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3 | + | ENGR. S. A. TO ENGR. H. B. NO. 2677 Page 1 1 | |
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28 | + | ENGROSSED SENATE AMENDMENTS | |
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30 | + | ENGROSSED HOUSE | |
5 | 31 | BILL NO. 2677 By: Marti, Caldwell (Trey), | |
6 | 32 | Fugate, West (Tammy), | |
7 | 33 | Dollens, Davis and Sneed of | |
8 | 34 | the House | |
9 | 35 | ||
10 | 36 | and | |
11 | 37 | ||
12 | - | McCortney | |
13 | - | ||
38 | + | McCortney of the Senate | |
39 | + | ||
14 | 40 | ||
15 | 41 | ||
16 | 42 | ||
17 | 43 | ||
18 | 44 | An Act relating to professions and occupations ; | |
19 | 45 | amending 59 O.S. 2011, Section 356.2, which relates | |
20 | 46 | to the Pharmacy Audit Integrity Act ; modifying and | |
21 | 47 | expanding duties; prohibiting certain audits; | |
22 | 48 | providing for discrepancies; requiring acceptance of | |
23 | 49 | certain evidence; requiring provision of certain | |
24 | 50 | documents within specifi ed time; providing audit | |
25 | 51 | requirements; modifying number of prescriptions to be | |
26 | 52 | audited; requiring invoices; modifying audit report | |
27 | 53 | time periods; eliminating certain withholdings; | |
28 | 54 | amending 59 O.S. 2011, Section 356.3, which relates | |
29 | 55 | to appeals process; clari fying when certain findings | |
30 | 56 | are to be referred to the district attorney; | |
31 | - | clarifying scope of application; amending Section | |
57 | + | clarifying scope of application; amending Section 3, | |
32 | 58 | Chapter 263, O.S.L. 2014 (59 O.S. Supp. 2020 , Section | |
33 | - | 358), which relates to pharmacy benefits management ; | |
34 | - | modifying reference; amending Section 3, Chapter 263, | |
35 | - | O.S.L. 2014 (59 O.S. Supp. 2020 , Section 359), which | |
36 | - | relates to information to be provided by pharmacy | |
37 | - | benefits manager; removing exceptions; amending | |
38 | - | Section 4, Chapter 263, O.S.L. 2014, as amended by | |
39 | - | Section 8, Chapter 285, O.S.L. 2016 (59 O.S. Supp. | |
40 | - | 2020, Section 360), which relates to contractual | |
41 | - | duties to providers; modifying reimbursement | |
42 | - | procedure; prohibiting placement of drugs on certain | |
43 | - | list, with exceptions; modifying accreditation or | |
44 | - | licensing requirement; allowing certain entities to | |
45 | - | decline to provide services; requiring prov ision of | |
46 | - | certain information; and declaring an emergency . | |
59 | + | 359), which relates to information to be provided by | |
60 | + | pharmacy benefits manag er; removing exceptions; | |
61 | + | amending Section 4, Chapter 263, O.S.L. 2014, as | |
62 | + | amended by Section 8, Chapter 285, O.S.L. 2016 (59 | |
63 | + | O.S. Supp. 2020, Section 360), which relates to | |
64 | + | contractual duties to providers; modifying | |
65 | + | reimbursement procedure; prohibiting pla cement of | |
66 | + | drugs on certain list, with exceptions; modifying | |
67 | + | accreditation or licensing requirement; allowing | |
68 | + | certain entities to decline to provide services; | |
69 | + | requiring provision of certain information; and | |
70 | + | declaring an emergency . | |
47 | 71 | ||
48 | - | ENR. H. B. NO. 2677 Page 2 | |
49 | - | SUBJECT: Professions and occupations | |
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101 | + | AUTHOR: Add the following Senate Coauthors: Bergstrom and Garvin | |
102 | + | ||
103 | + | AMENDMENT NO. 1. Page 8, line 22, delete after the number “5” and | |
104 | + | before the word “not”, the word “May” | |
105 | + | ||
106 | + | ||
107 | + | AMENDMENT NO. 2. Page 11, line 1 1/2, insert a new Section 3 to | |
108 | + | read | |
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110 | + | ||
111 | + | “SECTION 3. AMENDATORY Sec tion 2, Chapter 263, O.S.L. | |
112 | + | 2014 (59 O.S. Supp. 2020, Section 358), is amended to read as | |
113 | + | follows: | |
114 | + | ||
115 | + | Section 358. A. In order to provide pharmacy benefits | |
116 | + | management or any of the services included under the definition of | |
117 | + | pharmacy benefits management in t his state, a pharmacy benefits | |
118 | + | manager or any entity acting as one in a contractual or employment | |
119 | + | relationship for a covered entity shall first obtain a license from | |
120 | + | the Oklahoma Insurance Department, and the Department may charge a | |
121 | + | fee for such licensure. | |
122 | + | B. The Department shall establish, by regulation, licensure | |
123 | + | procedures, required disclosures for pharmacy benefits managers | |
124 | + | (PBMs) and other rules as may be necessary for carrying out and | |
125 | + | enforcing the provisions of this act. The licensure procedures | |
126 | + | shall, at a minimum, include the completion of an application form | |
127 | + | that shall include the name and address of an agent for service of | |
128 | + | process, the payment of a requisite fee, and evidence of the | |
129 | + | procurement of a surety bond. | |
130 | + | C. The Department may subpoena w itnesses and information. Its | |
131 | + | compliance officers may take and copy records for investigative use | |
132 | + | and prosecutions. Nothing in this subsection shall limit the Office | |
133 | + | of the Attorney General from using its investigative demand | |
134 | + | authority to investigate and prosecute violations of the law. | |
135 | + | D. The Department may suspend, revoke or refuse to issue or | |
136 | + | renew a license for noncompliance with any of the provisions hereby | |
137 | + | established or with the rules promulgated by the Department; for | |
138 | + | conduct likely to mislead, d eceive or defraud the public or the | |
139 | + | Department; for unfair or deceptive business practices or for | |
140 | + | nonpayment of a renewal fee or fine. The Department may also levy | |
141 | + | administrative fines for each count of which a licensee PBM has been | |
142 | + | convicted in a Departm ent hearing.” | |
143 | + | ||
144 | + | and renumber subsequent sections | |
145 | + | ||
146 | + | and amend the title to conform | |
147 | + | ||
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173 | + | Passed the Senate the 22nd day of April, 2021. | |
174 | + | ||
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176 | + | ||
177 | + | Presiding Officer of the Senate | |
178 | + | ||
179 | + | ||
180 | + | Passed the House of Representatives the ____ day of __________, | |
181 | + | 2021. | |
182 | + | ||
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185 | + | Presiding Officer of the House | |
186 | + | of Representatives | |
187 | + | ||
188 | + | ENGR. H. B. NO. 2677 Page 1 1 | |
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213 | + | ENGROSSED HOUSE | |
214 | + | BILL NO. 2677 By: Marti, Caldwell (Trey), | |
215 | + | Fugate, West (Tammy), | |
216 | + | Dollens, Davis and Sneed of | |
217 | + | the House | |
218 | + | ||
219 | + | and | |
220 | + | ||
221 | + | McCortney of the Senate | |
222 | + | ||
223 | + | ||
224 | + | ||
225 | + | ||
226 | + | ||
227 | + | An Act relating to professions and occupations ; | |
228 | + | amending 59 O.S. 2011, Section 356.2, which relates | |
229 | + | to the Pharmacy Audit Integrity Act ; modifying and | |
230 | + | expanding duties; prohibiting certain audits; | |
231 | + | providing for discrepancies; requiring acceptance of | |
232 | + | certain evidence; requiring provision of certain | |
233 | + | documents within specified time; providing audit | |
234 | + | requirements; modifying number of prescriptions to be | |
235 | + | audited; requiring invoices; modifying audit report | |
236 | + | time periods; eliminating certain withholdings; | |
237 | + | amending 59 O.S. 2011, Section 356.3, which relates | |
238 | + | to appeals process; clarifying when certain findings | |
239 | + | are to be referred to the district attorney; | |
240 | + | clarifying scope of application; amending Section 3, | |
241 | + | Chapter 263, O.S.L. 2014 (59 O.S. Supp. 2020 , Section | |
242 | + | 359), which relates to information to be provided by | |
243 | + | pharmacy benefits manager; removing exceptions; | |
244 | + | amending Section 4, Chapter 263, O.S.L. 2014, as | |
245 | + | amended by Section 8, Chapter 285, O.S.L. 2016 (59 | |
246 | + | O.S. Supp. 2020, Section 360), which relates to | |
247 | + | contractual duties to providers; modifying | |
248 | + | reimbursement procedure; prohibit ing placement of | |
249 | + | drugs on certain list, with exceptions; modifying | |
250 | + | accreditation or licensing requirement; allowing | |
251 | + | certain entities to decline to provide services; | |
252 | + | requiring provision of certain information; and | |
253 | + | declaring an emergency . | |
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50 | 258 | ||
51 | 259 | BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA: | |
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52 | 286 | SECTION 1. AMENDATORY 59 O.S. 2011, Section 356.2, is | |
53 | 287 | amended to read as follows: | |
54 | - | ||
55 | 288 | Section 356.2 A. The entity conducting an audit of a pharmacy | |
56 | 289 | shall: | |
57 | - | ||
58 | 290 | 1. Identify and specifically describe the audit and appeal | |
59 | 291 | procedures in the pharmacy contract. Unless otherwise agreed to in | |
60 | 292 | contract by both parties, prescription Prescription claim | |
61 | 293 | documentation and record -keeping requirements shall not exceed the | |
62 | 294 | requirements set forth by the Oklahoma P harmacy Act or other | |
63 | 295 | applicable state or federal laws or regulations; | |
64 | - | ||
65 | 296 | 2. For an on-site audit, give Give the pharmacy written notice | |
66 | 297 | by certified letter to the pharmacy and the pharmacy's contracting | |
67 | 298 | agent, including identification of specific prescription numbers and | |
68 | 299 | fill dates to be audited, at least two (2) weeks prior to conducting | |
69 | 300 | the on-site audit, including, but not limited to, an on -site audit, | |
70 | 301 | a desk audit, or a wholesale purchase audit, request for | |
71 | 302 | documentation related to the dispensing of a pre scription drug or | |
72 | 303 | any reimbursed activity by a pharmacy provider ; provided, however, | |
73 | 304 | that wholesale purchase audits shall require a minimum of thirty | |
74 | - | (30) days | |
305 | + | (30) days written notice . The pharmacy shall have the opportunity | |
75 | 306 | to reschedule the audit no more than se ven (7) days from the date | |
76 | 307 | designated on the original audit notification; | |
77 | - | ||
78 | 308 | 3. For an on-site audit, not Not interfere with the delivery of | |
79 | 309 | pharmacist services to a patient and shall utilize every reasonable | |
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80 | 336 | effort to minimize inconvenience and disruption t o pharmacy | |
81 | 337 | operations during the audit process; | |
82 | - | ||
83 | 338 | 4. Conduct any audit involving clinical or professional | |
84 | 339 | judgment by means of or in consultation with a licensed pharmacist; | |
85 | - | ||
86 | 340 | 5. Not consider as fraud any clerical or record -keeping error, | |
87 | 341 | such as a typographical error, scrivener's error , or computer error | |
88 | 342 | regarding a required document or record; however, including, but not | |
89 | 343 | limited to, a miscalculated day supply , incorrectly billed | |
90 | 344 | prescription written date or prescription origin code, and such | |
91 | 345 | errors may shall not be subject to recoupment. The pharmacy shall | |
92 | - | have the right to submit amended claims electronically to correct | |
346 | + | have the right to submit amended claims electronically to correct | |
93 | 347 | clerical or record-keeping errors in lieu of recoupment , provided | |
94 | 348 | that the prescription was dispensed according to prescription | |
95 | 349 | documentation requirements set forth by the Oklahoma Pharmacy Act . | |
96 | 350 | To the extent that an audit results in the identification of any | |
97 | 351 | clerical or record-keeping errors such as typographical errors, | |
98 | 352 | scrivener's errors or computer errors in a required document or | |
99 | 353 | record, the pharmacy shall not be subject to recoupment of funds by | |
100 | 354 | the pharmacy benefits manager unless the pharmacy benefits manager | |
101 | 355 | can provide proof of intent to commit fraud or such error results in | |
102 | 356 | actual financial harm to the pharmacy benefits manager, a health | |
103 | 357 | insurance plan managed by the pharmacy benefits manager or a | |
104 | 358 | consumer. A person shall not be subject to criminal penalties for | |
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105 | 385 | errors provided for in this paragraph without proof of intent to | |
106 | 386 | commit fraud; | |
107 | - | ||
108 | 387 | 6. Permit a pharmacy to use the records of a hospital, | |
109 | 388 | physician, or other authorized practitioner of the healing arts for | |
110 | 389 | drugs or medicinal supplies written or transmitted by any means of | |
111 | 390 | communication for purposes of validating the pharmacy record with | |
112 | 391 | respect to orders or refills of a legend or narcotic drug; | |
113 | - | ||
114 | 392 | 7. Base a finding of an overpayment or underpayment on a | |
115 | 393 | projection based on the number of patients served having similar | |
116 | 394 | diagnoses or on the number of similar orders or refills for similar | |
117 | 395 | drugs; provided, recoupment of claims shall be based on the actual | |
118 | 396 | overpayment or underpayment of each identified claim. A projection | |
119 | 397 | for overpayment or underpayment may be used to determine recoupment | |
120 | 398 | as part of a settlement as agreed to by the pharmacy; | |
121 | - | ||
122 | 399 | 8. Not include the dispensing fee amount or the actual invoice | |
123 | 400 | cost of the prescription dispensed in a finding of an overpayment | |
124 | 401 | audit recoupment unless a prescription was not actually dispensed or | |
125 | 402 | a physician denied authorization or as otherwise agreed to by | |
126 | 403 | contract of a dispensing order ; | |
127 | - | ||
128 | 404 | 9. 8. Audit each pharmacy under the same identical standards, | |
129 | 405 | regularity and parameters as other similarly situated pharmacies | |
130 | 406 | audited by the entity and all pharmacies owned or managed by the | |
131 | 407 | pharmacy benefits manager conducting or having conducted the audit ; | |
132 | 408 | ||
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133 | 434 | 10. 9. Not exceed two (2) years one (1) year from the date the | |
134 | 435 | claim was submitted to or adjudicated by a managed care company, | |
135 | 436 | nonprofit hospital or medical service organization, insurance | |
136 | 437 | company, third-party payor, pharmacy benefits manager, a health | |
137 | - | program administered by a department of this state, or any entity | |
438 | + | program administered by a department of this state, or any entity | |
138 | 439 | that represents the companies, groups, or departments for the period | |
139 | 440 | covered by an audit; | |
140 | - | ||
141 | 441 | 11. 10. Not schedule or initiate an audit during the first | |
142 | 442 | seven (7) calendar days of any month due to the high volume of | |
143 | 443 | prescriptions filled in the pharmacy during that time unless | |
144 | 444 | otherwise consented to by the pharmacy; and | |
145 | - | ||
146 | 445 | 12. 11. Disclose to any plan sponsor whose claims were included | |
147 | 446 | in the audit any money recouped in the audit ; and | |
148 | - | ||
149 | 447 | 12. Not require pharmacists to break open packaging labeled | |
150 | 448 | "for single-patient-use only". Packaging labeled "for single - | |
151 | 449 | patient-use only" shall be deemed to be the smallest package size | |
152 | 450 | available. | |
153 | - | ||
154 | 451 | B. 1. Any entity that conducts wholesale purchase review | |
155 | 452 | during an audit of a pharmacist or pharmacy shall not require the | |
156 | 453 | pharmacist or pharmacy to provide a full dispensing report. | |
157 | 454 | Wholesaler invoice reviews shall be limited to verification of | |
158 | 455 | purchase inventory specific to the pharmacy claims paid by the | |
159 | 456 | health benefits plan or pharmacy benefits manager conducting the | |
160 | 457 | audit. | |
161 | 458 | ||
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162 | 484 | 2. Any entity conducting an audit shall not identify or label a | |
163 | 485 | prescription claim as an audit discrepancy when: | |
164 | - | ||
165 | 486 | a. the National Drug Code for the dispensed drug is in a | |
166 | 487 | quantity that is a subunit or multiple of the drug | |
167 | 488 | purchased by the pharmacist or pharmacy as supported | |
168 | 489 | by a wholesale invoice, | |
169 | - | ||
170 | 490 | b. the pharmacist or pharmacy dispensed the correct | |
171 | 491 | quantity of the drug according to the prescription, | |
172 | 492 | and | |
173 | - | ||
174 | 493 | c. the drug dispensed by the pharmacist or pharmac y | |
175 | 494 | shares all but the last two digits of the National | |
176 | 495 | Drug Code of the drug reflected on the supplier | |
177 | 496 | invoice. | |
178 | - | ||
179 | 497 | 3. An entity conducting an audit shall accept as evidence, | |
180 | 498 | subject to validation, to support the validity of a pharmacy claim | |
181 | 499 | related to a dispensed drug: | |
182 | - | ENR. H. B. NO. 2677 Page 5 | |
183 | 500 | a. redacted copies of supplier invoices in the | |
184 | 501 | pharmacist's or pharmacy's possession, or | |
185 | - | ||
186 | 502 | b. invoices and any supporting documents from any | |
187 | 503 | supplier as authorized by federal or state law to | |
188 | 504 | transfer ownership of the drug acquired by the | |
189 | 505 | pharmacist or pharmacy. | |
190 | - | ||
191 | 506 | 4. An entity conducting an audit shall provide, no later than | |
192 | 507 | five (5) business days after the date of a request by the pharmacist | |
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193 | 534 | or pharmacy, all supporting documents the pharmacist's or pharmacy's | |
194 | 535 | purchase suppliers provided to the health benefits plan issuer or | |
195 | 536 | pharmacy benefits manager. | |
196 | - | ||
197 | 537 | C. A pharmacy may shall be allowed to provide the pharmacy's | |
198 | 538 | computerized patterned medical records or the records of a hospital, | |
199 | 539 | physician, or other authorized practitioner of the healing arts for | |
200 | 540 | drugs or medicinal supplies written or transmitted by any means of | |
201 | 541 | communication for purposes of supporting the pharmacy record with | |
202 | 542 | respect to orders or refills of a legend or narcotic drug. | |
203 | - | ||
204 | 543 | C. D. The entity conducting the audit shall not audit more than | |
205 | 544 | seventy-five (75) fifty prescriptions, with specific date of | |
206 | 545 | service, per initial audit calendar year. The annual limit to the | |
207 | 546 | number of prescription claims audited shall be inclusive of all | |
208 | 547 | audits, including any prescription -related documentation requests | |
209 | 548 | from the health insurer, pharmacy benefits manager or any third - | |
210 | 549 | party company conducting audits on behalf of any health insurer or | |
211 | 550 | pharmacy benefits manager during a calendar year . | |
212 | - | ||
213 | 551 | D. E. If paper copies of records are requested by the entity | |
214 | 552 | conducting the audit, the entity shall pay twenty -five cents ($0.25) | |
215 | 553 | per page to cover the costs incurred by the pharmacy. The entity | |
216 | 554 | conducting the audit shall provide the pharmacy with accurate | |
217 | 555 | instructions, including any required form for obtaining | |
218 | 556 | reimbursement for the copied records. | |
219 | 557 | ||
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220 | 583 | E. F. The entity conducting the audit shall provide the | |
221 | 584 | pharmacy with a written report of the audit and shall : | |
222 | - | ||
223 | 585 | 1. Deliver a preliminary audit findings report to the pharmacy | |
224 | 586 | and the pharmacy's contracting agent within ninety (90) forty-five | |
225 | 587 | (45) calendar days after conclusion of conducting the audit; | |
226 | - | ENR. H. B. NO. 2677 Page 6 | |
227 | 588 | 2. Allow the pharmacy at least sixty (60) ninety (90) calendar | |
228 | 589 | days following receipt of the preliminary audit findings report in | |
229 | 590 | which to produce documentation to address any discrepan cy found | |
230 | 591 | during the audit; provided, however, a pharmacy may request an | |
231 | 592 | extension, not to exceed an additional sixty (60) forty-five (45) | |
232 | 593 | calendar days; | |
233 | - | ||
234 | 594 | 3. Deliver a final audit findings report to the pharmacy and | |
235 | 595 | the pharmacy's contracting agent signed by the auditor within one | |
236 | 596 | hundred twenty (120) ten (10) calendar days after receipt of the | |
237 | 597 | preliminary audit report or final appeal additional documentation | |
238 | 598 | provided by the pharmacy , as provided for in Section 356.3 of this | |
239 | 599 | title, whichever is later ; | |
240 | - | ||
241 | 600 | 4. Recoup Allow the pharmacy to reverse and resubmit claims | |
242 | 601 | electronically within thirty (30) days of receipt of the final audit | |
243 | 602 | report in lieu of the auditing entity recouping discrepant claim | |
244 | 603 | amounts from the pharmacy ; | |
245 | - | ||
246 | - | 5. Not recoup any disputed funds until after final internal | |
604 | + | 5. May not recoup any disputed funds until after final internal | |
247 | 605 | disposition of the audit findings, including the appeals process as | |
248 | 606 | provided for in Section 356.3 of this title . Unless otherwise | |
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249 | 633 | agreed by the parties, future payments to the pharmacy may be | |
250 | 634 | withheld pending finalization of the a udit should the identified | |
251 | 635 | discrepancy exceed Twenty -five Thousand Dollars ($25,000.00) ; and | |
252 | - | ||
253 | 636 | 5. 6. Not accrue interest during the audit and appeal period. | |
254 | - | ||
255 | 637 | F. G. Each entity conducting an audit shall provide a copy of | |
256 | 638 | the final audit results, and a final audit report upon request, | |
257 | 639 | after completion of any review process to the plan sponsor. | |
258 | - | ||
259 | 640 | G. H. 1. The full amount of any recoupment on an on-site audit | |
260 | 641 | shall be refunded to the plan sponsor. Except as provided for in | |
261 | 642 | paragraph 2 of this subsection, a char ge or assessment for an audit | |
262 | 643 | shall not be based, directly or indirectly, on amounts recouped. | |
263 | - | ||
264 | 644 | 2. This subsection does not prevent the entity conducting the | |
265 | 645 | audit from charging or assessing the responsible party, directly or | |
266 | 646 | indirectly, based on amounts r ecouped if both of the following | |
267 | 647 | conditions are met: | |
268 | - | ||
269 | 648 | a. the plan sponsor and the entity conducting the audit | |
270 | 649 | have a contract that explicitly states the percentage | |
271 | - | charge or assessment to the plan sponsor, and ENR. H. B. NO. 2677 Page 7 | |
272 | - | ||
650 | + | charge or assessment to the plan sponsor, and | |
273 | 651 | b. a commission to an agent or employee of the entity | |
274 | 652 | conducting the audit is not based, directly or | |
275 | 653 | indirectly, on amounts recouped. | |
276 | - | ||
277 | 654 | H. I. Unless superseded by state or federal law, auditors shall | |
278 | 655 | only have access to previous audit reports on a particular pharmacy | |
279 | 656 | conducted by the auditing entity for the same pharmacy benefits | |
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280 | 683 | manager, health plan or insurer. An auditing vendor contracting | |
281 | 684 | with multiple pharmacy benefits managers or health insurance plans | |
282 | 685 | shall not use audit reports or other information gained from an | |
283 | 686 | audit on a particular pharmacy to conduct another audit for a | |
284 | 687 | different pharmacy benefits manager or health insurance plan. | |
285 | - | ||
286 | 688 | SECTION 2. AMENDATORY 59 O.S. 2011, Section 356.3, is | |
287 | 689 | amended to read as follows: | |
288 | - | ||
289 | 690 | Section 356.3 A. Each entity conducting an audit shall | |
290 | 691 | establish a written appeals process under which a pharmacy may | |
291 | 692 | appeal an unfavorable preliminary audit report and/or final audit | |
292 | 693 | report to the entity. | |
293 | - | ||
294 | 694 | B. Following an appeal, if the entity finds that an unfavorable | |
295 | 695 | audit report or any portion thereof is unsubstantiated, the entity | |
296 | 696 | shall dismiss the audit report or the unsubstantiated portion of the | |
297 | 697 | audit report without any further action. | |
298 | - | ||
299 | 698 | C. Any final audit report , following the final audit appeal | |
300 | 699 | period, with a finding of fraud or willful misrepresentat ion shall | |
301 | 700 | be referred to the district attorney having proper jurisdiction or | |
302 | 701 | the Attorney General for prosecution upon completion of the appeals | |
303 | 702 | process. | |
304 | - | ||
305 | 703 | D. This act does not apply to any audit, review or | |
306 | 704 | investigation that is initiated based on or that i nvolves suspected | |
307 | 705 | or alleged fraud, willful mispresentation misrepresentation or | |
308 | 706 | abuse. | |
309 | 707 | ||
310 | - | SECTION 3. AMENDATORY Section 2, Chapter 263, O.S.L. | |
311 | - | 2014 (59 O.S. Supp. 2020, Section 358), is amended to read as | |
312 | - | follows: | |
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314 | - | Section 358. A. In order to provide pharmacy benefits | |
315 | - | management or any of the services included under the definition of | |
316 | - | pharmacy benefits management in this state, a pharmacy benefits ENR. H. B. NO. 2677 Page 8 | |
317 | - | manager or any entity acting as one in a contractual or employment | |
318 | - | relationship for a covered entity shall first obtain a license from | |
319 | - | the Oklahoma Insurance Department, and the Department may charge a | |
320 | - | fee for such licensure. | |
321 | - | ||
322 | - | B. The Department shall establish, by regulation, licensure | |
323 | - | procedures, required disclosures for pharmacy benefits managers | |
324 | - | (PBMs) and other rules as may be necess ary for carrying out and | |
325 | - | enforcing the provisions of this act. The licensure procedures | |
326 | - | shall, at a minimum, include the completion of an application form | |
327 | - | that shall include the name and address of an agent for service of | |
328 | - | process, the payment of a requisi te fee, and evidence of the | |
329 | - | procurement of a surety bond. | |
330 | - | ||
331 | - | C. The Department may subpoena witnesses and information. Its | |
332 | - | compliance officers may take and copy records for investigative use | |
333 | - | and prosecutions. Nothing in this subsection shall limit the Off ice | |
334 | - | of the Attorney General from using its investigative demand | |
335 | - | authority to investigate and prosecute violations of the law. | |
336 | - | ||
337 | - | D. The Department may suspend, revoke or refuse to issue or | |
338 | - | renew a license for noncompliance with any of the provisions hereby | |
339 | - | established or with the rules promulgated by the Department; for | |
340 | - | conduct likely to mislead, deceive or defraud the public or the | |
341 | - | Department; for unfair or deceptive business practices or for | |
342 | - | nonpayment of a renewal fee or fine. The Department may also lev y | |
343 | - | administrative fines for each count of which a licensee PBM has been | |
344 | - | convicted in a Department hearing. | |
345 | - | ||
346 | - | SECTION 4. AMENDATORY Section 3, Chapter 263, O.S.L. | |
733 | + | SECTION 3. AMENDATORY Section 3, Chapter 263, O.S.L. | |
347 | 734 | 2014 (59 O.S. Supp. 2020 , Section 359), is amended to read as | |
348 | 735 | follows: | |
349 | - | ||
350 | 736 | Section 359. Unless otherwise provided by contract, a A | |
351 | 737 | pharmacy benefits manager shall provide, upon request by the covered | |
352 | 738 | entity, information regarding the difference in the amount paid to | |
353 | 739 | providers for prescription services rendered to covered individuals | |
354 | 740 | and the amount billed by the pharmacy benefits manager to the | |
355 | 741 | covered entity or plan sponsor to pay for prescription services | |
356 | 742 | rendered to covered individuals. | |
357 | - | ||
358 | - | SECTION 5. AMENDATORY Section 4, Chapter 263, O.S.L. | |
743 | + | SECTION 4. AMENDATORY Section 4, Chapter 263, O.S.L. | |
359 | 744 | 2014, as amended by Section 8, Chapter 285, O.S.L. 2016 (59 O.S. | |
360 | 745 | Supp. 2020, Section 360), is amended to read as follows: | |
361 | - | ENR. H. B. NO. 2677 Page 9 | |
362 | 746 | Section 360. A. The pharmacy benefits manager shall, with | |
363 | 747 | respect to contracts between a pharmacy benefits manager and a | |
364 | 748 | provider, including a pharmacy service adm inistrative organization : | |
365 | - | ||
366 | 749 | l. Include in such contracts the specific sources utilized to | |
367 | 750 | determine the maximum allowable cost (MAC) pricing of the pharmacy, | |
368 | 751 | update MAC pricing at least every seven (7) calendar days, and | |
369 | 752 | establish a process for providers to readily access the MAC list | |
370 | 753 | specific to that provider; | |
371 | - | ||
372 | 754 | 2. In order to place a drug on the MAC list, ensure that the | |
373 | 755 | drug is listed as "A" or "B" rated in the most recent version of the | |
374 | 756 | FDA's Approved Drug Products with Therapeutic Equivalence | |
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375 | 783 | Evaluations, also known as the Orange Book , or has an "NR" or "NA" | |
376 | 784 | rating or a similar rating by a nationally recognized reference , and | |
377 | 785 | the drug is generally available for purchase by pharmacies in the | |
378 | 786 | state from national or regional wholesalers and is not obsolete; | |
379 | - | ||
380 | 787 | 3. Ensure dispensing fees are not included in the calculation | |
381 | 788 | of MAC price reimbursement to pharmacy providers; | |
382 | - | ||
383 | 789 | 4. Provide a reasonable administration appeals procedure to | |
384 | 790 | allow a provider or, a provider's representative and a pharmacy | |
385 | 791 | service administrative organization to contest reimbursement amounts | |
386 | 792 | within ten (10) fourteen (14) business days of the final adjusted | |
387 | 793 | payment date. The pharmacy benefits manager shall not prevent the | |
388 | 794 | pharmacy or the pharmacy service administrative organization from | |
389 | 795 | filing reimbursement appeals in an electronic batch format. The | |
390 | 796 | pharmacy benefits manager must respond to a provider or, a | |
391 | 797 | provider's representative and a pharmacy service administrative | |
392 | 798 | organization who has have contested a reimbursement amount through | |
393 | 799 | this procedure within ten (10) business days. The pharmacy benefits | |
394 | 800 | manager must respond in an electronic batch format to reimbursement | |
395 | 801 | appeals filed in an electronic batch format. The pharmacy benefits | |
396 | 802 | manager shall not require a pharmacy or pharmacy services | |
397 | 803 | administrative organization to log into a system to upload | |
398 | 804 | individual claim appeals or to download individual appeal responses. | |
399 | 805 | If a price update is warranted, the pharmacy benefits manager shall | |
400 | 806 | make the change in the reimbursement amount, permit the challenging | |
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401 | 833 | dispensing pharmacy to reverse and rebill the claim in question, and | |
402 | 834 | make the reimbursement amount change retroactive and effective for | |
403 | 835 | each similarly all contracted Oklahoma provider providers; and | |
404 | - | ||
405 | 836 | 5. If the a below-cost reimbursement appeal is denied, the PBM | |
406 | - | shall provide the reason for the denial, including the National Drug | |
837 | + | shall provide the reason for the denial, including the National Drug | |
407 | 838 | Code number from the specific national or regional wholesalers where | |
408 | 839 | the drug is generally available for purchase by pharmacies in the | |
409 | 840 | state at or the dispensing pharmacy at a price below the PBM's | |
410 | 841 | reimbursement price. If the pharmacy benefits manager cannot | |
411 | 842 | provide a specific national or regional wholesaler where the drug | |
412 | 843 | can be purchased by the dispensing pharmacy at a price bel ow the | |
413 | 844 | pharmacy benefits manager' s reimbursement price, the pharmacy | |
414 | 845 | benefits manager shall immediately adjust the reimbursement amount, | |
415 | 846 | permit the dispensing pharmacy to reverse and rebill the claim in | |
416 | 847 | question, and make the reimbursement amount adjustment retroactive | |
417 | 848 | and effective for all contrac ted providers. | |
418 | - | ||
419 | 849 | B. The pharmacy benefits manager may shall not place a drug on | |
420 | 850 | a MAC list, unless there are at least two therapeutically | |
421 | 851 | equivalent, multiple -source drugs, or at least one generic drug | |
422 | 852 | available from only one manufacturer, generally available for | |
423 | 853 | purchase by network dispensing retail pharmacies from national or | |
424 | 854 | regional wholesalers. | |
425 | - | ||
426 | 855 | C. The pharmacy benefits manager shall not require | |
427 | 856 | accreditation or licensing of providers , or any entity licensed or | |
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428 | 883 | regulated by the State Board of Pharmacy , other than by the State | |
429 | 884 | Board of Pharmacy or other state or federal government entity as a | |
430 | 885 | condition for participation as a network provider . | |
431 | - | ||
432 | 886 | D. A pharmacy or pharmacist may decline to provide the | |
433 | 887 | pharmacist clinical or dispensing services to a patient or pharmacy | |
434 | 888 | benefits manager if the pharmacy or pharmacist is to be paid less | |
435 | 889 | than the pharmacy's cost for providing the pharmacist clinical or | |
436 | 890 | dispensing services. | |
437 | - | ||
438 | 891 | E. The pharmacy benefits manager shall provide a dedicated | |
439 | 892 | telephone number, email address a nd names of the personnel with | |
440 | 893 | decision-making authority regarding MAC appeals and pricing . | |
441 | - | ||
442 | - | SECTION 6. It being immediately necessary for the preservation | |
894 | + | SECTION 5. It being immediately necessary for the preservation | |
443 | 895 | of the public peace, health or safety, an emergency is hereby | |
444 | 896 | declared to exist, by reason whereof this act shall take effect and | |
445 | - | be in full force from and after its passage and approval. ENR. H. B. NO. 2677 Page 11 | |
446 | - | Passed the House of Representatives the 27th day of April, 2021. | |
897 | + | be in full force from and after its passage and approval. | |
898 | + | Passed the House of Representatives the 10th day of February, | |
899 | + | 2021. | |
447 | 900 | ||
448 | 901 | ||
449 | 902 | ||
450 | 903 | ||
451 | 904 | Presiding Officer of the House | |
452 | 905 | of Representatives | |
453 | 906 | ||
454 | 907 | ||
455 | - | Passed the Senate the | |
908 | + | Passed the Senate the ___ day of __________, 2021. | |
456 | 909 | ||
457 | 910 | ||
458 | 911 | ||
459 | 912 | ||
460 | 913 | Presiding Officer of the Senate | |
461 | 914 | ||
462 | 915 | ||
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463 | 940 | ||
464 | - | OFFICE OF THE GOVERNOR | |
465 | - | Received by the Office of the Governor this ____________________ | |
466 | - | day of ___________________, 20_______, at _______ o'clock _______ M. | |
467 | - | By: _________________________________ | |
468 | - | Approved by the Governor of the State of Oklahoma this _________ | |
469 | - | day of ___________________, 20_______, at _______ o'clock _______ M. | |
470 | - | ||
471 | - | ||
472 | - | _________________________________ | |
473 | - | Governor of the State of Oklahoma | |
474 | - | ||
475 | - | OFFICE OF THE SECRETARY OF STATE | |
476 | - | Received by the Office of the Secretary of State this __________ | |
477 | - | day of ___________________, 20_______, at _______ o'clock _______ M. | |
478 | - | By: _________________________________ | |
479 | 941 |