75th OREGON LEGISLATIVE ASSEMBLY--2009 Regular Session
NOTE: Matter within { + braces and plus signs + } in an
amended section is new. Matter within { - braces and minus
signs - } is existing law to be omitted. New sections are within
{ + braces and plus signs + } .
LC 3245
A-Engrossed
Senate Bill 735
Ordered by the Senate April 29
Including Senate Amendments dated April 29
Sponsored by Senator MORRISETTE, Representatives THOMPSON,
GREENLICK
SUMMARY
The following summary is not prepared by the sponsors of the
measure and is not a part of the body thereof subject to
consideration by the Legislative Assembly. It is an editor's
brief statement of the essential features of the measure.
Modifies provisions relating to administration of Oregon
Prescription Drug Program.
Declares emergency, effective on passage.
A BILL FOR AN ACT
Relating to the Oregon Prescription Drug Program; amending ORS
414.312; and declaring an emergency.
Be It Enacted by the People of the State of Oregon:
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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