Bill Text: OR HB3337 | 2011 | Regular Session | Introduced
Bill Title: Relating to purchase of prescription drugs; declaring an emergency.
Spectrum: Slight Partisan Bill (Republican 7-3)
Status: (Failed) 2011-06-30 - In committee upon adjournment. [HB3337 Detail]
Download: Oregon-2011-HB3337-Introduced.html
76th OREGON LEGISLATIVE ASSEMBLY--2011 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3547
House Bill 3337
Sponsored by Representative WEIDNER; Representatives ESQUIVEL,
FREEMAN, GREENLICK, HOYLE, KRIEGER, MATTHEWS, PARRISH,
THATCHER, THOMPSON
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure as
introduced.
Authorizes state Medicaid agency to participate in Oregon
Prescription Drug Program.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to purchase of prescription drugs; amending ORS 414.312;
and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 414.312 is amended to read:
414.312. (1) As used in ORS 414.312 to 414.318:
(a) 'Pharmacy benefit manager' means an entity that negotiates
and executes contracts with pharmacies, manages preferred drug
lists, negotiates rebates with prescription drug manufacturers
and serves as an intermediary between the Oregon Prescription
Drug Program, prescription drug manufacturers and pharmacies.
(b) 'Prescription drug claims processor' means an entity that
processes and pays prescription drug claims, adjudicates pharmacy
claims, transmits prescription drug prices and claims data
between pharmacies and the Oregon Prescription Drug Program and
processes related payments to pharmacies.
(c) 'Program price' means the reimbursement rates and
prescription drug prices established by the administrator of the
Oregon Prescription Drug Program.
(2) The Oregon Prescription Drug Program is established in the
Oregon Health Authority. The purpose of the program is to:
(a) Purchase prescription drugs, replenish prescription drugs
dispensed or reimburse pharmacies for prescription drugs in order
to receive discounted prices and rebates;
(b) Make prescription drugs available at the lowest possible
cost to participants in the program as a means to promote health;
(c) Maintain a list of prescription drugs recommended as the
most effective prescription drugs available at the best possible
prices; and
(d) Promote health through the purchase and provision of
discount prescription drugs and coordination of comprehensive
prescription benefit services for eligible entities and members.
(3) The Director of the Oregon Health Authority shall appoint
an administrator of the Oregon Prescription Drug Program. The
administrator may:
(a) Negotiate price discounts and rebates on prescription drugs
with prescription drug manufacturers or group purchasing
organizations;
(b) Purchase prescription drugs on behalf of individuals and
entities that participate in the program;
(c) Contract with a prescription drug claims processor to
adjudicate pharmacy claims and transmit program prices to
pharmacies;
(d) Determine program prices and reimburse or replenish
pharmacies for prescription drugs dispensed or transferred;
(e) Adopt and implement a preferred drug list for the program;
(f) Develop a system for allocating and distributing the
operational costs of the program and any rebates obtained to
participants of the program; and
(g) Cooperate with other states or regional consortia in the
bulk purchase of prescription drugs.
(4) The following individuals or entities may participate in
the program:
(a) Public Employees' Benefit Board, Oregon Educators Benefit
Board and Public Employees Retirement System;
(b) Local governments as defined in ORS 174.116 and special
government bodies as defined in ORS 174.117 that directly or
indirectly purchase prescription drugs;
(c) Oregon Health and Science University established under ORS
353.020;
(d) State agencies that directly or indirectly purchase
prescription drugs, including agencies that dispense prescription
drugs directly to persons in state-operated facilities;
(e) Residents of this state who lack or are underinsured for
prescription drug coverage;
(f) Private entities; { - and - }
(g) Labor organizations { - . - } { + ; and + }
{ - (5) - } { + (h) + } The state agency that receives
federal Medicaid funds and is responsible for implementing the
state's medical assistance program { - may not participate in
the program - } .
{ - (6) - } { + (5) + } The administrator may establish
different program prices for pharmacies in rural areas to
maintain statewide access to the program.
{ - (7) - } { + (6) + } The administrator may establish the
terms and conditions for a pharmacy to enroll in the program. A
licensed pharmacy that is willing to accept the terms and
conditions established by the administrator may apply to enroll
in the program.
{ - (8) - } { + (7) + } Except as provided in subsection
{ - (10) - } { + (8) + } of this section, the administrator
may not:
(a) Contract with a pharmacy benefit manager;
(b) Establish a state-managed wholesale or retail drug
distribution or dispensing system; or
(c) Require pharmacies to maintain or allocate separate
inventories for prescription drugs dispensed through the program.
{ - (9) - } { + (8) + } The administrator shall contract
with one or more entities to perform any of the functions of the
program, including but not limited to:
(a) Contracting with a pharmacy benefit manager and directly or
indirectly with such pharmacy networks as the administrator
considers necessary to maintain statewide access to the program.
(b) Negotiating with prescription drug manufacturers on behalf
of the administrator.
{ - (10) - } { + (9) + } Notwithstanding subsection (4)(e)
of this section, individuals who are eligible for Medicare Part D
prescription drug coverage may participate in the program.
{ - (11) - } { + (10) + } The program may contract with
vendors as necessary to utilize discount purchasing programs,
including but not limited to group purchasing organizations
established to meet the criteria of the Nonprofit Institutions
Act, 15 U.S.C. 13c, or that are exempt under the Robinson-Patman
Act, 15 U.S.C. 13.
SECTION 2. { + This 2011 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2011 Act takes effect on its
passage. + }
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