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2 | 2 | | SENATE DOCKET, NO. 2128 FILED ON: 1/20/2023 |
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3 | 3 | | SENATE . . . . . . . . . . . . . . No. 681 |
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4 | 4 | | The Commonwealth of Massachusetts |
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5 | 5 | | _________________ |
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6 | 6 | | PRESENTED BY: |
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7 | 7 | | Mark C. Montigny |
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8 | 8 | | _________________ |
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9 | 9 | | To the Honorable Senate and House of Representatives of the Commonwealth of Massachusetts in General |
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10 | 10 | | Court assembled: |
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11 | 11 | | The undersigned legislators and/or citizens respectfully petition for the adoption of the accompanying bill: |
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12 | 12 | | An Act to combat COVID-19 vaccine price gouging. |
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13 | 13 | | _______________ |
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14 | 14 | | PETITION OF: |
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15 | 15 | | NAME:DISTRICT/ADDRESS :Mark C. MontignySecond Bristol and Plymouth 1 of 6 |
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16 | 16 | | SENATE DOCKET, NO. 2128 FILED ON: 1/20/2023 |
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17 | 17 | | SENATE . . . . . . . . . . . . . . No. 681 |
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18 | 18 | | By Mr. Montigny, a petition (accompanied by bill, Senate, No. 681) of Mark C. Montigny for |
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19 | 19 | | legislation to combat COVID-19 vaccine price gouging. Financial Services. |
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20 | 20 | | The Commonwealth of Massachusetts |
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21 | 21 | | _______________ |
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22 | 22 | | In the One Hundred and Ninety-Third General Court |
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23 | 23 | | (2023-2024) |
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24 | 24 | | _______________ |
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25 | 25 | | An Act to combat COVID-19 vaccine price gouging. |
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26 | 26 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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27 | 27 | | of the same, as follows: |
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28 | 28 | | 1 SECTION 1. Chapter 6A of the General Laws, as appearing in the 2020 Official Edition, |
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29 | 29 | | 2is hereby amended by inserting after section 16CC the following section:- |
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30 | 30 | | 3 Section 16DD. (a) Notwithstanding any general or special law to the contrary, the |
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31 | 31 | | 4secretary of the executive office of health and human services, in consultation with the secretary |
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32 | 32 | | 5of administration and finance, shall develop a coordinated, aggregate COVID-19 vaccine |
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33 | 33 | | 6procurement plan to manage and administer the purchase, disbursement, and reimbursement of |
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34 | 34 | | 7COVID-19 vaccines for all health care programs administered by the commonwealth and for |
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35 | 35 | | 8members of all health coverage plans funded or subsidized, in whole or in part, by the |
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36 | 36 | | 9commonwealth. The aggregate procurement plan shall maximize cost savings and efficiencies, |
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37 | 37 | | 10enhance affordable access to COVID-19 vaccination, and be designed to improve health |
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38 | 38 | | 11outcomes while providing access to uninsured residents. 2 of 6 |
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39 | 39 | | 12 (b) Notwithstanding any general or special law to the contrary, as part of the aggregate |
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40 | 40 | | 13procurement plan, the secretary shall seek competitive bids for the supply of COVID-19 vaccines |
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41 | 41 | | 14necessary to meet the needs of health care programs administered by the commonwealth and for |
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42 | 42 | | 15individuals insured under health coverage plans funded or subsidized, in whole or in part, by the |
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43 | 43 | | 16commonwealth as well as uninsured residents. The secretary may coordinate with other states |
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44 | 44 | | 17and jurisdictions for the implementation of the aggregate procurement plan in order to maximize |
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45 | 45 | | 18cost savings. The secretary shall establish an annual maximum purchase price for each dose of |
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46 | 46 | | 19COVID-19 vaccine under the aggregate procurement plan, which shall not exceed the lesser of |
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47 | 47 | | 20the following: |
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48 | 48 | | 21 (1) cost per dose paid for by the Centers for Disease Control and Prevention; or |
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49 | 49 | | 22 (2) reimbursement rate paid by the Centers for Medicare and Medicaid Services. |
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50 | 50 | | 23 (c) The secretary shall implement the aggregate procurement plan not later than 180 days |
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51 | 51 | | 24after the effective date of this act and shall submit by April 15 of each year a report detailing the |
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52 | 52 | | 25coordinated aggregate or bulk purchasing arrangement results for the previous fiscal year to the |
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53 | 53 | | 26clerks of the house of representatives and senate, the joint committee on public health, the joint |
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54 | 54 | | 27committee on health care financing and the house and senate committees on ways and means. |
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55 | 55 | | 28The report shall include, but not be limited to, a review of the aggregate procurement plan’s |
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56 | 56 | | 29achievement relative to: |
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57 | 57 | | 30 (1) cost savings achieved during the previous fiscal year; |
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58 | 58 | | 31 (2) administrative costs relating to the management of the program for the previous fiscal |
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59 | 59 | | 32year; 3 of 6 |
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60 | 60 | | 33 (3) any recommendations for enhancing cost savings, reducing inefficiencies, and |
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61 | 61 | | 34improving access; and |
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62 | 62 | | 35 (4) a cost-benefit analysis of the inclusion of other entities, including but not limited to |
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63 | 63 | | 36not-for-profit healthcare providers, county, municipal, and quasi-governmental entities within the |
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64 | 64 | | 37aggregate procurement plan. |
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65 | 65 | | 38 SECTION 2. Chapter 32A of the General Laws, as so appearing, is hereby amended by |
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66 | 66 | | 39adding the following section:- |
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67 | 67 | | 40 Section 31. The commission shall provide to any active or retired employee of the |
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68 | 68 | | 41commonwealth who is insured under the group insurance commission coverage for annual |
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69 | 69 | | 42vaccination against COVID-19; provided that said coverage shall not be subject to any |
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70 | 70 | | 43deductible, co-insurance, or co-payment. |
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71 | 71 | | 44 SECTION 3. Chapter 118E of the General Laws, as so appearing, is hereby amended by |
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72 | 72 | | 45inserting after section 10N the following section:- |
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73 | 73 | | 46 Section 10O. The division and its contracted health insurers, health plans, health |
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74 | 74 | | 47maintenance organizations, behavioral health management firms and third-party administrators |
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75 | 75 | | 48under contract to a Medicaid managed care organization or primary care clinician plan shall |
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76 | 76 | | 49provide coverage for annual vaccination against COVID-19; provided, that said coverage shall |
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77 | 77 | | 50not be subject to any cost sharing. |
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78 | 78 | | 51 SECTION 4. Chapter 175 of the General Laws, as so appearing, is hereby amended by |
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79 | 79 | | 52inserting after section 47PP the following section:- 4 of 6 |
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80 | 80 | | 53 Section 47QQ. A policy, contract, agreement, plan or certificate of insurance issued, |
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81 | 81 | | 54delivered or renewed within the commonwealth that provides medical expense coverage shall |
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82 | 82 | | 55provide coverage for annual vaccination against COVID-19; provided, that said coverage shall |
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83 | 83 | | 56not be subject to any deductible, co-insurance, or co-payment. |
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84 | 84 | | 57 SECTION 5. Chapter 176A of the General Laws, as so appearing, is hereby amended by |
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85 | 85 | | 58inserting after section 8QQ the following section:- |
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86 | 86 | | 59 Section 8RR. Any contract between a subscriber and a corporation under an individual |
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87 | 87 | | 60or group hospital service plan delivered, issued or renewed within the commonwealth shall |
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88 | 88 | | 61provide coverage for annual vaccination against COVID-19; provided that said coverage shall |
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89 | 89 | | 62not be subject to any deductible, co-insurance, or co-payment. |
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90 | 90 | | 63 SECTION 6. Chapter 176B of the General Laws, as so appearing, is hereby amended by |
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91 | 91 | | 64inserting after section 4QQ the following section:- |
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92 | 92 | | 65 Section 4RR. Any subscription certificate under an individual or group medical service |
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93 | 93 | | 66agreement delivered, issued or renewed within the commonwealth shall provide coverage for |
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94 | 94 | | 67annual vaccination against COVID-19; provided, that said coverage shall not be subject to any |
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95 | 95 | | 68deductible, co-insurance, or co-payment. |
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96 | 96 | | 69 SECTION 7. Chapter 176G of the General Laws, as so appearing, is hereby amended by |
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97 | 97 | | 70inserting after section 4II the following section:- |
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98 | 98 | | 71 Section 4JJ. Any individual or group health maintenance contract shall provide coverage |
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99 | 99 | | 72for annual vaccination against COVID-19; provided, that said coverage shall not be subject to |
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100 | 100 | | 73any deductible, co-insurance, or co-payment. 5 of 6 |
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101 | 101 | | 74 SECTION 8. Notwithstanding any general or special law to the contrary, the health |
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102 | 102 | | 75policy commission, in consultation with the center for health information and analysis, the |
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103 | 103 | | 76executive office of health and human services, and the division of insurance, shall produce |
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104 | 104 | | 77interim and final reports on the accessibility and affordability of COVID-19 vaccines in the |
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105 | 105 | | 78commonwealth and the effects of capping copayments and eliminating deductible and co- |
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106 | 106 | | 79insurance requirements on health care access and system cost. |
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107 | 107 | | 80 The interim and final report shall include, but not be limited to: (i) rates of COVID-19 |
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108 | 108 | | 81vaccine utilization; (ii) an analysis of the use of COVID-19 vaccination, broken down by patient |
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109 | 109 | | 82demographics, geographic region and insurance coverage; (iii) annual plan costs and member |
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110 | 110 | | 83premiums; (iv) the average list price of COVID-19 vaccines, broken down by manufacturer; (v) |
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111 | 111 | | 84the average increase in annual plan costs and member premiums due to vaccine list price |
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112 | 112 | | 85increases; (vi) the impact upon the health care cost growth benchmark; (vii) an analysis of the |
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113 | 113 | | 86impact of eliminating co-payments, deductibles, and co-insurance requirements for COVID-19 |
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114 | 114 | | 87vaccination on patient access to and cost of care by patient demographics and geographic region; |
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115 | 115 | | 88(viii) out-of-pocket costs incurred by uninsured individuals; (ix) additional barriers to accessing |
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116 | 116 | | 89COVID-19 vaccination for uninsured individuals and policy recommendations for resolving such |
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117 | 117 | | 90barriers; (x) federal and state subsidies provided to develop COVID-19 vaccines, broken down |
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118 | 118 | | 91by manufacturer; (xi) current cost to produce each vaccine dose as of January 1, 2023; and (xii) |
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119 | 119 | | 92total profits realized from the COVID-19 vaccine between July 1, 2020 and January 1, 2023, |
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120 | 120 | | 93broken down by manufacturer. The interim report, including any recommendations for |
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121 | 121 | | 94expanding access to COVID-19 vaccination for uninsured individuals, shall be filed with the |
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122 | 122 | | 95clerks of the house of representatives and senate, the joint committee on public health, the joint |
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123 | 123 | | 96committee on health care financing, and the house and senate committees on ways and means not 6 of 6 |
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124 | 124 | | 97later than 9 months after the effective date of this act. The final report, including any |
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125 | 125 | | 98recommendations for expanding access to COVID-19 vaccination for uninsured individuals, |
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126 | 126 | | 99shall be filed with the clerks of the house of representatives and senate, the joint committee on |
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127 | 127 | | 100public health, the joint committee on health care financing, and the house and senate committees |
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128 | 128 | | 101on ways and means not later than 18 months after the effective date of this act. |
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