12 | | - | J5 EMERGENCY BILL (5lr2785) |
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13 | | - | ENROLLED BILL |
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14 | | - | — Health and Government Operations/Finance — |
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15 | | - | Introduced by Delegates S. Johnson and A. Johnson, A. Johnson, Alston, Bagnall, |
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16 | | - | Bhandari, Cullison, Guzzone, Hill, Hutchinson, Kaiser, Kerr, Kipke, Lopez, |
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17 | | - | Martinez, M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Ross, Szeliga, |
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18 | | - | Taveras, White Holland, Woods, and Woorman |
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19 | | - | |
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20 | | - | Read and Examined by Proofreaders: |
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21 | | - | |
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22 | | - | _______________________________________________ |
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23 | | - | Proofreader. |
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24 | | - | _______________________________________________ |
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25 | | - | Proofreader. |
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26 | | - | |
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27 | | - | Sealed with the Great Seal and presented to the Governor, for his approval this |
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28 | | - | |
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29 | | - | _______ day of _______________ at _________________ _______ o’clock, ________M. |
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30 | | - | |
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31 | | - | ______________________________________________ |
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32 | | - | Speaker. |
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| 11 | + | J5 EMERGENCY BILL 5lr2785 |
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| 12 | + | HB 880/24 – HGO CF SB 438 |
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| 13 | + | By: Delegates S. Johnson and A. Johnson, A. Johnson, Alston, Bagnall, Bhandari, |
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| 14 | + | Cullison, Guzzone, Hill, Hutchinson, Kaiser, Kerr, Kipke, Lopez, Martinez, |
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| 15 | + | M. Morgan, Pena–Melnyk, Reilly, Rosenberg, Ross, Szeliga, Taveras, |
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| 16 | + | White Holland, Woods, and Woorman |
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| 17 | + | Introduced and read first time: January 29, 2025 |
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| 18 | + | Assigned to: Health and Government Operations |
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| 19 | + | Committee Report: Favorable with amendments |
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| 20 | + | House action: Adopted |
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| 21 | + | Read second time: March 1, 2025 |
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51 | | - | |
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52 | | - | Department of Health, in consultation with the Prescription Drug Affordability 1 |
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53 | | - | Board, to convene a workgroup to study certain issues related to pharmacy benefits 2 |
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54 | | - | managers and report to certain committees on or before a certain date; and generally 3 |
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55 | | - | relating to pharmacy benefits administration a workgroup to study pharmacy 4 |
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56 | | - | benefits managers. 5 |
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57 | | - | |
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58 | | - | BY repealing and reenacting, with amendments, 6 |
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59 | | - | Article – Health – General 7 |
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60 | | - | Section 15–118(b) 8 |
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61 | | - | Annotated Code of Maryland 9 |
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62 | | - | (2023 Replacement Volume and 2024 Supplement) 10 |
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63 | | - | |
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64 | | - | BY adding to 11 |
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65 | | - | Article – Health – General 12 |
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66 | | - | Section 15–118(f) 13 |
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67 | | - | Annotated Code of Maryland 14 |
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68 | | - | (2023 Replacement Volume and 2024 Supplement) 15 |
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69 | | - | |
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70 | | - | BY repealing and reenacting, with amendments, 16 |
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71 | | - | Article – Insurance 17 |
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72 | | - | Section 15–1601(s) 18 |
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73 | | - | Annotated Code of Maryland 19 |
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74 | | - | (2017 Replacement Volume and 2024 Supplement) 20 |
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75 | | - | |
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76 | | - | BY adding to 21 |
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77 | | - | Article – Insurance 22 |
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78 | | - | Section 15–1632 23 |
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79 | | - | Annotated Code of Maryland 24 |
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80 | | - | (2017 Replacement Volume and 2024 Supplement) 25 |
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81 | | - | |
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82 | | - | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 26 |
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83 | | - | That the Laws of Maryland read as follows: 27 |
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84 | | - | |
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85 | | - | Article – Health – General 28 |
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86 | | - | |
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87 | | - | 15–118. 29 |
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88 | | - | |
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89 | | - | (b) (1) [Except] SUBJECT TO PARAGRAPH (2) OF THIS SUBSECTION A ND 30 |
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90 | | - | EXCEPT as provided under paragraph [(2)] (3) of this subsection, the Program shall 31 |
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91 | | - | establish [maximum] MINIMUM reimbursement levels for the drug products for which 32 |
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92 | | - | there is a generic equivalent authorized under § 12–504 of the Health Occupations Article[, 33 |
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93 | | - | based on the cost of the generic product]. 34 |
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94 | | - | |
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95 | | - | (2) EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS SUBSECTION , 35 |
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96 | | - | MINIMUM REIMBURSEMEN T LEVELS ESTABLISHED UNDER PARAGRAPH (1) OF THIS 36 |
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97 | | - | SUBSECTION SHALL BE AT LEAST EQUAL TO TH E NATIONAL AVERAGE DRUG 37 HOUSE BILL 813 3 |
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98 | | - | |
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99 | | - | |
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100 | | - | ACQUISITION COST OF THE GENERIC P RODUCT PLUS THE FEE –FOR–SERVICE 1 |
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101 | | - | PROFESSIONAL DISPENS ING FEE DETERMINED B Y THE DEPARTMENT IN 2 |
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102 | | - | ACCORDANCE WITH THE MOST RECENT IN –STATE COST–OF–DISPENSING SURVEY . 3 |
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103 | | - | |
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104 | | - | [(2)] (3) [If] EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS 4 |
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105 | | - | SUBSECTION, IF a prescriber directs a specific brand name drug, the reimbursement level 5 |
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106 | | - | shall be based on the [cost] NATIONAL AVERAGE DRUG ACQUISITION COST of the 6 |
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107 | | - | brand name product PLUS THE FEE–FOR–SERVICE PROFESSIONAL DISPENSING FEE 7 |
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108 | | - | DETERMINED BY THE DEPARTMENT IN ACCORDA NCE WITH THE MOST RE CENT 8 |
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109 | | - | IN–STATE COST–OF–DISPENSING SURVEY . 9 |
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110 | | - | |
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111 | | - | (4) PARAGRAPHS (2) AND (3) OF THIS SUBSECTION D O NOT APPLY TO: 10 |
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112 | | - | |
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113 | | - | (I) A PHARMACY OWNED BY OR UNDER THE SAME CORPO RATE 11 |
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114 | | - | AFFILIATION AS A PHA RMACY BENEFI TS MANAGER; OR 12 |
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115 | | - | |
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116 | | - | (II) A MAIL ORDER PHARMACY . 13 |
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117 | | - | |
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118 | | - | (F) THE PROVISIONS OF § 15–1632 OF THE INSURANCE ARTICLE APPLY TO 14 |
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119 | | - | A MANAGED CARE ORGAN IZATION THAT USES A PHARMACY BENEFITS MA NAGER TO 15 |
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120 | | - | MANAGE PRESCRIPTION DRUG COVERAGE BENEFI TS ON BEHALF OF THE MANAGED 16 |
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121 | | - | CARE ORGANIZATION . 17 |
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122 | | - | |
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123 | | - | Article – Insurance 18 |
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124 | | - | |
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125 | | - | 15–1601. 19 |
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126 | | - | |
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127 | | - | (s) (1) “Purchaser” means a person that offers a plan or program in the State, 20 |
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128 | | - | including the State Employee and Retiree Health and Welfare Benefits Program, AN 21 |
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129 | | - | INSURER, A NONPROFIT HEALTH S ERVICE PLAN , OR A HEALTH MAINTENANCE 22 |
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130 | | - | ORGANIZATION , that: 23 |
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131 | | - | |
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132 | | - | [(1)] (I) provides prescription drug coverage or benefits in the State; and 24 |
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133 | | - | |
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134 | | - | [(2)] (II) enters into an agreement with a pharmacy benefits manager for 25 |
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135 | | - | the provision of pharmacy benefits management services. 26 |
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136 | | - | |
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137 | | - | (2) “PURCHASER” DOES NOT INCLUDE A N ONPROFIT HEALTH 27 |
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138 | | - | MAINTENANCE ORGANIZA TION THAT: 28 |
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139 | | - | |
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140 | | - | (I) OPERATES AS A GROUP MODEL; 29 |
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141 | | - | |
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142 | | - | (II) PROVIDES SERVICES SO LELY TO A MEMBER OR PATIENT OF 30 |
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143 | | - | THE NONPROFIT HEALTH MAINTENANCE ORGANIZA TION; AND 31 4 HOUSE BILL 813 |
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| 44 | + | BY repealing and reenacting, with amendments, 17 |
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| 45 | + | Article – Health – General 18 |
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| 46 | + | Section 15–118(b) 19 |
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| 47 | + | Annotated Code of Maryland 20 |
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| 48 | + | (2023 Replacement Volume and 2024 Supplement) 21 2 HOUSE BILL 813 |
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187 | | - | (ii) how other states’ pharmacy benefits services operate in 33 |
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188 | | - | Medicaid, including in Ohio, Kentucky, New York, California, and West Virginia; 34 |
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| 90 | + | [(2)] (3) [If] EXCEPT AS PROVIDED IN PARAGRAPH (4) OF THIS 31 |
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| 91 | + | SUBSECTION, IF a prescriber directs a specific brand name drug, the reimbursement level 32 |
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| 92 | + | shall be based on the [cost] NATIONAL AVERAGE DRUG ACQUISITION COST of the 33 |
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| 93 | + | brand name product PLUS THE FEE–FOR–SERVICE PROFESSIONAL DISPENSING FEE 34 |
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| 94 | + | DETERMINED BY THE DEPARTMENT IN ACC ORDANCE WITH THE MOS T RECENT 35 |
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| 95 | + | IN–STATE COST–OF–DISPENSING SURVEY . 36 |
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| 96 | + | HOUSE BILL 813 3 |
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| 97 | + | |
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| 98 | + | |
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| 99 | + | (4) PARAGRAPHS (2) AND (3) OF THIS SUBSECTION D O NOT APPLY TO: 1 |
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| 100 | + | |
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| 101 | + | (I) A PHARMACY OWNED BY OR UNDER THE SAME CORPO RATE 2 |
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| 102 | + | AFFILIATION AS A PHA RMACY BENEFITS MANAG ER; OR 3 |
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| 103 | + | |
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| 104 | + | (II) A MAIL ORDER PHARMACY. 4 |
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| 105 | + | |
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| 106 | + | (F) THE PROVISIONS OF § 15–1632 OF THE INSURANCE ARTICLE APPLY TO 5 |
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| 107 | + | A MANAGED CARE ORGAN IZATION THAT USES A PHARMACY BENEFITS MA NAGER TO 6 |
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| 108 | + | MANAGE PRESCRIPTION DRUG COVERAGE BENEFI TS ON BEHALF OF THE MANAGED 7 |
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| 109 | + | CARE ORGANIZATION . 8 |
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| 110 | + | |
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| 111 | + | Article – Insurance 9 |
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| 112 | + | |
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| 113 | + | 15–1601. 10 |
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| 114 | + | |
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| 115 | + | (s) (1) “Purchaser” means a person that offers a plan or program in the State, 11 |
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| 116 | + | including the State Employee and Retiree Health and Welfare Benefits Program, AN 12 |
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| 117 | + | INSURER, A NONPROFIT HEALTH S ERVICE PLAN , OR A HEALTH MAINTENA NCE 13 |
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| 118 | + | ORGANIZATION , that: 14 |
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| 119 | + | |
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| 120 | + | [(1)] (I) provides prescription drug coverage or benefits in the State; and 15 |
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| 121 | + | |
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| 122 | + | [(2)] (II) enters into an agreement with a pharmacy benefits manager for 16 |
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| 123 | + | the provision of pharmacy benefits management services. 17 |
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| 124 | + | |
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| 125 | + | (2) “PURCHASER” DOES NOT INCLUDE A NONPROFIT HEALTH 18 |
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| 126 | + | MAINTENANCE ORGANIZA TION THAT: 19 |
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| 127 | + | |
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| 128 | + | (I) OPERATES AS A GROUP MODEL; 20 |
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| 129 | + | |
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| 130 | + | (II) PROVIDES SERVICES SO LELY TO A MEMBER OR PATIENT OF 21 |
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| 131 | + | THE NONPROFIT HEALTH MAINTENANCE ORGANIZA TION; AND 22 |
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| 132 | + | |
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| 133 | + | (III) FURNISHES SERVICES T HROUGH THE INTERNAL PHARMACY 23 |
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| 134 | + | OPERATIONS OF THE NO NPROFIT HEALTH MAINT ENANCE ORGANIZATION . 24 |
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| 135 | + | |
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| 136 | + | 15–1632. 25 |
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| 137 | + | |
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| 138 | + | A PHARMACY BENEFITS MA NAGER THAT CONTRACTS WITH A PHARMACY ON 26 |
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| 139 | + | BEHALF OF A MANAGED CARE ORGANIZATION , AS DEFINED IN § 15–101 OF THE 27 |
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| 140 | + | HEALTH – GENERAL ARTICLE, SHALL REIMBURSE THE PHARMACY AN AMOUNT 28 |
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| 141 | + | THAT IS AT LEAST EQU AL TO THE NATIONAL AVERAGE DRUG ACQUISITION COST 29 |
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| 142 | + | PLUS THE FEE–FOR–SERVICE PROFESSIONAL DISPENSING FEE DETER MINED BY THE 30 |
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| 143 | + | MARYLAND DEPARTMENT OF HEALTH FOR THE MARYLAND MEDICAL ASSISTANCE 31 4 HOUSE BILL 813 |
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| 144 | + | |
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| 145 | + | |
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| 146 | + | PROGRAM IN ACCORDANCE WITH THE MOST RECENT IN –STATE 1 |
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| 147 | + | COST–OF–DISPENSING SURVEY . 2 |
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| 148 | + | |
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| 149 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act is an emergency 3 |
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| 150 | + | measure, is necessary for the immediate preservation of the public health or safety, has 4 |
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| 151 | + | been passed by a yea and nay vote supported by three–fifths of all the members elected to 5 |
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| 152 | + | each of the two Houses of the General Assembly, and shall take effect from the date it is 6 |
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| 153 | + | enacted. 7 |
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| 154 | + | |
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| 155 | + | SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF MARYLAND, 8 |
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| 156 | + | That the Maryland Insurance Administration and the Maryland Department of Health 9 |
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| 157 | + | shall: 10 |
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| 158 | + | |
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| 159 | + | (1) convene a workgroup of interested stakeholders, including community 11 |
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| 160 | + | pharmacies from both chain and independent settings, pharmacy services administrative 12 |
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| 161 | + | organizations, pharmacists, pharmacy benefits managers, and managed care organizations 13 |
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| 162 | + | and third–party experts in the field of drug pricing in Medicaid; 14 |
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| 163 | + | |
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| 164 | + | (2) review reimbursement for pharmacists, including: 15 |
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| 165 | + | |
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| 166 | + | (i) existing Maryland Medical Assistance Program requirements for 16 |
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| 167 | + | pharmacy benefits managers and managed care organizations related to dispensing fee 17 |
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| 168 | + | reimbursement, pharmacy benefits managers fees charged to pharmacies and the 18 |
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| 169 | + | Maryland Medical Assistance Program, transparency in pricing and reimbursement data, 19 |
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| 170 | + | specialty drug designations, and appeals processes; 20 |
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| 171 | + | |
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| 172 | + | (ii) how other states’ pharmacy benefits services operate in 21 |
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| 173 | + | Medicaid, including in Ohio, Kentucky, New York, California, and West Virginia; 22 |
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| 174 | + | |
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| 175 | + | (iii) measures that offset the Department’s costs to fund the Medicaid 23 |
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| 176 | + | Managed Care Program and adop t NADAC plus the Fee–for–Service Professional 24 |
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| 177 | + | Dispensing, including: 25 |
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| 178 | + | |
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| 179 | + | 1. savings associated with NADAC ingredient cost pricing 26 |
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| 180 | + | and managed care organizations; and 27 |
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| 181 | + | |
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| 182 | + | 2. pharmacy benefits managers administrative fee 28 |
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| 183 | + | consolidation and rebate allocations; and 29 |
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| 184 | + | |
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| 185 | + | (iv) strategies for adopting pharmacy reimbursement parity and 30 |
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| 186 | + | drug pricing transparency; 31 |
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| 187 | + | |
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| 188 | + | (3) review coverage requirements for specialty drugs, including: 32 |
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| 189 | + | |
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| 190 | + | (i) which drugs are considered specialty for purposes of formularies 33 |
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| 191 | + | across carriers and pharmacy benefits managers; and 34 |
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213 | | - | (4) review ERISA exemptions for pharmacy benefits management 15 |
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214 | | - | regulation, including: 16 |
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215 | | - | |
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216 | | - | (i) the scope of Rutledge v. Pharmaceutical Care Management 17 |
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217 | | - | Association and subsequent case law and federal guidance; 18 |
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218 | | - | |
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219 | | - | (ii) how other states have responded to the Rutledge decision; and 19 |
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220 | | - | |
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221 | | - | (iii) what, if any, other State laws should be amended; 20 |
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222 | | - | |
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223 | | - | (5) review the costs associated with pharmacies contracting with 21 |
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224 | | - | commercial plans versus pharmacies contracting with the Maryland Medical Assistance 22 |
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225 | | - | Program; 23 |
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226 | | - | |
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227 | | - | (6) review provisions of State law regarding pharmacy benefit managers, 24 |
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228 | | - | specialty pharmacies, and anti–steering, including: 25 |
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229 | | - | |
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230 | | - | (i) § 15–1611.1 of the Insurance Article related to the use of specific 26 |
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231 | | - | pharmacies or entities and the effect the section has on pharmacy costs in the fully insured 27 |
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232 | | - | market; and 28 |
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233 | | - | |
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234 | | - | (ii) § 15–1612 of the Insurance Article related to reimbursement and 29 |
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235 | | - | the effect the section has on pharmacy costs in the fully insured market; 30 |
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236 | | - | |
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237 | | - | (5) (7) on or before December 31, 2025, submit an interim report on their 31 |
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238 | | - | findings and recommendations to the Senate Finance Committee and the House Health 32 6 HOUSE BILL 813 |
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239 | | - | |
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240 | | - | |
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241 | | - | and Government Operations Committee, in accordance with § 2 –1257 of the State 1 |
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242 | | - | Government Article; and 2 |
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243 | | - | |
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244 | | - | (6) (8) on or before December 31, 2026, submit a final report on their findings 3 |
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245 | | - | and recommendations to the Senate Finance Comm ittee and the House Health and 4 |
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246 | | - | Government Operations Committee, in accordance with § 2–1257 of the State Government 5 |
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247 | | - | Article. 6 |
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248 | | - | |
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249 | | - | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 7 |
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250 | | - | 1, 2025. 8 |
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| 218 | + | SECTION 2. AND BE IT FURTHER ENACTED, That this Act shall take effect June 17 |
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| 219 | + | 1, 2025. 18 |
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