An Act Pertaining to Disclosure of Prescription Drug Prices
Maine Legislature, Session 122, LD 1541
Committee: Health and Human Services
Sponsors: WESTON, CROSBY, ROSEN, SNOWE-MELLO, WOODCOCK
Amends: 22 MRSA §2698-B

Legislative Document 
No. 1541 
S.P.536 
In Senate, April 4, 2005 
An Act Pertaining to Disclosure of Prescription Drug Prices 
(EMERGENCY) 
Reference to the Committee on Health and Human Services suggested and ordered printed. 
Presented by Senator WESTON of Waldo. 
Cosponsored by Representative CROSBY of Topsham and 
JOY J. O'BRIEN 
Secretary of the Senate 
Senators: ROSEN of Hancock, SNOWE-MELLO of Androscoggin, WOODCOCK of 
Franklin. 
Printed on recycled paper 
Emergency preamble. Whereas, acts of the Legislature do not 
become effective until 90 days after adjournment unless enacted 
as emergencies; and 
Whereas, the 121st Legislature in the Second Special Session 
enacted legislation requlrlng pharmaceutical 
manufacturers 
to 
report certain pricing information to the Department of Health 
and Human Services; and 
Whereas, certain provisions 
require 
clarification or 
are 
available to the department; and 
of those reporting requirements 
duplicative 
of 
data 
otherwise 
Whereas, clarification of those provlslons is necessary in 
advance of the first reporting deadline of April 2005; and 
Whereas, 
the 
reportable 
information 
constitutes 
trade 
secrets, and the existing confidentiality protection afforded to 
the reported information is not adequate; and 
Whereas, in the judgment of the Legislature, these facts 
create an emergency within the meaning of the Constitution of 
Maine 
and 
require 
the 
following 
legislation 
as 
immediately 
necessary for the preservation of the public peace, health and 
safety; now, therefore, 
Be it enacted by the People of the State of Maine as follows: 
Sec. 1. 22 MRSA §2698-B, sub-§l, as enacted by PL 2003, c. 
667, §1 and affected by §2, is amended to read: 
1. 
Quarter1y 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: 
C. 
The average manufacturer price as defined in 42 United 
States Code, Section 1396r-8(k); and 
D. 
The best price as defined in 42 United States Code, 
Section 1396r-8(c)(1)(C). 
The pricing information required under this section is for drugs 
defined under 
the Medicaid drug 
rebate program 
and must 
be 
submitted to the commissioner following its submission to the 
Page l-LRI702(1) 
Federal Government in accordance with 42 United States Code, 
Section l396r-8(b)(3). 
Sec. 2. 22 MRSA §2698-B, sub-§§2 and 3, as enacted by PL 2003, 
c. 667, §l and affected by §2, are repealed. 
Sec. 3. 22 MRSA §2698-B, sub-§4, as enacted by PL 2003, c. 
667, §l and affected by §2, is amended to read: 
4. 
Certification. 
When 
a 
manufacturer 
of prescription 
drugs 
dispensed in this State reports 
the 
aveFa~e--wa91esale 
pFieeT-~~~~~~~-e9s~T average manufacturer price or 
best price, 
t;ae-¥-e-s-i-Uent---e-:F--€Aie.f-~i-ve--9"ieeF an officer 
of 
the 
manufacturer 
or 
officer's 
delegate 
responsible 
for 
reporting 
Medicaid 
drug 
pr~c~ng information 
to 
the 
Federal 
Government shall certify to the department, on a form provided by 
the commissioner, that the reported prices aFe-a€€\lEat.e are the 
same as those reported to the Federal Goyernment as required by 
United States Code, Section l396r-8(b) (3) for the applicable 
rebate period. 
Sec. 4. 22 MRSA §2698-B, sub-§5, as enacted by PL 2003, c. 
667, §l and affected by §2, is repealed and the following enacted 
in its place: 
5. 
Co~fidentiality; public information. 
Notwith~tan.ding 
any provision of law to the contrary, information submitted to 
the department pursuant to this section is confidential and is 
not 
a 
public 
record 
as 
defined 
in Title 
1, 
section 
402, 
subsection 3. 
Disclosure may be made by the department to an 
entity providing services to the department under this section; 
DQwever, that disclosu~~~not change the confidential status 
of the information. 
The information may be used by the entity 
only for the purpose specified by the department in its contract 
with 
the entity. 
Data 
compiled 
in 
aggregate 
form 
by 
the 
department for the purposes of reporting required by this section 
is a public record as defined in Title 1, section 402, subsection 
1, as 
long as it does not reveal trade information that is 
protected by state or federal law. 
Emergency clause. 
In view of the emergency cited in the 
preamble, this Act takes effect when approved. 
SUMMARY 
This bill limits the pricing information that a manufacturer 
must report to the Department of Health and Human Services to 
average manufacturer price and best price as defined by federal 
law. 
I t 
eliminates 
the 
instructions 
on 
calculating 
other pharmaceutical pr1c1ng information and the requirement to 
describe the methodology for calculating pricing information that 
is reported to the department. 
The bill also modifies 
the 
certification 
prov1s1ons 
and 
strengthens 
the 
confidentiality 
protection afforded to the reported information.