Community Pharmacy Fairness Act of 2007

Bill: 110-hr-971
Sponsor: Rep. Weiner, Anthony D. [D-NY-9]
Introduced: 2007-02-08 in the House
Policy area: Commerce
Subjects: Antitrust law
Contracts
Employee health benefits
Finance and Financial Sector
Health
Health insurance
Health maintenance organizations
Labor and Employment
Law
Managed care
Pharmacies
Prescription pricing
Restrictive trade practices

Summary:
action_date: 2007-02-08
text: 
Community Pharmacy Fairness Act of 2007 - Entitles independent pharmacies negotiating contract terms with a health plan for the provision of health care items or services to the same treatment under the antitrust laws as the treatment to which bargaining units recognized under the National Labor Relations Act are entitled. Treats such a pharmacy as an employee engaged in concerted activities in connection with such negotiations. 

Exempts actions taken in good faith reliance on this Act from being subject to criminal sanctions or civil penalties beyond actual damages incurred. 
 
Prohibits: (1) exempting from the antitrust laws any agreement or otherwise unlawful conspiracy that excludes, limits the participation or reimbursement of, or otherwise limits the scope of services to be provided by any independent pharmacy or group of independent pharmacies with respect to the performance of services that are within their scope of practice as defined or permitted by relevant law or regulation; and (2) applying this Act to negotiations between independent pharmacies and health plans pertaining to federal health benefits.

action_date: 2008-09-28
text: 
Community Pharmacy Fairness Act of 2007 - Entitles independent pharmacies negotiating contract terms with a health plan for the provision of health care items or services to the same treatment under the antitrust laws as the treatment to which bargaining units recognized under the National Labor Relations Act are entitled. Treats such a pharmacy as an employee engaged in concerted activities in connection with such negotiations. 

Exempts actions taken in good faith reliance on this Act from being subject to criminal sanctions or civil penalties beyond actual damages incurred. 

Provides that this Act does not exempt from application of antitrust laws any agreement or unlawful conspiracy that: (1) would have the effect of boycotting any independent pharmacy; (2) would exclude, limit the participation or reimbursement of, or otherwise limit the scope of services to be provided by any independent pharmacy or group of independent pharmacies with respect to the performance of services that are within their scope of practice as defined or permitted by relevant law or regulation; (3) allocates a market among competitors; (4) unlawfully ties the sale or purchase of one product or service to the sale or purchase of another product or service; or (5) monopolizes or attempts to monopolize a market.

Excludes from the application of this Act: (1) negotiations of any group of independent pharmacies with a health plan if the number of pharmacy licenses within such group in a PDP region (Medicare Part D prescription drug plan region) exceeds 25% of the total number of pharmacy licenses issued to all retail pharmacies in the region; and (2) negotiations between independent pharmacies and health plans pertaining to federal health benefits.

Requires the Comptroller General to study the impact of this Act after five years.

Provides that this Act does not preclude the Federal Trade Commission (FTC) or the Department of Justice (DOJ) from overseeing the conduct of independent pharmacies covered under this Act.


Legislative actions:
action_date: 2008-09-28
text: Placed on the Union Calendar, Calendar No. 579.
action_date: 2008-09-28
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 110-898.
action_date: 2008-09-28
text: Reported (Amended) by the Committee on Judiciary. H. Rept. 110-898.
action_date: 2007-11-07
text: Ordered to be Reported (Amended) by Voice Vote.
action_date: 2007-11-07
text: Committee Consideration and Mark-up Session Held.
action_date: 2007-02-08
text: Referred to the House Committee on the Judiciary.
action_date: 2007-02-08
text: Introduced in House
action_date: 2007-02-08
text: Introduced in House