DIGEST
The digest printed below was prepared by House Legislative Services. It constitutes no part of the
legislative instrument. The keyword, one-liner, abstract, and digest do not constitute part of the law
or proof or indicia of legislative intent. [R.S. 1:13(B) and 24:177(E)]
HB 306 Engrossed 2017 Regular Session Johnson
Abstract: Requires the base of reimbursement by managed care organizations for prescription drugs
to be at least equal to the legacy Medicaid rate.
Present law prohibits a managed care organization (MCO) from paying a local pharmacy a
per-prescription reimbursement at a rate less than the legacy Medicaid rate unless its contract with
the La. Dept. of Health (LDH) provides for a reimbursement dispute process.
Proposed law removes the option to include a reimbursement dispute process to allow a
reimbursement rate less than the legacy Medicaid rate.
Present law authorizes an MCO to negotiate the ingredient cost reimbursement in its contracts with
providers.
Proposed law repeals present law.
Present law requires any contract between LDH and an MCO that includes provisions for pharmacy
reimbursement to provide for a reimbursement dispute process for local pharmacies.
Proposed law repeals present law.
Present law requires the full cost of implementing and performing the provisions of present law to
be the responsibility of LDH through a reallocation of existing budget resources and not through
additional appropriations.
Proposed law repeals present law.
Effective July 1, 2017.
(Amends R.S. 46:460.36(D); Repeals R.S. 46:460.36(B), (C), and (E))
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Health and Welfare to the
original bill:
1. Repeal authorization for an MCO to negotiate the ingredient cost reimbursement with providers.
2. Repeal the requirement that a contract between LDH and an MCO provide for a
reimbursement dispute process for local pharmacies.
3. Repeal the requirement for the full cost of implementing present law to be the
responsibility of LDH through a reallocation of existing budget resources.
4. Change the effective date of the Act from effective upon signature of the governor to July
1, 2017.
5. Make technical changes.