Resolve, To Lower the Costs of Prescription Drugs through the Use of the Federal Public Health Service Act
Maine Legislature, Session 121, LD 0711
Committee: Health and Human Services
Sponsors: TREAT, KANE, DAMON, HATCH, MAYO, LEMOINE, SMITH

Legislative Document 
No. 711 
S.P.249 
In Senate, February 14,2003 
Resolve, To Lower the Costs of Prescription Drugs through the Use 
of the Federal Public Health Service Act 
Reference to the Committee on Health and Human Services suggested and ordered printed. 
Presented by Senator TREAT of Kennebec. 
Cosponsored by Representative KANE of Saco and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: DAMON of Hancock, HATCH of Somerset, MAYO of Sagadahoc, Representatives: 
LEMOINE of Old Orchard Beach, McNEIL of Rockland, SMITH of Monmouth. 
Printed 1m recycled paper 
Sec. 1. Study and report. Resolved: 
That the Department of 
Human Services shall study and by January 1, 2004 shall provide a 
report to 
the Joint Standing 
Committee 
on Health 
and 
Human 
Services on the feasibility of providing discounted prescription 
drugs to Maine's most vulnerable patient populations through the 
use of Section 340B of the federal Public Health Service Act, 42 
United States Code, 
Section 256b 
(1999), 
referred to in this 
resolve as "Section 340B." 
The department shall work with other 
state 
agencies, 
representatives 
of 
state 
employees 
and 
representatives of health care providers and facilities in the 
State to provide the following information: 
1. 
Covered entities. 
A description of all health care 
providers and facilities in the State potentially eligible for 
designation as "covered entities" under Section 340B, including 
without limitation all hospitals eligible as 
disproportionate 
share hospitals; 
recipients of grants 
from the United States 
Public 
Health 
Service; 
federally 
qualified 
health 
centers: 
federally 
qualified 
look-alikes; 
state-operated 
AIDS 
drug 
assistance programs; Ryan White CARE Act Title I, Title II and 
Title III programs; tuberculosis, black lung, family planning and 
sexually 
transmitted 
disease 
clinics; 
hemophilia 
treatment 
centers; public housing primary care clinics; 
and clinics for 
homeless people; 
2. 
Potentia1 
app1ications 
potential applications of Section 
to public, private and 3rd-party 
including without limitation: 
and benefits. 
A listing of 
340B and the potential benefits 
payors for presc::- iption drugs, 
A. 
Application 
to 
inmates 
and 
employees 
in 
youth 
correctional facilities, county jails and state prisons; 
B. 
Maximizing the use of Section 340B wi thin state-funded 
managed care plans; 
C. 
Including 
Section 
340B 
providers 
in 
state 
bulk 
purchasing initiatives; and 
D. 
Utilizing 
sole 
source 
contracts 
with 
Section 
340B 
providers to furnish high-cost chronic care drugs; 
3. 
Section 340B discounts. 
Discounts available through 
Section 340B contracts, including estimated costs savings to the 
State 
as 
a 
result 
of 
retail 
mark-up 
avoidance, 
negotiated 
subceiling prices and coordination with the MaineCare program in 
order to minimize costs to the program and to other purchasers of 
prescription drugs; and 
Page l-LR1165(1) 
4. 
Identification of resources. 
The resources available to 
potential applicants for designation as covered entities for the 
application 
process, 
establishing 
a 
Section 
340B 
program, 
restructuring the health care system or other methods of lowering 
the cost of prescription drugs. 
The resources must include state 
and federal agencies and private philanthropic grants to be used 
for the purposes of this section; and be it further 
Sec. 2. 
Report out legislation. 
Resolved: 
That 
the 
Joint 
Standing Committee on Health and Human Services may report out 
legislation 
to 
the 
Second 
Regular 
Session 
of 
the 
12lst 
Legislature 
regarding 
use 
in 
the 
State 
of 
Section 
340B, 
restructuring the health care system or other methods of lowering 
the cost of prescription drugs. 
SUMMARY 
This resolve requires the Department of Human Services to 
study and report to the Joint Standing Committee on Health and 
Human Services by January 1, 2004 on the benefits that could be 
recognized by the State if it utilized Section 
340B of the 
federal Public Health Services Act to provide prescription drugs 
to Maine's 
most vulnerable patient populations. 
The 
resolve 
authorizes the committee to report out legislation to the Second 
Regular Session of the 121st Legislature.