HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 1 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 2 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 3 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 4 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 5 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 6 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 7 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 8 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 9 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 10 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 11 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 12 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 13 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 14 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 15 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 16 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 17 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 18 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 19 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 20 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 21 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 22 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 23 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 24 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 25 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 26 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 27 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 28 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S (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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 29 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 30 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 31 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 32 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 33 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 34 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 35 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 36 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 37 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 38 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 39 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 40 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 41 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 42 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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 HB 1183 2022 CODING: Words stricken are deletions; words underlined are additions. hb1183-00 Page 43 of 43 F L O R I D A H O U S E O F R E P R E S E N T A T I V E S 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