Bill Text: NY A10249 | 2011-2012 | General Assembly | Introduced
Bill Title: Relates to coverage and payment for prescription drugs in Medicaid managed care programs.
Spectrum: Partisan Bill (Democrat 60-3)
Status: (Introduced - Dead) 2012-09-04 - enacting clause stricken [A10249 Detail]
Download: New_York-2011-A10249-Introduced.html
S T A T E O F N E W Y O R K ________________________________________________________________________ 10249 I N A S S E M B L Y May 16, 2012 ___________ Introduced by M. of A. P. RIVERA, GOTTFRIED -- read once and referred to the Committee on Health AN ACT to amend the social services law and the public health law, in relation to prescription drugs in Medicaid managed care programs; and to repeal certain provisions of the social services law and chapter 56 of the laws of 2012 enacting the health and mental hygiene budget for the 2012-2013 state fiscal plan, relating to payments for prescription drugs THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. The social services law is amended by adding a new section 2 365-i to read as follows: 3 S 365-I. PRESCRIPTION DRUGS IN MEDICAID MANAGED CARE PROGRAMS. 1. 4 DEFINITIONS. AS USED IN THIS SECTION, UNLESS THE CONTEXT CLEARLY 5 REQUIRES OTHERWISE: 6 (A) "ARTICLE" MEANS TITLE ELEVEN OF ARTICLE FIVE OF THIS CHAPTER WITH 7 RESPECT TO THE MEDICAL ASSISTANCE PROGRAM, TITLE ELEVEN-D OF ARTICLE 8 FIVE OF THIS CHAPTER WITH RESPECT TO THE FAMILY HEALTH PLUS PROGRAM, AND 9 TITLE ONE-A OF ARTICLE TWENTY-FIVE OF THE PUBLIC HEALTH LAW WITH RESPECT 10 TO THE CHILD HEALTH INSURANCE PROGRAM. 11 (B) "CLINICAL DRUG REVIEW PROGRAM" MEANS THE CLINICAL DRUG REVIEW 12 PROGRAM CREATED BY SECTION TWO HUNDRED SEVENTY-FOUR OF THE PUBLIC HEALTH 13 LAW. 14 (C) "EMERGENCY CONDITION" MEANS A MEDICAL OR BEHAVIORAL CONDITION AS 15 DETERMINED BY THE PRESCRIBER OR PHARMACIST, THE ONSET OF WHICH IS 16 SUDDEN, THAT MANIFESTS ITSELF BY SYMPTOMS OF SUFFICIENT SEVERITY, 17 INCLUDING SEVERE PAIN, AND FOR WHICH DELAY IN BEGINNING TREATMENT 18 PRESCRIBED BY THE PATIENT'S HEALTH CARE PRACTITIONER WOULD RESULT IN: 19 (I) PLACING THE HEALTH OR SAFETY OF THE PERSON AFFLICTED WITH SUCH 20 CONDITION OR OTHER PERSON OR PERSONS IN SERIOUS JEOPARDY; 21 (II) SERIOUS IMPAIRMENT TO SUCH PERSON'S BODILY FUNCTIONS; 22 (III) SERIOUS DYSFUNCTION OF ANY BODILY ORGAN OR PART OF SUCH PERSON; 23 (IV) SERIOUS DISFIGUREMENT OF SUCH PERSON; OR 24 (V) SEVERE DISCOMFORT. EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD15455-01-2 A. 10249 2 1 (D) "MANAGED CARE PROVIDER" MEANS A MANAGED CARE PROVIDER UNDER 2 SECTION THREE HUNDRED SIXTY-FOUR-J OF THIS TITLE, A MANAGED LONG TERM 3 CARE PLAN UNDER SECTION FORTY-FOUR HUNDRED THREE-F OF THE PUBLIC HEALTH 4 LAW, A FAMILY HEALTH INSURANCE PLAN UNDER SECTION THREE HUNDRED 5 SIXTY-NINE-EE OF THIS ARTICLE OR AN EMPLOYER PARTNERSHIP FOR FAMILY 6 HEALTH PLUS PLAN UNDER SECTION THREE HUNDRED SIXTY-NINE-FF OF THIS ARTI- 7 CLE (FAMILY HEALTH PLUS PROGRAM), AN APPROVED ORGANIZATION UNDER TITLE 8 ONE-A OF ARTICLE TWENTY-FIVE OF THE PUBLIC HEALTH LAW (CHILD HEALTH 9 INSURANCE PROGRAM), OR ANY OTHER ENTITY THAT PROVIDES OR ARRANGES FOR 10 THE PROVISION OF MEDICAL ASSISTANCE SERVICES AND SUPPLIES TO PARTIC- 11 IPANTS DIRECTLY OR INDIRECTLY (INCLUDING BY REFERRAL), INCLUDING CASE 12 MANAGEMENT, INCLUDING THE MANAGED CARE PROVIDER'S AUTHORIZED AGENTS. 13 (E) "NON-PREFERRED DRUG" MEANS A PRESCRIPTION DRUG THAT REQUIRES PRIOR 14 AUTHORIZATION UNDER THE PARTICIPANT'S MANAGED CARE PROVIDER. 15 (F) "PARTICIPANT" MEANS A MEDICAL ASSISTANCE RECIPIENT WHO RECEIVES, 16 IS REQUIRED TO RECEIVE OR ELECTS TO RECEIVE HIS OR HER MEDICAL ASSIST- 17 ANCE SERVICES FROM A MANAGED CARE PROVIDER. 18 (G) "PREFERRED DRUG" MEANS A PRESCRIPTION DRUG THAT IS NOT A NON-PRE- 19 FERRED DRUG UNDER THE PATIENT'S MANAGED CARE PROVIDER. "PREFERRED DRUG 20 LIST" MEANS A LIST OF A MANAGED CARE PROVIDER'S PREFERRED DRUGS. 21 (H) "PREFERRED DRUG PROGRAM" MEANS THE PREFERRED DRUG PROGRAM ESTAB- 22 LISHED UNDER SECTION TWO HUNDRED SEVENTY-TWO OF THE PUBLIC HEALTH LAW. 23 (I) "PRESCRIPTION DRUG" OR "DRUG" MEANS A DRUG DEFINED IN SUBDIVISION 24 SEVEN OF SECTION SIXTY-EIGHT HUNDRED TWO OF THE EDUCATION LAW, FOR WHICH 25 A PRESCRIPTION IS REQUIRED UNDER THE FEDERAL FOOD, DRUG AND COSMETIC 26 ACT. ANY DRUG THAT DOES NOT REQUIRE A PRESCRIPTION UNDER SUCH ACT, BUT 27 WHICH WOULD OTHERWISE BE ELIGIBLE FOR REIMBURSEMENT UNDER THIS ARTICLE 28 WHEN ORDERED BY A PRESCRIBER AND THE PRESCRIPTION IS SUBJECT TO THE 29 APPLICABLE PROVISIONS OF THIS ARTICLE AND PARAGRAPH (A) OF SUBDIVISION 30 FOUR OF SECTION THREE HUNDRED SIXTY-FIVE-A OF THIS TITLE. 31 (J) "PRIOR AUTHORIZATION" MEANS A PROCESS REQUIRING THE PRESCRIBER OR 32 THE DISPENSER TO VERIFY WITH THE PARTICIPANT'S MANAGED CARE PROVIDER 33 THAT THE DRUG IS APPROPRIATE FOR THE NEEDS OF THE SPECIFIC PATIENT. 34 (K) "QUALIFIED PRESCRIPTION DRUG SYSTEM" OR "SYSTEM" MEANS A PROCESS 35 UNDER THIS SECTION, APPROVED BY THE COMMISSIONER, THROUGH WHICH A 36 MANAGED CARE PROVIDER APPROVES PAYMENT FOR A NON-PREFERRED DRUG FOR A 37 PARTICIPANT BASED ON PRIOR AUTHORIZATION. 38 2. PAYMENT FOR PRESCRIPTION DRUGS UNDER CAPITATION. PAYMENT FOR 39 PRESCRIPTION DRUGS SHALL BE INCLUDED IN THE CAPITATION PAYMENTS FOR 40 SERVICES OR SUPPLIES PROVIDED TO A MANAGED CARE PROVIDER'S PARTICIPANTS, 41 PROVIDED THAT THE MANAGED CARE PROVIDER PAYS FOR PRESCRIPTION DRUGS 42 UNDER A QUALIFIED PRESCRIPTION DRUG SYSTEM. EVERY PRESCRIPTION DRUG 43 ELIGIBLE FOR REIMBURSEMENT UNDER THIS ARTICLE PRESCRIBED IN RELATION TO 44 A SERVICE PROVIDED BY THE MANAGED CARE PROVIDER SHALL BE EITHER A 45 PREFERRED OR NON-PREFERRED DRUG UNDER THE QUALIFIED PRESCRIPTION DRUG 46 SYSTEM. IF THE MANAGED CARE PROVIDER DOES NOT PAY FOR PRESCRIPTION DRUGS 47 UNDER A QUALIFIED PRESCRIPTION DRUG SYSTEM, THEN PAYMENT FOR 48 PRESCRIPTION DRUGS FOR THE MANAGED CARE PROVIDER'S PATIENTS SHALL NOT BE 49 INCLUDED IN SUCH CAPITATION PAYMENTS AND PRESCRIPTION DRUGS SHALL BE 50 PROVIDED FOR THE MANAGED CARE PROVIDER'S PARTICIPANTS UNDER THE 51 PREFERRED DRUG PROGRAM. THE COMMISSIONER SHALL APPROVE A MANAGED CARE 52 PROVIDER'S QUALIFIED PRESCRIPTION DRUG SYSTEM IF IT CONFORMS TO THE 53 PROVISIONS OF THIS SECTION. 54 3. QUALIFIED PRESCRIPTION DRUG SYSTEM; CRITERIA. (A) A QUALIFIED 55 PRESCRIPTION DRUG SYSTEM SHALL PROMOTE ACCESS TO THE MOST EFFECTIVE 56 PRESCRIPTION DRUGS WHILE REDUCING THE COST OF PRESCRIPTION DRUGS UNDER A. 10249 3 1 THIS ARTICLE. THIS SUBDIVISION AND SUBDIVISION FOUR OF THIS SECTION 2 APPLY TO QUALIFIED PRESCRIPTION DRUG SYSTEMS. 3 (B) WHEN A PRESCRIBER PRESCRIBES A NON-PREFERRED DRUG, REIMBURSEMENT 4 MAY BE DENIED UNLESS PRIOR AUTHORIZATION IS OBTAINED, UNLESS NO PRIOR 5 AUTHORIZATION IS REQUIRED UNDER THIS SECTION. 6 (C) THE COMMISSIONER SHALL ESTABLISH PERFORMANCE STANDARDS FOR SYSTEMS 7 THAT, AT A MINIMUM, ENSURE THAT SYSTEMS PROVIDE SUFFICIENT TECHNICAL 8 SUPPORT AND TIMELY RESPONSES TO CONSUMERS, PRESCRIBERS AND PHARMACISTS. 9 (D) THE COMMISSIONER SHALL ADOPT CRITERIA FOR QUALIFIED PRESCRIPTION 10 DRUG SYSTEMS AFTER CONSIDERING RECOMMENDATIONS AND COMMENTS RECEIVED 11 FROM PRESCRIBERS, PHARMACISTS, PARTICIPANTS, AND ORGANIZATIONS REPRES- 12 ENTING THEM. 13 (E) THE MANAGED CARE PROVIDER SHALL DEVELOP ITS PREFERRED DRUG LIST 14 BASED INITIALLY ON AN EVALUATION OF THE CLINICAL EFFECTIVENESS, SAFETY, 15 AND PATIENT OUTCOMES, FOLLOWED BY CONSIDERATION OF THE COST-EFFECTIVE- 16 NESS OF THE DRUGS. IN EACH THERAPEUTIC CLASS, THE MANAGED CARE PROVIDER 17 SHALL DETERMINE WHETHER THERE IS ONE DRUG THAT IS SIGNIFICANTLY MORE 18 CLINICALLY EFFECTIVE AND SAFE, AND THAT DRUG SHALL BE INCLUDED ON THE 19 PREFERRED DRUG LIST WITHOUT CONSIDERATION OF COST. IF, AMONG TWO OR MORE 20 DRUGS IN A THERAPEUTIC CLASS, THE DIFFERENCE IN CLINICAL EFFECTIVENESS 21 AND SAFETY IS NOT CLINICALLY SIGNIFICANT, THEN COST-EFFECTIVENESS MAY 22 ALSO BE CONSIDERED IN DETERMINING WHICH DRUG OR DRUGS SHALL BE INCLUDED 23 ON THE PREFERRED DRUG LIST. 24 4. PRIOR AUTHORIZATION. (A) A QUALIFIED PRESCRIPTION DRUG SYSTEM SHALL 25 MAKE AVAILABLE A TWENTY-FOUR HOUR PER DAY, SEVEN DAYS PER WEEK TELEPHONE 26 CALL CENTER THAT INCLUDES A TOLLFREE TELEPHONE LINE AND DEDICATED 27 FACSIMILE LINE TO RESPOND TO REQUESTS FOR PRIOR AUTHORIZATION. THE CALL 28 CENTER SHALL INCLUDE QUALIFIED HEALTH CARE PROFESSIONALS WHO SHALL BE 29 AVAILABLE TO CONSULT WITH PRESCRIBERS CONCERNING PRESCRIPTION DRUGS THAT 30 ARE NON-PREFERRED DRUGS. A PRESCRIBER SEEKING PRIOR AUTHORIZATION SHALL 31 CONSULT WITH THE PROGRAM CALL LINE TO REASONABLY PRESENT HIS OR HER 32 JUSTIFICATION FOR THE PRESCRIPTION AND GIVE THE PROGRAM'S QUALIFIED 33 HEALTH CARE PROFESSIONAL A REASONABLE OPPORTUNITY TO RESPOND. 34 (B) WHEN A PATIENT'S HEALTH CARE PROVIDER PRESCRIBES A NON-PREFERRED 35 DRUG, THE PRESCRIBER SHALL CONSULT WITH THE PROGRAM TO CONFIRM THAT IN 36 HIS OR HER REASONABLE PROFESSIONAL JUDGMENT, THE PATIENT'S CLINICAL 37 CONDITION IS CONSISTENT WITH THE CRITERIA FOR APPROVAL OF THE NON-PRE- 38 FERRED DRUG. SUCH CRITERIA SHALL INCLUDE: 39 (I) THE PREFERRED DRUG HAS BEEN TRIED BY THE PATIENT AND HAS FAILED TO 40 PRODUCE THE DESIRED HEALTH OUTCOMES; 41 (II) THE PATIENT HAS TRIED THE PREFERRED DRUG AND HAS EXPERIENCED 42 UNACCEPTABLE SIDE EFFECTS; 43 (III) THE PATIENT HAS BEEN STABILIZED ON A NON-PREFERRED DRUG AND 44 TRANSITION TO THE PREFERRED DRUG WOULD BE MEDICALLY CONTRAINDICATED; OR 45 (IV) OTHER CLINICAL INDICATIONS IDENTIFIED BY THE COMMISSIONER OR THE 46 MANAGED CARE PROVIDER FOR THE PATIENT'S USE OF THE NON-PREFERRED DRUG, 47 WHICH SHALL INCLUDE CONSIDERATION OF THE MEDICAL NEEDS OF SPECIAL POPU- 48 LATIONS, INCLUDING CHILDREN, ELDERLY, CHRONICALLY ILL, PERSONS WITH 49 MENTAL HEALTH CONDITIONS, AND PERSONS AFFECTED BY HIV/AIDS. 50 (C) IN THE EVENT THAT THE PATIENT DOES NOT MEET THE CRITERIA IN PARA- 51 GRAPH (B) OF THIS SUBDIVISION, THE PRESCRIBER MAY PROVIDE ADDITIONAL 52 INFORMATION TO THE MANAGED CARE PROVIDER TO JUSTIFY THE USE OF A 53 NON-PREFERRED DRUG. THE SYSTEM SHALL PROVIDE A REASONABLE OPPORTUNITY 54 FOR A PRESCRIBER TO REASONABLY PRESENT HIS OR HER JUSTIFICATION OF PRIOR 55 AUTHORIZATION. IF, AFTER CONSULTATION WITH THE MANAGED CARE PROVIDER, 56 THE PRESCRIBER, IN HIS OR HER REASONABLE PROFESSIONAL JUDGMENT, DETER- A. 10249 4 1 MINES THAT THE USE OF A NON-PREFERRED DRUG IS WARRANTED, THE 2 PRESCRIBER'S DETERMINATION SHALL BE FINAL. 3 (D) IF A PRESCRIBER MEETS THE REQUIREMENTS OF PARAGRAPH (B) OR (C) OF 4 THIS SUBDIVISION, THE PRESCRIBER SHALL BE GRANTED PRIOR AUTHORIZATION 5 UNDER THIS SECTION. 6 (E) IN THE INSTANCE WHERE A PRIOR AUTHORIZATION DETERMINATION IS NOT 7 COMPLETED WITHIN TWENTY-FOUR HOURS OF THE ORIGINAL REQUEST, SOLELY AS 8 THE RESULT OF A FAILURE OF THE SYSTEM (WHETHER BY ACTION OR INACTION), 9 PRIOR AUTHORIZATION SHALL BE IMMEDIATELY AND AUTOMATICALLY GRANTED WITH 10 NO FURTHER ACTION BY THE PRESCRIBER AND THE PRESCRIBER SHALL BE NOTIFIED 11 OF THIS DETERMINATION. IN THE INSTANCE WHERE A PRIOR AUTHORIZATION 12 DETERMINATION IS NOT COMPLETED WITHIN TWENTY-FOUR HOURS OF THE ORIGINAL 13 REQUEST FOR ANY OTHER REASON, A SEVENTY-TWO HOUR SUPPLY OF THE MEDICA- 14 TION SHALL BE APPROVED BY THE SYSTEM AND THE PRESCRIBER SHALL BE NOTI- 15 FIED OF THIS DETERMINATION. 16 (F) WHEN, IN THE JUDGMENT OF THE PRESCRIBER OR THE PHARMACIST, AN 17 EMERGENCY CONDITION EXISTS, AND THE PRESCRIBER OR PHARMACIST NOTIFIES 18 THE MANAGED CARE PROVIDER THAT AN EMERGENCY CONDITION EXISTS, A SEVEN- 19 TY-TWO HOUR EMERGENCY SUPPLY OF THE DRUG PRESCRIBED SHALL BE IMMEDIATELY 20 AUTHORIZED BY THE MANAGED CARE PROVIDER. 21 (G) IN THE EVENT THAT A PATIENT PRESENTS A PRESCRIPTION TO A PHARMA- 22 CIST FOR A PRESCRIPTION DRUG THAT IS A NON-PREFERRED DRUG AND FOR WHICH 23 THE PRESCRIBER HAS NOT OBTAINED A PRIOR AUTHORIZATION, THE PHARMACIST 24 SHALL, WITHIN A PROMPT PERIOD BASED ON PROFESSIONAL JUDGMENT, NOTIFY THE 25 PRESCRIBER. THE PRESCRIBER SHALL, WITHIN A PROMPT PERIOD BASED ON 26 PROFESSIONAL JUDGMENT, EITHER SEEK PRIOR AUTHORIZATION OR SHALL CONTACT 27 THE PHARMACIST AND AMEND OR CANCEL THE PRESCRIPTION. THE PHARMACIST 28 SHALL, WITHIN A PROMPT PERIOD BASED ON PROFESSIONAL JUDGMENT, NOTIFY THE 29 PATIENT WHEN PRIOR AUTHORIZATION HAS BEEN OBTAINED OR DENIED OR WHEN THE 30 PRESCRIPTION HAS BEEN AMENDED OR CANCELLED. 31 (H) ONCE PRIOR AUTHORIZATION OF A PRESCRIPTION FOR A DRUG THAT IS NOT 32 ON THE PREFERRED DRUG LIST IS OBTAINED, PRIOR AUTHORIZATION SHALL NOT BE 33 REQUIRED FOR ANY REFILL OF THE PRESCRIPTION. 34 (I) NO PRIOR AUTHORIZATION UNDER A QUALIFIED PRESCRIPTION DRUG SYSTEM 35 SHALL BE REQUIRED WHEN A PRESCRIBER PRESCRIBES A PREFERRED DRUG. 36 (J) NO PRIOR AUTHORIZATION UNDER A QUALIFIED PRESCRIPTION DRUG SYSTEM 37 SHALL BE REQUIRED FOR: (I) ATYPICAL ANTI-PSYCHOTICS; (II) ANTI-DEPRES- 38 SANTS; (III) ANTI-RETROVIRALS USED IN THE TREATMENT OF HIV/AIDS; (IV) 39 ANTI-REJECTION DRUGS USED IN THE TREATMENT OF ORGAN AND TISSUE TRANS- 40 PLANTS; AND (V) ANY OTHER THERAPEUTIC CLASS FOR THE TREATMENT OF MENTAL 41 ILLNESS OR HIV/AIDS, APPROVED BY THE COMMISSIONER. 42 5. CLINICAL DRUG REVIEW PROGRAM. IN THE CASE OF A DRUG FOR WHICH PRIOR 43 AUTHORIZATION IS REQUIRED UNDER THE CLINICAL DRUG REVIEW PROGRAM, PRIOR 44 AUTHORIZATION SHALL BE OBTAINED UNDER THE CLINICAL DRUG REVIEW PROGRAM 45 AND NOT UNDER THIS SECTION. 46 6. PRESCRIBER CONDUCT. THE MANAGED CARE PROVIDER AND THE DEPARTMENT 47 SHALL MONITOR THE PRIOR AUTHORIZATION PROCESS UNDER A QUALIFIED 48 PRESCRIPTION DRUG SYSTEM FOR PRESCRIBING PATTERNS WHICH ARE SUSPECTED OF 49 ENDANGERING THE HEALTH AND SAFETY OF THE PATIENT OR WHICH DEMONSTRATE A 50 LIKELIHOOD OF FRAUD OR ABUSE. THE MANAGED CARE PROVIDER AND THE DEPART- 51 MENT SHALL TAKE ANY AND ALL ACTIONS OTHERWISE PERMITTED BY LAW TO INVES- 52 TIGATE SUCH PRESCRIBING PATTERNS, TO TAKE REMEDIAL ACTION AND TO ENFORCE 53 APPLICABLE FEDERAL AND STATE LAWS. 54 7. USE OF PREFERRED DRUG PROGRAM. THE COMMISSIONER MAY CONTRACT WITH A 55 MANAGED CARE PROVIDER FOR THE PROVIDER TO USE THE PREFERRED DRUG PROGRAM 56 TO PROVIDE PRIOR AUTHORIZATION UNDER THE MANAGED CARE PROVIDER'S QUALI- A. 10249 5 1 FIED PRESCRIPTION DRUG SYSTEM. THE CONTRACT SHALL INCLUDE TERMS REQUIRED 2 BY THE COMMISSIONER TO MAXIMIZE SAVINGS TO THE MEDICAID PROGRAM AND 3 PROTECT THE HEALTH AND INTERESTS OF THE MANAGED CARE PROVIDER'S PARTIC- 4 IPANTS. THE CONTRACT SHALL PROVIDE WHETHER THE PREFERRED DRUG PROGRAM 5 SHALL USE THE MANAGED CARE PROVIDER'S LISTS OF PREFERRED AND NON-PRE- 6 FERRED DRUGS OR THE PREFERRED DRUG LIST UNDER THE PREFERRED DRUG 7 PROGRAM, WITH RESPECT TO WHETHER PRIOR AUTHORIZATION IS REQUIRED. 8 8. A MANAGED CARE PROVIDER FOR WHICH PAYMENT FOR PRESCRIPTION DRUGS IS 9 INCLUDED IN ITS CAPITATION PAYMENT SHALL PERMIT EACH PARTICIPANT TO FILL 10 ANY MAIL ORDER COVERED PRESCRIPTION, AT HIS OR HER OPTION, AT ANY MAIL 11 ORDER PHARMACY OR NON-MAIL-ORDER RETAIL PHARMACY IN THE MANAGED CARE 12 PROVIDER NETWORK, IF THE NON-MAIL-ORDER RETAIL PHARMACY OFFERS TO ACCEPT 13 A PRICE THAT IS COMPARABLE TO THAT OF THE MAIL ORDER PHARMACY. EVERY 14 NON-MAIL-ORDER RETAIL PHARMACY IN THE MANAGED CARE PROVIDER'S NETWORK 15 WITH RESPECT TO ANY PRESCRIPTION DRUG SHALL BE DEEMED TO BE IN THE 16 MANAGED CARE PROVIDER'S NETWORK FOR EVERY COVERED PRESCRIPTION DRUG; 17 PROVIDED, HOWEVER, THAT THE MANAGED CARE PROVIDER MAY LIMIT ITS NETWORK 18 OF PHARMACIES FOR SPECIFIED DRUGS, APPROVED BY THE COMMISSIONER, BASED 19 ON CLINICAL, PROFESSIONAL OR COST CRITERIA. SUCH LIMITATION SHALL NOT BE 20 BASED SOLELY ON COST. 21 S 2. Section 55 of part D of chapter 56 of the laws of 2012 enacting 22 the health and mental hygiene budget for the 2012-2013 state fiscal plan 23 is REPEALED. 24 S 3. Subdivision 2-b of section 369-ee of the social services law is 25 REPEALED, and a new subdivision 2-b is added to read as follows: 26 2-B. PAYMENT FOR PRESCRIPTION DRUGS. PAYMENT FOR PRESCRIPTION DRUGS 27 SHALL BE INCLUDED IN THE CAPITATED PAYMENTS FOR SERVICES OR SUPPLIES 28 PROVIDED UNDER A FAMILY HEALTH INSURANCE PLAN OR PROVIDED BY AN EMPLOYER 29 PARTNERSHIP FOR FAMILY HEALTH PLUS PLAN AUTHORIZED BY SECTION THREE 30 HUNDRED SIXTY-NINE-FF OF THIS TITLE, PROVIDED THAT THE PLAN PAYS FOR 31 PRESCRIPTION DRUGS UNDER A QUALIFIED PRESCRIPTION DRUG SYSTEM UNDER 32 SECTION THREE HUNDRED SIXTY-FIVE-I OF THIS ARTICLE. EVERY PRESCRIPTION 33 DRUG ELIGIBLE FOR REIMBURSEMENT UNDER THIS ARTICLE PRESCRIBED IN 34 RELATION TO A SERVICE PROVIDED BY THE PLAN SHALL BE EITHER A PREFERRED 35 OR NON-PREFERRED DRUG UNDER THE QUALIFIED PRESCRIPTION DRUG SYSTEM. IF 36 THE PLAN DOES NOT PAY FOR PRESCRIPTION DRUGS UNDER A QUALIFIED 37 PRESCRIPTION DRUG SYSTEM, THEN PAYMENT FOR PRESCRIPTION DRUGS FOR THE 38 PLAN'S PATIENTS SHALL NOT BE INCLUDED IN SUCH CAPITATION PAYMENTS AND 39 PRESCRIPTION DRUGS SHALL BE PROVIDED FOR THE APPROVED ORGANIZATION'S 40 PARTICIPANTS UNDER THE PREFERRED DRUG PROGRAM. 41 S 4. Section 2511 of the public health law is amended by adding a new 42 subdivision 21 to read as follows: 43 21. PAYMENT FOR PRESCRIPTION DRUGS. PAYMENT FOR PRESCRIPTION DRUGS 44 SHALL BE INCLUDED IN THE PAYMENTS FOR SERVICES OR SUPPLIES PROVIDED BY 45 THE APPROVED ORGANIZATION, PROVIDED THAT THE PLAN PAYS FOR PRESCRIPTION 46 DRUGS UNDER A QUALIFIED PRESCRIPTION DRUG SYSTEM UNDER SECTION THREE 47 HUNDRED SIXTY-FIVE-I OF THE SOCIAL SERVICES LAW. EVERY PRESCRIPTION DRUG 48 ELIGIBLE FOR REIMBURSEMENT UNDER THIS ARTICLE PRESCRIBED IN RELATION TO 49 A SERVICE PROVIDED BY THE APPROVED ORGANIZATION SHALL BE EITHER A 50 PREFERRED OR NON-PREFERRED DRUG UNDER THE QUALIFIED PRESCRIPTION DRUG 51 SYSTEM. IF THE APPROVED ORGANIZATION DOES NOT PAY FOR PRESCRIPTION DRUGS 52 UNDER A QUALIFIED PRESCRIPTION DRUG SYSTEM, THEN PAYMENT FOR 53 PRESCRIPTION DRUGS FOR THE APPROVED ORGANIZATION'S PATIENTS SHALL NOT BE 54 INCLUDED IN SUCH PAYMENTS AND PRESCRIPTION DRUGS SHALL BE PROVIDED FOR 55 THE APPROVED ORGANIZATION'S PARTICIPANTS UNDER THE PREFERRED DRUG 56 PROGRAM. A. 10249 6 1 S 5. Subdivision 11 of section 270 of the public health law, as 2 amended by section 2-a of part C of chapter 58 of the laws of 2008, is 3 amended to read as follows: 4 11. "State public health plan" means the medical assistance program 5 established by title eleven of article five of the social services law 6 (referred to in this article as "Medicaid"), the elderly pharmaceutical 7 insurance coverage program established by title three of article two of 8 the elder law (referred to in this article as "EPIC"), [and] the family 9 health plus program established by section three hundred sixty-nine-ee 10 of the social services law [to the extent that section provides that the 11 program shall be subject to this article], AND THE CHILD HEALTH INSUR- 12 ANCE PROGRAM UNDER TITLE ONE-A OF ARTICLE TWENTY-FIVE OF THE PUBLIC 13 HEALTH LAW. 14 S 6. Section 272 of the public health law is amended by adding a new 15 subdivision 12 to read as follows: 16 12. NO PRIOR AUTHORIZATION SHALL BE REQUIRED UNDER THE PREFERRED DRUG 17 PROGRAM FOR: 18 (A) ATYPICAL ANTI-PSYCHOTICS; (B) ANTI-DEPRESSANTS; (C) ANTI-RETROVI- 19 RALS USED IN THE TREATMENT OF HIV/AIDS; (D) ANTI-REJECTION DRUGS USED IN 20 THE TREATMENT OF ORGAN AND TISSUE TRANSPLANTS; AND (E) ANY OTHER THERA- 21 PEUTIC CLASS FOR THE TREATMENT OF MENTAL ILLNESS OR HIV/AIDS, RECOM- 22 MENDED BY THE COMMITTEE AND APPROVED BY THE COMMISSIONER UNDER THIS 23 SECTION. 24 S 7. This act shall take effect on the one hundred eightieth day after 25 it shall become a law; provided, however, that the commissioner of 26 health is immediately authorized and directed to take actions necessary 27 to implement this act when it takes effect.