Bill Text: IA HSB582 | 2019-2020 | 88th General Assembly | Introduced


Bill Title: A bill for an act relating to dispensing fees and copayments for partially dispensed quantities of prescription drugs.

Spectrum: Committee Bill

Status: (N/A - Dead) 2020-02-20 - Committee report, recommending passage. H.J. 320. [HSB582 Detail]

Download: Iowa-2019-HSB582-Introduced.html
House Study Bill 582 - Introduced HOUSE FILE _____ BY (PROPOSED COMMITTEE ON HUMAN RESOURCES BILL BY CHAIRPERSON LUNDGREN) A BILL FOR An Act relating to dispensing fees and copayments for partially 1 dispensed quantities of prescription drugs. 2 BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA: 3 TLSB 5494YC (5) 88 pf/rh
H.F. _____ Section 1. NEW SECTION . 155A.38A Prescriptions dispensed 1 in partial quantities —— limitation on dispensing fee and 2 copayments. 3 1. If a person authorized pursuant to this chapter to 4 dispense prescription drugs initially dispenses a partial 5 quantity of a thirty-day supply of a prescription drug and 6 subsequently dispenses the remaining quantity as authorized by 7 the prescription within thirty days of the initial dispensing, 8 all of the following shall apply: 9 a. The cumulative dispensing fee applicable to all partially 10 dispensed quantities of the prescription drug shall not exceed 11 the established dispensing fee applicable as if the total 12 quantity prescribed had been dispensed at one time. 13 b. The cumulative copayment required for all partially 14 dispensed quantities of the prescription drug shall not exceed 15 the established copayment applicable as if the total quantity 16 prescribed had been dispensed at one time. 17 2. This section shall apply whether the partial dispensing 18 of a quantity authorized by a prescription is due to a policy 19 of the authorized dispenser, a requirement of the third-party 20 payment provider contract or policy, a supply deficit, or for 21 any other reason. 22 Sec. 2. NEW SECTION . 514C.35 Prescriptions dispensed 23 in partial quantities —— limitation on dispensing fee and 24 copayments. 25 1. Third-party payment provider contracts or policies 26 delivered, issued for delivery, continued, or renewed in this 27 state on or after January 1, 2021, that provide for third-party 28 payment or prepayment of health or medical expenses shall 29 provide that if a person authorized pursuant to chapter 155A to 30 dispense initially dispenses a partial quantity of a thirty-day 31 supply of a prescription drug and subsequently dispenses the 32 remaining quantity as authorized by the prescription within 33 thirty days of the initial dispensing, all of the following 34 shall apply: 35 -1- LSB 5494YC (5) 88 pf/rh 1/ 5
H.F. _____ a. The cumulative dispensing fee applicable to all partially 1 dispensed quantities of the prescription drug shall not exceed 2 the established dispensing fee applicable as if the total 3 quantity prescribed had been dispensed at one time. 4 b. The cumulative copayment required for all partially 5 dispensed quantities of the prescription drug shall not exceed 6 the established copayment applicable as if the total quantity 7 prescribed had been dispensed at one time. 8 2. This section shall apply whether the partial dispensing 9 of a quantity authorized by a prescription is due to a policy 10 of the authorized dispenser, a requirement of the third-party 11 payment provider contract or policy, a supply deficit, or for 12 any other reason. 13 3. For the purposes of this section, “third-party payment 14 provider contracts or policies” includes: 15 a. Individual or group accident and sickness insurance 16 providing coverage on an expense-incurred basis. 17 b. An individual or group hospital or medical service 18 contract issued pursuant to chapter 509, 514, or 514A. 19 c. An individual or group health maintenance organization 20 contract regulated under chapter 514B. 21 d. Any other entity engaged in the business of insurance, 22 risk transfer, or risk retention, which is subject to the 23 jurisdiction of the commissioner. 24 e. A plan established pursuant to chapter 509A for public 25 employees. 26 4. a. This section shall not apply to accident-only, 27 specified disease, short-term hospital or medical, hospital 28 confinement indemnity, credit, dental, vision, Medicare 29 supplement, long-term care, basic hospital and medical-surgical 30 expense coverage as defined by the commissioner, disability 31 income insurance coverage, coverage issued as a supplement 32 to liability insurance, workers’ compensation or similar 33 insurance, or automobile medical payment insurance. 34 b. This section shall not apply to the medical assistance 35 -2- LSB 5494YC (5) 88 pf/rh 2/ 5
H.F. _____ program pursuant to chapter 249A, including to a managed care 1 organization acting pursuant to a contract with the department 2 of human services to provide coverage to medical assistance 3 program members, or to the hawk-i program pursuant to chapter 4 514I. 5 Sec. 3. MEDICAID PROGRAM —— DISPENSING FEE AND COPAYMENTS 6 FOR PRESCRIPTIONS DISPENSED IN PARTIAL QUANTITIES. 7 1. The department of human services shall adopt rules 8 pursuant to chapter 17A to require that if a Medicaid 9 provider, under both fee-for-service and managed care program 10 administration, who is authorized to dispense prescription 11 drugs pursuant to chapter 155A, initially dispenses a partial 12 quantity of a thirty-day supply of a prescription drug and 13 subsequently dispenses the remaining quantity as authorized by 14 the prescription, all of the following shall apply: 15 a. The cumulative dispensing fee applicable to all 16 partially dispensed quantities of the prescription drug shall 17 not exceed the established dispensing fee applicable as if the 18 total quantity prescribed had been dispensed at one time. 19 b. The cumulative copayment required for all partially 20 dispensed quantities of the prescription drug shall not exceed 21 the established copayment applicable as if the total quantity 22 prescribed had been dispensed at one time. 23 2. This section shall apply whether the partial dispensing 24 of a quantity authorized by a prescription is due to a policy 25 of the authorized dispenser, a requirement of a managed care 26 organization or third-party payment provider contract or 27 policy, a supply deficit, or for any other reason. 28 EXPLANATION 29 The inclusion of this explanation does not constitute agreement with 30 the explanation’s substance by the members of the general assembly. 31 This bill relates to the dispensing of prescription drugs in 32 partial quantities. 33 The bill provides that if a person authorized to dispense 34 prescription drugs under Code chapter 155A initially dispenses 35 -3- LSB 5494YC (5) 88 pf/rh 3/ 5
H.F. _____ a partial quantity of a 30-day supply of a prescription 1 drug and subsequently dispenses the remaining quantity as 2 authorized by the prescription within 30 days of the initial 3 dispensing, the cumulative dispensing fee applicable to 4 all partially dispensed quantities of the prescription drug 5 shall not exceed the established dispensing fee applicable 6 as if the total quantity prescribed had been dispensed at 7 one time, and the cumulative copayment required for all 8 partially dispensed quantities of the prescription drug shall 9 not exceed the established copayment applicable as if the 10 total quantity prescribed had been dispensed at one time. 11 These requirements apply whether the partial dispensing of a 12 quantity authorized by a prescription is due to a policy of the 13 authorized dispenser, a requirement of the third-party payment 14 provider contract or policy, a supply deficit, or for any other 15 reason. The bill directs the department of human services to 16 adopt administrative rules to require Medicaid providers to 17 comply with these provisions, whether the partial dispensing 18 of the quantity authorized by the prescription is due to a 19 policy of the authorized dispenser, a requirement of a managed 20 care organization or third-party payment provider contract 21 or policy, a supply deficit, or for any other reason. The 22 requirement applies under both fee-for-service and managed care 23 program administration of Medicaid. 24 Similarly, the bill provides that any third-party payment 25 provider contracts or policies delivered, issued for delivery, 26 continued, or renewed in this state on or after January 1, 27 2021, that provide for third-party payment or prepayment 28 of health or medical expenses shall provide that if a 29 person authorized pursuant to Code chapter 155A to dispense 30 initially dispenses a partial quantity of a 30-day supply of 31 a prescription drug and subsequently dispenses the remaining 32 quantity as authorized by the prescription within 30 days 33 of the initial dispensing, the cumulative dispensing fee 34 applicable to all partially dispensed quantities of the 35 -4- LSB 5494YC (5) 88 pf/rh 4/ 5
H.F. _____ prescription drug shall not exceed the established dispensing 1 fee applicable as if the total quantity prescribed had been 2 dispensed at one time, and the cumulative copayment required 3 for all partially dispensed quantities of the prescription drug 4 shall not exceed the established copayment applicable as if 5 the total quantity prescribed had been dispensed at one time. 6 The provision applies whether the partial dispensing of a 7 quantity authorized by a prescription is due to a policy of the 8 authorized dispenser, a requirement of the third-party payment 9 provider contract or policy, a supply deficit, or for any other 10 reason. 11 -5- LSB 5494YC (5) 88 pf/rh 5/ 5
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