Bill Text: FL S1412 | 2012 | Regular Session | Introduced


Bill Title: Prescription Drugs

Spectrum: Partisan Bill (Republican 1-0)

Status: (Failed) 2012-03-09 - Died in Health Regulation [S1412 Detail]

Download: Florida-2012-S1412-Introduced.html
       Florida Senate - 2012                                    SB 1412
       
       
       
       By Senator Fasano
       
       
       
       
       11-01199-12                                           20121412__
    1                        A bill to be entitled                      
    2         An act relating to prescription drugs; providing a
    3         short title; providing legislative findings and
    4         intent; providing definitions; prohibiting a person
    5         engaged in distribution of prescription drugs from
    6         selling prescription drugs below wholesale cost to a
    7         pharmacy provider at an outlet if such sale injures
    8         competition; prohibiting a pharmacy benefits manager,
    9         third-party payer, qualified plan, or Medicaid
   10         provider from selling prescription drugs in an outlet
   11         if such sale injures competition; prohibiting an
   12         affiliate of a qualified plan from acting as a member
   13         of a provider network for the qualified plan;
   14         prohibiting a pharmacy benefits manager or an
   15         affiliate from acting also as a member of a provider
   16         network established or administered by the pharmacy
   17         benefits manager; prohibiting a prescription drug
   18         wholesaler or distributor from selling a prescription
   19         drug to a retail pharmacy at a price that is below the
   20         price charged by the wholesaler or distributor under
   21         written contract of a like brand and quality of the
   22         prescription drug under certain circumstances;
   23         providing that an isolated, inadvertent incident
   24         involving certain prohibited activities is not a
   25         violation of the act; prohibiting a person engaged in
   26         distributing prescription drugs from reselling or
   27         knowingly receiving for resale any prescription drugs
   28         at a price lower than the price at which the seller
   29         contemporaneously sells prescription drugs of like
   30         brand and quality to another retail outlet on the same
   31         level of distribution, in the same class of trade, and
   32         within the same relevant geographic market as the
   33         purchaser; providing that a sale of prescription drugs
   34         of like brand and quality at different prices to
   35         persons at the same level of distribution is not an
   36         unlawful discriminatory practice; prohibiting a
   37         prescription drug wholesaler or distributor from
   38         fixing or maintaining the retail price of prescription
   39         drugs at a retail outlet supplied by the wholesaler or
   40         distributor; providing a civil penalty that may be
   41         assessed and recovered in a civil action brought by a
   42         pharmacy provider; authorizing the court to award
   43         attorney fees; providing for disqualification from the
   44         Medicaid program for a violation of the act; providing
   45         an effective date.
   46  
   47  Be It Enacted by the Legislature of the State of Florida:
   48  
   49         Section 1. (1) SHORT TITLE.—This act may be cited as the
   50  “Prescription Drug Access and Pricing Protection Act.”
   51         (2) LEGISLATIVE FINDINGS AND INTENT.—The Legislature finds
   52  that fair and healthy competition in the wholesaling and
   53  distribution of prescription drugs and medical equipment
   54  benefits patients in this state and that certain marketing and
   55  distribution practices that impair such competition are contrary
   56  to the public interest. Predatory practices and, under certain
   57  conditions, discriminatory practices are unfair trade practices
   58  and restraints that adversely affect access to quality and
   59  affordable health care. It is the intent of the Legislature to
   60  encourage competition and promote the general welfare of
   61  residents of this state by prohibiting such unfair practices.
   62         (3) DEFINITIONS.—In addition to the definitions contained
   63  in s. 409.962, Florida Statutes, the following definitions apply
   64  to this section:
   65         (a) “Affiliate” means any person whose stock or ownership
   66  interest is more than 50 percent owned by, or who, regardless of
   67  stock ownership, is controlled by, or who, regardless of stock
   68  ownership, is under common control with, any pharmacy benefits
   69  manager, third-party payer, pharmacy provider, qualified plan,
   70  or Medicaid provider.
   71         (b) “Competition” means the vying for the opportunity to
   72  sell at wholesale or to distribute prescription drug or medical
   73  equipment by any two pharmacy providers in the same relevant
   74  geographic market.
   75         (4) PREDATORY PRACTICES UNLAWFUL; EXCEPTIONS.—
   76         (a)1. A person engaged in distribution of prescription
   77  drugs, as defined in s. 499.003(17), Florida Statutes, may not
   78  sell prescription drugs in this state to any pharmacy provider
   79  at an outlet below wholesale cost if the effect or intent is to
   80  injure competition.
   81         2. A pharmacy benefits manager, third-party payer,
   82  qualified plan, or Medicaid provider in this state may not sell
   83  prescription drugs in an outlet if the effect is to injure
   84  competition.
   85         3. An affiliate of a qualified plan may not also act as a
   86  member of a provider network for the qualified plan.
   87         4. A pharmacy benefits manager or affiliate of a pharmacy
   88  benefits manager may not also act as a member of a provider
   89  network established or administered by the pharmacy benefits
   90  manager.
   91         (b)Notwithstanding any other provision of law to the
   92  contrary, a prescription drug wholesaler or distributor,
   93  including any affiliate or agent thereof, may not sell a
   94  prescription drug to a retail pharmacy at a price that is below
   95  the price charged by that wholesaler or distributor under
   96  written contract for a like brand and quality of the
   97  prescription drug to the extent that the wholesaler or
   98  distributor resells in the relevant geographic market where the
   99  wholesaler’s or distributor’s wholesale price is in effect.
  100         (c)An isolated, inadvertent incident involving activity
  101  prohibited under paragraph (a) or paragraph (b) is not a
  102  violation of this section.
  103         (5) DISCRIMINATORY PRACTICES UNLAWFUL; EXCEPTIONS.—
  104         (a) A person engaged in distributing prescription drugs in
  105  this state may not:
  106         1. Sell for resale prescription drugs at a price lower than
  107  the price at which the seller contemporaneously sells
  108  prescription drugs of like brand and quality to another retail
  109  outlet on the same level of distribution, in the same class of
  110  trade, and within the same relevant geographic market as the
  111  purchaser, if the intent or effect is to injure competition.
  112         2. Knowingly receive for resale prescription drugs at a
  113  price lower than the price at which the seller from which the
  114  prescription drugs is purchased or received contemporaneously
  115  sells prescription drugs of like brand and quality to another
  116  person on the same level of distribution, in the same class of
  117  trade, and within the same relevant geographic market as the
  118  purchaser, if the intent or effect is to injure competition.
  119         (b) A sale of prescription drugs of like brand and quality
  120  at different prices to persons at the same level of distribution
  121  is not a violation of this section if the difference in price is
  122  due to a difference in the cost of sale or delivery resulting
  123  from differing methods or quantities in which the prescription
  124  drugs are sold or delivered.
  125         (6) UNLAWFUL PRACTICES.—A prescription drug wholesaler or
  126  distributor may not fix or maintain the retail price of
  127  prescription drugs at a retail outlet supplied by the wholesaler
  128  or distributor.
  129         (7) ENFORCEMENT; CIVIL PENALTIES; EXCLUSION FROM PROGRAM.—
  130         (a) Any person who knowingly violates any provision of this
  131  section is subject to a civil penalty not to exceed $10,000 per
  132  violation. Each day that a violation occurs is considered a
  133  separate violation, but a civil penalty may not exceed $250,000.
  134  Any such person is also liable for attorney fees and is subject
  135  to an action for injunctive relief.
  136         (b) The civil penalty imposed under this section may be
  137  assessed and recovered in a civil action brought by a pharmacy
  138  provider in a court of competent jurisdiction. If the pharmacy
  139  provider prevails in the civil action, the court may award
  140  reasonable attorney fees as it deems appropriate.
  141         (c) Any Medicaid provider or qualified plan that violates
  142  any provision of this section is subject to disqualification
  143  from participating in the Medicaid program.
  144         Section 2. This act shall take effect July 1, 2012.

feedback