Kentucky Senate Bill 125 (Prior Session Legislation)

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Spectrum: Bipartisan Bill
Status: Introduced on January 30 2012 - 25% progression, died in committee
Action: 2012-02-22 - recommitted to Appropriations & Revenue (S)
Pending: Senate Appropriations and Revenue Committee
Text: Latest bill text (Draft #2) [MS Word]

Create a new section of Subtitle 17A of KRS Chapter 304 to define the terms "contracted pharmacy," "generic exclusivity period," "maximum allowable cost," "multiple source drug," "nationally available," "obsolete," "pharmacy benefit manager," and "temporarily unavailable"; prohibit a pharmacy benefit manager from using a maximum allowable cost as a basis for reimbursement to a pharmacy for a multiple source drug prior to the expiration of the generic exclusivity period; permit a pharmacy benefit manager to use the maximum allowable cost for reimbursement if there are three or more A-rated therapeutically equivalent multiple source drugs available at a significant cost difference; require the maximum allowable cost to be determined using drug price data from multiple data sources; require a benefit manager using maximum allowable cost for reimbursement to identify the drug price data source and methodology and notify the pharmacy regarding maximum allowable cost implementation, discontinuation, and adjustments; establish requirements for an appeals process; require a benefit manager to provide a contractual commitment to a contracted pharmacy to deliver a specific average reimbursement rate for multiple source drugs; establish requirements for calculation of the average reimbursement rate for multiple source drugs; create a new section of KRS Chapter 205 to require a managed care organization that provides Medicaid benefits to make a maximum allowable cost list available to a contracted pharmacy in a readily usable format.

AN ACT relating to pharmacy health benefit management.

Sen. Joe Bowen [R]	Sen. Julie Denton [R]	Sen. Denise Harper Angel [D]	Sen. Jimmy Higdon [R]
Sen. Paul Hornback [R]	Sen. Dennis Parrett [D]	Sen. Joey Pendleton [D]	Sen. Jerry Rhoads [D]
Sen. John Schickel [R]	Sen. Johnny Turner [D]

Date	Chamber	Action
2012-02-22		recommitted to Appropriations & Revenue (S)
2012-02-09		2nd reading, to Rules
2012-02-08		reported favorably, 1st reading, to Calendar
2012-02-01		to Health & Welfare (S)
2012-01-30		introduced in Senate

Type	Source
Summary	http://www.lrc.ky.gov/record/12RS/SB125.htm
Text	http://www.lrc.ky.gov/record/12RS/SB125/bill.doc