74th OREGON LEGISLATIVE ASSEMBLY--2007 Regular Session
Enrolled
Senate Bill 362
Sponsored by Senators MORRISETTE, MONNES ANDERSON,
Representatives GREENLICK, MERKLEY; Senators AVAKIAN, BATES,
BROWN, BURDICK, CARTER, COURTNEY, DEVLIN, GORDLY, JOHNSON,
METSGER, MONROE, PROZANSKI, SCHRADER, VERGER, WESTLUND,
Representative READ (Presession filed.)
CHAPTER ................
AN ACT
Relating to Oregon Prescription Drug Program; amending ORS
414.312 and 414.314; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
SECTION 1. ORS 414.312, as amended by section 1, chapter 2,
Oregon Laws 2007 (Ballot Measure 44 (2006)), is amended to read:
414.312. (1) As used in ORS 414.312 to 414.318:
(a) 'Pharmacy benefit manager' means an entity that, in
addition to being a prescription drug claims processor,
negotiates and executes contracts with pharmacies, manages
preferred drug lists, negotiates rebates with prescription drug
manufacturers and serves as an intermediary between the Oregon
Prescription Drug Program, prescription drug manufacturers and
pharmacies.
(b) 'Prescription drug claims processor' means an entity that
processes and pays prescription drug claims, adjudicates pharmacy
claims, transmits prescription drug prices and claims data
between pharmacies and the Oregon Prescription Drug Program and
processes related payments to pharmacies.
(c) 'Program price' means the reimbursement rates and
prescription drug prices established by the administrator of the
Oregon Prescription Drug Program.
(2) The Oregon Prescription Drug Program is established in the
Oregon Department of Administrative Services. The purpose of the
program is to:
(a) Purchase prescription drugs or reimburse pharmacies for
prescription drugs in order to receive discounted prices and
rebates;
(b) Make prescription drugs available at the lowest possible
cost to participants in the program; and
(c) Maintain a list of prescription drugs recommended as the
most effective prescription drugs available at the best possible
prices.
(3) The Director of the Oregon Department of Administrative
Services shall appoint an administrator of the Oregon
Prescription Drug Program. The administrator shall:
(a) Negotiate price discounts and rebates on prescription drugs
with prescription drug manufacturers;
Enrolled Senate Bill 362 (SB 362-B) Page 1
(b) Purchase prescription drugs on behalf of individuals and
entities that participate in the program;
(c) Contract with a prescription drug claims processor to
adjudicate pharmacy claims and transmit program prices to
pharmacies;
(d) Determine program prices and reimburse pharmacies for
prescription drugs;
(e) Adopt and implement a preferred drug list for the program;
(f) Develop a system for allocating and distributing the
operational costs of the program and any rebates obtained to
participants of the program; and
(g) Cooperate with other states or regional consortia in the
bulk purchase of prescription drugs.
(4) The following individuals or entities may participate in
the program:
(a) Public Employees' Benefit Board;
(b) Local governments as defined in ORS 174.116 and special
government bodies as defined in ORS 174.117 that directly or
indirectly purchase prescription drugs;
(c) Enrollees in the Senior Prescription Drug Assistance
Program created under ORS 414.342;
(d) Oregon Health and Science University established under ORS
353.020;
(e) State agencies that directly or indirectly purchase
prescription drugs, including agencies that dispense prescription
drugs directly to persons in state-operated facilities;
{ - and - }
(f) Residents of this state who { + + } { - do not have - }
{ + lack or are underinsured for + } prescription drug
coverage { + ; + } { - . - }
{ + (g) Private entities; and
(h) Labor organizations. + }
(5) The state agency that receives federal Medicaid funds and
is responsible for implementing the state's medical assistance
program may not participate in the program.
(6) The administrator may establish different reimbursement
rates or prescription drug prices for pharmacies in rural areas
to maintain statewide access to the program.
(7) The administrator shall establish the terms and conditions
for a pharmacy to enroll in the program. A licensed pharmacy that
is willing to accept the terms and conditions established by the
administrator may apply to enroll in the program.
(8) Except as provided in subsection (9) of this section, the
administrator may not:
(a) Contract with a pharmacy benefit manager;
(b) Establish a state-managed wholesale or retail drug
distribution or dispensing system; or
(c) Require pharmacies to maintain or allocate separate
inventories for prescription drugs dispensed through the program.
(9) The administrator shall contract with one or more entities
to provide the functions of a prescription drug claims processor.
The administrator may also contract with a pharmacy benefit
manager to negotiate with prescription drug manufacturers on
behalf of the administrator.
(10) Notwithstanding subsection (4)(f) of this section,
individuals who are eligible for Medicare Part D prescription
drug coverage may participate in the program.
SECTION 2. ORS 414.314 is amended to read:
414.314. (1) An individual or entity described in ORS 414.312
(4) may apply to participate in the Oregon Prescription Drug
Enrolled Senate Bill 362 (SB 362-B) Page 2
Program. Participants shall apply { - annually - } on an
application provided by the Oregon Department of Administrative
Services. The department may charge participants a nominal fee to
participate in the program. The department shall issue a
prescription drug identification card { - annually - } to
participants of the program.
(2) The department shall provide a mechanism to calculate and
transmit the program prices for prescription drugs to a pharmacy.
The pharmacy shall charge the participant the program price for a
prescription drug.
(3) A pharmacy may charge the participant the professional
dispensing fee set by the department.
(4) Prescription drug identification cards issued under this
section must contain the information necessary for proper claims
adjudication or transmission of price data.
SECTION 3. { + This 2007 Act being necessary for the immediate
preservation of the public peace, health and safety, an emergency
is declared to exist, and this 2007 Act takes effect on its
passage. + }
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Passed by Senate March 13, 2007
Repassed by Senate April 12, 2007
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Secretary of Senate
...........................................................
President of Senate
Passed by House April 4, 2007
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Speaker of House
Enrolled Senate Bill 362 (SB 362-B) Page 3
Received by Governor:
......M.,............., 2007
Approved:
......M.,............., 2007
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Governor
Filed in Office of Secretary of State:
......M.,............., 2007
...........................................................
Secretary of State
Enrolled Senate Bill 362 (SB 362-B) Page 4