110 HR 3041 IH: Medicaid Prescription Drug Rebate U.S. House of Representatives 2007-07-12 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.

I 110th CONGRESS 1st Session H. R. 3041 IN THE HOUSE OF REPRESENTATIVES July 12, 2007 Mr. Stupak (for himself and Mr. Rush) introduced the following bill; which was referred to the Committee on Energy and Commerce A BILL To amend title XIX of the Social Security Act to reduce the costs of prescription drugs for enrollees of Medicaid managed care organizations by extending the discounts offered under fee-for-service Medicaid to such organizations.

1.

Short title

This Act may be cited as the Medicaid Prescription Drug Rebate Equalization Act of 2007.

2.

Extension of prescription drug discounts to enrollees of Medicaid managed care organizations

(a)

In general

Section 1903(m)(2)(A) (42 U.S.C. 1396b(m)(2)(A)) is amended— (1)in clause (xi), by striking and at the end; (2)in clause (xii), by striking the period at the end and inserting ; and; and (3)by adding at the end the following: (xiii)such contract provides that (I) payment for covered outpatient drugs dispensed to individuals eligible for medical assistance who are enrolled with the entity shall be subject to the same rebate required by the agreement entered into under section 1927 as the State is subject to and that the State shall allow the entity to collect such rebates from manufacturers, and (II) capitation rates paid to the entity shall be based on actual cost experience related to rebates and subject to the Federal regulations requiring actuarially sound rates. . (b)

Conforming amendments

Section 1927 (42 U.S.C. 1396r–8) is amended— (1)in subsection (d)— (A)in paragraph (1), by adding at the end the following: (C)Notwithstanding subparagraphs (A) and (B)— (i)a medicaid managed care organization with a contract under section 1903(m) may exclude or otherwise restrict coverage of a covered outpatient drug on the basis of policies or practices of the organization, such as those affecting utilization management, formulary adherence, and cost sharing or dispute resolution, in lieu of any State policies or practices relating to the exclusion or restriction of coverage of such drugs; and (ii)nothing in this section or paragraph (2)(A)(xiii) of section 1903(m) shall be construed as requiring a medicaid managed care organization with a contract under such section to maintain the same such polices and practices as those established by the State for purposes of individuals who receive medical assistance for covered outpatient drugs on a fee-for service basis. ; and (B)in paragraph (4), by inserting after subparagraph (E) the following: (F)Notwithstanding the preceding subparagraphs of this paragraph, any formulary established by a medicaid managed care organization with a contract under section 1903(m) may be based on the positive inclusion of drugs selected by a formulary committee consisting of physicians, pharmacists, and other individuals with appropriate clinical experience as long as drugs excluded from the formulary are available through prior authorization, as described in paragraph (5). ; and (2)in subsection (j), by striking paragraph (1) and inserting the following: (1)Covered outpatients drugs are not subject to the requirements of this section if such drugs are— (A)dispensed by a health maintenance organization other than a medicaid managed care organization with a contract under section 1903(m); and (B)subject to discounts under section 340B of the Public Health Service Act. . (c)

Effective date

The amendments made by this section take effect on the date of the enactment of this Act and apply to rebate agreements entered into or renewed under section 1927 of the Social Security Act (42 U.S.C. 1396r–8) on or after such date.