An Act To Amend the Medicaid Drug Rebate Program and the Elderly Low-cost Drug Program
Maine Legislature, Session 121, LD 1747
Committee: Health and Human Services
Sponsors: CRAVEN, EARLE, SMITH, BRENNAN
Amends: 22 MRSA §254, 22 MRSA §3174-R

Legislative Document 
No. 1747 
H.P.1269 
House of Representatives, December 22,2003 
An Act To Amend the Medicaid Drug Rebate Program and the 
Elderly Low-cost Drug Program 
Submitted by the Department of Human Services pursuant to Joint Rule 204. 
Recei ved by the Clerk of the House on December 17, 2003. Referred to the Committee on 
Health and Human Services pursuant to Joint Rule 308.2 and ordered printed pursuant to Joint 
Rule 401. 
Presented by Representative CRAVEN of Lewiston. 
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/J7.1lId£~ 
MILLICENT M. MacFARLAND 
Clerk 
Cosponsored by Representatives: EARLE of Damariscotta, SMITH of Monmouth, Senator: 
BRENNAN of Cumberland. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 22 MRSA §254, sub-§4-A, as amended by PL 2003, c. 20, 
Pt. GGG, §3, is further amended to read: 
4-A. 
Payment for drugs provided. 
The 
commissioner 
may 
establish the amount of payment to be made by recipients toward 
the cost of prescription or nonprescription drugs, medication and 
medical supplies furnished under this program as long as, for 
persons at or below 185% of the federal poverty line, the total 
cost 
for 
any 
covered 
purchase 
of 
a 
prescription 
or 
nonprescription drug 
or 
medication provided 
under 
the 
basic 
component of 
the 
program or the total cost of 
any 
covered 
purchase of a generic prescription drug or medication under the 
supplemental component of the program does not exceed the sum of 
$2 plus 20% of the price allowed for that prescription under 
program rules. 
For the supplemental component of the programL 
except as otherwise provided in this subsection, the total cost 
paid by the individual for any covered purchase of a prescription 
drug or medication may not exceed the cost of the program for 
that drug or medication minus the $2 paid by the program. 
The 
commissioner shall establish annual limits on the costs incurred 
by 
eligible 
household 
members 
for 
prescriptions 
or 
nonprescription drugs or medications covered under the program on 
or prior to May 31, 2001, after which the program must pay 80% of 
the 
cost 
of 
all 
prescriptions 
or 
nonprescription 
drugs 
or 
medications covered by the supplemental component of the program 
on May 31, 2001 minus $2. 
Any remaining amount is paid by the 
member. 
The limits must be set by the commissioner by rule as 
necessary to operate the program within the program budget; 
Sec. 2. 22 MRSA §3174-R, as enacted by PL 1997, c. 643, Pt. 
RR, §5, is amended to read: 
§3174-R. Medicaid drug rebate program 
The department shall enter into a drug rebate agreement with 
each 
manufacturer 
of 
prescription 
drugs 
under 
the 
Medicaid 
program in accordance with Section 1927 of the federal Social 
Security Act, as long as the agreements are consistent with state 
and federal lawT-a~€-~~~~-~Re-~€4€~a~-~1~~~~~-~iBaBee 
AamiBis~~a~;i,eB and result in a net increase in rebate revenue 
available 
to 
the 
Maine 
Medicaid 
Program. 
Individual 
rebate 
agreements may vary. 
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SUMMARY 
This bill makes changes to the Medicaid drug rebate program 
and 
to 
the 
elderly 
low-cost 
drug 
program 
to 
clarify 
the 
out-of-pocket cost to participating members.