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State Update: Prescription Drug Reform Legislation in 2010
Regulatory
Oversight of Pharmacy Benefit Managers: In 2010, legislators in Arizona (HB 2272)
and Iowa (SB 20171) have
introduced comprehensive PBM oversight (mirroring PSN model
legislation). Vermont has a comprehensive bill, H.591 to strengthen existing PBM transparency law. Alaska, Georgia,
Massachusetts, Michigan, Missouri, Nebraska, New
Jersey, Oklahoma, South Carolina, West Virginia
have bills moving in their states that contain some PBM provisions. Wyoming's PBM bill, SF 67, died in the House Corporations Committee.
Maine has enacted two bills to further regulate PBMs: LD 1339 requires registration with the Bureau of Insurance and gives the State Auditor a role in purchasing contracts; LD 1498, Public Law 591, establishes prompt pay rules.
Expansion
of 340B Program: Another key reform establishes commissions to explore
ways of expanding the number of provider entities who could qualify under the
340B drug pricing program. As 340B
prices are a dramatic 19% to 20% lower than the purchase price of
prescription drugs through Medicaid, states stand to realize significant
savings by moving segments of their Medicaid population, or others who
receive prescription services from the state, to a 340B program. In
2010, Arizona (HB 2272) and Iowa
(SB 2071) have
introduced expansions of their 340B programs, while North Carolina is
exploring the possibility of moving a bill once their session begins in May.
Prescriber
Education Services and Drug Industry Gift Bans:
In an effort to improve the quality of health care, another key policy is prescriber education services (also
referred to as academic detailing) while also requiring drug companies to
either disclose gifts to providers or ban them
altogether. Comprehensive bills have been introduced in Arizona (HB 2705) and Iowa
(SB 48), while
companion bills containing some of the prescriber education language is
moving in Minnesota (HB 1640 / SB 895). Colorado
has a gift ban (SB 126) bill
with related provisions that has passed out of the Health Committee and payment disclosure legislation is also pending in Illinois.
Several states, including Maine, have withheld action on gift disclosure legislation pending action on the Physician Payment Sunshine Act, which was included in the health care reform legislation signed into law last week.
Product Stewardship: Mandatory Drug Take-back: With pressure tactics and full page ads, PhRMA and the biotech industry fought hard against pathbreaking Maine legislation to require drugmakers to develop programs to take back unused drugs, based on a product stewardship model already in use for products such as mercury containing fixtures and computers. LD 821 passed handily the House but was killed in the Senate.
Online Marketing to Kids: PhRMA, the ACLU, and internet companies such as AOL teamed up to repeal a law passed in 2009 to prevent predatory online marketing to kids and protect the privacy of their personal information. LD 1667, intended to replace last year's law, ended up only repealing it.
Datamining: Maryland's SB 1040 had a legislative hearing last week. NLARx consulting attorney Meredith Jacob testified in support. AB 2112 would regulate prescription privacy in California. Minnesota's comprehensive Rx legislation includes prescription privacy provisions.
Click here for additional information about the Progressive States Network's Rx Agenda.
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Conference
"Prescription for Conflict: Should Industry Fund Continuing Medical Education?," sponsored by PharmedOut. The discussion will address the questions: Does industry funding of CME adversely affect the educational content of CME? If so, can commercial bias be assessed and mitigated? For more information, or to register. |
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