AB50: Bill Text

AB50,1401,22 3. Prescription drugs imported under the program are pure, unadulterated, potent, and safe.

AB50,1401,23 4. The program is complying with the requirements of this subsection.

AB50,1402,2 5. The program is adequately financed to support administrative functions of the program while generating significant cost savings to residents of this state.

AB50,1402,4 6. The program does not put residents of this state at a higher risk than if the program did not exist.

AB50,1402,6 7. The program provides and is projected to continue to provide substantial cost savings to residents of this state.

AB50,1402,9 (2) Anticompetitive behavior. The commissioner, in consultation with the attorney general, shall identify the potential for and monitor anticompetitive behavior in industries affected by a prescription drug importation program.

AB50,1402,19 (3) Approval of program design; certification. No later than the first day of the 7th month beginning after the effective date of this subsection .... [LRB inserts date], the commissioner shall submit to the joint committee on finance a report that includes the design of the prescription drug importation program in accordance with this section. The commissioner may not submit the proposed program to the federal department of health and human services unless the joint committee on finance approves the proposed program. Within 14 days of the date of approval by the joint committee on finance of the proposed program, the commissioner shall submit to the federal department of health and human services a request for certification of the approved program.

AB50,1403,4 (4) Implementation of certified program. After the federal department of health and human services certifies the prescription drug importation program submitted under sub. (3), the commissioner shall begin implementation of the program, and the program shall be fully operational by 180 days after the date of certification by the federal department of health and human services. The commissioner shall do all of the following to implement the program to the extent the action is in accordance with other state laws and the certification by the federal department of health and human services:

AB50,1403,7 (a) Become a licensed wholesale distributor, designate another state agency to become a licensed wholesale distributor, or contract with a licensed wholesale distributor.

AB50,1403,9 (b) Contract with one or more Canadian suppliers that meet the criteria in sub. (1) (c) and (n).

AB50,1403,12 (c) Create an outreach and marketing plan to communicate with and provide information to health plans and health insurance policies, employers, pharmacies, health care providers, and residents of this state on participating in the program.

AB50,1403,15 (d) Develop and implement a registration process for health plans and health insurance policies, pharmacies, and health care providers interested in participating in the program.

AB50,1403,17 (e) Create a publicly accessible source for listing prices of prescription drugs imported under the program.

AB50,1403,20 (f) Create, publicize, and implement a method of communication to promptly answer questions from and address the needs of persons affected by the implementation of the program before the program is fully operational.

AB50,1403,22 (g) Establish the audit functions under sub. (1) (n) with a timeline to complete each audit function every 2 years.

AB50,1404,2 (h) Conduct any other activities determined by the commissioner to be important to successful implementation of the program.

AB50,1404,4 (5) Report. By January 1 and July 1 of each year, the commissioner shall submit to the joint committee on finance a report including all of the following:

AB50,1404,6 (a) A list of prescription drugs included in the prescription drug importation program under this section.

AB50,1404,9 (b) The number of pharmacies, health care providers, and health plans and health insurance policies participating in the prescription drug importation program under this section.

AB50,1404,14 (c) The estimated amount of savings to residents of this state, health plans and health insurance policies, and employers resulting from the implementation of the prescription drug importation program under this section reported from the date of the previous report under this subsection and from the date the program was fully operational.

AB50,1404,16 (d) Findings of any audit functions under sub. (1) (n) completed since the date of the previous report under this subsection.

AB50,1404,18 (6) Rule making. The commissioner may promulgate any rules necessary to implement this section.

AB50,2889 Section 2889. 601.59 of the statutes is created to read:

AB50,1404,20 601.59 State-based exchange. (1) Definitions. In this section:

AB50,1404,21 (a) “Exchange” has the meaning given in 45 CFR 155.20.

AB50,1405,2 (b) “State-based exchange on the federal platform” means an exchange that is described in and meets the requirements of 45 CFR 155.200 (f) and is approved by the federal secretary of health and human services under 45 CFR 155.106.

AB50,1405,6 (c) “State-based exchange without the federal platform” means an exchange, other than one described in 45 CFR 155.200 (f), that performs all the functions described in 45 CFR 155.200 (a) and is approved by the federal secretary of health and human services under 45 CFR 155.106.

AB50,1405,13 (2) Establishment and operation of state-based exchange. The commissioner shall establish and operate an exchange that at first is a state-based exchange on the federal platform and then subsequently transitions to a state- based exchange without the federal platform. The commissioner shall develop procedures to address the transition from the state-based exchange on the federal platform to the state-based exchange without the federal platform, including the circumstances that shall be met in order for the transition to occur.

AB50,1405,16 (3) Agreement with federal government. The commissioner may enter into any agreement with the federal government necessary to facilitate the implementation of this section.

AB50,1405,22 (4) User fees. The commissioner shall impose a user fee, as authorized under 45 CFR 155.160 (b) (1), on each insurer that offers a health plan through the state-based exchange on the federal platform or the state-based exchange without the federal platform. The user fee shall be applied at one of the following rates on the total monthly premiums charged by an insurer for each policy under the plan for which enrollment is through the exchange:

AB50,1406,2 (a) For any plan year for which the commissioner operates a state-based exchange on the federal platform, the rate is 0.5 percent.

AB50,1406,6 (b) For the first 2 plan years for which the commissioner operates a state- based exchange without the federal platform, the rate is equal to the user fee rate the federal department of health and human services specifies under 45 CFR 156.50 (c) (1) for the federally facilitated exchanges for the applicable plan year.

AB50,1406,9 (c) Beginning with the 3rd plan year for which the commissioner operates a state-based exchange without the federal platform and for each plan year thereafter, the rate shall be set by the commissioner by rule.

AB50,1406,11 (5) Rules. The commissioner may promulgate rules necessary to implement this section.

AB50,2890 Section 2890. Subchapter VI (title) of chapter 601 [precedes 601.78] of the statutes is created to read:

AB50,1406,14 CHAPTER 601

AB50,1406,15 SUBCHAPTER VI

AB50,1406,16 PRESCRIPTION DRUG

AB50,1406,17 AFFORDABILITY REVIEW BOARD

AB50,2891 Section 2891. 601.78 of the statutes is created to read:

AB50,1406,19 601.78 Definitions. In this subchapter:

AB50,1406,21 (1) “Biologic” means a drug that is produced or distributed in accordance with a biologics license application approved under 21 CFR 601.20.

AB50,1406,23 (2) “Biosimilar” means a drug that is produced or distributed in accordance with a biologics license application approved under 42 USC 262 (k) (3).

AB50,1407,2 (3) “Board” means the prescription drug affordability review board established under s. 15.735 (1).

AB50,1407,5 (4) “Brand name drug” means a drug that is produced or distributed in accordance with an original new drug application approved under 21 USC 355 (c), other than an authorized generic drug, as defined in 42 CFR 447.502.

AB50,1407,9 (5) “Financial benefit” includes an honorarium, fee, stock, the value of the stock holdings of a member of the board or any immediate family member of the member of the board, and any direct financial benefit deriving from the finding of a review conducted under s. 601.79.

AB50,1407,10 (6) “Generic drug” means any of the following:

AB50,1407,12 (a) A retail drug that is marketed or distributed in accordance with an abbreviated new drug application approved under 21 USC 355 (j).

AB50,1407,13 (b) An authorized generic drug, as defined in 42 CFR 447.502.

AB50,1407,15 (c) A drug that entered the market prior to 1962 and was not originally marketed under a new drug application.

AB50,1407,18 (7) “Immediate family member” means a spouse, grandparent, parent, sibling, child, stepchild, or grandchild or the spouse of a grandparent, parent, sibling, child, stepchild, or grandchild.

AB50,1407,19 (8) “Manufacturer” means an entity that does all of the following:

AB50,1407,22 (a) Engages in the manufacture of a prescription drug product or enters into a lease with another entity to market and distribute a prescription drug product under the entity’s own name.

AB50,1408,2 (b) Sets or changes the wholesale acquisition cost of the prescription drug product described in par. (a).

AB50,1408,3 (9) “Pharmacy benefit manager” has the meaning given in s. 632.865 (1) (c).

AB50,1408,5 (10) “Prescription drug product” means a brand name drug, a generic drug, a biologic, or a biosimilar.

AB50,2892 Section 2892. 601.785 of the statutes is created to read:

AB50,1408,11 601.785 Prescription drug affordability review board. (1) Mission. The purpose of the board is to protect state residents, the state, local governments, health plans, health care providers, pharmacies licensed in this state, and other stakeholders of the health care system in this state from the high costs of prescription drug products.

AB50,1408,12 (2) Powers and duties. (a) The board shall do all of the following:

AB50,1408,15 1. Meet in open session at least 4 times per year to review prescription drug product pricing information in the manner described in subd. 2., except that the chairperson may cancel or postpone a meeting if there is no business to transact.

AB50,1408,17 2. To the extent practicable, access and assess pricing information for prescription drug products by doing all of the following:

AB50,1408,20 a. Accessing and assessing information from other states by entering into memoranda of understanding with other states to which manufacturers report pricing information.

AB50,1408,21 b. Assessing spending for specific prescription drug products in this state.

AB50,1408,22 c. Accessing other available pricing information.

AB50,1408,23 (b) The board may do any of the following:

AB50,1409,1 1. Promulgate rules for the administration of this subchapter.

AB50,1409,6 2. Enter into a contract with an independent 3rd party for any service necessary to carry out the powers and duties of the board. Unless written permission is granted by the board, any person with whom the board contracts may not release, publish, or otherwise use any information to which the person has access under the contract.

AB50,1409,9 (c) The board shall establish and maintain a website to provide public notices and make meeting materials available under sub. (3) (a) and to disclose conflicts of interest under sub. (4) (d).

AB50,1409,13 (3) Meeting requirements. (a) Pursuant to s. 19.84, the board shall provide public notice of each board meeting at least 2 weeks prior to the meeting and shall make the materials for each meeting publicly available at least one week prior to the meeting.

AB50,1409,16 (b) Notwithstanding s. 19.84 (2), the board shall provide an opportunity for public comment at each open meeting and shall provide the public with the opportunity to provide written comments on pending decisions of the board.

AB50,1409,19 (c) Notwithstanding subch. V of ch. 19, any portion of a meeting of the board concerning proprietary data and information shall be conducted in closed session and shall in all respects remain confidential.

AB50,1409,21 (d) The board may allow expert testimony at any meeting, including when the board meets in closed session.

AB50,1410,2 (4) Conflicts of interest. (a) A member of the board shall recuse himself or herself from a decision by the board relating to a prescription drug product if the member or an immediate family member of the member has received or could receive any of the following:

AB50,1410,4 1. A direct financial benefit deriving from a determination, or a finding of a study or review, by the board relating to the prescription drug product.

AB50,1410,7 2. A financial benefit in excess of $5,000 in a calendar year from any person who owns, manufactures, or provides a prescription drug product to be studied or reviewed by the board.

AB50,1410,11 (b) A conflict of interest under this subsection shall be disclosed by the board when hiring board staff, by the appointing authority when appointing members to the board, and by the board when a member of the board is recused from any decision relating to a review of a prescription drug product.

AB50,1410,15 (c) A conflict of interest under this subsection shall be disclosed no later than 5 days after the conflict is identified, except that, if the conflict is identified within 5 days of an open meeting of the board, the conflict shall be disclosed prior to the meeting.

AB50,1410,20 (d) The board shall disclose a conflict of interest under this subsection on the board’s website unless the chairperson of the board recuses the member from a final decision relating to a review of the prescription drug product. The disclosure shall include the type, nature, and magnitude of the interests of the member involved.

AB50,1410,23 (e) A member of the board or a 3rd-party contractor may not accept any gift or donation of services or property that indicates a potential conflict of interest or has the appearance of biasing the work of the board.

AB50,2893 Section 2893. 601.79 of the statutes is created to read:

AB50,1411,3 601.79 Drug cost affordability review. (1) Identification of drugs. The board shall identify prescription drug products that are any of the following:

AB50,1411,7 (a) A brand name drug or biologic that, as adjusted annually to reflect adjustments to the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, has a launch wholesale acquisition cost of at least $30,000 per year or course of treatment.

AB50,1411,11 (b) A brand name drug or biologic that, as adjusted annually to reflect adjustments to the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, has a wholesale acquisition cost that has increased by at least $3,000 during a 12-month period.

AB50,1411,14 (c) A biosimilar that has a launch wholesale acquisition cost that is not at least 15 percent lower than the referenced brand biologic at the time the biosimilar is launched.

AB50,1411,18 (d) A generic drug that has a wholesale acquisition cost, as adjusted annually to reflect adjustments to the U.S. consumer price index for all urban consumers, U.S. city average, as determined by the U.S. department of labor, that meets all of the following conditions:

AB50,1412,2 1. Is at least $100 for a supply lasting a patient for a period of 30 consecutive days based on the recommended dosage approved for labeling by the federal food and drug administration, a supply lasting a patient for a period of fewer than 30 days based on the recommended dosage approved for labeling by the federal food and drug administration, or one unit of the drug if the labeling approved by the federal food and drug administration does not recommend a finite dosage.

AB50,1412,6 2. Increased by at least 200 percent during the preceding 12-month period, as determined by the difference between the resulting wholesale acquisition cost and the average of the wholesale acquisition cost reported over the preceding 12 months.

AB50,1412,9 (e) Other prescription drug products, including drugs to address public health emergencies, that may create affordability challenges for the health care system and patients in this state.

AB50,1412,14 (2) Affordability review. (a) After identifying prescription drug products under sub. (1), the board shall determine whether to conduct an affordability review for each identified prescription drug product by seeking stakeholder input about the prescription drug product and considering the average patient cost share of the prescription drug product.