse in the Medicaid program as 768 
defined in s. 409.913. The agency may seek federal waivers 769 
necessary to administer these policies. 770 
 (5)(a)  The agency shall implement a Medicaid prescribed -771 
drug spending-control program that includes the following 772 
components: 773 
 1.  A Medicaid preferred drug list, which shall be a 774 
listing of cost-effective therapeutic options recommended by the 775     
 
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Medicaid Pharmacy and Therapeutics Committee established 776 
pursuant to s. 409.91195 and adopted by the agency for each 777 
therapeutic class on the preferred drug list. At the discretion 778 
of the committee, and when feasible, the preferred drug list 779 
should include at least two products in a therapeutic class. The 780 
agency may post the preferred drug list and updates to the list 781 
on an Internet website without following the rulemaking 782 
procedures of chapter 120. Drugs for which the manufacturer does 783 
not comply with the requirements of s. 499.026 are excluded from 784 
the preferred list, unless the drug is the most c linically 785 
appropriate, clinically effective, and lowest net -cost 786 
prescription drug. Antiretroviral agents are excluded from the 787 
preferred drug list. The agency shall also limit the amount of a 788 
prescribed drug dispensed to no more than a 34 -day supply unless 789 
the drug products' smallest marketed package is greater than a 790 
34-day supply, or the drug is determined by the agency to be a 791 
maintenance drug in which case a 100 -day maximum supply may be 792 
authorized. The agency may seek any federal waivers necessary to 793 
implement these cost -control programs and to continue 794 
participation in the federal Medicaid rebate program, or 795 
alternatively to negotiate state -only manufacturer rebates. The 796 
agency may adopt rules to administer this subparagraph. The 797 
agency shall continue to provide unlimited contraceptive drugs 798 
and items. The agency must establish procedures to ensure that: 799 
 a.  There is a response to a request for prior 800     
 
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authorization by telephone or other telecommunication device 801 
within 24 hours after receipt of a reques t for prior 802 
authorization; and 803 
 b.  A 72-hour supply of the drug prescribed is provided in 804 
an emergency or when the agency does not provide a response 805 
within 24 hours as required by sub -subparagraph a. 806 
 2.  A provider of prescribed drugs is reimbursed in an 807 
amount not to exceed the lesser of the actual acquisition cost 808 
based on the Centers for Medicare and Medicaid Services National 809 
Average Drug Acquisition Cost pricing files plus a professional 810 
dispensing fee, the wholesale acquisition cost plus a 811 
professional dispensing fee, the state maximum allowable cost 812 
plus a professional dispensing fee, or the usual and customary 813 
charge billed by the provider. 814 
 3.  The agency shall develop and implement a process for 815 
managing the drug therapies of Medicaid recipient s who are using 816 
significant numbers of prescribed drugs each month. The 817 
management process may include, but is not limited to, 818 
comprehensive, physician -directed medical-record reviews, claims 819 
analyses, and case evaluations to determine the medical 820 
necessity and appropriateness of a patient's treatment plan and 821 
drug therapies. The agency may contract with a private 822 
organization to provide drug -program-management services. The 823 
Medicaid drug benefit management program shall include 824 
initiatives to manage drug t herapies for HIV/AIDS patients, 825     
 
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patients using 20 or more unique prescriptions in a 180 -day 826 
period, and the top 1,000 patients in annual spending. The 827 
agency shall enroll any Medicaid recipient in the drug benefit 828 
management program if he or she meets the specifications of this 829 
provision and is not enrolled in a Medicaid health maintenance 830 
organization. 831 
 4.  The agency may limit the size of its pharmacy network 832 
based on need, competitive bidding, price negotiations, 833 
credentialing, or similar criteria. The a gency shall give 834 
special consideration to rural areas in determining the size and 835 
location of pharmacies included in the Medicaid pharmacy 836 
network. A pharmacy credentialing process may include criteria 837 
such as a pharmacy's full -service status, location, si ze, 838 
patient educational programs, patient consultation, disease 839 
management services, and other characteristics. The agency may 840 
impose a moratorium on Medicaid pharmacy enrollment if it is 841 
determined that it has a sufficient number of Medicaid -842 
participating providers. The agency must allow dispensing 843 
practitioners to participate as a part of the Medicaid pharmacy 844 
network regardless of the practitioner's proximity to any other 845 
entity that is dispensing prescription drugs under the Medicaid 846 
program. A dispensing practitioner must meet all credentialing 847 
requirements applicable to his or her practice, as determined by 848 
the agency. 849 
 5.  The agency shall develop and implement a program that 850     
 
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requires Medicaid practitioners who issue written prescriptions 851 
for medicinal drugs to use a counterfeit -proof prescription pad 852 
for Medicaid prescriptions. The agency shall require the use of 853 
standardized counterfeit -proof prescription pads by prescribers 854 
who issue written prescriptions for Medicaid recipients. The 855 
agency may implement the program in targeted geographic areas or 856 
statewide. 857 
 6.  The agency may enter into arrangements that require 858 
manufacturers of generic drugs prescribed to Medicaid recipients 859 
to provide rebates of at least 15.1 percent of the average 860 
manufacturer price for the manufacturer's generic products. 861 
These arrangements shall require that if a generic -drug 862 
manufacturer pays federal rebates for Medicaid -reimbursed drugs 863 
at a level below 15.1 percent, the manufacturer must provide a 864 
supplemental rebate to the state in an amount necessary to 865 
achieve a 15.1-percent rebate level. 866 
 7.  The agency may establish a preferred drug list as 867 
described in this subsection, and, pursuant to the establishment 868 
of such preferred drug list, negotiate supplemental rebates from 869 
manufacturers that are in addition to those required by Title 870 
XIX of the Social Security Act and at no less than 14 percent of 871 
the average manufacturer price as defined in 42 U.S.C. s. 1936 872 
on the last day of a quarter unless the federal or supplemental 873 
rebate, or both, equals or exceeds 29 percent. There is no upper 874 
limit on the supplemental rebates the agency may negotiate. The 875     
 
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agency may determine that specific products, brand -name or 876 
generic, are competitive at lower rebate percentages. Agreement 877 
to pay the minimum supplemental rebate percentage guarantees a 878 
manufacturer that the Medicaid Pharmaceutical and Therapeutics 879 
Committee will consider a product for inclusion on the preferred 880 
drug list. However, a pharmaceutical manufacturer is not 881 
guaranteed placement on the preferred drug list by simply paying 882 
the minimum supplemental rebate. Agency decisions will be made 883 
on the clinical efficacy of a drug and recommendations of the 884 
Medicaid Pharmaceutical and Therapeutics Committee, as well as 885 
the price of competing products minus federal and state rebates. 886 
The agency may contract with an outside agency or contractor to 887 
conduct negotiations for supplemental rebates. For the purposes 888 
of this section, the term "supplemental rebates" means cash 889 
rebates. Value-added programs as a substitution for supplemental 890 
rebates are prohibited. The agency may seek any federal waivers 891 
to implement this initiative. 892 
 8.a.  The agency may implement a Medicaid behavioral drug 893 
management system. The agency may contract with a vendor tha t 894 
has experience in operating behavioral drug management systems 895 
to implement this program. The agency may seek federal waivers 896 
to implement this program. 897 
 b.  The agency, in conjunction with the Department of 898 
Children and Families, may implement the Medic aid behavioral 899 
drug management system that is designed to improve the quality 900     
 
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of care and behavioral health prescribing practices based on 901 
best practice guidelines, improve patient adherence to 902 
medication plans, reduce clinical risk, and lower prescribed 903 
drug costs and the rate of inappropriate spending on Medicaid 904 
behavioral drugs. The program may include the following 905 
elements: 906 
 (I)  Provide for the development and adoption of best 907 
practice guidelines for behavioral health -related drugs such as 908 
antipsychotics, antidepressants, and medications for treating 909 
bipolar disorders and other behavioral conditions; translate 910 
them into practice; review behavioral health prescribers and 911 
compare their prescribing patterns to a number of indicators 912 
that are based on nat ional standards; and determine deviations 913 
from best practice guidelines. 914 
 (II)  Implement processes for providing feedback to and 915 
educating prescribers using best practice educational materials 916 
and peer-to-peer consultation. 917 
 (III)  Assess Medicaid benefic iaries who are outliers in 918 
their use of behavioral health drugs with regard to the numbers 919 
and types of drugs taken, drug dosages, combination drug 920 
therapies, and other indicators of improper use of behavioral 921 
health drugs. 922 
 (IV)  Alert prescribers to pati ents who fail to refill 923 
prescriptions in a timely fashion, are prescribed multiple same -924 
class behavioral health drugs, and may have other potential 925     
 
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medication problems. 926 
 (V)  Track spending trends for behavioral health drugs and 927 
deviation from best practic e guidelines. 928 
 (VI)  Use educational and technological approaches to 929 
promote best practices, educate consumers, and train prescribers 930 
in the use of practice guidelines. 931 
 (VII)  Disseminate electronic and published materials. 932 
 (VIII)  Hold statewide and reg ional conferences. 933 
 (IX)  Implement a disease management program with a model 934 
quality-based medication component for severely mentally ill 935 
individuals and emotionally disturbed children who are high 936 
users of care. 937 
 9.  The agency shall implement a Medicaid prescription drug 938 
management system. 939 
 a.  The agency may contract with a vendor that has 940 
experience in operating prescription drug management systems in 941 
order to implement this system. Any management system that is 942 
implemented in accordance with this subp aragraph must rely on 943 
cooperation between physicians and pharmacists to determine 944 
appropriate practice patterns and clinical guidelines to improve 945 
the prescribing, dispensing, and use of drugs in the Medicaid 946 
program. The agency may seek federal waivers to implement this 947 
program. 948 
 b.  The drug management system must be designed to improve 949 
the quality of care and prescribing practices based on best 950     
 
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practice guidelines, improve patient adherence to medication 951 
plans, reduce clinical risk, and lower prescribed drug costs and 952 
the rate of inappropriate spending on Medicaid prescription 953 
drugs. The program must: 954 
 (I)  Provide for the adoption of best practice guidelines 955 
for the prescribing and use of drugs in the Medicaid program, 956 
including translating best practice guidelines into practice; 957 
reviewing prescriber patterns and comparing them to indicators 958 
that are based on national standards and practice patterns of 959 
clinical peers in their community, statewide, and nationally; 960 
and determine deviations from best practic e guidelines. 961 
 (II)  Implement processes for providing feedback to and 962 
educating prescribers using best practice educational materials 963 
and peer-to-peer consultation. 964 
 (III)  Assess Medicaid recipients who are outliers in their 965 
use of a single or multiple p rescription drugs with regard to 966 
the numbers and types of drugs taken, drug dosages, combination 967 
drug therapies, and other indicators of improper use of 968 
prescription drugs. 969 
 (IV)  Alert prescribers to recipients who fail to refill 970 
prescriptions in a timely fashion, are prescribed multiple drugs 971 
that may be redundant or contraindicated, or may have other 972 
potential medication problems. 973 
 10.  The agency may contract for drug rebate 974 
administration, including, but not limited to, calculating 975     
 
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rebate amounts, invo icing manufacturers, negotiating disputes 976 
with manufacturers, and maintaining a database of rebate 977 
collections. 978 
 11.  The agency may specify the preferred daily dosing form 979 
or strength for the purpose of promoting best practices with 980 
regard to the prescrib ing of certain drugs as specified in the 981 
General Appropriations Act and ensuring cost -effective 982 
prescribing practices. 983 
 12.  The agency may require prior authorization for 984 
Medicaid-covered prescribed drugs. The agency may prior -985 
authorize the use of a produ ct: 986 
 a.  For an indication not approved in labeling; 987 
 b.  To comply with certain clinical guidelines; or 988 
 c.  If the product has the potential for overuse, misuse, 989 
or abuse. 990 
 991 
The agency may require the prescribing professional to provide 992 
information about the rationale and supporting medical evidence 993 
for the use of a drug. The agency shall post prior 994 
authorization, step-edit criteria and protocol, and updates to 995 
the list of drugs that are subject to prior authorization on the 996 
agency's Internet website within 21 days after the prior 997 
authorization and step -edit criteria and protocol and updates 998 
are approved by the agency. For purposes of this subparagraph, 999 
the term "step-edit" means an automatic electronic review of 1000     
 
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certain medications subject to prior authorization. 1001 
 13.  The agency, in conjunction with the Pharmaceutical and 1002 
Therapeutics Committee, may require age -related prior 1003 
authorizations for certain prescribed drugs. The age ncy may 1004 
preauthorize the use of a drug for a recipient who may not meet 1005 
the age requirement or may exceed the length of therapy for use 1006 
of this product as recommended by the manufacturer and approved 1007 
by the Food and Drug Administration. Prior authorization may 1008 
require the prescribing professional to provide information 1009 
about the rationale and supporting medical evidence for the use 1010 
of a drug. 1011 
 14.  The agency shall implement a step -therapy prior 1012 
authorization approval process for medications excluded from t he 1013 
preferred drug list. Medications listed on the preferred drug 1014 
list must be used within the previous 12 months before the 1015 
alternative medications that are not listed. The step -therapy 1016 
prior authorization may require the prescriber to use the 1017 
medications of a similar drug class or for a similar medical 1018 
indication unless contraindicated in the Food and Drug 1019 
Administration labeling. The trial period between the specified 1020 
steps may vary according to the medical indication. The step -1021 
therapy approval process sh all be developed in accordance with 1022 
the committee as stated in s. 409.91195(7) and (8). A drug 1023 
product may be approved without meeting the step -therapy prior 1024 
authorization criteria if the prescribing physician provides the 1025     
 
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agency with additional written me dical or clinical documentation 1026 
that the product is medically necessary because: 1027 
 a.  There is not a drug on the preferred drug list to treat 1028 
the disease or medical condition which is an acceptable clinical 1029 
alternative; 1030 
 b.  The alternatives have been inef fective in the treatment 1031 
of the beneficiary's disease; or 1032 
 c.  Based on historic evidence and known characteristics of 1033 
the patient and the drug, the drug is likely to be ineffective, 1034 
or the number of doses have been ineffective. 1035 
 1036 
The agency shall work with the physician to determine the best 1037 
alternative for the patient. The agency may adopt rules waiving 1038 
the requirements for written clinical documentation for specific 1039 
drugs in limited clinical situations. 1040 
 15.  The agency shall implement a return and reuse program 1041 
for drugs dispensed by pharmacies to institutional recipients, 1042 
which includes payment of a $5 restocking fee for the 1043 
implementation and operation of the program. The return and 1044 
reuse program shall be implemented electronically and in a 1045 
manner that promotes efficiency. The program must permit a 1046 
pharmacy to exclude drugs from the program if it is not 1047 
practical or cost-effective for the drug to be included and must 1048 
provide for the return to inventory of drugs that cannot be 1049 
credited or returned in a co st-effective manner. The agency 1050     
 
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shall determine if the program has reduced the amount of 1051 
Medicaid prescription drugs which are destroyed on an annual 1052 
basis and if there are additional ways to ensure more 1053 
prescription drugs are not destroyed which could saf ely be 1054 
reused. 1055 
 Section 15.  Subsection (9) of section 499.067, Florida 1056 
Statutes, is amended to read: 1057 
 499.067  Denial, suspension, or revocation of permit, 1058 
certification, or registration. — 1059 
 (9)(a) The department may deny, suspend, or revoke a 1060 
permit under this part if it finds the permittee has not 1061 
complied with the reporting requirements of, or knowingly made a 1062 
false statement in a report required by, s. 499.0121(14). 1063 
 (b)  The department may deny an application for a renewal 1064 
permit or suspend or revok e a permit if it finds the permittee 1065 
has not complied with the reporting requirements of, or 1066 
knowingly made a false statement in a report required by, s. 1067 
499.0121(16). 1068 
 (c)  The department may deny an application for a renewal 1069 
permit or suspend or revoke a permit if it finds the permittee 1070 
has not complied with the notification or reporting requirements 1071 
of, or knowingly made a false statement in a notice or report 1072 
required by, s. 499.026(2) or (3), respectively. 1073 
 Section 16.  This act shall take effect July 1, 2022. 1074