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HB 351/FN (BR 913) - D. Pasley, H. Moberly, D. Sims, B. Yonts
AN ACT relating to prescription drugs.
Create various sections of KRS Chapter 194A to define terms; establish a Kentucky Rx Program for residents with family incomes equal to or less than 350% of the federal poverty guidelines or families with medical expenses above a certain level; require the Secretary of the Cabinet for Health Services to negotiate manufacturer rebates which shall be used to provide discount prescriptions and cover administrative costs of the program; require retail pharmacies to initially charge qualified residents the Medicaid reimbursement rate for a covered drug; provide for larger discounts subsequent to the receipt of manufacturer rebates; require public disclose of the names of manufacturers who do not enter into a rebate agreement with the cabinet; create the Kentucky Rx Program fund in the State Treasury; require the cabinet to promulgate administrative regulations for the establishment of maximum retail prices; require the secretary to compare the costs of drugs in the Kentucky Rx Program to other payors and permit the secretary to set maximum retail prices for drugs; amend KRS 315.191 to require the Board of Pharmacy to promulgate administrative regulation to require retail pharmacies participating in the Kentucky Rx Program to disclose to the client the amount of saving realized as a result of the program.
HB 351 - AMENDMENTS
HCS/FN - Delete all provisions; create various new sections of KRS Chapter 194A to define terms; require the secretary of the Cabinet for Health Services to negotiate rebates from drug manufacturers to be used to provide a refundable prescription drug tax credit for uninsured Kentucky residents who have incomes at 350% of the federal poverty guidelines and to cover administrative costs; require the secretary to negotiate initial rebates equal to or greater than discounts provided under the Medicaid program; require larger discounts for rebates beginning October 1, 2005; authorize the secretary to negotiate any amount of rebate obtainable; require the cabinet to submit a Medicaid state plan amendment prior to developing a preferred drug list for the Medicaid program based upon the provision of rebates from manufacturers; require public disclosure of the names of manufacturers that do not enter into a rebate agreement related to drug sales to qualified Kentucky residents; establish a Kentucky Rx refundable tax credit fund in the State Treasury; create a new section of KRS Chapter 141 to allow a refundable tax credit for prescription drug costs for qualified residents; authorize the secretary of the Finance and Administration Cabinet to determine the amount of the tax credit based on the amount of funds available divided by the number of estimated qualified residents; prohibit the amount of the tax credit to exceed the out-of-pocket costs; amend KRS 141.0205 to establish the order in which the refundable prescription drug credit is applied against tax imposed by KRS 141.020; and apply the refundable tax credit beginning with the 2005 tax year.
HCA (1/Title, H. Moberly) - Make title amendment.
HFA (1, D. Pasley) - Retain original provisions except add a definition for "health benefit plan;" require the secretary of the Cabinet for Health Services to negotiate the highest obtainable rebates from drug manufacturers to be used to provide a refundable prescription drug tax credit for uninsured Kentucky residents who have incomes at 350% of the federal poverty guidelines, including Medicare recipients and enrollees of Medicare-approved prescription drug discount cards; require that the secretary use the amount of rebates provided to the Medicaid program and other federal programs as a basis for negotiating the rebates; permit the Cabinet for Health Services to submit a state plan amendment to the federal Centers for Medicare and Medicaid Services to develop a preferred drug list for the Medicaid program as a condition of providing rebates to "qualified residents" instead of requiring the cabinet to submit the state plan amendment; and make technical corrections.
Jan 22-introduced in House
Jan 23-to Health and Welfare (H)
Feb 9-posted in committee
Feb 18-reassigned to Appropriations and Revenue (H)
Feb 20-posted in committee
Mar 9-reported favorably, 1st reading, to Calendar with Committee Substitute, committee amendment (1-title)
Mar 10-2nd reading, to Rules
Mar 11-posted for passage in the Regular Orders of the Day for Friday, March 12, 2004; floor amendment (1) filed to Committee Substitute
Mar 23-taken from the Regular Orders of the Day; recommitted to Appropriations and Revenue (H)
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