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2 | 2 | | SENATE DOCKET, NO. 2318 FILED ON: 1/17/2025 |
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3 | 3 | | SENATE . . . . . . . . . . . . . . No. 848 |
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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 | | John J. Cronin |
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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 relating to covered entity reporting to increase accountability to safeguard benefit for |
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13 | 13 | | vulnerable patients. |
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14 | 14 | | _______________ |
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15 | 15 | | PETITION OF: |
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16 | 16 | | NAME:DISTRICT/ADDRESS :John J. CroninWorcester and Middlesex 1 of 4 |
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17 | 17 | | SENATE DOCKET, NO. 2318 FILED ON: 1/17/2025 |
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18 | 18 | | SENATE . . . . . . . . . . . . . . No. 848 |
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19 | 19 | | By Mr. Cronin, a petition (accompanied by bill, Senate, No. 848) of John J. Cronin for |
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20 | 20 | | legislation to require all covered entities to file an annual report to the Center for Health |
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21 | 21 | | Information and Analysis to increase accountability to safeguard benefit for vulnerable patients. |
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22 | 22 | | Health Care Financing. |
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23 | 23 | | The Commonwealth of Massachusetts |
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24 | 24 | | _______________ |
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25 | 25 | | In the One Hundred and Ninety-Fourth General Court |
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26 | 26 | | (2025-2026) |
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27 | 27 | | _______________ |
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28 | 28 | | An Act relating to covered entity reporting to increase accountability to safeguard benefit for |
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29 | 29 | | vulnerable patients. |
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30 | 30 | | Be it enacted by the Senate and House of Representatives in General Court assembled, and by the authority |
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31 | 31 | | of the same, as follows: |
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32 | 32 | | 1 SECTION 1. Chapter 12C of the General laws is hereby amended by inserting after |
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33 | 33 | | 2section 9, the following new section:- |
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34 | 34 | | 3 Section 9A. |
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35 | 35 | | 4 (a) DEFINITIONS. For the purposes of this section: |
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36 | 36 | | 5 (1) “340B program,” means the federal drug pricing program described in 42 U.S.C. |
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37 | 37 | | 6256b. |
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38 | 38 | | 7 (2) “Center for Health Information and Analysis,” the center established by the |
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39 | 39 | | 8provisions of section 2 of this chapter. |
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40 | 40 | | 9 (3) “Charity care,” the term in line 23 of worksheet S–10 to the Medicare cost report or in |
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41 | 41 | | 10any successor form. 2 of 4 |
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42 | 42 | | 11 (4) “Contract pharmacy,” a pharmacy with which a covered entity has contracted to |
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43 | 43 | | 12dispense covered outpatient drugs on behalf of the covered entity to patients of the covered |
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44 | 44 | | 13entity, whether distributed in person, via mail, or by other means. |
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45 | 45 | | 14 (5) “Covered entity,” a covered entity as defined in 42 U.S.C. 256b(a)(4). |
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46 | 46 | | 15 (6) “Covered outpatient drug,” a covered outpatient drug, as defined in 42 U.S.C. 1396r- |
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47 | 47 | | 168(k)(2), that has been subject to any offer for reduced prices by a manufacturer pursuant to 42 |
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48 | 48 | | 17U.S.C. 256(b)(a)(1), and is purchased by a covered entity. |
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49 | 49 | | 18 (b) Beginning on [April 1, 2026], each covered entity shall annually report to the Center |
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50 | 50 | | 19for Health Information and Analysis, in a form and manner determined by the center, the |
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51 | 51 | | 20following information about the prior year regarding the covered entity and each offsite |
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52 | 52 | | 21outpatient facility associated with the covered entity: |
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53 | 53 | | 22 (1) Delineated by form of insurance or payor type, including but not limited to Medicaid, |
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54 | 54 | | 23Medicare, commercial insurance, and uninsured: |
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55 | 55 | | 24 (i) Aggregate acquisition cost paid for all covered outpatient drugs; |
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56 | 56 | | 25 (ii) Aggregated payments received by insurers or payors for all covered outpatient drugs; |
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57 | 57 | | 26and |
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58 | 58 | | 27 (iii) Total number of prescriptions and percentage of the covered entity’s prescriptions |
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59 | 59 | | 28that were filled with covered outpatient drugs; |
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60 | 60 | | 29 (2) Total operating costs of the covered entity, including itemized costs for: 3 of 4 |
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61 | 61 | | 30 (i) Implementing direct pass through of 340B program discounts to patients of the |
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62 | 62 | | 31covered entity in the form of lower cost sharing for covered outpatient drugs at the point of |
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63 | 63 | | 32dispensing or administration; |
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64 | 64 | | 33 (ii) Implementing a sliding fee scale for covered outpatient drugs at the point of sale for |
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65 | 65 | | 34patients with incomes less than 200% of the Federal Poverty Guidelines; and |
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66 | 66 | | 35 (iii) Charity care; |
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67 | 67 | | 36 (3) Total payments made by the covered entity or any agent of the covered entity to: |
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68 | 68 | | 37 (i) Contract pharmacies for 340B program-related services and other functions; |
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69 | 69 | | 38 (ii) Third-party administrators for managing any components of the covered entity’s |
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70 | 70 | | 39340B program; and |
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71 | 71 | | 40 (iii) Any other third parties in connection with 340B program-related compliance, legal, |
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72 | 72 | | 41educational, and/or administrative costs; |
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73 | 73 | | 42 (4) Total number of contract pharmacies, and: |
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74 | 74 | | 43 (i) Number of contract pharmacies located out-of-state and the states in which such out- |
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75 | 75 | | 44of-state contract pharmacies are located; |
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76 | 76 | | 45 (ii) Total number of prescriptions and orders for covered outpatient drugs filled by the |
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77 | 77 | | 46covered entity and by each offsite outpatient facility associated with the covered entity, and the |
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78 | 78 | | 47percentage of such prescriptions or orders that were filled at contract pharmacies, delineated by |
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79 | 79 | | 48in-state and out-of-state contract pharmacies; 4 of 4 |
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80 | 80 | | 49 (iii) Total remuneration paid to or retained by contract pharmacies or their affiliates for |
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81 | 81 | | 50any 340B program-related services performed on behalf of the covered entity and each offsite |
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82 | 82 | | 51outpatient facility associated with the covered entity; and |
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83 | 83 | | 52 (iv) The percentage change in remuneration described in subsection [(b)(4)(iii)] for the |
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84 | 84 | | 53prior year compared to the year before that. |
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85 | 85 | | 54 (c) An officer of the covered entity shall certify the completeness and accuracy of the |
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86 | 86 | | 55report submitted pursuant to subsection (b). |
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87 | 87 | | 56 (d) The Center for Health Information and Analysis post all reports submitted by covered |
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88 | 88 | | 57entities pursuant to subsection (b) on a publicly accessibly website. |
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89 | 89 | | 58 SECTION 2. This act shall take effect upon its passage. |
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