Archive report covering 2001 actions only.  This web edition was revised and reposted as of August 2006  
For more recent actions see NCSL reports on: 2006 Pharmaceutical Legislation & Pharmaceuticals Menu Page

Elders/disabled on Medicare eligible for discount prices based on Medicaid pharmaceutical rates.

AL, CA, CT, IA, HI, IL, LA, MD, MA, MS, MO, NY, OR, SC, TN, TX, VA, VT

Medicaid waiver to provide discounts to eligible persons - (based on VT and ME programs)
NOTE: see Federal court rulings of 2/25/02

AZ, CT, HI, ME, MD, MA, MS, MO, NM, NY, PA, SC, WA, WI; NH waiver filed in 2000; AR & CT waiver laws are for a subsidy.

Seniors eligible for discount prices based on the "Federal Supply Schedule" or lowest market rate

 AR, CT, HI, IL, MA, NY,

General discount programs for uninsured or "fair drug pricing" programs

AL, CT, FL, GA, HI, KS, LA, MD, MA, MN, MT, NM, NY, OK, OR*, PA, RI, SD, VA, VT, WA, WV*. *Laws enacted in OR & WV allow future options for broad discounts but do not mandate them.

Use Federally Qualified Health Centers (FQHC) for expanded pharmaceutical coverage

AR, MD, NM, (OK), TX, VT

State bulk purchasing to achieve greater price discounts for all eligible groups

AR, CO, ID, LA, NM, OR, PA, RI, TX, WA, WV, WY (also see executive initiatives below)

State "buyer's clubs" or purchasing cooperatives

HI, NM, OH, WA, VA, WV (also see executive initiatives, begun in 2000)

Regulate pharmaceutical benefit managers (PBMs) - also see "Restrict or regulate", below

GA, NH, WV

Restrict or regulate use of commercial discount cards or buyers clubs.

ME, MS, NH, (NM), SC, SD, TX, WV

State tax credit for pharmaceutical purchases

CA, CO, HI, MT, MI

State coordination of pharmaceutical industry free/charity programs

AR, CA, CT, KY, MD, MA, MO, NM, OR, VT, TX, VA, WA, WI, WV

Price controls or state maximum prices.

AL, AZ, AR, HI, NM, NY, OK, OR, PA, RI, SD, TN, TX, VA;
variations: CO, CT, LA, MA, WY

New subsidy programs [separate web page]

AZ, AR, CA, CO, GA, IA, KY, LA, MO, OK, OR, SD, TN, TX, VA, WA, WI

Expand/alter existing subsidy programs

 (290+ bills, not included in this list)
new laws signed in MD, MN, MO, NV, NJ, VT

AL
H 1
Rep. Mitchell

This bill would establish the Alabama Prescription Drug Fair Pricing Act. It "would provide for a manufacturer rebate agreement; would provide discounted prices for prescription program participants; would provide for eligibility; would provide for operation of the program; would provide for manufacturers and labelers that elect not to participate in the program; would establish a prescription dedication fund; would provide for emergency prescription drug pricing; would prohibit profiteering; and would provide for penalties."
(Filed 1/01; did not pass by end of session)

AL
H 685
Rep. Haney
S 233
Sen. Dial

Would require that the price of prescription drugs sold to a Medicare patient by a pharmacy participating in the Medicaid program could not exceed the Medicaid reimbursement rate for prescription medicines plus an amount, as set by the Medicaid Agency, to cover electronic transmission charges. Also includes other informational changes (posting prices at pharmacies and annual reviews of costs).
(Introduced 2/8/01; did not pass by end of session)

AZ
SB 1110
Sen. Nichols

Would place every senior whose income is below 300 percent of the federal poverty level into the Arizona Health Care Cost Containment System, the state's alternative Medicaid program - only for prescription coverage. Would cover singles earning up to $20,875 a year and couples making a combined $28,125.
> Separate proposal would set up a buying "consortium," with the state negotiating for discounts of 20 percent to 40 percent from drug manufacturers. Anyone over age 60,
regardless of income or insurance coverage, could buy prescriptions through
the consortium at this lower cost.
(Filed 1/15/01; Passed Senate, did not pass by end of regular session)

AZ
HB 2593
Cardamone

Would set maximum prices for consumer sales, based on Federal Supply Schedule or Canadian prices.
(Filed 2/7/01, died in committee at end of regular session)

AR
HB 2497 [text]
Rep. King

Would direct the Department of Health to establish the Arkansas Pharmacy Outreach Program to assist residents in obtaining products from manufacturers' free programs.
(Passed House, 3/26/01; Passed Senate, 4/12/01; signed by Governor 4/20/01 as Act 1746)

AR
HB 2498
Rep. King

Would authorize the state to join a multi-state or multi-governmental purchasing consortium for the purpose of purchasing pharmaceuticals and other medical supplies; and for other purposes. Also authorizes expanded use, creation or designation of Federally Qualified Health Centers to access "substantially discounted prescription drug prices."
(Passed Senate and House 4/13/01; signed by Governor as Act 1770)

AR
HCR 1031
Rep. Trammell

Non-binding resolution "encourages pharmaceutical manufacturers to work with the Area Agencies on Aging to provide outreach and education services to encourage appropriate and more complete utilization" of manufacturers' free pharmaceutical programs.
(Passed House, 3/9/01; Passed Senate, 3/19/01. Transmitted to Governor and affected parties)

AR
S.932
Sen. Beebe

Prescription Drug Access Improvement Act directs the state to apply for a Medicaid waiver for prescription drug subsidy coverage, with income eligibility maximum of 80% of FPL ($6872), increasing to 100% FPL ($8590) after 6/30/03. The program would provide benefits only after federal approval is received.
(Passed House and Senate, signed by Governor, 4/16/01)

AR
S.956
Sen. Walker

Would create a Prescription Drug Advisory Commission composed of 15 members and will study the establishment of a state prescription drug bulk-purchasing plan and the feasibility of the state subsidizing the cost of prescription drugs. (Passed House and Senate, signed by Governor, 4/18/01)

AR
H.1145
H.1925
Rep. Trammell

Would bar pharmaceutical companies from selling prescription drugs in Arkansas for more than the drugs cost in Mexico or Canada. The bill would authorize a Fair Drug Pricing Board. Starting in 2002, the panel would annually adopt rules establishing maximum prices for prescription drugs sold in Arkansas. Selling a prescription drug above the maximum price set by the board would constitute a violation of the state's Deceptive Trade Practices Act.
(Filed 1/3/01; H. 1145 Passed House 4/12/01; Died in Senate Committee at session adjournment, 5/14/01)

AR
HB 2499
Rep. King

Would establish a prescription medications purchasing program to provide access to medications at the lowest market rate to individuals aged 60 and older.
(Filed 3/5/01; sent to Senate Committee 4/2/01; Died in Senate Committee at session adjournment, 5/14/01)

CA
SB 696
Sen. Speier

Changes and expands the function of the 1999 Discount Prescription Medication Program. It is renamed the Golden Bear State Pharmacy Assistance Program, with participation described as "voluntary for Medicare beneficiaries, pharmacies, and drug manufacturers". The new law is open to any Medicare beneficiary who registers for the program; it requires Medicaid participating pharmacies to charge discounted prices based on Medicaid, including rebates to be negotiated with drug manufacturers, pharmacy reimbursement is based on these rebates. This bill would "only be implemented upon the receipt of all necessary federal approvals and if the department is able to negotiate a sufficient number of rebate agreements". It appropriates $1,000,000 in the form of a loan for startup costs.
(Passed Senate 6/4/01; signed by Governor, 10/10/01)

CA
SB 922
Sen. Soto

Would expand the Prescription Drug Assistance Program to provide for Medicare-eligible persons, by establishing a list of most commonly-used prescription drugs, and would "require manufacturers that sell prescription drugs in California to enter into a purchasing agreement with the agency", including rebates for sales of prescription drugs. (Filed 2/23/01, in Senate Committee at end of session; see SB 696 *)

CO
HB 1108
Rep. Plant

Would authorize the state to negotiate for reduced prices for an estimated one million residents who do not have prescription coverage.
(Filed 1/01; killed by committee 1/29/01)

CO
HB 1109
Rep. Lawrence

Would allow medical savings accounts for prescription medications
(Favorable report to Finance Comm., 2/5/01; killed by committee 2/7/01)

CO
HB 1110
Rep. Mace

Would create a state income tax credit for prescription medications, up to $500 for individual and $1000 for a couple; reduced by $2 for every $100 of income (max eligibility = $45,000) [fiscal note]
(Favorable report to Finance Comm., 1/29/01; killed by committee 2/7/01)

CT
H. 7503; Public Act 002

(Section 33) Requires the state to seek a federal Medicaid waiver to obtain federal funds to cover seniors enrolled in the state-only ConnPACE subsidy program. If federal approval is obtained, eligibility would be extended to 300% of federal poverty level as of April 1, 2002. [update: On January 28, 2002 HHS announced an optional federal Medicaid benefit covering persons up to 200% of federal poverty]
(signed by Governor, 7/2/01)

CT
HB 5050
Rep. Beals

Would require state "to negotiate discounts and rebates from suppliers of prescription drugs in order to achieve prices at least as low as those paid by the federal government."
(Filed 1/3/01; did not pass by end of regular session)

CT
HB 5884
Rep. Nardello

Seeks to "reduce prescription drug costs by providing objective, comparative information to health care providers so that cost and quality will be considered when developing drug regimens."
(Filed 1/16/01; did not pass by end of regular session)

CT
HB 6275
Rep. Beals

Would establish 1) a prescription drug discount program open to residents without drug benefits who enroll in ConnPACE part B program; 2) a drug price fairness board, to determine after January 2004 if maximum prices should be established.
(Filed 1/18/01, did not pass by end of regular session)

CT
HB 6460
HB 5332
Rep. Lee Samowitz
SB 40
Sen. Prague

Would establish discounts based on "collecting rebates from prescription drug manufacturers and labelers that negotiate and agree to participate in the program and reimbursing retail pharmacies that offer discounted drug prices to qualifying state residents"; includes Medicaid prior authorization for non-participating manufacturers; and prohibition against profiteering.
(HB 5332, HB 6460 filed 1/19/01; SB40 did not pass by end of regular session)

CT
SB 1
Sen. Pres. ProTem Kevin Sullivan

Would offer discounts on prescription drugs to senior citizens. The income limits would increase annually up to $34,000 for a single person and $40,000 for a married couple, with benefits available on a sliding scale. The first year would cost an estimated $16.3 million.
(Comm. on Aging favorable 3/22/01; did not pass by end of regular session)

CT
SB 434
Sen. Sullivan

An act concerning access to affordable prescription drugs. Would ban restrictive mandatory drug formularies and establish a "fair drug pricing program".
(Favorable report; did not pass by end of regular session)

CT
SB1120 &

Amended SB 1120
Committees

As filed, would authorize a Medicaid waiver to provide discounts for residents up to 300% of FPL, "to reduce the cost and increase the availability of prescription drugs in the state". Also would establish discounts based on manufacturer rebates. "After October 1, 2002, the commissioner shall use the commissioner's best efforts to obtain a rebate amount equal to or greater than the amount of any discount, rebate or price reduction for prescription drugs provided to the federal government."
As amended, would mandate a Medicaid waiver only to "authorize the use of federal funds to match, on a dollar-for-dollar basis, state funds" in the existing ConnPACE subsidy program. Amendments delete discounts but would increase subsidy eligibility from current $14,700 to 250% of federal poverty ($21,475)
(Favorable reports by Public Health, amended; did not pass by end of regular session)

CT
SB 492
Sen. Penn

Would "provide assistance to senior citizens who are paying a disproportionate amount of their income for prescription drugs."
(Filed 1/19/01; did not pass by end of regular session)

CT
Gov. Rowland

Would allow senior citizens with annual incomes up to about $20,000 "to buy drugs at steep discounts subsidized largely by drug-makers and pharmacists"; designed to cost the state nothing. $25 annual enrollment fee. (did not pass by end of session)
News article: "Prescription Debate Flares" 2/14/01

FL
HB 69
Rep. Argenziano

Would require four specified generic drugs be removed from the existing "negative formulary" for generic and brand-name drugs established by Florida law, thus allowing their routine substitution by pharmacies for higher-priced brand name products, unless the doctor states the brand version is "medically necessary." The bill does not subsidize or alter the price of the products themselves.
(Passed House and Senate, 5/2/01; Signed by Governor, 6/1/01 as Chapter No. 2001-146)
Note: a Medicaid-only formulary law, SB 792, also was signed in 2001.

FL
S 690
Sen. Mitchell

Prescription Drug Fair Pricing Act. Would create state-agency run reduced-cost prescription program; would requires drug manufacturers & labelers that sell prescription drugs through any state-funded program to enter into rebate agreement with agency & make rebate payments to state agencies; would require retail pharmacies to provide discount for drugs covered by program & sold to program participants; would require the state to establish discounted prices.
(Filed 3/6/01; died in Senate Committee at end of session 5/4/01)

GA
HB 585
Rep. Parham

Would provide for the licensing and inspection of pharmacy benefit managers, who would be "licensed to practice as a pharmacy."
(Filed 2/14/01; passed House, 3/2/01; Senate read 2^nd time 3/15; see 2002 Report*) also see Other Initiatives- Georgia, below

HI
HB 47
Sen. Takumi

Would create a discount program, open to anyone, aimed at 220,000 Hawai'i residents who have no drug coverage; also those who exceed the limits of their drug coverage, and have to pay out-of-pocket. A PBM hired by the state would negotiate with pharmaceutical companies to develop discounted prices for people in the program. Local pharmacies would then sell drugs to members of the program at the discounted price. The pharmaceutical companies would periodically pay rebates to the state based on the amount of drugs purchased through the program, and the state would use the rebates to pay local pharmacies.
(Passed House, 3/6/01; deferred by Senate; carried over to 2002 session, 5/14/01*)

HI
HB 142

Would create mechanism to reduce prescription drug prices, receive discounts, enter into rebate agreements, and prevent profiteering and manufacturer retaliation. Creates prescription drug advisory commission. Requires State to act as pharmaceutical benefit manager for residents. (1/22/01, Referred to the committees on CPC/JHA, and then referred to the committee on FIN; 7/23/01 carried over to 2002 session.)

HI
HB 411

Requires that individuals with no health insurance to pay at the federal medical supply schedule for prescription drugs. (3/6/01 Passed House; 4/10/01 Senate returned in amended form. House disagrees with Senate amendment, Bill scheduled for conference committee meeting on Tuesday, 4/24/01; 7/23/01 carried over to 2002 session.)

HI
HB 803

Relating to prescription drug tax credit. (2/13/01, House committee recommends that the measure be deferred. 7/23/01, Carried over to 2002 Regular Session.)

HI
HB 911

Creates mechanism to reduce prescription drug prices, receive discounts, enter into rebate agreements, and prevent profiteering and manufacturer retaliation. Creates prescription drug advisory commission. Requires State to act as pharmaceutical benefit manager for residents. (1/29/01, House referred to committees; 7/23/01 Carried over to 2002 Regular Session.)

HI
SB 250

Enacts a state-sponsored prescription drug plan for the uninsured and chronically ill. (1/23/01, House referred to committees, 7/23/01, Carried over to 2002 Regular Session.)

HI
HB 1467

Creates mechanism to reduce prescription drug prices, receive discounts, enter into rebate agreements, and prevent profiteering and manufacturer retaliation. Creates prescription drug advisory commission. Requires State to act as pharmaceutical benefit manager for residents. (1/29/01, House referred to committees; 7/23/01 Carried over to 2002 Regular Session.)

ID
HCR 26
Rep. Henbest

Resolution would encourage the Governor and the Department of Health and Welfare to "develop a compact with our sister states to facilitate purchases of prescription drugs by the most economic method. Sponsors claimed that "this coalition would ease the rising prices of current prescription drugs on Idaho residents, especially Idaho senior citizens." News story online
(Adopted by House, 3/5/01 and Senate, 3/13/01; to Secretary of State, 3/19/01)

IL
H 2236
Rep. Franks

Would create a state-run program to provide a discount to senior citizens that enroll and pay $25 a year for a member card. The Department of Central Management Services would negotiate discount prices, including manufacturer rebates. Retail pharmacies would sell at the discount price, and be reimbursed for the difference by the state. Includes a $27 million start-up fund.
(Passed House 3/29/01; held in Senate Rules Committee thru 2/02 *)

IL
S 226
Sen. Obama

Would provide that Medicare enrollees would be eligible to purchase Rx at the Medicaid discount price from retail pharmacies that are Medicaid providers. Pharmacies would be paid a dispensing fee not more than the fee paid under Medicaid,
(Filed 2/21/01; in committee *)

IL
SB 1308
Sen. Halvorson

Creates the Senior Citizen Prescription Drug Discount Program Act. Provides that the Program shall be administered by the Department of Central Management Services to enable eligible senior citizens to purchase prescription drugs at discounted prices and that the Department shall (i) enroll eligible seniors into the Program, (ii) enter into rebate agreements with drug manufacturers, either itself or through an agent, and (iii) reimburse pharmacies for the cost of providing discounts using the proceeds from the manufacturer rebate agreements. Eligible seniors are persons who are Illinois residents and who are 65 years of age or older. Establishes a prescription pricing formula. Sets guidelines for the rebate agreements. (3/01, held in committee)

IN
H 2026
Rep. Kersey

Would establish the Rx Program to provide discounted prescription drug prices to uninsured residents. Would require a retail pharmacy to sell the drugs covered by the Rx program to participants at the discounted price. Allows a drug manufacturer or labeler that sells prescription drugs in Indiana through any state funded or state operated program to enter into a rebate agreement with the state. Authorizes the state to negotiate rebate required from a manufacturer or labeler, with rebates to take effect not later than January 1, 2002. [fiscal note online]
(Filed 2/4/01, amended and passed House, did not pass Senate by end of session)

IN
S 482
Sen. Johnson
S 231

Would regulate prescription drug discount cards. Provides that a person "may not sell, market, promote, advertise, or distribute a card, a device, or another purchasing mechanism that is not insurance that purports to offer discounts or access to discounts from a pharmacy unless consumer protections such as individual contracts are in place. (Filed 1/22/01; did not pass by end of session)

IN
S 231
Sen. Gard

This bill establishes the Rx Program to help provide discounted prescription drug prices to uninsured residents of Indiana. (Introduced 1/9/01; To Conference Committee, 4/17/01 Regular Session Adjourned, No carryover 4/29/01)

IA
HF 246
Hoversten

Discounts for Medicare Beneficiaries. Would require pharmacies to charge Medicare beneficiaries a price for prescriptions that does not exceed the Medicaid reimbursement rate.
(Filed 2/13/01; did not pass committee by end of regular session*)

IA
SSB1069

Study bill, would require state agency to "develop a proposal for the establishment of a prescription drug assistance program", by September 2001.

KS
HB 2374

Would create the Prescription Drug Fair Pricing Act to provide affordable access to medically necessary prescription drugs. The bill would establish the Prescription Drug Program and would require the program to negotiate substantial rebates from drug companies and labelers, and discounts from drug retailers. The bill would allow residents of the state to participate in the program if they do not have prescription drug coverage. The bill would exempt pharmaceutical prices subject to legally binding contracts prior to the effective date of the bill. The bill would allow the Department to seek waivers of federal law or regulation to implement the bill. The Secretary would be required to establish maximum retail prices for any or all prescription drugs sold in Kansas. Would also require the development of a prescription drug education and utilization program, which would provide information to each resident enrolled in the program. The bill would establish a State Prescription Rebate Fund, which would receive all money from participating manufacturers and labelers paying rebates. (2/07/01, Introduced in the House; 2/08/2001 Referred to Committee.)

KY
SR 33

Resolution encourages the Department for Public Health "to coordinate the distribution of information about the compassionate care programs of pharmaceutical companies". (Senate adopted 38y-0n, 3/1/01)

LA
HB 1089
Rep. Faucheux

Would establish the Louisiana Fair Prescription Drug Pricing Act, to provide discounted prescription drug prices to uninsured residents. Would include manufacturer rebate program and require a retail pharmacy to sell the drugs covered by the Rx program to participants at the discounted price.
[Substitute] Creates the Louisiana Seniors Pharmacy Assistance Program
(House passed to 3^rd Reading; returned to committee; did not pass in regular session)

LA
HB 1755
Rep. Landrieu.

Would authorize the DHH secretary to establish a program for lower priced prescription drugs. Eligibility may include Medicaid, Medicare, state employees, other government employees, persons below a certain income and individuals without prescription drug coverage. "The secretary may implement one or more of the following programs on a pilot or statewide basis: 1) a drug rebate program, 2) a drug formulary, 3) direct purchasing, 4) cooperative agreements with other states."
(in House Comm. on Appropriations; did not pass in regular session)

ME

See Prescription Drug Laws in Maine an NCSL web page describing earlier enacted laws, current policy and activities.

ME
LD 1790 Speaker Saxl

Would create the Healthy Maine Prescription Program, utilizing the Medicaid waiver approved in January 2001. Eligible participants up to $25,000 for individuals and $33,500 for couples would be able to buy pharmaceuticals at the discounted Medicaid price, utilizing the existing manufacturers rebate program.
(Passed in House, 5/21/01 and Senate 5/23/01; signed by Governor 5/25/01 as Public Law Chapter 293)
Note: Federal court decisions of 6/8/01 and 2/25/02 may affect this law.

ME
LD 1651
LD 1816/ SP 636
Sen. Mitchell
SB 142

LD 1651 Would amend the Maine Rx Program enacted in 2000 to eliminate discounts that are borne by pharmacies, leaving the discounts that are funded from rebates paid by drug manufacturers. Includes a $6.50 dispensing fee that increases if certain price discounts increase. Also requires uniform private health insurance prescription cards. LD 1816 states, "That the Department of Professional and Financial Regulation, Bureau of Insurance shall undertake a study of the feasibility, costs and implications of establishing by rule a standardized pharmaceutical benefits identification card for issuance by health coverage providers that provide pharmaceutical benefits, including insurers, health maintenance organizations and other providers of health coverage." (Filed 3/15/01; amended as LD 1816 and repassed Senate and House, 5/29/01; Signed by Governor, 6/13/01)

ME
LD 387
Rep. Mayo

Would provide $25,000 annually for 2001 and 2002 as the State's share of the cost to operate the Northeast Legislative Association on Prescription Drug Pricing.
(Passed House 5/18/01; did not pass Senate, 6/22/01*)

ME
LD 916
Rep. Lemoine

Would direct the Department of Human Services to establish a Prescription Drug Reimportation Program, which "acquires prescription drugs from foreign jurisdictions and acts as a wholesaler for these prescription drugs to pharmacies" The program "shall strive to maximize cost savings to be realized by consumers."
(Passed House 5/17/01; did not pass Senate, 6/22/01*)

ME
LD 1022
Rep. Kane

Would require companies who sell prescription drugs in the State to make available for public inspection all costs, including advertising, associated with marketing the drugs.
(Passed House; did not pass Senate, 6/11/01*)

ME
LD 1386
Rep. Michael

Would create a Maine Consumer Purchasing Agency, "authorized to form any buying pool with individuals, companies, associations, pharmacies, states or state agencies for the purpose of purchasing any prescription drugs approved by the federal Food and Drug Administration directly from any company in the world."
(Died in Committee 3/29/01)

MD
HB 6
SB 236
Del. Taylor
Sen. Miller

1) Creates the Maryland Pharmacy Discount Program as part of Medicaid through an 1115 waiver. If the federal waiver is approved, any Medicare beneficiary without drug coverage will be eligible to enroll and will receive a discount on purchases tied to the Medicaid price less rebates. Persons with incomes at or below 175% of the poverty line ($15,033 single; $20,318 couple) will receive a subsidy of 35% of the costs. If the waiver is not approved, the Pharmacy Discount Program will be run as part of the existing state Pharmacy Assistance Program. In that case, eligibility will be limited to persons with annual incomes at or below 250% of poverty ($21,475 for single; $29,025 for couple). The discount will be tied to the Pharmacy Assistance Program prices less rebates. Persons with incomes at or below 175% will receive a subsidy of 25% of the costs.
2) Expands the Short-Term Prescription Drug Subsidy Plan began in 2000 after Medicare HMOs left many parts of the state. The 2001 law reduces the premium to $10, eliminates the deductible, and extends the program statewide. The benefit cap of $1000 remains in place. Persons with incomes up to 300% of the poverty level are eligible. It also sets up an outreach and notification program. This means the state will subsidize both a privately managed plan (the Short-Term Prescription Drug Subsidy Plan) and a state-run plan (the Pharmacy Discount Program).
3) Creates the Maryland MedBank Program, a clearinghouse program to link residents to manufacturers' free drug programs. The state will pay administrative costs. The Program can use some of the funds to pay for "interim" supplies of drugs until a person is determined eligible for the free drugs.
(Identical legislation passed each chamber; signed by Governor 4/20/01 as Chapter 134 and 135) fiscal note online

MD
SB 126
Sen. Middleton

Discounts for Medicare Beneficiaries. Would require pharmacies, as a condition of participation in Maryland Medicaid, to charge Medicare beneficiaries a price for prescriptions that does not exceed the Medicaid reimbursement rate for prescription medicines.
(Finance Comm.; bill withdrawn, 3/14/01)

MD
HB 1232
Del. Rudolph

Would create a discount program for elders 65 and over to purchase retail products at the Medicaid price.
(Filed 2/01; killed in committee, 3/21/01.
For enacted subsidy legislation see SB 6 of 2001, above)

MA
H. 1;
H.4101
S.1900 of 2001, FY
'02 Budget

The FY 2002 budget, as amended, made several changes to prescription programs. The Senate version, section 42 (6/01) included authorization for a Medicaid waiver to allow discounted prescription drug coverage for persons on Medicare, but this language was deleted in the final signed bill.
(Differing versions passed House & Senate; signed by Governor, 11/01)|

MA
H. 2168
Rep. Jehlen

Would create a "outpatient prescription drug cost reduction and coverage expansion program." Eligibility defined as "patients lacking adequate coverage and with incomes of up to and including 400% of the state level of poverty or who spend 3% or more of gross income." Requires manufacturers to have a "discount or rebate agreement " with the commissioner on behalf of patients.
(Filed 1/3/01; placed in inactive study 9/6/01*)

MA
H. 2701
Rep. Ruane

Would limit payments to manufacturers by pharmacies, hospitals or other institutions licensed to dispense drugs
(Filed 1/3/0; placed in inactive study 9/6/01*)

MA
H. 3300
Rep. Jehlen

Would direct the state to seek an amendment to the current Medicaid waiver, modeled on Vermont, to provide a prescription drug benefit to "any Medicare-covered individual with income above 150% of the Federal Poverty Level without drug coverage and all individuals with incomes up to 300% of the Federal Poverty Level who do not have a benefit program that includes coverage."
(Filed 1/3/0; placed in inactive study 7/01*)

MA
H 3932
Rep. Strauss

Would authorize the state Group Insurance Commission to provide access to prescription drugs for public employees and for other residents.
(Filed 1/3/01; placed in inactive study 9/6/01*)

MA
S.589
Sen. Tolman

Would create a Massachusetts Prescription Drug Pricing Review Commission, mandated to "assess on at least a semi-annual basis whether prescription drugs are being sold in the Commonwealth at prices reasonably comparable with the Federal Supply Standard (FSS)". Public reports shall include comparisons of FSS prices to prices of those prescription drugs "found to be sold at excessive profits" in Massachusetts. Manufacturers listed as "profiteering" would be required to report quarterly to the Commission on marketing and promotional expenditures directed to residents of the Commonwealth, including amounts spent on advertising, samples, gifts, salaries, and commissions.
(Filed 1/3/01; placed in inactive study 9/6/01*)

MA
S.601
Sen. Travaglini

Would create a program allowing Medicare beneficiaries to purchase prescription drugs at prices no higher than the Medicaid discounted reimbursement rate. Retail pharmacies that act as Medicaid providers would be required to comply with the reduced price schedule as a condition of continued participation in the Medicaid program. Also would establish "reimbursements in Canada for identical prescription drugs" as one maximum payment standard for Medicaid program; also establishes a new state tax deduction of "reasonable costs of travel to Canada for the purpose of purchasing prescription medications for personal use".
(Filed 1/3/01; placed in inactive study 9/6/01*)

MI
SB 54

Income tax; credit; senior prescription drug tax credit; allow for individuals who pay 100% of their nursing home expenses. (1/30/01, referred to committee on finance)

MN
H 944 Rep.
Johnson
S 765
Sen. Hottinger

Would establish a fair drug pricing act; open to residents who lack prescription drug coverage; includes a prescription drug rebate program based on Medicaid manufacturer rebates; $5,000,000 appropriated for FY2002-2003, from the general fund to the Minnesota prescription drug dedicated fund.
(H. 944 in House Health and Family Security Committee, 2/15/01)
(S.765 amended and passed Senate 21-14, 5/14/01; did not pass by end of regular session*)

MN
S 1181
Sen. Wiger
H 1206
Rep. Evans

Would establish a fair drug pricing program, open to residents who lack prescription drug coverage, includes a prescription drug rebate program based on Medicaid rebates.
(Sent to committees, 2/26/01 ; did not pass by end of regular session*)

MS
HB 200
HB 1173
McBride

Would provide prescription drugs to persons eligible for Medicare with income not more than 250 percent of poverty shall receive prescription only benefits under Medicaid. Authorizes a federal waiver application.
(Died in Committee, 1/30/01)

MS
SB 2008
Sen. Smith

Would provide that veterans may pay the Medicaid reimbursement rate price for prescription medicines plus a processing fee from all pharmacists participating in the Medicaid program
(Died in Committee, 1/30/01)

MS
SB 2405
Sen. Canon

Would require all health plans to issue "a card or other technology containing uniform prescription drug information. The uniform prescription drug information card or technology shall be in the format approved by the National Council for Prescription Drug Programs (NCPDP)"
(Died in Committee, 1/30/01)

MO
Special session
HB 3/SB 4
Rep. Abel & Sen. Singleton

Creates the Missouri Senior Rx Program to provide pharmaceutical assistance for seniors. See Subsidy web page)
Also creates an Rx Clearinghouse to "educate the public on quality drug programs and cost containment strategies" such as existing discount programs and industry-sponsored free programs; it includes a toll free 800-phone number staffed by trained customer service representatives.
(Filed for special session; Conference Committee redraft approved by House and Senate 9/14/01; identical bills HB3 & SB 4 signed by Governor, 10/5/01)-

MO
HB 807
Rep. Naeger

Would direct the state to apply for a Medicaid waiver to establish a pharmacy discount program for Medicare eligible persons up to 300% of federal poverty. Would require annual enrollment and a $2 application fee. 30% of rebate would be used to reduce the retail sale price; participating community pharmacies would be reimbursed monthly for the total amount of discounts given to enrollees.
(Filed 2/15/0; died at end of regular session, 5/01)

MO
HB 824
Speaker Pro Tem Abel

Would require state to apply for Medicaid 115 waiver "to establish a pharmacy discount program that provides discounted prescription drugs to eligible persons" (also would create a subsidy program).
(Passed House; did not pass by end of session - see HB 3 above)

MT
HB 534
Rep. Raser

Would allow people over age 65 with individual income of not more than $22,500 or married income of $36,000 to claim 50 percent of their out-of-pocket expenses for prescription drugs as a credit on their state income taxes. The credit would be "nonrefundable" - no one could claim a credit larger than his or her tax obligation. (Estimated cost $1.5 million -fiscal note online)
(Killed in House, 43y-57n, 3/26/01)

MT
HB 595
Rep. Newman

Would lower prescription prices through group purchasing. The bill would cost more than $16 million over the next two years from the state's general fund. HB595 mandates that state government act as a prescription drug benefits manager for the estimated 220,000 who can't afford health insurance or who carry insufficient policies. The measure requires pharmaceutical companies to give the state discounts for volume purchases of medications, similar to the rebates now offered by companies on drugs purchased through Medicaid.
(Tabled by Committee, 3/21/01; died at end of session 4/21/01)

NH
HB 591
Rep. Taylor

Extends consumer protection rights to users of certain discount cards which are not insurance, but "purport" to offer discounts or access to discounts for prescription drug purchases. (Passed House, 4/18/01 and Senate; signed by Governor as Chapter 135)

NH
SB 37 Sen.
Hollingworth

Extends the reporting deadline for the NH Prescription Drug Access Committee to November, 2002
(Passed by Senate and House, signed by Governor as Chapter 51)

NH
HB 540
Rep. Fran Wendelboe

Would assess a 3 percent fee on the gross sales of any prescription benefit management (PBM) company doing business in New Hampshire. The proceeds from the fee would fund a program providing prescription drugs for low-income and uninsured persons.
(Killed in House 259y-68n, 3/22/01)

NJ
S. 6
DiFrancesco
A.2765
Gusciora; Blee

Establishes the "Senior Gold Prescription Discount Program" as an addition to the existing PAAD program, by covering individuals with annual income up to $10,000 above current program income limits. The income eligibility covers the range from $19,238 to $29,238 for an individual, and from $23,589 to $33,589 for a couple. Enrollees must be at least age 65 or receiving Social Security disability benefits; enrollee copayments are $15 plus 50 percent of the "reasonable cost" of the prescription. The state subsidizes the other portion of the cost.
(passed Senate 11/00; passed House 5/10/01; signed by Governor 5/15/01)

NJ
A 3195
Assembly-member
Neil Cohen

"Prescription Drug Cost Containment Act." - would repeal an existing prohibition, and would now permit pharmacists to distribute premiums or rebates in connection with the sale of drugs and medications.
A 3195 (Filed 2/1/01; Referred To Assembly Health Committee 2/5/01)

NM
SB142
Feldman
HB 297
Taylor

Would authorize application for a Medicaid waiver to create a discount prescription drug price program available for people with incomes up to 300 percent of federal poverty, based on Vermont plan.
(SB 142 Passed House and Senate, 3/14/01; died due to veto by Governor 4/6/01)

NM
SB 143
Feldman

Would create a special prescription drug assistance program in Medicaid for persons sixty-five and older with incomes up to100 percent of federal poverty; also would appropriate $2,355,000, but funds deleted in amendment. (Fiscal note online)
(Passed House and Senate, 3/14/01; died due to veto by Governor, 4/6/01)

NM
H 302
Rep. Picraux

Would expand existing bulk purchasing by the N.M. Retiree Health Care Authority", by creating a new "senior prescription drug program". Enrollees must be 65 or over, would pay an annual fee of not more than $60; and would be entitled to discounts on prescription drugs negotiated by the program. (Fiscal note online)
(Passed House, 2/23/01 and Senate, 3/13/01; died due to veto by Governor 4/6/01)

NM
HB 537
Rep. King

Would require uniform prescription drug ID cards. "Every pharmacy benefit manager or prescription drug cooperative purchasing program providing prescription drugs... shall provide and require each person obtaining prescription drugs through its program to utilize a prescription drug identification card, as approved by the superintendent of insurance, to obtain prescription drugs at retail"
(Passed House and Senate; vetoed by Governor, 3/13/01)

NM
HJM 21
Rep. Stapleton

Requests the state agency on aging "to identify every means possible for the state's senior citizens... to gain access to and be able to afford vitally needed prescription drugs and to publicize that information."
(Passed House and Senate, 3/16/01; signed by President and Speaker)

NM
HB 298
Tsosie
SB140 Sen.
Madalena

Would direct the Dept. of Aging to explore the option of Indian tribe pharmaceutical partnership; would appropriate $25,000 for implementation. Fiscal Report
(Died at end of session)

NM
HB 877
Marquardt
SB 767
Aragon

Would provide a prescription drug program to assist persons without prescription drug coverage. (Died at end of session)

NM
HB 301
Rep. Heaton
SB 141 Sen. Kidd

HB 301 & SB 141 -Would establish the Prescription Drug Fair Pricing Act - requires lowest available purchaser price (not including federal or hospitals) to be the price for public retail sales. 
(HB 301 Committee favorable report; died in Judiciary Committee at end of session)

NM
HB 303

Would require standardized co-payment charges, for prescriptions up to a three-month supply. (Died at end of session)

NM 
SB 144

Would require a state pharmaceutical bulk-purchasing program. 
(3/7/01 tabled temporarily, Died at end of session)

NM
SB 678
Sen. Carraro

An act relating to prescription drugs; limiting prices of drugs sold to certain New Mexico providers. (Died at end of session)

NM
SB 470
Wilson

Would implement a statewide outreach program to assist eligible individuals to enroll in the prescription drug patient assistance program and the veterans' administration health care program. (Died at end of session)

NM
HB 519
Coll

Would fund a state program to "disseminate information to seniors and health care providers about how to order prescription medications through the mail from Canada or Mexico at significantly reduced cost." (Died at end of session)

NY
A.1705
A.3119
S.1104
Sen. Marchi

Would mandate that the cost of pharmaceutical drugs in NY state be no more expensive than any other location where such drugs could be purchased, except in any country whose gross national product per capita is less than fifty percent of the gross national product of the United States. Provides criminal and civil penalties.
(Filed 1/01; re-sent to Codes Committee 1/9/02)

NY
A.2098
S.1690
Sen. Marchi

Would enact an interstate compact on equitable pricing of pharmaceutical patented and generic drugs; makes it a felony to sell pharmaceutical patented or generic drugs in any signatory state at a price which is greater than any price charged for such drug to any other person, firm, corporation, state, government, department, agency, etc. in this country or any other place in the world.
(Filed 1/25/01; re-sent to Codes Committee, 1/9/02 *)

NY
A.3182

Would require pharmacies participating in the Medicaid program to sell prescription drugs to Medicare recipients at Medicaid prices, plus an electronic transmission fee.
(Filed 1/31/01; re-sent to Social Services Comm, 1/9/02 *)

NY
A.4176
Assem. Lafayette
S 3384

Would prohibit price discrimination by manufacturers of prescription drugs in the price they offer drugs for sale to various purchasers or wholesalers; would require manufacturers offer such drugs "on the same terms they offer to their most favored purchasers".
(Filed 2/6/01; re-sent to Health Comm., 1/9/02 *)

NY
A.5967
Assem. Lafayette

Would create the "Fair Pricing for Prescription Drugs Act" providing for the establishment and operation of the prescription drug fair pricing program. Would require retail and wholesale sales at prices no higher than federal or foreign prices.
(Filed 3/1/01; re-sent to Health Comm., 1/9/02 *)

NY
A.6841
Assemblyman Gottfried

Would require the state to apply for a Medicaid waiver to provide discounted drugs for uninsured persons up to 300% of the federal poverty level. It would help many seniors 55-65 who are not eligible for EPIC. The bill is similar to program in Maine and Vermont that received approval from HCFA.
(Filed 3/6/01; sent to Ways and Means 3/20/01; enacting clause deleted/died, 1/9/02 *)

NY
A.7557 Assemblyman Gottfried

Would create a prescription drug discount program for uninsured residents. NY Health Dept. would negotiate discounts with manufacturers; any health plan or health provider (hospitals, nursing home, clinic or practitioner could join.). Participating pharmacies would sell at a discounted price based on the program discount and a dispensing fee (AWP-6%)- rebate + dispensing fee).
(Passed Assembly, 6/26/01; died in Senate; returned to Assembly, 1/9/02 *)

NY
A.7832
Assem. Burling
S.4191
Sen. Maziarz

Would require pharmaceutical drug manufacturers and wholesalers to annually disclosure to the general public, all of its gifts to health care practitioners that prescribe drugs when such gifts have a value of $75 or more.
(Filed 3/27/01; re-sent to Finance Committee, 1/9/02 *)

NY
S.4509
Sen. Hannon

Would establish the program for state cost reduction in pharmaceuticals within the department of health; provides for the bulk purchase by the state of all pharmaceuticals used by the state or paid for by the state; provides for mandatory participation; requires the commissioner of health to establish an information network on the best therapeutic and cost-effective utilization of pharmaceuticals.
(Filed 4/17/01; re-sent to Health Committee, 1/9/02 *)

OH
HB 4
Rep. Hagan
HB 290
Rep. Miller
SB 127
Sen. Hagan

Would require the Department of Aging to establish a prescription drug discount card program that enables cardholders to receive discounts on prescription drugs dispensed at participating pharmacies. The program administrator may charge a one-time or periodic fee. (Fiscal note online)
(HB 4 Passed House 6/5/01; in Senate committee 3/02 *)
(HB 290, SB 127 sent to committees *)

OK
HB1297
Rep. Gilbert

Utilization of Unused Prescription Medications - Directs the State Board of Health and state agencies to develop a pilot program that allows nursing facilities to transfer unused prescription drugs, other than controlled substances, to pharmacies operated by the city-county health departments or county pharmacies to distribute them to the medically indigent: "a person who has no health insurance or who otherwise lacks reasonable means to purchase prescribed medications".
(Passed House 3/13/01; passed Senate 4/2/01; signed by Governor 5/31/01)

OK
HB1826
Rep. Leist
HB1853
Rep. Kirby

Would establish the OK Prescription Drug Fair Pricing Act, to establish maximum prices for prescription drugs as of 2002, managed by a state Drug Prices Board.
(Did not pass by end of regular session *)

OR
SB 9
Sen. Derfler

1) Creates the "Senior Prescription Drug Assistance Program" state subsidy of up to 50% of "the Medicaid price of the prescription drug, using a sliding scale based on the income and resources of an enrollee." Subject to funds available, the Department of Human Services may adjust the Program price, which must be not more than the Medicaid price. Maximum income eligibility is 185% of FPL, age 65 year or older, and have less than $2000 in resources not counting home or car. Annual benefit is capped at $2000. The program may have an enrollment fee of up to $50 annually, and retail pharmacies may charge a dispensing fee not more than Medicaid fees ($4.28). Provides for use of cigarette tax revenues to reimburse retail pharmacies for subsidized prices.
2) Creates the Patient Assistance Program in the College of Pharmacy at Oregon State University to assist low-income Oregonians in gaining access to prescription drug assistance programs offered by pharmaceutical companies if a patient is not eligible for publicly funded prescription drug benefits. Appropriates $100,000 for education and outreach. Includes an immediate effective date.
(Passed Senate and House 7/6/01; Signed by Governor 7/30/01.)

OR
S. 819
Sen. Clarno
Rep. C. Walker

[Medicaid] Would create a Medicaid prescription formulary. Requires Department of Human Services (DHS) to apply to federal government for waiver to allow copayments. Directs department to adopt copayment schedule by rule upon receipt of waiver. Directs Health Services Commission to recommend copayments, not to exceed $5, for prescription drugs, to apply to federal government for waiver to allow copayments and to adopt copayment schedule by rule if waiver is approved.
[Final Version] Directs the state to adopt a Practitioner-managed Prescription Drug Plan for the Oregon Health Plan to ensure that enrollees receive "the most effective prescription drug available at the best possible price." Stipulates that 1) Prior to adopting the plan, DHS is required to conduct public meetings and consult with the Health Resources Commission. 2) Allows a practitioner to prescribe any drug that the practitioner indicates is medically necessary for an enrollee as being the most effective available. Requires that Oregon Health Plan/Medicaid reimbursement be for generic form of unless the practitioner prescribes otherwise and an exception is granted by DHS. Deletes prohibition of limiting the type of legend drugs that a practitioner may prescribe.
(Amended and Passed Senate 7/6/01 and House 7/7/01, signed by Governor 8/2/01)

OR
H 3300
Rep. Bates

Would direct Health Resources Commission to develop limited prescription drug formulary for Medicaid and others in the Oregon Health Plan. The state would identify one drug that "best combines clinical efficacy and price in each class." The price of the "reference" drug would become the maximum amount covered by the Oregon Health Plan; enrollees would pay the difference if they used a more expensive product.
(Filed 3/6/01, Committee on Health and Public Advocacy; did not pass by end of '01 session)

OR
S.875
Sen. Corcoran

Would create a state-run prescription drug bulk-purchasing program that would negotiate discounts with suppliers, with estimated state savings up to $200 million.
(Filed 2/12/01, died in committee at end of regular session, 7/7/01)

OR
S.876
Sen. Beyer

Would require retail pharmacies to sell prescriptions to Medicare recipients at the same price charged Medicaid recipients, with savings estimated at 10 percent to 40 percent. (Filed 2/12/01; died in committee at end of regular session, 7/7/01)

OR
S.877
Sen. Corcoran

Would establish the Oregon Rx Program, which would allow the state to set maximum retail prices for prescription drugs and provide discounted prescriptions to all uninsured residents.
(Filed 2/12/0; died in committee at end of regular session, 7/7/01)

PA
HB 444
Rep. Walko

Would 1) establish a program to provide low-cost drugs, medication and medical supplies to disadvantaged, elderly and disabled individuals, age 62 and older or disabled; 2) create a state Rx Program to utilize manufacturer rebates and pharmacy discounts to reduce prescription drug prices; (3) authorize the Secretary of the department of health to establish maximum retail prices for prescription drugs by January 2004. (Filed 2/8/01; did not pass by end of '02 session*)

PA
Rep. Walko

Requests the Governor to apply for a federal Medicaid waiver to allow Medicare enrolled elders up to 300% of poverty level to receive a pharmaceutical-only benefit based on Medicaid price retail discount, similar to Vermont and Maine programs.
(request transmitted to Governor, 3/8/01)

PA
SB 127
Sen. Murphy

Would provide for pharmaceutical advertising and promotional expense disclosure.
(Filed 1/29/01; did not pass by end of '02 session*)

PA
SB 700
Sen. Murphy

Would require pharmaceutical assistance review board shall study feasibility of combining the purchasing power of all pharmaceutical programs which are State-funded or State-subsidized to ascertain what barriers may exist, how to overcome the barriers and the advantages or disadvantages of undertaking a bulk purchasing program. The secretary may enter into a multistate agreement to purchase drugs in bulk.
(Filed 5/21/01; did not pass by end of '02 session*)

PA
SB 1036
[text]
Sen. Michael O'Pake

Would adopt a plan proposed by the Northeast Legislative Association on Prescription Drug Prices, establishing the "Pharmacy Best Practices and Cost Control Program", and permit the state to enter into "prescription drug fair pricing coalitions" to negotiate discount prices with drug makers. A coalition of eight states would pool their purchasing power to provide discounts to Medicaid beneficiaries and some state residents not covered by public health programs. The purchasing pool would include publicly funded prescription drug programs and private health plans that decided to participate.
(Filed 8/13/01, did not pass by end of '02 session*)

PA
SB 1022
SB 1203
Sen. Conti

Would create The Prescription Drug Access Clearinghouse Authority, to assist citizens with accessing prescription drug services at affordable prices. The authority shall administer a prescription drug discount program. The authority shall establish public-private partnerships using a process to identify multiple-private sector prescription drug discount plans that will accept enrollment from any eligible resident; provide enrollees with enhanced access to prescription drugs; and engage in ongoing competition for enrollees on the basis of access, cost and quality of service and product offered.
(Filed 6/1/01; did not pass by end of '02 session*)

RI
H.5909
Rep. Moura

Would create a pharmaceutical discount program. The state would "use its bulk-purchasing power to negotiate discounts and rebates for residents who lack insurance or who have insurance that doesn't cover prescription drugs. Also provides that "maximum retail prices for prescription drugs sold in Rhode Island shall be established". Residents would receive prescription cards that entitle them to lower prices negotiated by the state.
(Filed 2/6/01; did not pass committee by end of session*)

SC
H 3974
Rep .Cato
S 601
Sen. Thomas

Amends current law regarding prescription discounts cards, by requiring persons who "sell, market, promote, advertise, or distribute a card or other purchasing mechanism or device" which is not insurance that "purports to offer discounts or access to discounts" from pharmacies for prescription drug purchases to register and report to the Department of Consumer Affairs, rather than the Department of Insurance. Provides that violators are subject to civil and administrative remedies. Requires registration prior to offering services.
(H 3974 Passed House and Senate; signed by Governor as Act #82, 8/19/01)

SC
S. 186
Sen. Elliott

Would require pharmacists to "charge a person receiving Medicare benefits the amount allowed by Medicaid for the same prescription, plus a dispensing fee."
(Filed 1/23/01; did not pass by end of session; carryover to 2002*)
The state has requested a HCFA/CMS Medicaid waiver to allow Medicare elders to receive a pharmaceutical-only benefit based on Medicaid price retail discount, similar to Vermont and Maine programs.

SD
H.1167
H.1242
Rep. Kloucek

 Would require pharmaceutical manufacturers to offer the "most favored purchaser or wholesale distributor" prices and terms to "to all purchasers ... on an equal basis."
(Filed 1/29/01; killed in committee, 2/14/01)

SD
S. 88
Sen. Ed Olson

Prohibits deceptive practices to "sell, market, promote, advertise, or otherwise distribute any card or other purchasing mechanism or device that is not insurance that purports to offer discounts or access to discounts from pharmacies for prescription drug purchases". Cards must state that discounts are not insurance; discounts must be specifically authorized by a separate contract with each pharmacy listed; the discount or access to discounts offered must not be "misleading, deceptive, or fraudulent, regardless of the literal wording".
Passed by House and Senate, signed by Governor, 2/9/01)

SD
SB 192
Sen. Hutmacher

Would require prescription drug manufacturers and labelers to enter into rebate agreements, to establish a discount prescription drug program for certain individuals, to require retail pharmacies to offer certain discounts, and to prescribe penalties and remedies.
(Passed Senate 2/16/01; killed in House committee, 2/26/01)

SD
SB 196
Sen. Hutmacher

Would provide for a negotiated price for prescription drugs sold in the state, "to enable the citizens of the state to purchase prescription drugs at the lowest possible price, to ensure access to prescription drugs, and to support state pharmacies." Manufacturers of prescription drugs would be required to negotiate a discount retail price with the secretary. "The terms and conditions shall be based on the total estimated amount of prescription drugs sold in the state."
(Filed 1/29/01; killed in committee, 2/14/01)

SD
SB 242
Gov. Bill Janklow

Would enact "An Act to affect the sale and pricing of prescription drugs in the State of South Dakota"; would require wholesalers of prescription drugs to give all hospitals, pharmacies and other South Dakota retailers the lowest price offered in the state. House committee version required manufacturers to sell to wholesalers at Canadian prices. News article, 1/11/01
(Passed Senate, 2/16/01, 32y-2n; killed in House, 2/28/01)

TN
S.19
Sen. Harper
H.123
Rep. Turner

Would 1) establish a program to provide low-cost drugs, medication and medical supplies to disadvantaged, elderly and disabled individuals, age 62 and older or disabled; 2) create the Tennessee Rx Program in order for the state to utilize manufacturer rebates and pharmacy discounts to reduce prescription drug prices; (3) authorize the department of health to establish maximum retail prices for prescription drugs; 4) establish the prescription advisory commission to review access to and the pricing of prescription drugs for state residents; 5) enable the attorney general to prosecute violations of illegal profiteering by drug manufacturers and 6) delineate additional requirements upon drug manufacturers in relation to Medicaid/TennCare.
(Filed 1/10/01; did not pass committees by end of session*)

TX
HB 915
Rep. Gray

Would create a system of bulk purchasing of prescription drugs by state agencies, including Dept. of Health, Mental Health, state employees, retirees, teachers, prison system and any other agency that purchases pharmaceuticals. It would create the Interagency Council on Pharmaceuticals Bulk Purchasing, and would use existing distribution networks. The Council "shall investigate" options of expanding Medicaid purchasing, and using DSH and FQHC facilities. Final version includes provisions for manufacturer and wholesaler price reporting and enforcement powers for the Attorney General.
[fiscal note online estimates savings of $13 million for first two years]
(Amended and passed House, 4/30/01; passed Senate, signed by Governor, 6/15/01

TX
SB 893
Sen. Moncrief

Would require an evaluation of existing drug purchasing cooperatives that purchase drugs on behalf of consumers. Provides for a consumer evaluation survey and a public report.
(Passed Senate, 3/29/01; passed House & , signed by Governor, 6/15/01

TX
SB 1763
Sen. Moncrief

Would establish a state-coordinated program to provide information about free and low-cost prescription drug products available from pharmaceutical companies; would include toll-free consumer telephone system and staff.
(Passed Senate, 4/20/01; passed House & , signed by Governor, 6/15/01

TX
SB 1

Appropriations bill, which includes provisions for pharmaceutical purchases, vendor drug program, and vendor drug rebates.(Passed Senate, 5/24/01, passed House, 5/23/01, line item vetoed by Governor, 6/17/01)

TX
HB 415
[text]
Rep. Maxey

Would create the Texas Fair Drug Pricing Board. "The Texas Fair Drug Pricing Board is the principal authority in this state on matters relating to the state's purchase of prescription drugs and the setting of maximum prices of prescription drugs sold in this state." A "manufacturer price of a prescription drug may not exceed the manufacturer price for that drug sold in Mexico or Canada, whichever is lower."
(Filed 12/21/00; House State Affairs Comm., died at end of session, 5/28/01)

TX
SB 556
Sen. Robert Duncan

Would create a discount program for Medicare enrollees; would require state pharmacies that participate in the Medicaid Program to sell pharmaceuticals at the lower Medicaid price. [Prescription Drug Report from the TX Comptroller]
(Passed Senate, 4/10/01; House favorable committee report, died at end of session, 5/28/01)

TX
SB 894
Sen. Moncrief

Would create a system bulk purchasing of prescription drugs by state agencies, including Dept of Health, Mental Health, state employees, retirees, teachers, prison system and any other agency that purchases pharmaceuticals. It would create the Interagency Council on Pharmaceuticals Bulk Purchasing, and would use existing distribution networks.
(Amended and passed Senate, 4/25/01; died in House committee at end of session, 5/28/01)
Also see HB 915, above.

VT
H.485, § 123

FY 2001 budget Sec. 123: directs the state to establish a Pharmacy Best Practices and Cost Control program, authorizing a contract with a Pharmacy Benefit Manager (PBM) to develop a "preferred list" or formulary for prescription drugs, with utilization review, including prior authorization procedures. The program shall be implemented for Medicaid and V-Script beneficiaries, and may be implemented for any public or private plan within or outside the state that agrees to participate in the program, and for individual Vermonters without adequate public or private coverage for prescription drugs. The program's consumer protections permit the patient's doctor to require the dispensing of a higher cost drug if the lower cost drug is not effective or may result in adverse reactions. Goal to operate by 2002.
(Passed 6/16/01; signed by Governor)

VT
H.31
Rep. Koch

Would direct the Secretary of Human Services to establish the Vermont Office of Prescription Drug Cost Control as an independent office within the agency of human services. The Office "may contract with prescription drug manufacturers, wholesale suppliers, public or private health benefit plan or prescription drug purchasing for the establishment of prescription drug price schedules, discounts, rebates and any other cost control mechanism authorized by this section in connection with the state VScript programs, and any other public or private health benefit plan that agrees to participate in the office's activities". Includes expanded use of Federally Qualified Health Centers. "The program may incorporate work of the Tri-State Coalition of Vermont, Maine and New Hampshire in developing a pharmacy utilization and cost control strategy." Would allow and regulate use of mail-order and internet pharmacies for public programs.
(Passed House 4/25/01; died in Senate at end of session*)

VT
H.88
Rep. Alfano

Would 1) organize and fund public prescription drug education, countermarketing and substitution strategies to balance the effect of pharmaceutical company marketing behavior; 2) establish consumer protection procedures in connection with the use of prescription drug formularies; 3) assist in the creation of new Federally-Qualified Health Centers that can dispense low cost prescription drugs; 4) authorize a catastrophic drug expense program; 5) authorize the expansion of the Vermont Health Access Plan Pharmacy program and the VScript program to permit all residents to enroll and gain access to reduced-cost prescription drugs; 6) create a statewide, coordinated system of access to pharmaceutical manufacturer patient assistance programs; and 7) create a joint legislative commission on regional cooperation on prescription drugs.
(Amended, passed House, 4/28; died in Senate at end of session*)

VT
H.133
Rep. Alfano

Would establish a "universally-accessible prescription drug insurance program" within the V-Script pharmaceutical assistance program, and increase the cigarette tax and the tobacco products tax. (Filed 1/25/01; died in committee at end of session*)

VT
H.134
Rep. Kitzmiller

Would authorize and expand the new Prescription Discount Program, which "shall permit all Vermont residents to be enrolled in the program and to receive a program card as evidence of enrollment, including Medicaid beneficiaries, Medicare beneficiaries, VScript beneficiaries, individuals covered for prescription drugs under an insured or self-insured health benefit plan, individuals without prescription drug coverage, and any other Vermont residents." Also would establish a ''formulary", under which the state would list a particular drug as the preferred treatment for a certain ailment or condition. The brand of drug would be determined by competitive bidding by the drug makers, with a process for consumer and physician alternative choices. (Filed 1/25/01; died in committee at end of session*)

VT
S. 135
Sen. Rivers

This bill would: (1) encourage cost-effective use of prescription drugs; (2) establish consumer protection rules for pharmaceutical companies and pharmacy benefit management companies; (3) create a temporary emergency pharmaceutical assistance program;(4) promote the expansion of federally-qualified health centers; 5) establish a VScript prescription drug insurance program; (6) establish a VScript catastrophic prescription drug expense program; (7) require pharmaceutical manufacturers participating in the Medicaid program to pay rebates to the VScript program; (8) authorize VScript to act as a wholesale purchaser of prescription drugs; (9) expand eligibility for an unsubsidized VScript rebate benefit to any Vermont individual or organization; (10) authorize the commissioner of prevention, assistance, transition, and health access to implement prescription drug cost controls; (11) authorize Vermont's participation in pharmaceutical manufacturer patient assistance programs; and (12) establish the Vermont prescription drug fair pricing program. (2/23/01, Senate Health & Welfare)

VT
S. 170
Sen. Shumlin

Requires the state to "conduct a cost/benefit analysis of advertising and promotional activities associated with the provision of prescription drugs by pharmaceutical companies.
(Filed 2/27/01, in committee at end of regular session *)

VA
HB 2694
Welch

Would instruct the Health Department to advertise pharmaceutical companies' free drug programs and create hot lines to connect residents directly with pharmaceutical companies. Would require an appropriation of $145,000 annually. Amended by Governor to include, "the provisions of this act shall not become effective until such time as funds are appropriated or available for this purpose" 3/26/01)
(Passed by Senate and House; signed by Governor 4/9/01, Chapter 823)

VA
HB 2692
Welch

Would establish a program to reduce retail prices. Prescription drug manufacturers that sell to Medicaid or other state-funded programs would be "required to enter into rebate agreements" negotiated with the state, initially comparable to Medicaid program and by Oct. 2002 "not less than" the lowest federal discount. Retail pharmacies that are Medicaid providers must also participate in the program, and will be reimbursed for discounted prices plus a dispensing fee. If the average retail price for prescription drugs "is not reasonably comparable to the lowest average cost for the same drugs" the state "shall establish maximum retail prices." Includes an anti- profiteering section with fines for violators.
(Filed 1/17/01; Tabled by committee; died at end of regular session*)

VA
SB 1028
Sen. Couric

Would create a VA Pharmaceutical Buying Cooperative "for the purpose of assuring that the senior citizens of Virginia will have access to medically necessary prescription drugs at the lowest possible prices." Eligibility age 60 and over; the program uses no state funds and is to be "supported by membership fees."
(Filed 1/10/01; died in committee at end of regular session*)

WA
HB 1652
Rep. Eileen Cody

Would create a "therapeutic and cost-effective prescription drug education and utilization system" designed to promote medical and cost-effective utilization of prescription drugs.  Includes "academic detailing" and consumer "counter detailing" to educate physicians, other prescribers and consumers.
(Filed 1/31/01; Health Care Committee, did not pass by end of regular session*)

WA
HB 1703
Rep. Conway

Would create the prescription drug fair pricing act whereby the state acts as a participant in the prescription drug marketplace, negotiating voluntary rebates from drug companies and using the funds to make prescription drugs more affordable to Washington residents. Such a program will improve public health and welfare, promote the economic strength of our society, and substantially benefit state health assistance programs, including the Medicaid program. (First reading, referred to Health Care 2/1/01; did not pass by end of regular session*)

WA
H.1720
Rep. Edwards

Would require a state Medicaid waiver application to create "an expanded coverage group composed of any Medicare-covered individual with no Medicare supplement policy or retiree health benefit plan that covers drugs, and other individuals with household incomes up to 300 percent of the federal poverty level", who do not have insurance coverage or other health benefits for prescription drugs. Individuals in this expanded coverage group will receive a financial subsidy for prescription drugs equal to the average rebate paid to the Medicaid program.
(Filed 2/1/01; in Health Care Committee; did not pass by end of regular session*)

WA
H 1774
H.1319
Rep. Tom Campbell

Would create a drug-discount program for people over 65, open to people whom have had no prescription-drug coverage for at least six months. Members would get a maximum benefit of $1,200 a year, and they would pay 30 percent of the cost. House Bill 1774 would cost $30 million.
(H 1774: Committee substitute passed to Rules Committee 3/8/01; did not pass by end of regular session*)
(filed 2/2/01; in Committee; did not pass by end of regular session)

WA
S 5026
Sen. Franklin

Would establish a state program to aggregate the purchase of prescription drugs from suppliers for prescription drug programs, to be known as the "aggregate purchasing prescription drug discount program." Requires all suppliers doing business with the state to reach a discount agreement on prices.
S. 5027 would require a study of bulk purchasing.
(Filed 1/6/01; did not pass by end of regular session*)

WA
S 5960
Sen. Parlette

Would provide that the manufacturer of a prescription product that is advertised directly to consumers, that would otherwise be liable for harm caused by the product, is not relived of that liability solely because it warned the physician who prescribed the product of any potential danger.
(Filed 2/9/01; did not pass by end of regular session*)

WA
S 6197
Sen. Thibaudeau & Deccio
S.6201

Would establish the Washington Pharmacy Access Initiative to provide low-cost prescription drugs; would create a state "prescription drug price program "available to all residents" using manufacturer rebates based on Medicaid rebates, and pharmacy discounts to reduce prescription drug prices. Manufacturer products not covered by rebate agreements would be subject to prior authorization in Medicaid. Would also include a subsidized prescription drug insurance plan for age 65 and older or disabled with income up to 200% of FPL. Enrollment in the subsidized program could be limited on a first-come, first-serve basis to fit budget limits. Also would create a "system of academic detailing and consumer counter-detailing that educates physicians and other prescribers and consumers."
(Filed 6/7/0; did not pass in 2^nd special session*)

WA
SJM 8001
Sen. Franklin

Resolution, would call for cooperation among Washington, Idaho, Oregon, Alaska and Montana to seek "joint pricing and purchasing agreements for prescription" drugs with savings passed on to consumers.
(Passed Senate,45y-0n, 3/9/01; passed to House Rules Committee for second reading 3/29/01; did not pass by end of regular session*)

WV
S 127
Sen. Tomblin, Gov. Wise

Allows WV Public Employees Insurance Agency to pursue a multistate buying pool with all state agencies and institutions, as well as "governments of other states and jurisdictions, and "regional or multistate purchasing alliances". Allows "innovative strategies", such as "enacting fair prescription drug pricing policies" and providing discount prices or rebate programs for seniors" and uninsured. The agency may explore "requiring prescription drug manufacturers to disclose to the state expenditures for advertising, marketing and promotion, as well as for provider incentives and research and development efforts."
(Passed House and Senate; signed by Governor 5/15/01 as Chapter 97)

WV
H.2211
S. 118
Sen. Tomblin

Would require any prepaid pharmacy service organization to apply for a certificate of authority; establishes standards for sales, collection of copayments, and other requirements.
(Sent to Committees, 2/15/01; did not pass by end of regular session; may be carried over to 2002)

WI
SB 55, Rx excerpt

Gov. McCallum

The 2001-03 biennial budget creates a state-only prescription drug assistance program. The program will covers persons 65 and older up to 240% of federal poverty ($20,618 for individual); it requires a $20 annual enrollment fee, and a $500 deductible for those with income over 160% of FPL (est. $13,800) plus a 2-tier copayment of $5 for generics and $15 for all others. The start date is September 1, 2002. The budget appropriates $49.9 million for benefits to be paid 9/1/02 through 6/30/03. It also provides for manufacturer rebates and a Medicaid waiver application to seek federal matching funds for portions of the program.
(Budget passed Senate and House, signed by Governor 8/31/01 as 2001 Act 16, section 1838gb, etc. Link to full bill, see pages 313 - 315 of this 789-page law)

WI
SB 1
Sen. Judy Robson

Would create a senior subsidy and discount program for seniors 65 and over with income up to $25,050 or $33,750 for couples. Enrollees would pay a $20 annual fee and be subject to a $500 annual deductible. Enrollees would be entitled to an 18% discount on their first $500 of pharmaceutical purchases. After reaching the $500 deductible, enrollees would pay a $10 co-payment for brand-name drugs and $5 for generic drugs, with a state subsidy of the balance. Also would require the Department of Health and Family Services to seek a federal Medicaid waiver to provide discounted drugs to Medicare beneficiaries. The appropriations estimate is $105 million.
(Passed Senate, 20y-13n 2/13/01; Passed Assembly 3^rd Reading; see SB 55 above*) [fiscal note online]

WI
SSA 2 of SB1
Sen. Rosenzweig

Senate substitute bill would create a senior subsidy and discount program for senior up to 185% of FPL ($15,891 for individual). Enrollees would pay a $20 annual fee, those over 150% FPL would be subject to a $500 annual deductible. Pharmacies would charge a reduced rate based in part on the Medicaid rate; pharmaceutical manufacturers would provide rebates "determined by a method" established for the federal Medicaid program.
(Introduced as substitute, 2/13/01; rejected by Senate, 20-13*)

WY
H 166
Rep. Huckfeldt

Would create the Wyoming prescription drug division which "shall purchase and sell prescription drugs to qualified licensed pharmacies within this state... sales by the division shall be made at prices sufficient to return the cost of merchandise" and operational expenses; authorizes the prescription drug division to set maximum
prices for prescription drugs; requires pharmacies to buy through the Division.
(Filed 1/12/01; died at end of session, 3/1/01)

Disclaimer: NCSL is not responsible for information or opinions contained in internet links to web sites outside this organization. NCSL does not provide advice to consumers seeking to participate in state-based programs. For state-specific details, please use the contact telephone numbers provided on the State Pharmaceutical Assistance Programs web report by NCSL.

Compiled by: Richard Cauchi, Program Director, NCSL Care Program - Denver, CO.
Research also contributed by staff members: Karmen Hanson, Health Program; Donna Folkemer, Forum for State Health Policy Leadership.