75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
 
SA to SB 735
 
LC 3245/SB 735-6
 
                      SENATE AMENDMENTS TO
                         SENATE BILL 735
 
     By COMMITTEE ON HUMAN SERVICES AND RURAL HEALTH POLICY
 
                            April 29
 
  On page 1 of the printed bill, delete lines 5 through 31 and
delete page 2 and insert:
  '  { +  SECTION 1. + } ORS 414.312 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 Department of Human Services. The purpose of the program is
to:
  ' (a) Purchase prescription drugs { + , replenish prescription
drugs dispensed + } 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  { + as a means to promote
health + };   { - and - }
  ' (c) Maintain a list of prescription drugs recommended as the
most effective prescription drugs available at the best possible
prices  { - . - }  { + ; and
  ' (d) Promote health through the purchase and provision of
discount prescription drugs and coordination of comprehensive
prescription benefit services for eligible entities and
members. + }
  ' (3) The Director of Human Services shall appoint an
administrator of the Oregon Prescription Drug Program. The
administrator   { - shall - }  { +  may + }:
  ' (a) Negotiate price discounts and rebates on prescription
drugs with prescription drug manufacturers  { + or group
purchasing organizations + };
  ' (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  { + or
replenish + } pharmacies for prescription drugs  { + dispensed or
transferred + };
 
  ' (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 { + , Oregon Educators
Benefit Board and Public Employees Retirement System + };
  ' (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;
  ' (f) Residents of this state who 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 - }  { +
program + } prices for pharmacies in rural areas to maintain
statewide access to the program.
  ' (7) The administrator   { - shall - }   { + may + } 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. - }
  '  { +  (9) The administrator shall contract with one or more
entities to perform any of the functions of the program,
including but not limited to:
  ' (a) Contracting with a pharmacy benefit manager and directly
or indirectly with such pharmacy networks as the administrator
considers necessary to maintain statewide access to the program.
  ' (b) Negotiating 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.
  '  { +  (11) The program may contract with vendors as necessary
to utilize discount purchasing programs, including but not
limited to group purchasing organizations established to meet the
criteria of the Nonprofit Institutions Act, 15 U.S.C. 13c, or
that are exempt under the Robinson-Patman Act, 15 U.S.C. 13. + }
 
  '  { +  SECTION 2. + }  { + This 2009 Act being necessary for
the immediate preservation of the public peace, health and
safety, an emergency is declared to exist, and this 2009 Act
takes effect on its passage. + } ' .
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