Wisconsin 2023-2024 Regular Session

Wisconsin Senate Bill SB672 Compare Versions

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1	1	LRB-4170/1
2	2	JPC:cdc
3	3	2023 - 2024 LEGISLATURE
4	4	2023 SENATE BILL 672
5	5	November 9, 2023 - Introduced by Senators FELZKOWSKI and BALLWEG, cosponsored
6	6	by Representatives SCHUTT, DITTRICH, BARE, DONOVAN, MURSAU, RETTINGER,
7	7	ROZAR and SUBECK. Referred to Committee on Health.
8	8	AN ACT to create 49.45 (49r) of the statutes; relating to: value-based
9	9	purchasing arrangements under the Medical Assistance program.
10	10	Analysis by the Legislative Reference Bureau
11	11	This bill allows the Department of Health Services to enter into a value-based
12	12	purchasing arrangement with a drug manufacturer for purposes of the Medical
13	13	Assistance program. Under the bill, a value-based purchasing arrangement must
14	14	have agreed upon metrics and may include rebates, discounts, price reductions, risk
15	15	sharing, reimbursements, payment deferrals or installment payments, guarantees,
16	16	shared savings payments, withholds, bonuses, or any other thing of value. The bill
17	17	specifies that nothing in the bill may be construed to alter or modify coverage
18	18	requirements under the Medical Assistance program. The Medical Assistance
19	19	program is a joint federal and state program that provides health services to
20	20	individuals who have limited financial resources.
21	21	For further information see the state fiscal estimate, which will be printed as
22	22	an appendix to this bill.
23	23	The people of the state of Wisconsin, represented in senate and assembly, do
24	24	enact as follows:
25	25	SECTION 1. 49.45 (49r) of the statutes is created to read:
26	26	49.45 (49r) VALUE-BASED PURCHASING. (a) In this subsection, “manufacturer”
27	27	has the meaning given in s. 450.01 (12).
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32	32	5 - 2 -2023 - 2024 Legislature LRB-4170/1
33	33	JPC:cdc
34	34	SECTION 1 SENATE BILL 672
35	35	(b) Subject to par. (e), the department may enter into a value-based purchasing
36	36	arrangement for the Medical Assistance program by written agreement with a
37	37	manufacturer based on agreed upon metrics to which the department and the
38	38	manufacturer agree in writing. A value-based purchasing arrangement under this
39	39	paragraph may include any of the following:
40	40	1. Rebates.
41	41	2. Discounts.
42	42	3. Price reductions.
43	43	4. Risk sharing.
44	44	5. Reimbursements.
45	45	6. Payment deferrals or installment payments.
46	46	7. Guarantees.
47	47	8. Shared savings payments.
48	48	9. Withholds.
49	49	10. Bonuses.
50	50	11. Any other thing of value.
51	51	(c) Nothing in this subsection may be interpreted to require a manufacturer or
52	52	the department to enter into an arrangement described under par. (a).
53	53	(d) Nothing in this subsection may be construed to alter or modify coverage
54	54	requirements under the Medical Assistance program.
55	55	(e) If the department determines it is unable to implement this subsection
56	56	without a waiver of federal law, state plan amendment, or other federal approval, the
57	57	department shall request from the secretary of the federal department of health and
58	58	human services any waiver of federal law, state plan amendment, or other federal
59	59	approval necessary to implement this subsection. If the federal department of health
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85	85	LRB-4170/1
86	86	JPC:cdc
87	87	SECTION 1
88	88	SENATE BILL 672
89	89	and human services does not approve a waiver of federal law, state plan amendment,
90	90	or other federal approval under this paragraph, the department is not required to
91	91	implement this subsection.
92	92	(END)
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