SB 685-FN - AS INTRODUCED

2020 SESSION

20-2725

01/04

SENATE BILL 685-FN

AN ACT establishing a wholesale prescription drug importation program.

SPONSORS: Sen. Feltes, Dist 15; Sen. Levesque, Dist 12; Sen. Rosenwald, Dist 13; Sen. Bradley, Dist 3; Sen. Chandley, Dist 11; Sen. Morgan, Dist 23; Sen. Watters, Dist 4; Sen. Cavanaugh, Dist 16; Sen. Fuller Clark, Dist 21; Sen. Sherman, Dist 24; Sen. Hennessey, Dist 5; Rep. Bartlett, Merr. 19; Rep. McMahon, Rock. 7; Rep. Marsh, Carr. 8; Rep. Campion, Graf. 12; Rep. Wall, Straf. 6

COMMITTEE: Commerce

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ANALYSIS

This bill establishes a wholesale importation program for prescription drugs from Canada by or on behalf of the state.  This bill requires the department of health and human services to design the program and obtain federal approval for the program.

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

20-2725

01/04

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Twenty

AN ACT establishing a wholesale prescription drug importation program.

Be it Enacted by the Senate and House of Representatives in General Court convened:

1  New Chapter; Wholesale Prescription Drug Importation Program.  Amend RSA by inserting after chapter 126-AA the following new chapter:

CHAPTER 126-BB

WHOLESALE PRESCRIPTION DRUG IMPORTATION PROGRAM

126-BB:1  Definitions.  In this chapter:

I.  "Commissioner" means the commissioner of the department of health and human services.

II.  "Department" means the department of health and human services.

III.  "Program" means the wholesale prescription drug importation program.

126-BB:2  Design of Program: Rulemaking.

I.  There is hereby established the wholesale prescription drug importation program, referred to in this chapter as the "program," to provide for the wholesale importation of prescription drugs from Canada by or on behalf of the state.

II.  The department, in consultation with appropriate federal and other state agencies and interested parties, shall design the program to comply with the applicable requirements of 21 U.S.C. section 384, including requirements regarding safety and cost savings.  The program design shall:

(a)  Designate a state agency to become a licensed drug wholesaler or to contract with a licensed drug wholesaler in order to seek federal certification and approval, pursuant to RSA 126-BB:3, to import safe prescription drugs and provide cost savings to consumers in the state.

(b)  Use prescription drug suppliers in Canada regulated under the laws of Canada or of one or more Canadian provinces, or both.

(c)  Ensure that only prescription drugs that can meet the federal Food and Drug Administration's safety, effectiveness and other standards are imported by or on behalf of the state.

(d)  Import only those prescription drugs expected to generate substantial cost savings for consumers in the state.

(e)  Ensure that the program complies with the transaction and tracing requirements of U.S.C. sections 360eee and 360eee-1 to the extent feasible and practical prior to imported prescription drugs coming into the possession of the licensed United States drug wholesaler and that the program complies fully with those federal requirements after imported prescription drugs are in the possession of the licensed drug wholesaler.

(f)  Prohibit the distribution, dispensing or sale of imported prescription drugs outside of the state.

(g)  Recommend a method to finance the program which will not jeopardize consumer cost savings.

(h)  Include an audit function.

III.  The commissioner shall adopt rules pursuant to RSA 541-A, to design the program in accordance with this chapter.

IV.  The department shall submit a request for approval and certification of the program to the United States Department of Health and Human Services on or before February 1, 2021.

126-BB:3  Requirements of Program.  Prior to operating the program, the state agency designated to oversee the program pursuant to this chapter shall:

I.  Become a licensed drug wholesaler or enter into a contract with a licensed drug wholesaler in the state.

II.  Contract with one or more distributors licensed in the state.

III.  Contract with one or more licensed and regulated prescription drug suppliers in Canada.

IV.  Consult with health insurance carriers, employers, pharmacies, pharmacists, health care providers and consumers.

V.  Develop a registration process for health insurance carriers, pharmacies and health care providers authorized to prescribe and administer prescription drugs that are willing to participate in the program.

VI.  Create a publicly accessible website for listing the prices of prescription drugs to be imported under the program.

VII.  Create an outreach and marketing plan to work with health carriers, provider associations to generate public awareness of the program.

VIII.  Develop a 2-year audit work plan.

IX.  Conduct any other activity determined necessary to successfully implement and operate the program.

126-BB:4  Annual Report.  Beginning November 1, 2021, and each November 1 thereafter, the department or other designated state agency shall submit an annual report to the chairperson of the health, human services and elderly affairs committee, the speaker of the house of representatives, the president of the senate, the house clerk, the senate clerk, the governor, and the state library relative to:

I.  The prescription drugs included in the program.

II.  The number of participating pharmacies, health care providers, and health insurance carriers.

III.  The number of prescription drugs dispensed through the program.

IV.  The estimated cost savings to consumers, health insurance carriers, employers, and the state during the previous calendar year and to date.

V.  Information regarding implementation of the audit work plan and audit findings.

VI.  Any other information the department, or other state agency designated to oversee the program pursuant to this chapter, deems relevant.

2  Effective Date.  This act shall take effect 60 days after its passage.

LBAO

20-2725

1/7/20

SB 685-FN- FISCAL NOTE

AS INTRODUCED

AN ACT establishing a wholesale prescription drug importation program.

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

METHODOLOGY:

This bill establishes a new program to provide for the importation of prescription drugs from Canada by or on behalf of the State.  The program includes various components, of which the Department of Health and Human Services assumes the following will have a fiscal impact:

• The requirement for the State to become a licensed drug wholesaler or enter into a contract with a licensed drug wholesaler;
• The requirement to contract with one or more licensed distributors in the State;
• The requirement to contract with one or more licensed prescription drug suppliers in Canada;
• The requirement to develop a  registration process for carriers, pharmacies, and health care providers;
• The requirement to create a publicly accessible website for listing the prices of imported drugs; and
• The requirement to create an outreach and marketing plan.

The Department states that the cost of the above items is indeterminable.  The Department further states that it is unable to estimate the extent to which some or all of the costs may be offset by the anticipated reduction in prescription drug prices.  

It is assumed any fiscal impact from this bill will not occur until FY 2021.

AGENCIES CONTACTED:

Department of Health and Human Services