This report lists more than 210 bills and resolutions considered in 39 states for 2002. The bills cover several approaches, including pharmaceutical discount programs, buying clubs, manufacturer rebates, inter-agency bulk purchasing and interstate buying, as well as forms of price negotiations or price controls. Also included are measures that would examine or regulate aspects of pharmaceutical transactions, including state regulation of pharmaceutical benefit managers (PBMs), commercial discount cards, and pharmaceutical product information.

This report generally does not cover subsidy-only bills, or bills to adjust Medicaid-only programs. Note that some listed proposals include multiple features, such as combining a discount with a subsidy or with a Medicaid-reimbursed component.

"Between 2001 and 2011 drug spending growth will exceed total health spending growth by almost five percentage points per year on average."
- Health Affairs, March/April 2002 ²

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

AL, CA, CO, CT, GA, HI, IL, IA, KY, MA, MN, NM, NY, OK, RI, SC

Federal waiver to provide Medicaid discounts to eligible persons, based on VT and ME plans.

 CO, HI, MD, MA, NM, NY, VT, WA, WI

Pharmaceutical discount program for uninsured or "fair drug pricing" program, using negotiated manufacturer rebates.

AL, AZ, CT, FL, GA, HI, IL, IN, KS, MD, MA, MN, NM, NY, OH, OK, PA, RI, TN, VT, WA, WV

Medicaid "Pharmacy Plus" waiver to cover persons up to 200% poverty for Rx only.

AZ, CO, FL, HI, IN, KY, ME, OK, RI, VT, WA, WI
(previous measures in CT, MD, SC, WI)

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

AZ, HI, MA, NM, NY

Price controls or state maximum prices.

MA, MO, OK, PA, RI, TN, WV

State or multi-state bulk purchasing for greater price discounts for all eligible groups.

AL, CA, CT, HI, IA, ME, MD, MA, NM, NY, OK, PA, SD,VT, VA, WA, WI.

State "buyer's club" or commercial discount card, offering negotiated discounts.

GA, HI, IL, KS, NJ, OH, SD, TN, WA

Regulate pharmaceutical sales representatives and industry "detailers."

MA, NY, VT, WA

Regulate pharmaceutical benefit managers (PBMs).

AL, CA, GA, IL, IA, MD, MO, VT

State coordination of pharmaceutical industry's free/charity or discount programs.

AZ, HI, IL, NH. NM, NC, OK, PA, SD, VT

Studies, work groups and commissions.

AK, CA, GA, HI, IL, IA, IN, KY, MA, NH, NJ, RI, UT, VT, VA, WA

AL
HB1
Rep. Mitchell
SB303
Sen. Callahan

Would establish the Alabama Prescription Drug Fair Pricing Act. This bill would provide for a rebate agreement and the rebate amount; 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 an annual report and coordination with other programs; would provide for emergency prescription drug pricing; would prohibit profiteering; and would provide for penalties.
(Filed 1/02; died at end of regular session, 4/17/02)|

AL
HB 212
Rep. Beasley

Would establish the Pharmacy Benefit Management Regulation Act, requiring all PBM companies to obtain a state certificate of authority, file reports annually including numbers of persons being served; authorizes a fee structure designed to cover costs of regulation.
(Filed 1/10/02; died at end of regular session, 4/17/02) |

AL
HB247
Rep. Crigler and Greene

Would allow licensed nursing homes, hospitals, specialty care assisted living facilities, assisted living facilities, and hospices to transfer unused prescription medications to charitable clinics for use at the clinics under certain conditions. Under existing law, unused prescription medications are required to be destroyed and may not be distributed to charities.
(Filed 1/02; died at end of regular session, 4/17/02) |

AL
SB231
Sen.
Armistead

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 fee for electronic transmission charges. Would provide a toll-free hotline for questions and complaints; also require participating pharmacists to conspicuously post a notice in full view of its customers that the prescription drug discount available for Medicare patients cannot exceed the Medicaid reimbursement rate.
(Filed 1/02; died at end of regular session, 4/17/02) |

AK
HB 282
Rep. Coghill and Fate

Would provide that group health care insurance plans that provide prescription drug benefits may not impose a higher copayment amount or lower supply limit for a prescription drug purchased from a pharmacy in-state than the copayment amount or supply limit imposed for a prescription drug purchased by mail order or a supply limit for a prescription if the supply limit is lower than the supply limit described in the prescription.
(Filed 1/18/02; died in committee at end of regular session) |

AK
HB 419
Rep. Hayes
SB 306
Sen. Davis

Would establish the Prescription Drug Assistance Task Force to develop recommendations for regulations, waiver applications, and legislation that the state should pursue in addressing the need of elderly low- to moderate-income Alaskans for assistance with the costs of their prescription drugs within the budgetary constraints of the state government. A report would be completed in February 2003.
(Filed 2/13/02; died in committees at end of regular session) |

AZ
SB 1091
Senator Cummisky

Would create a prescription drug benefit for Medicare beneficiaries from 100% FPL to 300% FPL, for a $25 annual fee. (People under 100% FPL are already eligible for Medicaid in Arizona.) The bill requires the AHCCCS administration to negotiate rebates with the manufacturers for a price that is similar to the rebates negotiated for the federal VA. If a manufacturer does not give the State the rebate, its drugs are placed on a list for prior authorization.
(Filed 1/02; died in committee at end of regular session) |

AZ
HB 2270
Rep. Chase

Would require that all contractors shall negotiate discount prices or rebates for prescription drugs from drug manufacturers and labelers. A drug manufacturer or labeler that sells prescription drugs in the state may voluntarily elect to negotiate all of the following:
1. Supplemental rebates for the Medicaid program over and above those required or those negotiated with under the contractor. 2. Discount prices or rebates for the prescription card program. 3. Discount prices or rebates for any other state programs that pay for or acquire prescription drugs.
(Filed 1/17/02; died in committee at end of regular session) |

CA
AB 1762
Assem. Vargas

Would make permanent the provisions of the Golden Bear State Pharmacy Assistance Program, which makes pharmaceuticals available to Medicare beneficiaries at the Medicaid price. Under existing law passed in 1999, the department pays participating pharmacists a discounted price for drugs on the Medi-Cal drug formulary. Existing law requires, as a condition of Medi-Cal eligibility, that pharmacies charge Medicare beneficiaries a price not to exceed the Medi-Cal reimbursement rate for prescription medicines, and an amount to cover electronic transmission charges by Medicare beneficiaries, upon showing their Medicare card and prescription. The current program would expire January 1, 2003 unless extended by such a measure.
(Filed 1/9/02; died at end of session 8/02) |

CA
SB 461
Sen. Torlakson

Would establish a Catastrophic Prescription Drug Insurance Program for eligible retired public employees. The program would be fully automated, coordinated with each retiree's medical insurance program, and secondary to any Medicare benefits. The bill would require the board to specify deductibles, copayments, maximum benefit levels, and eligibility criteria based on the number of years of credited service, as specified. The bill would require at least 10 years, but not more than 25 years, of credited service, as specified, for plan eligibility. The bill would authorize the board to modify deductibles, copayments, maximum benefit levels, and eligibility criteria to limit the cost of the program to $650 million over a 10-year period based on 2002 dollars, and to modify the program to conform to requirements of state and federal law. The bill would be operative only if legislation has been enacted during the 2002 calendar year that defers specified contributions June 30, 2004; law would be effective January 1, 2004.
(Filed 2/22/01; amended and passed by Senate, 1/30/02; did not pass by end of session 8/02) |

CA
SB 697
Sen. Speier

Would require a drug manufacturer to participate in the Golden Bear State Pharmacy Assistance Program, which makes pharmaceuticals available to Medicare beneficiaries at the Medicaid price. Makes such participation a condition of that drug manufacturer's participation in the Medi-Cal program, making rebates a requirement.
(2/4/02, withdrawn by sponsor) See enacted SB 696 of 2001. |

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, died in Senate Committee at end of session; see SB 696 *) |

CA
SB 1727
Sen. Soto

Would request the University of California to establish a Pharmaceutical Evaluation Commission with 9 members with certain experience and training, to undertake, review, and disseminate the results of evaluations of drugs in therapeutic classes and would authorize the commission to use evidence-based healthcare literature, as defined, and to establish expert panels in making evaluations. The Commission shall "disseminate the results of evaluations of drugs and shall summarize its findings on a Web site or other similar forum, to health care purchasers, professionals, and consumers.
(Filed 2/02; redrafted ; died in committee, 8/02)

CA
SB 1758
Sen. Figueroa

Would require that a health plan or insurer provide a premium reduction, or rebate to the enrollee or insured the portion of the copayment or coinsurance he or she paid if the enrollee payment exceeds the amount that would have been required if the copayment or coinsurance had been calculated on the cost of the drug after deduction of the rebate received by the plan or insurer pursuant to the prescription drug rebate program.
(Filed 2/21/02; passed Senate 5/28/02; did not pass Assembly by end of session 9/02)

CO
HB 1201
Rep. Borodkin

Would provide pharmaceuticals at the Medicaid discount price for persons on Medicare. Requires Medicaid provider pharmacies to provide the lower price, with a dispensing fee to cover costs. Requires the department to apply for a federal waiver to expand Medicaid eligibility for the purpose of providing prescription drug coverage to low-income Medicare beneficiaries that meet specified qualifications. Specifies that implementation is conditioned upon approval of waivers and available appropriations. Allows the department to charge eligible persons "reasonable copayments".
(Filed; died in committee, 2/6/02) |

CO
SB 162
Sen. Tate

Would establish a state pharmaceutical discount program for Medicare beneficiaries or any resident without insurance with income up to 300% of poverty. Includes a Medicaid supplemental rebate program. Establishes "discount prices or rebates for the prescription card program; and discount prices or rebates for any other state programs that pay for or acquire prescription drugs"
(Filed 1/28/02, passed Senate 4/19/02; died in House 4/24/02) |

CT
HB 5317
Rep. Amann

[subsidy/discount] 'An act concerning a ConnPACE spenddown', to enable seniors just over the income eligibility levels to spend-down with prescription drug costs in order to qualify for the program. (A pending expansion of ConnPACE includes a discount program)
(Filed 2/15/02; did not pass as of end of regular session) |

CT
HB 5264
Rep. Feltman

'An act concerning a disregard for medical expenses when determining ConnPACE eligibility', to expand eligibility for low and moderate income seniors by disregarding a person's medical expenses, including prescription drug expenses, from a person's income when making the determination for program eligibility.
(Filed 2/14/02; did not pass as of end of regular session) |

CT
SB 139
Committee on Aging

Would authorize state joining the Northeast prescription drug compact, to "provide another means of ensuring affordable prescription drugs for residents."
(Filed 2/13/02; substitute bill favorable report, did not pass as of end of regular session) |

CT
SB 248
Sen. Lebeau

"An act concerning lower prescription drug costs for states and uninsured residents", to lower the state costs incurred for prescription drugs.
(Filed 2/15/02; did not pass as of end of regular session) |

FL
HB 59
Rep. Murman

Establishes the Ron Silver Senior Drug Program. (§ 409.9065) Directs creation of a pharmacy benefit that includes annual per-member benefit limits and cost-sharing provisions. Persons age 65 or over with incomes between 88% and 120% of the poverty level will be eligible for coverage up to the amount of appropriations. If the federal government increases the federal Medicaid match, persons aged 65 or over with incomes up to 150% of poverty will be eligible. Authorizes submission of a section 1115 waiver request. If the 1115 waiver is approved, elderly persons will be eligible for coverage up to a "level that can be supported with funds provided."
(Signed by Governor Bush, 6/07/02)

FL
S 2348
same as
H 1353
Rep. Gelber

Would create "Florida Prescription Drug Fair Pricing Program"; provides that Secretary of Health Care Administration shall operate said program as state pharmaceutical assistance program to provide discounts to participants for prescription drugs covered by rebate agreement; requires program participants to pay specified coinsurance amount.
(Filed, 1/02; died in committees, 3/22/02) |

GA
HB 711
Rep. Stokes

Would provide for senior citizens to obtain cards enabling them to obtain prescription drugs at reduced prices.
(Filed 2/26/2001; died at end of regular 2002 session*) |

GA
SB 287
Sen. James

Would establish an Rx Program within the Department of Medical Assistance to lower prescription drug prices for uninsured and underinsured residents of the state; to provide for discounted prices for Rx Program participants; to provide for eligibility of individuals to participate in the Rx Program; to provide for operation of the Rx Program; to provide for resolution of discrepancies in rebate amounts; to provide for an Rx Dedicated Fund.
(Filed 3/02/2001; died at end of regular 2002 session*) |

GA
SB 470
Sen. Hill

Would establish the Georgia Seniors Prescription Drug Benefit Program within the Department of Community Health to reduce prescription drug prices for residents of the state age 55 and over; to establish the amount of rebates; to require disclosure of savings to program enrollees; to require drug manufacturers who sell prescription drugs to the state to enter into a rebate agreement; to provide for related matters; to repeal conflicting laws; and for other purposes.
(Filed 1/02; Sent to Health Committee) |

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; carried over but did not pass by end of 2002 session, *) |

HI
HB 142
Rep. Souki

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.
(Filed, 1/22/01, carried over but did not pass by end of 2002 session *) |

HI
HB 411
Rep. Souki

Original version would require that individuals with no health insurance pay at the federal medical supply schedule for prescription drugs.
Amended and passed version only provides immunity for civil liability for any pharmaceutical professional that provide drugs without charge.
(Passed House without price discount language3/6/01; sent to conference committee; carried over but did not pass by end of 2002 session * ) |

HI
HB 911
Rep. Luke
HB 1467
Rep. Case

Would create mechanism to reduce prescription drug prices, including discounts for eligible residents without Rx coverage, based on manufacturer rebate agreements; also contains provisions to prevent profiteering and manufacturer retaliation. Creates prescription drug advisory commission. Requires state to act as pharmaceutical benefit manager for residents.
(Filed 1/29/01; carried over but did not pass by end of 2002 session *) |

HI
HB 1737
Rep. Souki

Would direct the director of health to create a bulk purchasing program to provide affordable prescription drugs for individuals who have no prescription drug insurance.
(Filed 1/17/02; did not pass by end of 2002 session * ) |

HI
HB 1951
Rep. Takumi
SB 2519

Would create a state pharmaceutical discount program for residents who lack drug insurance coverage or are uninsured; directs State to lower prescription drug prices by negotiating rebates from drug manufacturers and discounts from retail pharmacies for Rx program. Directs State to negotiate supplemental Medicaid rebates from drug manufacturers and discounts from retail pharmacies on drugs covered by Medicaid.
(Filed 1/18/02; did not pass by end of 2002 session *) |

HI
HB 2653
Rep. Takamine

Would establish a prescription drug plan open to any retired citizen, age 65 or over, to include an enrollment period and potential premiums. Would establish a subscriber and provider education program, and would appropriate state funds, amount not specified.
(Filed 1/24/02; favorable committee report, 2/15/02; did not pass by end of 2002 session *) |

HI
SB 250
Sen. Chun

Would create a state-sponsored prescription drug plan for the uninsured and chronically ill.
(Filed 1/23/01, carried over but did not pass by end of 2002 session *) |

HI
SB 2010
Sen. Inouye

Would create a state pharmaceutical assistance program pilot program for residents 62 years and older, in counties with population density under 75 per square mile, with incomes up to 300% of the federal poverty level, and who do not qualify for Medicaid.
(Filed 1/16/02; deferred in committee; did not pass by end of 2002 session *) |

HI
SB 2027
Sen. Matsuura

Would expand Medicaid eligibility for prescription drugs to individuals at or below 300% of federal poverty level; would create special fund to hold Medicaid prescription drug rebates; would appropriate funds for the expansion program.
(Filed 1/16/02; passed Senate 24y-1n, 3/5/02; did not pass by end of 2002 session *) |

HI
SB 2105
Sen. Matsuura

Would establish program under DHS to allow non-Medicaid (QUEST) and medically uninsured persons to purchase prescription drugs at Medicaid rate.
(Filed 1/18/02; did not pass by end of 2002 session *) |

HI
SB 2469
Sen. Menor

Would appropriate funds to the Department of Human Services (DHS) for the purpose of paying $1 for each prescription written for an individual whose income is at or below 300 % of the federal poverty level; provided that DHS obtains a waiver from the federal government to provide prescription drugs at Medicaid rates for qualified individuals.
(Filed 1/22/02; did not pass by end of 2002 session; see passed companion bill, HB 1950, above) |

HI
SB 2519
Sen. Menor

Would create a state pharmaceutical discount program for residents who lack drug insurance coverage or are uninsured; directs State to lower prescription drug prices by negotiating rebates from drug manufacturers and discounts from retail pharmacies for Rx program. Directs State to negotiate supplemental Medicaid rebates from drug manufacturers and discounts from retail pharmacies on drugs covered by Medicaid.
(Filed 1/22/02; did not pass by end of 2002 session *) |

HI
SB 2520
Sen. Menor

Would create pharmaceutical discount program for all state residents under which State obtains manufacturers' rebates on drugs that are offered at discounted prices to program participants. Provides reimbursement to participating pharmacists. Establishes advisory commission and special fund.
(Filed 1/22/02; amended; passed Senate 22y-3n 3/5/02; did not pass by end of 2002 session; see passed companion bill, HB 2834) |

IL
H 2470
Rep. Franks

Would create a program to allow Medicare beneficiaries or state-subsidy enrollees to buy prescription drugs at the Medicaid discount price plus dispensing fee.
(Passed House 3/29/01; held in Senate Rules Committee through 6/02 *)

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 through 6/02 *)

IL
H 5930
Rep. Stephens

Pharmacy Benefit Management Regulation Act. Would establish standards and criteria for regulation and licensing of pharmacy benefit management companies (PBMs). Would require obtaining a license and certificate of authority; and provide for financial examination of records, and fees. Requires disclosures to enrollees served by the company.
(Filed 2/8/02; amended and held in House committee) |

IL
S 622
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; held in Senate committee through 6/02 *)

IL
S 1276
Sen. Syverson

Would create the Pharmaceutical Assistance Program Review Committee, made up of 17 members. Requires reports to the General Assembly annually regarding changes to the pharmaceutical assistance program and any associated costs of those changes.
(Passed Senate 3/30/01; Passed House with different amendments 5/22/01; in House Rules Committee through 6/02 *)

IL
S 1308
Sen. Halvorson

Would create the Senior Citizen Prescription Drug Discount Program Act, to enable eligible senior citizens to purchase prescription drugs at discounted prices. Provides that the Department shall (i) enroll eligible seniors into the Program, (ii) enter into rebate agreements with drug manufacturers 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 who are 65 years of age or older. Establishes a prescription pricing formula. Sets guidelines for the rebate agreements.
(Filed 2/22/01; held in committees through 6/02 *)

IN
SB 107
HB 1058

Prescription drug advisory committee. Would extend expiration date of the prescription drug advisory committee to December 31, 2004 for the committee to make prescription drug program design recommendations.
(1/17/02, died at end of regular session) |

IN
HB 1293
Rep. Kersey

Prescription drug discounts. Would create the Rx program to provide discounted prescription drug prices to uninsured persons, underinsured persons, Medicare recipients, and insured or self funded employee welfare benefit plans. Allows a drug manufacturer or labeler that sells prescription drugs to voluntarily enter into a rebate agreement with the state department of health which requires rebate payments to be made by participating drug manufacturers or labelers to the state for the Rx program. Authorizes the state department to negotiate the amount of the rebate and audit a manufacturer or labeler to assure compliance. Requires a retail pharmacy to sell the drugs covered by the Rx program to participants in the program at the discounted price. Establishes: (1) a formula for the state to use in calculating discount prices for drugs covered by the rebate agreement; (2) a procedure for resolving rebate amount discrepancies; and (3) the Rx dedicated fund, consisting of revenue from manufacturers and labelers who pay rebates and appropriations to the fund. Specifies considerations when negotiating the amount of a voluntary manufacturer or labeler rebate. Requires other units of state government to participate in obtaining a rebate amount. Allows the office, with the consultation of the drug utilization review board, to develop and implement a preferred drug formulary. Sets out parameters of the preferred drug formulary.
(Filed 1/02; died in House on Third Reading by 155-58, 2/05/02) |

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
HF 2401
Rep. Osterhaus

Would establish standards and criteria for the regulation and licensing of pharmacy benefit management companies.
(Filed 2/18/02; did not pass by end of 2002 session) |

KS
HB 2374
Rep. Swenson

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.
(filed 2/07/01, died in committee, 5/31/02) |

KS
HB 2717
Rep. Swenson

Would create the Kansas prescription drug card program, top provide discounts to persons eligible for participation in Medicare or with a net family income below 300% of the federal poverty level. The state "shall negotiate discount prices or rebates for prescription drugs from drug manufacturers or labelers that sells prescription drugs in this state" negotiations are voluntary. The state would seek: (1) Supplemental rebates for Medicaid over and above those required under federal law; (2) discount prices or rebates for the prescription drug card program established by this act; and (3) discount prices or rebates for any other state programs that pay for or acquire prescription drugs. For products lacking such rebate agreements, the state would be authorized to use prior authorization or formularies for any state-funded or operated prescription drug program.
(Filed 1/2902; died in committee, 5/31/02) |

KY
SB 15

Would establish the Kentucky Senior Rx Program; direct the Cabinet for Health Services to apply for a federal prescription drug benefit Medicaid waiver to provide prescription drug coverage for persons age sixty-five or older who have an annual income that does not exceed 200% of the federal poverty level and meet various other qualifications; require the Department for Medicaid Services to administer the Kentucky Senior Rx Program and to establish coinsurance amounts for brand name and generic drugs; require the department to maintain data to evaluate the cost-effectiveness of the program and to submit semiannual reports to the Governor, the General Assembly; create the Kentucky Senior Rx Program Advisory Commission to provide guidance; require the commission to submit an annual report to the Governor, the General Assembly, and the department regarding changes to the administration, management, eligibility criteria, benefits, funding, or any other aspect of the program.
(Filed 1/10/02; did not pass by end of 2002 session) |

KY
HB 16 of '02
Rep. Nunn

Would permit Medicaid to reimburse pharmacies and pharmacists for a ninety-day supply of prescription medications, excluding controlled substances; and limit the dispensing fee for a ninety-day supply to the amount reimbursed for a thirty-day supply. Would require all health benefit plans that provide prescription drug coverage to reimburse for a ninety-day supply for prescriptions.
(Filed 12/14/01; passed House 98-0, 2/21/02; did not pass Senate by end of 2002 session) |

KY
HB 158
Rep. Nunn

Would establish the Healthy Kentucky Prescription Drug Program; require retail pharmacies to provide prescription drugs to eligible individuals at the same price paid by Medicaid minus any discount established by the Department for Public Health; require the department to negotiate drug rebates from pharmaceutical manufacturing companies; authorize the department to use the rebates for administration of the program and reimbursement of the discounts provided by retail pharmacies that are beyond the Medicaid price; and establish the Healthy Kentucky Prescription Drug Program fund.
(Filed 12/14/01; did not pass by end of 2002 session) |

KY
HB160 of '02
Rep. Nunn

An act relating to prescription drug costs. Would require the commissioner of the Department for Public Health to explore strategies to manage prescription drug costs, including discount drug and rebate programs; authorize the commissioner to contract with a pharmacy benefit manager to procure drug discounts or rebates; establish requirements related to prescription drug discount programs; authorize administrative regulations; and require an annual report.
(Filed for 12/14/01; did not pass by end of 2002 session) |

KY
SB 32 Senator Roeding

Would create the Kentucky Senior Citizen Prescription Drug Assistance Program
to be administered by the Department of Insurance with the services of a third-party administrator; provide that implementation will occur when funds are available; permit use of federal or appropriated Kentucky funds; provide that program may be superseded by federal law, provide that certain Medicaid drug rebate funds not otherwise returned to the federal government or used for the Medicaid match may be used to fund the program; require the department to promulgate administrative regulations to implement the program and to work with the Revenue Cabinet on an income verification process; allow for use of electronic or "Smart Card" technology for tracking of copayments, electronic benefits transfer between the program and the pharmacy, and require compatibility with similar technology used by other state programs; provide for annual premium of $150 for gross family income of $20,000 or less, and for annual premium of $300 for gross family income of $20,001 to $30,000; provide for a copayment of 20%, or a maximum of $50, for each prescription filled or refilled; direct reimbursement to be made to a pharmacy or consumer. Would permit the pharmacy to retain the copayment; allow persons turning 65 to have 6 months to enroll; priority given to cancer drugs, and permit the third-party administrator to contract with a pharmacy benefits manager.
(Filed 12/17/01; did not pass by end of 2002 session) |

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 that 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*) |

MD
HB 761
Del. Goldwater

Would require a pharmacy benefit management company or PBM to obtain a certificate of authority from the State Board of Pharmacy; authorizing the Board to suspend or revoke a certificate of authority or deny an application under specified circumstances; requiring a PBM to obtain a license from the Insurance Commissioner to do business in the State; requiring the license applicant to file a specified application and pay a fee.
(Filed 2/9/02; unfavorable report/died in committee 3/22/02) |

MD
HB 674
Del. Owings

Would prohibit the Department of Health and Mental Hygiene from implementing a formulary that is covered by prior authorization in the Medical Assistance Program unless specified provisions are met; prohibiting the Department from restricting coverage of a drug approved by the federal Food and Drug Administration unless the Department has specified data; prohibiting the Department from limiting coverage of a drug prescribed for a medical condition of a program recipient under specified circumstances.
(Filed 2/6/02; did not pass by end of regular session) |

MD
HB 679
Del. Mitchell

Would limit to $4,000 per individual per year the amount of coverage for prescription drugs that may be offered in the Comprehensive Standard Health Benefit Plan for the small group health insurance market.
(Filed; unfavorable report/died in committee 3/22/02) |

MD
HB 1101
Del. Dembrow

Would establish an Interdepartmental Task Force on the Bulk Purchasing of Pharmaceuticals; requiring the Governor to appoint the chairman; providing for the staffing of the Task Force; requiring the Task Force to investigate specified purchasing options regarding bulk pharmaceuticals.
(Filed 2/8/02; unfavorable report/died in committee 4/3/02) |

MD
HB 1122
Del. Hammen

Would require the Department of Health and Mental Hygiene to establish a prescription drug spending control program that may include preferred drug formularies and is required to include a process for managing drug therapies; establishing a State Pharmaceutical and Therapeutics Committee within the Department; requiring the Department of Budget and Management to establish a preferred drug formulary and a drug benefits management program.
(Filed 2/8/02; died in House at end of regular session) |

MD
HB 1186

SB 550

Would include uninsured individuals in the Maryland Pharmacy Discount Program; altering the source of specified prescription drug rebates; authorizing participating pharmacies to increase the processing fee for prescriptions filled under the Program; authorizing the Department of Health and Mental Hygiene to negotiate discount prices or rebates for prescription drugs for specified State programs; requiring the Department to consider specified information on prescription drug prices, discounts, and rebates when negotiating rebate terms.
(HB 1186 Filed 2/8/02; did not pass by end of regular session) |
(SB 550 Filed 2/1/02; unfavorable report/died in Finance Committee, 4/6/02) |

MD
HB 1227
Del. Shriver

Would establish the Citizens' Prescription Drug Benefit Program in the Department of Budget and Management; authorizing the Department to contract with a pharmacy benefit manager; requiring specified persons to participate in the Program; requiring the distribution of a prescription drug benefit card to participants; requiring the Program to include an annual fee; requiring the Department to make benefits available by January 1, 2003.
(Filed 2/8/02; did not pass by end of regular session) |

MD
HB 1273

Establishing the Prescription Drug Affordability Program in the Department of Health and Mental Hygiene; requiring the Program to engage in specified negotiations related to drug pricing and administer a specified prescription drug card program; providing for the individuals eligible to participate; increasing the number of enrollees and extending the termination date of the Short-Term Prescription Drug Subsidy Plan.
(Filed, 2/14/02; unfavorable report/died in committee, 4/4/02)

MD
SB 434
Sen. Frosh

Would authorize the Secretary of Health and Mental Hygiene to negotiate discount prices or rebates for prescription drugs; authorizing drug manufacturers or labelers that sell prescription drugs in the State to negotiate supplemental rebates for the Maryland Medical Assistance Program over those required by federal law; requiring the Secretary when negotiating rebate terms to consider specified information on prescription drug prices, discounts, and rebates.
(Filed 1/31/02; unfavorable report/died in Finance Committee, 4/6/02)

MD
SB 483
Sen. Kelley

Would prohibit the Department of Health and Mental Hygiene from implementing a formulary that is covered by prior authorization in the Medical Assistance Program unless specified provisions are met; prohibiting the Department from restricting coverage of a drug approved by the federal Food and Drug Administration unless the Department has specified data; prohibiting the Department from limiting coverage of a drug prescribed for a medical condition of a program recipient under specified circumstances.
(Filed 2/1/02; unfavorable report/died in Finance Committee, 4/6/02)

MD
SB 623
Sen. Hoffman

Requiring the Department of Health and Mental Hygiene to establish a state prescription drug spending control program that may include preferred drug formularies and include a process for managing drug therapies; establishing a State Pharmaceutical and Therapeutics Committee within the Department; requiring the Department of Budget and Management to establish a preferred drug formulary and a drug benefits management program; providing for the legislative appropriation for fiscal year 2003 of specified revenues; etc.
(Filed 2/1/02; passed Senate 4/1, passed House 4/6; did not pass- in conference committee at end of regular session; did not pass by end of regular session)

MA
H.5101 of 2002
FY '03 budget

House and Senate versions of FY 2003 budget includes provisions for aggregate or bulk purchasing.
(Passed House, 5/18/02; passed Senate, 6/02; signed by governor without bulk purchase language, 7/19/02)

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; did not pass by end of regular session*)|

MA
H. 2701
Rep. Ruane

Would limit payments to manufacturers by pharmacies, hospitals or other institutions licensed to dispense drugs
(Filed 1/3/01; did not pass by end of regular session *)|

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 1/3/01; did not pass by end of regular session*)

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; did not pass by end of regular session*)

MA
H. 4386
Rep. Rogers

Would require that the secretary of administration and finance "shall report forthwith to the General Court all steps taken and progress made to develop a program to aggregate the purchase of prescription drugs as required by section 271 of the 1999 budget, which mandated such a bulk purchase state program.
(Filed 7/23/01; favorable committee report, 7/31/01 *)

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; did not pass by end of regular session*)|

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; did not pass by end of regular session*)|

MA
H. 3353
Rep. Koczera

Would provide that any person, "who is dispensed a non-formulary or non-preferred brand name prescription drug, as determined under a pharmaceutical drug program established by the commission or through a pharmacy benefit manager contracted by the commission, may obtain a non-preferred drug at the co-payment level of a preferred drug upon a separate written certification by the enrollee's physician, satisfactory to the commission, that the non-preferred drug is medically necessary and there is no therapeutically equivalent preferred drug available to the enrollee."
(Filed 1/3/01; favorable committee report; did not pass by end of regular session*)|

MA
H. 1950
Rep. McGee

Would state "It is hereby found and declared that prescription drugs should be affordable for all residents of the Commonwealth, free from profiteering by prescription drug manufacturers." Would establish the Massachusetts Prescription Drug Pricing Review Commission "to promote affordable prescription drug prices for all Massachusetts residents." It will assess on at least a semi-annual basis whether prescription drugs are being sold at prices reasonably comparable with the Federal Supply Standard (FSS). As of July 1, 2002, the Commission would hold public hearings to determine whether drug manufacturers are profiteering in Massachusetts. Within 30 days of each public hearing, the Commission shall issue a public report identifying companies found to be profiteering in Massachusetts.
(Filed 1/3/01; did not pass by end of regular session*)|

MI
SB 54
Sen. Shugars

Would re-establish state income tax senior prescription drug tax credit up to $600 per year for persons who spend 5% or more of income on drugs; also allows for individuals who pay 100% of their nursing home expenses.
(1/30/01, referred to committee; did not pass by end of regular session*)|

MN
H 2646
Rep. Bradley

Would require the commissioner of human services to establish and administer a prescription drug program. The program would allow eligible persons to purchase prescription drugs at participating pharmacies at a discount, and would reimburse pharmacies for the cost of providing this discount using money received from drug manufacturer rebates.
(Filed 1/29/02; did not pass by end of regular session) |

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 did not pass by end of '02 session*) |
(S.765 amended and passed Senate 21-14, 5/14/01; did not pass by end of '02 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 '02 session*) |

MS
SB 2948
Sen. Smith

Would create a "Mississippi Rx Senior Patient Assistance Program"; to authorize the division of Medicaid to provide payment assistance for prescription drugs to low-income senior and disabled citizens who are ineligible for drug benefit coverage from public or private sources; to provide eligibility standards; to authorize the division to establish a state rebate program from pharmaceutical manufacturers; to authorize a co-payment program; to create a prescription assistance fund.
(Filed 1/02; died in committee, 2/5/02)|

MO
HCR 27
Rep. Reynolds

Would urge Congress to pass legislation imposing price controls on the sale of prescription drugs in the United States.
(Filed 3/04/02; did not pass by end of regular session)|

MO
SB 1238
Sen. Goode

Would create a tax and a credit for retail pharmacies to provide additional funding for the Medicaid pharmacy program. The act provides for a credit against the tax on pharmacies for certain taxes paid to the federal government and provides for offsets against any Medicaid payment due the pharmacy from the state. Moneys in the fund will be used to provide payments for services related to the Medicaid pharmacy program.
(Hearing 3/12/02; did not pass by end of regular session)|

MO
HB 1898
Rep. Campbell

Would impose a tax on retail pharmacies providing outpatient prescription drugs to provide additional funding for the Medicaid pharmacy program; the rate is a sliding scale up to 6%.
(Passed House, 3/20/02; Senate passed with amendments, 5/15/02; sent to Conference Committee; did not pass by end of regular session)|

MO
HB 2221
Rep. Naeger

Pharmacy Benefit Management Regulation Act. Would establish standards and criteria for regulation and licensing of pharmacy benefit management companies (PBMs). Would require obtaining a license and certificate of authority; and provide for annual fees and examination of financial records. Requires disclosures to enrollees served by the company.
(Referred to Committee, 5/17/02; did not pass by end of regular session)|

MT

No 2002 session

NE

 See 2001-02 subsidy bills NCSL's 2001-01 subsidy bills

NV

No regular 2002 session

NJ
A433
(same as A2314 '01)

Pill-splitting: would prohibit managed care carriers providing prescription drug coverage from requiring covered persons to purchase prescription drugs that are in form of double-dose tablets or pills.
(Filed 1/8/02; passed Assembly (77-1-0), 6/13/02, sent to Senate)

NJ
A587
(same as A3388 '01)

Establishes the New Jersey Prescription Drug Cost Reduction Study Commission. (Filed 1/8/02, sent to Assembly Health and Human Services Committee)

NJ
A 640
(same as A506 '01)

Would reduce the minimum age of a person to whom a prescription drug price may be discounted from 62 to 60 years of age.
(Filed 1/8/02; sent to Assembly Senior Issues Committee)

NJ
A 938
(same as A2292 '01)

Would require prescription drug labels to bear brand name of prescribed drug as well as name of any generic drug substituted for brand name drug.
(Filed 1/8/02, sent to Assembly Health and Human Services Committee.)

NJ
A 1635
(same as A3195 '01)

"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.
(Filed 1/31/02; sent to Assembly Health and Human Services Committee)

NJ
S 770
(same as S 2672 '01)

Would regulate Internet pharmacies and electronic prescriptions.
(Filed 1/15/02, sent to Senate Commerce Committee, 3/11/02)

NM
SB 91
Sen. Feldman
HB 200
Rep. Picraux

Establishes the Senior Prescription Drug Program. Eligibility covers persons age sixty-five years or older; with no other prescription drug benefit; includes an enrollment fee not to exceed $60.00 per year to cover the cost of administering the program. Participant would pay a discount price "not exceed the dispensing fee plus the contracted discounted price made available to the authority." Directs the Retiree Health Care Authority to administer the program in conjunction with the consolidated purchasing process in the Health Care Purchasing Act. No state funds are appropriated to subsidize drug purchases. [fiscal note]
(Passed House and Senate, 2/02; signed by Governor as Chapters 75 and 80, 3/5/02)

NM
HB 149
Rep. Madalena

Would appropriate $25,000 to assess the potential for and initiating any necessary waivers to establish a prescription bulk-purchasing program. The program would use the special prescription drug purchasing prerogatives of Native American prescription drug programs, in cooperation with Native American tribes, the New Mexico Office of Indian Affairs, the Human Services Department.
(Died in committee, 2/02)

NM
HB 264
Rep. Heaton

Would establish the "Prescription Drug Fair Pricing Act" which prohibits prescription drug price discrimination. A seller offering drugs in a covered transaction must offer the same price during the same period of time to any other purchaser. A "covered transaction" is defined as any sale of a drug to a purchaser doing business in the State, in which a manufacturer, in an arrangement with a wholesaler, negotiates, establishes, determines or otherwise controls terms of conditions of sale. Certain defined entities would be exempt from the statute, most notably federal, state, or local government programs that purchase drugs directly. Violations of this Act will result in a $1,000 to $50,000 fine for each violation
(Filed 1/02; died in committee, 2/02)

NM
HB 372
Rep. Heaton

Would create NM Prescription Drug Discount Act for persons with income not more than 200% of federal poverty. Modeled on Maine's 2001 law, it would allow persons not eligible for regular Medicaid to purchase pharmaceuticals at the Medicaid discount price, including rebates. It requires federal waiver approval.
(Passed House 58-1, 2/12/02; died in Senate at end of session)
Also see 2002 law, Chapter 75 & 80, above)

NM
HJM 21
Rep. Knauer

Memorial requesting the U.S. Congress to enact legislation that would "establish a single, uniform federal 'best price' of prescription drugs to eliminate disparities in discounting among federal purchasers."
(Passed House, 43-12; died in Senate committee, 2/02)

NM
HJM 49
Rep. Picraux

Memorial requesting the state employee/retiree health care authority to participate in a multistate bulk purchasing cooperative to obtain the most favorable prices for pharmaceuticals and to allow non-member seniors to purchase prescription drugs at discounted prices.
(Passed House, 62-0; died in Senate committee, 2/02)

NM
SB 226
Sen. Kidd

Would establish the "Prescription Drug Fair Pricing Act" which prohibits prescription drug price discrimination. A seller offering drugs in a covered transaction must offer the same price during the same period of time to any other purchaser.
(Filed 1/02; died in committee, 2/02)

NM
SB 238
Sen. Feldman

"Fair Market Drug Pricing Act." Would require negotiated discount prices or rebates from drug manufacturers or labelers that are better than those required under federal law. The bill also establishes a discount prescription drug program for New Mexico residents who are eligible for participation in the federal Medicare program, or have a family income level below 300% of the federal poverty level. Eligibility is also extended to those individual who are eligible for assistance under the state Medicaid program, or are covered by private insurance programs that provide benefits for prescription drugs equal to or greater than the benefits provided under the discount program. Requires the Secretary of Human Services to negotiate the discount prescription prices with drug manufacturers and labelers and to consider whether to place manufacturers or labelers products on the Medicaid prior authorization list and all other state-funded prior authorization lists based upon the results of the discount negotiation. Requires the Human Services Department to establish the discount card program.
(Filed 1/02; failed in Senate 12-20; withdrawn)

NM
SJM 22
Sen. Allan

Memorial requesting the state agency on aging to work with pharmaceutical manufacturers "to develop a simple uniform application for participation in free drug programs by low-income persons and to implement a user pilot program."
(Passed Senate, 33-0; died in House committee, 2/02; did not pass by end of regular 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