A prescription drug reference rate pilot program; to provide for a legislative management report; to provide a penalty; and to provide an expiration date.
Impact
If enacted, SB2031 would lead to significant changes in how prescription drugs are procured and priced within the state. The commissioner is required to identify the twenty-five most expensive prescription drugs utilized in the state's public employee retirement system and establish referenced rates based on comparative costs from other jurisdictions, such as Canadian provinces. This could potentially lead to lower costs for consumers if health plans and state entities strictly adhere to the referenced rates. The bill also stipulates that any savings generated from these efforts must be redirected to reduce costs for consumers, ensuring that the financial benefits of the program are passed on to patients.
Summary
Senate Bill 2031 introduces a pilot program aimed at managing the costs of prescription drugs for state entities and health plans in North Dakota. The legislation mandates the implementation of a prescription drug reference rate program designed by the insurance commissioner. This initiative aims to evaluate the possibility of regulating excessive prescription drug prices by establishing a maximum rate for certain drugs, referred to as 'referenced rates'. The bill outlines specific definitions for various terms related to the pilot program, ensuring that all stakeholders have a clear understanding of the terminology used.
Contention
Despite its potential benefits, SB2031 faces opposition and points of contention regarding its implementation and enforcement. Critics may argue that the penalties for violation of the referenced rates, detailed in the legislation as class A misdemeanors, could lead to unintended consequences in how pharmacy benefits managers and drug manufacturers operate within the state. Additionally, concerns regarding the negotiation process for drug pricing may arise, particularly if manufacturers and distributors are mandated to sell drugs at these prescribed rates. The bill also allows for penalties against manufacturers who fail to negotiate in good faith, adding another layer of complexity to the market dynamics.
Expiration
The bill currently includes a provision for an expiration date, setting a sunset clause for July 31, 2027, after which the pilot program would become ineffective unless further action is taken to extend it. This timeline suggests a cautious approach to assess the program's effectiveness over a limited term, allowing for adjustments based on its performance and the data gathered during its operation.
Pharmacy benefits managers and prescription drug costs; to provide a penalty; to provide an appropriation; to provide for a transfer; to provide an effective date; to provide an expiration date; and to declare an emergency.
Prior authorization for health insurance; to provide for a legislative management study; to provide for a legislative management report; and to provide an effective date.
The autism voucher; to provide a statement of legislative intent; to provide for a legislative management study; to provide for a report; to provide an effective date; and to declare an emergency.