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AB50-ASA2-AA16,63,2222Section 71. 632.869 of the statutes is created to read:
AB50-ASA2-AA16,64,2
1632.869 Reimbursement to federal drug pricing program
2participants. (1) In this section:
AB50-ASA2-AA16,64,73(a) Covered entity means an entity described in 42 USC 256b (a) (4) (A), (D),
4(E), (J), or (N) that participates in the federal drug pricing program under 42 USC
5256b, a pharmacy of the entity, or a pharmacy contracted with the entity to
6dispense drugs purchased through the federal drug pricing program under 42 USC
7256b.
AB50-ASA2-AA16,64,88(b) Pharmacy benefit manager has the meaning given in s. 632.865 (1) (c).
AB50-ASA2-AA16,64,109(2) No person, including a pharmacy benefit manager or 3rd-party payer, may
10do any of the following:
AB50-ASA2-AA16,64,1411(a) Reimburse a covered entity for a drug that is subject to an agreement
12under 42 USC 256b at a rate lower than that paid for the same drug to pharmacies
13that are not covered entities and have a similar prescription volume to that of the
14covered entity.
AB50-ASA2-AA16,64,1715(b) Assess a covered entity any fee, charge back, or other adjustment on the
16basis of the covered entitys participation in the federal drug pricing program under
1742 USC 256b.
AB50-ASA2-AA16,64,2018(3) The commissioner may promulgate rules to implement this section and to
19establish minimum reimbursement rates for covered entities and any other entity
20described under 42 USC 256b (a) (4)..
AB50-ASA2-AA16,64,212123. At the appropriate places, insert all of the following:
AB50-ASA2-AA16,64,2222Section 72. 601.31 (1) (nw) of the statutes is created to read:
AB50-ASA2-AA16,65,223601.31 (1) (nw) For issuing or renewing a license as a pharmacy services

1administrative organization under s. 632.864, an amount to be set by the
2commissioner by rule.
AB50-ASA2-AA16,733Section 73. 632.864 of the statutes is created to read:
AB50-ASA2-AA16,65,54632.864 Pharmacy services administrative organizations. (1)
5Definitions. In this section:
AB50-ASA2-AA16,65,66(a) Administrative service means any of the following:
AB50-ASA2-AA16,65,771. Assisting with claims.
AB50-ASA2-AA16,65,882. Assisting with audits.
AB50-ASA2-AA16,65,993. Providing centralized payment.
AB50-ASA2-AA16,65,10104. Performing certification in a specialized care program.
AB50-ASA2-AA16,65,11115. Providing compliance support.
AB50-ASA2-AA16,65,12126. Setting flat fees for generic drugs.
AB50-ASA2-AA16,65,13137. Assisting with store layout.
AB50-ASA2-AA16,65,14148. Managing inventory.
AB50-ASA2-AA16,65,15159. Providing marketing support.
AB50-ASA2-AA16,65,171610. Providing management and analysis of payment and drug dispensing
17data.
AB50-ASA2-AA16,65,181811. Providing resources for retail cash cards.
AB50-ASA2-AA16,65,2119(b) Independent pharmacy means a pharmacy operating in this state that is
20licensed under s. 450.06 or 450.065 and is under common ownership with no more
21than 2 other pharmacies.
AB50-ASA2-AA16,65,2222(c) Pharmacy benefit manager has the meaning given in s. 632.865 (1) (c).
AB50-ASA2-AA16,66,2
1(d) Pharmacy services administrative organization means an entity
2operating in this state that does all of the following:
AB50-ASA2-AA16,66,431. Contracts with an independent pharmacy to conduct business with a 3rd-
4party payer on the independent pharmacys behalf.
AB50-ASA2-AA16,66,752. Provides at least one administrative service to an independent pharmacy
6and negotiates and enters into a contract with a 3rd-party payer or pharmacy
7benefit manager on behalf of the independent pharmacy.
AB50-ASA2-AA16,66,108(e) Third-party payer means an entity, including a plan sponsor, health
9maintenance organization, or insurer, operating in this state that pays or insures
10health, medical, or prescription drug expenses on behalf of beneficiaries.
AB50-ASA2-AA16,66,1711(2) Licensure. (a) Beginning on the first day of the 12th month beginning
12after the effective date of this paragraph .... [LRB inserts date], no person may
13operate as a pharmacy services administrative organization without being licensed
14by the commissioner as a pharmacy services administrative organization under this
15subsection. In order to obtain a license under this paragraph, the person shall
16apply to the commissioner in the form and manner prescribed by the commissioner.
17The application for licensure under this paragraph shall include all of the following:
AB50-ASA2-AA16,66,19181. The name, address, telephone number, and federal employer identification
19number of the applicant.
AB50-ASA2-AA16,66,21202. The name, business address, and telephone number of a contact person for
21the applicant.
AB50-ASA2-AA16,66,22223. The fee under s. 601.31 (1) (nw).
AB50-ASA2-AA16,66,23234. Evidence of financial responsibility of at least $1,000,000.
AB50-ASA2-AA16,67,1
15. Any other information required by the commissioner.
AB50-ASA2-AA16,67,32(b) The term of a license issued under par. (a) shall be 2 years from the date of
3issuance.
AB50-ASA2-AA16,67,84(c) A license issued under par. (a) may be renewed. Renewal applications shall
5be submitted to the commissioner on a form provided by the commissioner and shall
6include all the items described in par. (a) 1. to 5. A renewal application under this
7paragraph may not be submitted more than 90 days prior to the end of the term of
8the license being renewed.
AB50-ASA2-AA16,67,129(3) Disclosure to the commissioner. (a) A pharmacy services
10administrative organization licensed under sub. (2) shall disclose to the
11commissioner the extent of any ownership or control of the pharmacy services
12administrative organization by an entity that does any of the following:
AB50-ASA2-AA16,67,13131. Provides pharmacy services.
AB50-ASA2-AA16,67,14142. Provides prescription drug or device services.
AB50-ASA2-AA16,67,16153. Manufactures, sells, or distributes prescription drugs, biologicals, or
16medical devices.
AB50-ASA2-AA16,67,1917(b) A pharmacy services administrative organization licensed under sub. (2)
18shall notify the commissioner in writing within 5 days of any material change in its
19ownership or control relating to an entity described in par. (a).
AB50-ASA2-AA16,67,2120(4) Rules. The commissioner may promulgate rules to implement this
21section..
AB50-ASA2-AA16,67,222224. At the appropriate places, insert all of the following:
AB50-ASA2-AA16,67,2323Section 74. 601.31 (1) (nv) of the statutes is created to read:
AB50-ASA2-AA16,68,2
1601.31 (1) (nv) For issuing or renewing a license as a pharmaceutical
2representative under s. 632.863, an amount to be set by the commissioner by rule.
AB50-ASA2-AA16,753Section 75. 632.863 of the statutes is created to read:
AB50-ASA2-AA16,68,54632.863 Pharmaceutical representatives. (1) Definitions. In this
5section:
AB50-ASA2-AA16,68,86(a) Health care professional means a physician or other health care
7practitioner who is licensed to provide health care services or to prescribe
8pharmaceutical or biologic products.
AB50-ASA2-AA16,68,109(b) Pharmaceutical means a medication that may legally be dispensed only
10with a valid prescription from a health care professional.
AB50-ASA2-AA16,68,1311(c) Pharmaceutical representative means an individual who markets or
12promotes pharmaceuticals to health care professionals on behalf of a
13pharmaceutical manufacturer for compensation.
AB50-ASA2-AA16,68,2114(2) Licensure. Beginning on the first day of the 12th month beginning after
15the effective date of this subsection .... [LRB inserts date], no individual may act as
16a pharmaceutical representative in this state without being licensed by the
17commissioner as a pharmaceutical representative under this subsection. In order
18to obtain a license under this subsection, the individual shall apply to the
19commissioner in the form and manner prescribed by the commissioner and shall
20pay the fee under s. 601.31 (1) (nv). The term of a license issued under this
21subsection is one year, and the license is renewable.
AB50-ASA2-AA16,69,222(3) Display of license. A pharmaceutical representative licensed under sub.

1(2) shall display the pharmaceutical representatives license during each visit with
2a health care professional.
AB50-ASA2-AA16,69,63(4) Enforcement. (a) Any individual who violates this section or any rules
4promulgated under this section shall be fined not less than $1,000 nor more than
5$3,000 for each offense. Each day of continued violation constitutes a separate
6offense.
AB50-ASA2-AA16,69,117(b) The commissioner may suspend or revoke the license of a pharmaceutical
8representative who violates this section or any rules promulgated under this
9section. A suspended or revoked license under this paragraph may not be
10reinstated until the pharmaceutical representative remedies all violations related
11to the suspension or revocation and pays all assessed penalties and fees.
AB50-ASA2-AA16,69,1412(5) Rules. The commissioner shall promulgate rules to implement this
13section, including rules that require pharmaceutical representatives to complete
14continuing educational coursework as a condition of licensure..
AB50-ASA2-AA16,69,151525. At the appropriate places, insert all of the following:
AB50-ASA2-AA16,69,1616Section 76. 601.31 (1) (mv) of the statutes is created to read:
AB50-ASA2-AA16,69,1917601.31 (1) (mv) For initial issuance or renewal of a license as a pharmacy
18benefit management broker or consultant under s. 628.495, amounts set by the
19commissioner by rule.
AB50-ASA2-AA16,7720Section 77. 628.495 of the statutes is created to read:
AB50-ASA2-AA16,69,2321628.495 Pharmacy benefit management broker and consultant
22licenses. (1) Definition. In this section, pharmacy benefit manager has the
23meaning given in s. 632.865 (1) (c).
AB50-ASA2-AA16,70,5
1(2) License required. Beginning on the first day of the 12th month
2beginning after the effective date of this subsection .... [LRB inserts date], no
3individual may act as a pharmacy benefit management broker or consultant and no
4individual may act to procure the services of a pharmacy benefit manager on behalf
5of a client without being licensed by the commissioner under this section.
AB50-ASA2-AA16,70,86(3) Rules. The commissioner may promulgate rules to establish criteria and
7procedures for initial licensure and renewal of licensure and to implement licensure
8under this section..
AB50-ASA2-AA16,70,9926. At the appropriate places, insert all of the following:
AB50-ASA2-AA16,70,1010Section 78. 632.865 (2m) of the statutes is created to read:
AB50-ASA2-AA16,70,1411632.865 (2m) Fiduciary duty and disclosures to health benefit plan
12sponsors. (a) A pharmacy benefit manager owes a fiduciary duty to the health
13benefit plan sponsor to act according to the health benefit plan sponsors
14instructions and in the best interests of the health benefit plan sponsor.
AB50-ASA2-AA16,70,1815(b) A pharmacy benefit manager shall annually provide, no later than the
16date and using the method prescribed by the commissioner by rule, the health
17benefit plan sponsor all of the following information from the previous calendar
18year:
AB50-ASA2-AA16,70,20191. The indirect profit received by the pharmacy benefit manager from owning
20any interest in a pharmacy or service provider.
AB50-ASA2-AA16,70,22212. Any payment made by the pharmacy benefit manager to a consultant or
22broker who works on behalf of the health benefit plan sponsor.
AB50-ASA2-AA16,71,3233. From the amounts received from all drug manufacturers, the amounts

1retained by the pharmacy benefit manager, and not passed through to the health
2benefit plan sponsor, that are related to the health benefit plan sponsors claims or
3bona fide service fees.
AB50-ASA2-AA16,71,844. The amounts, including pharmacy access and audit recovery fees, received
5from all pharmacies that are in the pharmacy benefit managers network or have a
6contract to be in the network and, from these amounts, the amount retained by the
7pharmacy benefit manager and not passed through to the health benefit plan
8sponsor..
AB50-ASA2-AA16,71,9927. At the appropriate places, insert all of the following:
AB50-ASA2-AA16,71,1010Section 79. 601.575 of the statutes is created to read:
AB50-ASA2-AA16,71,1611601.575 Prescription drug importation program. (1) Importation
12program requirements. The commissioner, in consultation with persons
13interested in the sale and pricing of prescription drugs and appropriate officials
14and agencies of the federal government, shall design and implement a prescription
15drug importation program for the benefit of residents of this state, that generates
16savings for residents, and that satisfies all of the following:
AB50-ASA2-AA16,71,1917(a) The commissioner shall designate a state agency to become a licensed
18wholesale distributor or to contract with a licensed wholesale distributor and shall
19seek federal certification and approval to import prescription drugs.
AB50-ASA2-AA16,71,2120(b) The program shall comply with relevant requirements of 21 USC 384,
21including safety and cost savings requirements.
AB50-ASA2-AA16,71,2322(c) The program shall import prescription drugs from Canadian suppliers
23regulated under any appropriate Canadian or provincial laws.
AB50-ASA2-AA16,72,2
1(d) The program shall have a process to sample the purity, chemical
2composition, and potency of imported prescription drugs.
AB50-ASA2-AA16,72,63(e) The program shall import only those prescription drugs for which
4importation creates substantial savings for residents of this state and only those
5prescription drugs that are not brand-name drugs and that have fewer than 4
6competitor prescription drugs in the United States.
AB50-ASA2-AA16,72,87(f) The commissioner shall ensure that prescription drugs imported under the
8program are not distributed, dispensed, or sold outside of this state.
AB50-ASA2-AA16,72,99(g) The program shall ensure all of the following:
AB50-ASA2-AA16,72,11101. Participation by any pharmacy or health care provider in the program is
11voluntary.
AB50-ASA2-AA16,72,13122. Any pharmacy or health care provider participating in the program has the
13appropriate license or other credential in this state.
AB50-ASA2-AA16,72,16143. Any pharmacy or health care provider participating in the program charges
15a consumer or health plan the actual acquisition cost of the imported prescription
16drug that is dispensed.
AB50-ASA2-AA16,72,2017(h) The program shall ensure that a payment by a health plan or health
18insurance policy for a prescription drug imported under the program reimburses no
19more than the actual acquisition cost of the imported prescription drug that is
20dispensed.
AB50-ASA2-AA16,72,2221(i) The program shall ensure that any health plan or health insurance policy
22participating in the program does all of the following:
AB50-ASA2-AA16,73,2
11. Maintains a formulary and claims payment system with current
2information on prescription drugs imported under the program.
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