An Act To Improve Access to Affordable Prescription Drugs
Maine Legislature, Session 122, LD 1324
Committee: Health and Human Services
Sponsors: BRAUTIGAM, MAYO, BABBIDGE, PERRY, SMITH, WEBSTER, COWGER
Amends: 22 MRSA §2699-A

Legislative Document 
No. 1324 
H.P.923 
House of Representatives, March 15,2005 
An Act To Improve Access to Affordable Prescription Drugs 
Reference to the Committee on Health and Human Services suggested and ordered printed. 
Presented by Representative BRAUTIGAM of Falmouth. 
Cosponsored by Senator MAYO of Sagadahoc and 
17/~ 
frl.7!/d£~ 
MILLICENT M. MacFARLAND 
Clerk 
Representatives: BABBIDGE of Kennebunk, PERRY of Calais, SMITH of Monmouth, 
WEBSTER of Freeport, Senator: COWGER of Kennebec. 
Printed on recycled paper 
Be it enacted by the People of the State of Maine as follows: 
Sec. I. 22 MRSA §2699-A is enacted to read: 
J:.he Pharmacy Cost Mana.q.eIDe.nt Council, referred to in 
thi~ 
section as "the council," is established to deyelop measures to 
control the cost of prescription drugs and expand the State's 
purchasing pOwer. 
1. 
Definitions. 
As 
used 
in this 
section, 
unless 
the 
context 
otherwise 
indicates, 
the 
following 
terms 
haye 
the 
following meanings. 
A. 
"Federal supply schedule" means the price available to 
all federal agencies for the purchase of pharmaceuticals 
authorized in the federal Veterans' Health Care Act of 1992, 
Public Law 102-585. 
B. 
"Manufacturer" 
has 
the 
same 
meaning as 
proyided in 
section 2697, subsection I. 
2. 
Duties. 
The 
counci~llal.L..p.ell.cu:m the following 
o.utie.~ 
and 
shall 
report 
on 
the 
work 
of 
the 
council 
and 
an.,y 
recommendations for legislation or 
agency initiatiyes to 
t~ 
joint standing committee of the Legislature haying jurisdiction 
oyer health and human seryices matters and the joint standing 
committee 
of 
the 
Legislature 
having 
jurisdiction 
over 
ap».ropriations 
and financial affairs by March 1st each year 
beginning in 2006. 
A. 
The council shall consider strategies for managing the 
increasing cost of prescription drugs, including, but not 
limited to: 
(1) 
Entering 
into 
pr~~iption 
drug 
purch~~1ng 
agreements, 
joint 
negotiations 
directly 
with 
manufacturers and labelers for prescription drugs using 
as a reference point the federal supply schedule: 
(2) 
Group purChasing pools that include state, county, 
municipal and other public agencies and public entities 
and 
health 
programs, 
employers, 
purchasers 
of 
prescription drugs and other states: 
(3) 
Standardized prices: 
(4) 
Preferred drug lists; 
(5) 
Pharmacy benefits management: 
(6) 
Disease state mangge.ment programs: and 
(7) 
I~~ion for 
professionals 
prescribe 
drug~~arding price 
and 
strategies for decreasing the costs to 
payor and health care system. 
licensed 
to 
eft icacy 
and 
the patient, 
B. 
The council §Qa.ll study licensing, certification ang 
educational 
requirements 
for 
a 
person 
employed 
by 
a 
ma~.tru:er or laQeJ.~_L_t~L provide informatiQJL..gnd educat..,iQn 
with regard to prescription drugs, 
including information 
described in section 26gB-A. subsection 4, paragraph B. 
C. 
The 
council 
shall 
monitor 
federal 
benefits 
im!1 
I.e.quir~I1...u_"-xt.de.r.. ___ t.b.~~Ji.i.caid pr.Qgram under the UAll.l1 
States 
Social 
Security 
Act. 
Title 
XIX: 
the 
Medicare 
Prescrip-tion 
Dr~!mp~_o~nt and Modernization Act 
of 
2003, Public Law 
1~73: and federally sponsored 
heal~ 
servi~es 
for 
v.e...t~J'...a.n....s.. 
The 
council 
shall 
consider 
strategies for maximizing federal benefits. taking advantage 
of possible sav...ings for the State and coordinating services 
and benefits for persons who qualify for those programs. 
D, 
The council shall research obtaining prescription drugs 
from outside the country on a wholesale or retail basis. 
including cost and safety considerations and the procedtU:.e.§. 
for all necessary waivers and permission from the Federal 
Government to p..e...rm.it the State or persons within the State 
to import prescription drugs. 
E. 
The 
council 
shall 
study 
establishing 
a 
state 
~_ription dr\!9...._pj~U.e.1l~~anc.iLltmru:.am that would rely 
on the voluntary participation of manufacturers and labelers 
to 
centralize 
and 
streamline 
their 
patient 
assistance 
programs. 
J!..........-~J'.s4ip. __ 
'l'bELs.QJ"_ndL_c_Qns..is ts of 2 0 
m~ImJ:>~_r.~ __ • __ 
Tll~ 
term of appointment is 3 years. 
A member may serve more than Olle 
term. 
A member may serve until the member's successor has been 
appointed. The membership consists ofL 
A. 
The 
CommilJi.i9...n~f Health and Human Services, or the 
commissioner's designee, who shall serve as chair: 
B. 
The Commissioner of Corrections. or 'the commissioner's 
~n«l 
~M_JU.J_e...c!;;._9..L....Q..t the Bureau of Medical Services, or the 
director's designee: 
D. 
The Director of the BYreau of Elder and Adult Services, 
or the director's designee; 
E. 
The 
E~ec.Ytiy~ Director of Health Insurance, 
or 
the 
director's designee; 
F. 
Five members appointed BY the Governor, as follows:_ 
ill One per~Qn representing a statewide association of 
community pharmacies: 
(2) 
Two 
persons 
representing 
m~_~turers 
anQ 
19p~_~ __ ~~nsor patient assistance programs in the 
State: and 
(3) 
Two 
persons 
experienced 
in 
the 
P..I.eJ;;~_d~t:i.on 
dr_u-9--benefits 
through 
self-insured plans: 
provision 
of 
insured 
ancl 
G. 
Five members appointed by the President of the Senate,_ 
as follows: 
(1) 
One person representing a statewide association of 
professional nurses; 
llL-l'w~_pe~:JHmlL-X_ep~es~nting nona ate public sector 
employee health plans: and 
L3) 
Two per~_~~~nting consumers of health care 
who are enrolled in publicly funded prescription drug 
programs: and 
H. 
Five members appointed by the Speaker of the House, as 
follows: 
(1) 
One pharmacist licensed to practice in the State; 
(2) 
One person representing a statewide association of 
physicianu 
(3) 
One 
P~~Qn __ ~ 
__ ~~Aesentjp~ providers 
of 
pharmacy 
benefit management services: and 
(4) 
TW:~QAsumers of he9Lth care services 
through 
employment-based health plans. 
4. 
MeetiDg~B~Jt~ce. The council shall mee~t least 4 
_times per year and may meet at ~l!er times as 
p.e~~aJy-> __ 
Al,]' 
meetings of the council are public proceedings and all records 
an 
public 
records 
as 
defined 
in Title 
1, 
section 
402, 
subsections 2 and 3. 
The Goye~nQL'S Office of Health Policy and 
r.inance and the 
DeIUli-tlll~mt of HeQlth Qnd Human Services shall 
provide assistance and staff support to the council. 
SUMMllY 
This bill establishes the Pharmacy Cost Management Council 
to 
develop 
and 
implement 
measures 
to 
control 
the 
cost 
of 
prescription drugs and expand the State's purchasing power. 
The 
council is required to provide annual 
reports 
to 
the 
joint 
standing committee of the Legislature having jurisdiction over 
health 
and 
human 
services 
matters 
and 
the 
joint 
standing 
committee 
of 
the 
Legislature 
having 
jurisdiction 
over 
appropriations and financial affairs by March 1, 2006 and each 
year thereafter. 
The meetings of the coullcil and its records are 
public.