2003 Legislation
Print Friendly

HOUSE BILL NO. 241 – Medicaid patients, drug coverage

HOUSE BILL NO. 241

View Daily Data Tracking History

View Bill Text

View Statement of Purpose / Fiscal Impact



Text to be added within a bill has been marked with Bold and
Underline. Text to be removed has been marked with
Strikethrough and Italic. How these codes are actually displayed will
vary based on the browser software you are using.

This sentence is marked with bold and underline to show added text.

This sentence is marked with strikethrough and italic, indicating
text to be removed.

Daily Data Tracking History



H0241....................................................by HEALTH AND WELFARE
MEDICAID - DRUG COVERAGE - Amends existing law to require negotiated
rulemaking relating to conditions for drug coverage for medicaid patients; to
establish requirements for rules adopted governing conditions for drug
coverage; and to define terms.
                                                                        
02/11    House intro - 1st rdg - to printing
02/12    Rpt prt - to Health/Wel

Bill Text


                                                                        
                                                                        
  ||||              LEGISLATURE OF THE STATE OF IDAHO             ||||
 Fifty-seventh Legislature                 First Regular Session - 2003
                                                                        
                                                                        
                              IN THE HOUSE OF REPRESENTATIVES
                                                                        
                                     HOUSE BILL NO. 241
                                                                        
                              BY HEALTH AND WELFARE COMMITTEE
                                                                        
  1                                        AN ACT
  2    RELATING TO MEDICAID PHARMACY REIMBURSEMENT; AMENDING SECTION  56-209g,  IDAHO
  3        CODE,  TO  REQUIRE  NEGOTIATED  RULEMAKING RELATING TO CONDITIONS FOR DRUG
  4        COVERAGE FOR  MEDICAID  PATIENTS,  TO  ESTABLISH  REQUIREMENTS  FOR  RULES
  5        ADOPTED GOVERNING CONDITIONS FOR DRUG COVERAGE AND TO DEFINE TERMS.
                                                                        
  6    Be It Enacted by the Legislature of the State of Idaho:
                                                                        
  7        SECTION  1.  That  Section 56-209g, Idaho Code, be, and the same is hereby
  8    amended to read as follows:
                                                                        
  9        56-209g.  PHARMACY  REIMBURSEMENT  AND  CONDITIONS  FOR   DRUG   COVERAGE.
 10    (1)  Medicaid  pharmacy  reimbursement levels are a combination of the cost of
 11    the drug and a dispensing fee which includes such pharmaceutical care services
 12    as counseling, obtaining a patient  history,  documentation,  and  dispensing.
 13    From  and  after  January 1, 1995, through June 30, 1998 2003, it shall be the
 14    policy of the state of Idaho that there be no reduction of pharmacy reimburse-
 15    ment levels or conditions of drug coverage for medicaid under title XIX of the
 16    social security act except as necessary to comply with federal regulations, 42
 17    CFR 447.331 through 447.334, as implemented in the state of Idaho  and  except
 18    as provided by rules promulgated by the director pursuant to the provisions of
 19    this section. Effective July January 1, 1998 2003, pharmacy reimbursement lev-
 20    els  may and conditions for drug coverage shall be adjusted in accordance with
 21    rules promulgated by the director through negotiated  rulemaking  with  inter-
 22    ested  parties  including, but not limited to, representatives of the pharmacy
 23    profession, covered patients and the medical profession. To  the  extent  that
 24    rules  promulgated  by the director, that are in effect on January 1, 2003, do
 25    not meet the requirements of subsections (2), (3) and (4) of this section, the
 26    director shall institute negotiated rulemaking  proceedings  to  conform  such
 27    rules with the requirements of this section.
 28        (2)  No rule promulgated by the director shall:
 29        (a)  Request  or require, directly or indirectly, as a condition of cover-
 30        age for a prescription drug for a covered patient, that a physician change
 31        from a medication previously used for a particular indication for the cov-
 32        ered patient to another medication based primarily on  economic  consider-
 33        ations.
 34        (b)  Request  or require, directly or indirectly, as a condition of a cov-
 35        ered beneficiary receiving administratively authorized  prompt  refill  or
 36        renewal  of a prescription, that a physician change from a medication pre-
 37        viously used by the covered patient for a particular indication to another
 38        medication based primarily on economic considerations.
 39        (c)  Employ a care management technique for covered  patients  (including,
 40        but  not  limited  to, implementation of a formulary, preferred drug list,
 41        treatment protocol or guideline, step therapy or other use of prior autho-
 42        rization) without assuring that its clinical foundation is consistent with
 43        quality patient care. The assurances required for purposes of  this  para-
                                                                        
                                           2
                                                                        
  1        graph include evidence and documentation of:
  2             (i)   Clinically-based  definitions  for  each  therapeutic  chemical
  3             class of drugs;
  4             (ii)  Reliance on scientific and clinical data, supported by the pre-
  5             ponderance  of  peer  reviewed  medical  literature,  in  creating or
  6             updating formularies, preferred drug lists,  protocols  or  treatment
  7             guidelines; and
  8             (iii) For  any drug subject to prior authorization, a specific set of
  9             clinical criteria, available  to  physicians  and  covered  patients,
 10             specifying when that drug is authorized for coverage.
 11             (iv)  No  rule  requiring prior authorization shall restrict coverage
 12             of a drug approved by the federal food and drug administration for an
 13             indication unless the department has at least six (6) months of  data
 14             regarding the use of the drug for treating the indication in the pop-
 15             ulation of covered patients.
 16        (d)  Request  or require physicians, pharmacies and/or covered patients to
 17        participate in programs that use clinical  case  management  tools  imple-
 18        mented using prior authorization or approval requirements unless:
 19             (i)   The  prior  authorization system provides for real time receipt
 20             of requests, by voice mail, fax, or  electronic  transmission,  on  a
 21             twenty-four (24) hour basis, seven (7) days a week;
 22             (ii)  The  prior  authorization  system provides in-person answers to
 23             emergency requests by physician offices or pharmacies with  telephone
 24             answering queues that do not exceed ten (10) minutes; and
 25             (iii) The  prior  authorization  system  establishes  reasonable time
 26             periods for answering requests for authorization or approval of drugs
 27             for acute, chronic or nonacute conditions and provides coverage of an
 28             initial course of therapy if such time periods are not met within the
 29             established time periods.
 30             (iv)  A rule relating to prior authorization shall not require  prior
 31             authorization  or  approval for renewals or refills of a prescription
 32             that has had prior authorization for the same prescriber for the same
 33             covered patient.
 34             (v)   No rule shall deny the prescribing physician the right to  pre-
 35             scribe  a drug that the physician determines, in the physician's best
 36             medical judgment, is the most effective available drug to  treat  the
 37             covered  patient's  health  condition, notwithstanding any formulary,
 38             step therapy, preferred drug list or prior authorization requirements
 39             of the department.
 40        (3)  Rules promulgated by the director shall provide each covered patient,
 41    or provider or other person on behalf of the covered patient, with an opportu-
 42    nity for prompt review of a coverage denial for a drug prescribed for a  medi-
 43    cally  accepted  indication.  A  pharmacy  benefit  program shall complete its
 44    review of a request for review of coverage within four (4) weeks of  the  date
 45    of  the  request,  whether  the request is made orally or in writing. The rule
 46    shall also provide for an appeal by the covered patient, or provider or  other
 47    person  on behalf of a patient, from an adverse decision of the pharmacy bene-
 48    fit program where:
 49        (a)  The item is not excluded from the pharmacy benefit program  available
 50        to  covered  patients,  and  the  prescriber  believes  that  the coverage
 51        restriction imposed for the specific individual is a denial  of  medically
 52        necessary care; or
 53        (b)  A  pharmacy  benefit  program  fails  to issue to the covered patient
 54        within seven (7) days, a written confirmation of  its  decision  regarding
 55        review of a coverage denial of an item that is not excluded from the phar-
                                                                        
                                           3
                                                                        
  1        macy program available to covered patients under the pharmacy benefit pro-
  2        gram.
  3        (4)  As used in this section, terms used herein are defined as follows:
  4        (a)  "Acute  condition"  means  a  symptom,  condition, or disease that is
  5        expected to have a duration of two (2) weeks  or  less,  or  where  prompt
  6        receipt  of  medication  is  needed  for  infection  or exposure requiring
  7        antibiotics, for pain, or for life threatening symptoms.
  8        (b)  "Chronic condition" means a symptom, condition  or  disease  that  is
  9        expected to have a duration of more than two (2) weeks.
 10        (c)  "Covered patient" means an individual who is enrolled to receive ben-
 11        efits  paid  for  in  whole  or  in  part  by  the state medicaid program,
 12        children's health insurance program, or a state pharmacy benefit program.
 13        (d)  "Department" means the department of health and welfare of the  state
 14        of Idaho.
 15        (e)  "Emergency"  means  a  situation  in which a physician indicates that
 16        delay of care exclusively to fulfill administrative requirements would  be
 17        medically  inappropriate,  and  shall  include  any  administrative  delay
 18        resulting  from a failure to respond to a request for authorization within
 19        the time periods established by rule.
 20        (f)  "Medically accepted indication" means use of a drug for an indication
 21        that is specified in the drug's labeling,  the  drug  compendia  or  peer-
 22        reviewed medical literature.
 23        (g)  "Pharmacy benefit program" means an outpatient prescription drug ben-
 24        efit established by this state under medicaid, the state children's health
 25        insurance program, or a state pharmacy assistance program that is operated
 26        in whole or in part by the department.

Statement of Purpose / Fiscal Impact


                      STATEMENT OF PURPOSE
                           RS 12761C1
                                
The purpose of the proposed legislation is to provide a process
for future rule making by the Department of Health and Welfare
relating to the Medicaid pharmacy benefit program. The proposal
provides a negotiated rule making process that will include
pharmacists, the medical profession and representatives of
Medicaid patients. 
The legislation recognizes that the Department may develop care
management techniques, including prior authorization or preferred
drug lists, and confirms that such programs be based on a
clinical foundation consistent with quality patient care. The
legislation further provides that such prior authorization
requests will be responded to in a reasonable time. The
legislation assures that rules adopted by the Department will
affirm the right of the prescribing physician to prescribe
medicines for their patients that the physician determines, in
the physician's best medical judgment, is the most effective drug
to treat the patient's health condition.


                         FISCAL IMPACT
         There is no fiscal impact to the general fund.
                                
                                
                                
Contact:
Name: Bill Roden
                               PhRMA
Phone: 336-7930
STATEMENT OF PURPOSE/FISCAL NOTE                                 H 241