An Act Pertaining to Disclosure of Prescription Drug Prices
Maine Legislature, Session 122, LD 1541
Committee Amendment CA_A_S292 (Senate)
Amends: 22 MRSA §2698-B

COMMITTEE AMENDMENT ,A" to S.P. 536, L.D. 1541, Bill, "An 
Act Pertaining to Disclosure of Prescription Drug Prices" 
Amend the bill in the 4th paragraph after the title in the 
2nd 
line 
(page 
1, 
line 
in 
L.D.) 
by 
striking out 
the 
following: 
"advance of the first reporting deadline of April 
2005" and inserting in its place the following: 
'order to amend 
the law as close as possible in time to the first reporting date' 
Further amend the bill by striking out everything after the 
enacting clause and before the emergency clause and inserting in 
its place the following: 
'Sec. 1. 22 MRS A §2698-B, sub-§I, as enacted by PL 2003, c. 
667, §l and affected by §2, is amended to read: 
1. 
Quarterly report. 
A manufacturer of prescription drugs 
dispensed in this State under 
a 
health program directed or 
administered by the State shall, on a quarterly basis, report by 
National Drug Code the following pharmaceutical pricing criteria 
to the commissioner for each of its drugs: 
Page l-LR1702(2) . 
COMMITTEE AMENDMENT 
" i." 
1t·~, . 
......... 
COMMITTEE AMENDMENT A .. to S.P. 536, L.D. 1541 
C. 
The average manufacturer price as defined in 42 United 
States Code, Section 1396r-8(k); and 
D. 
The best price as defined in Section 1927 of the Social 
Security 
Act, 
United 
States 
Code, 
Section 
1396r-8(c)(1)(C) as in effect on January 1, 2005. 
The pricing information required under this subsection is for 
drugs defined under the Medicaid drug rebate program. 
Sec. 2. 22 MRS A §2698-B, sub-§2, as enacted by PL 2003, c. 
667, §1 and affected by §2, is repealed. 
Sec. 3. 22 MRSA §2698-B, sub-§§3, 4 and 5, as enacted by PL 
2003, c. 667, §1 and affected by §2, are amended to read: 
3. 
Description of methodology. 
When reporting the avel'aEJe 
wBe~esale-Fl'ieeT wholesale acquisition cost, average manufacturer 
price 
and 
best price, 
a 
manufacturer 
of prescription drugs 
dispensed in this State shall also include a 
Qe~aileQ-Qesel'iF~ieR 
eE-~he-~~l~i~~y-wBiea-~he-~~~~~-eale~la~eQ summary 
of its methodology. 
The department may accept the standards of 
the national drug rebate agreement entered into by the federal 
Department of Health and Human Services and Section 1927 of the 
Social 
Security 
Act, 
Urited 
States 
Code, 
Section 
1396r-8(c)(l)(C) for reporting pricing methodology or may adopt 
its own standards by rule. 
4. 
Certification. 
When 
a 
manufacturer 
of 
prescription 
drugs 
dispensed in this State reports 
the 
aveFaEJe--waelesale 
Fl'ieeT-~~~~~~~&~-eeS~T average manufacturer price or 
best price, the 
Fl'es4Qe&--EH~ chief executive officer or chief 
officer of the manufacturer or an employee of the manufacturer in 
a position that reports directly to the chief executive officer 
or chief financial officer who has been delegated authority to 
sign shall certify to the department, on a form provided by the 
commissioner, that the reported prices are accurate as of the 
date they are submitted. 
5. 
Confidentiality. 
Except as provided in this subsection, 
all information provided to the commissioner by a manufacturer of 
prescription drugs under this section is confidential and may not 
be disclosed by any person or by the department to any person 
without the consent of the manufacturer. 
Disclosure may be made 
by 
the 
department 
to 
an 
entity providing 
services 
to 
the 
department under this section and such a disclosure does not 
change 
the 
confidential 
status 
of 
the 
information. 
The 
information may be used by the el!"'ity only for the work that is 
authorized or approved by the department. 
Disclosure may be 
COMMITTEE AMENDMENT 
COMMITTEE AMENDMENT ,A .. to S.P. 536, L.D. 1541 
ordered by a court for good cause shown or made in a court filing 
under seal unless or until otherwise ordered by a court. 
Nothing 
in this subsection limits the Attorney General's use of civil 
investigative 
demand authority under 
the 
Maine 
Unfair 
Trade 
Practices Act to investigate violations of this section. 
Sec. 4. 22 MRSA §2698-B, sub-§8 is enacted to read: 
B. 
Rulemaking. 
The department may adopt rules to implement 
this section. 
Rules adopted pursuant to this subsection are 
routine technical rules as defined in Title 5, 
chapter 375, 
subchapter 2-A.' 
SUMMARY 
This amendment replaces the bill. 
It clarifies details of 
the 
reporting 
of 
prescription 
drug 
pricing, 
including 
the 
methodology 
of 
pricing 
and 
certification 
requirements. 
It 
maintains 
current 
law 
on 
confidentiality, 
extending 
confidentiality explicitly to information disclosed to an entity 
under contract to the Department of Health and Human Services and 
restricting use of disclosed information to the purposes for 
which it was disclosed. 
The amendment directs the department to 
adopt 
routine 
technical 
rules 
to 
implement 
actual 
price 
disclosure and certification. 
FISCAL iliOTE REQUREO 
(See attached) 
COMMITTEE AMENDMENT 
Fiscal Detail and Notes 
Approved: 05/26/05 ;/'dac.. 
LD 1541 
LR 1702(02) 
An Act Pertaining to Disclosure of Prescription Drug Prices 
Fiscal Note for Bill as Amended by Committee Amendment A" 
Committee: Health and Human Services 
Fiscal Note Required: Yes 
Fiscal Note 
Minor cost increase - General Fund 
Any additional costs to the Department of Health and Human Services can be absorbed by the department utilizing 
existing budgetary resources. 
LR1702(2) - Fiscal Note - Page 1 of 1