SB 525, As Passed Senate

SB-0525, As Passed Senate, August 1, 2007

SUBSTITUTE FOR

SENATE BILL NO. 525

A bill to amend 1978 PA 368, entitled

"Public health code,"

(MCL 333.1101 to 333.25211) by adding section 9721.

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

Sec. 9721. (1) The department shall create and operate a

prescription drug website to educate consumers about the price of

certain prescription drug products and to provide links to other

helpful websites including, but not limited to, those websites that

may assist and educate consumers on the availability of public and

private programs that, in compliance with federal and state rules

and regulations, offer access to discounted or free prescription

drug products.

(2) The department shall include all of the following on the

prescription drug website:

(a) The 150 most commonly prescribed brand name drug products

as reported by this state's medical assistance program.

(b) If not included under subdivision (a), the most commonly

prescribed brand name drug products used for the treatment of all

major illnesses and diseases, as determined by the department.

the brand name drug products included under subdivisions (a) and

(b).

(d) The usual and customary price for each drug product

included under subdivisions (a), (b), and (c). The price

information on the website shall conspicuously display all of the

following:

(i) If available, the generically equivalent drug product for

each brand name drug product.

(ii) The price attributable to each brand name and generically

equivalent drug product.

(iii) The dosage, including the number of doses and dosage

strength, upon which the posted price is based.

(iv) The name, street address, and city or other identifiable

location of the pharmacy at which the listed drug product may be

purchased at a posted price.

(e) A minimum of 5 links to other websites as described in

subsection (1).

(f) The department's toll-free telephone number created under

subsection (4).

(g) An advisory statement alerting consumers of the need to

tell their health professional and pharmacist about all the

medications they are taking to ask how to avoid harmful

interactions between those medications, if any.

(h) An advisory statement alerting consumers that the price

posted is only for the strength and quantity of the listed drug

product.

(3) At least once a month, the department shall obtain from

the person that the department has contracted to serve as its

pharmacy benefits manager for this state's medical assistance

program the usual and customary price as reported for the most

commonly prescribed drug products identified pursuant to subsection

(2)(a), (b), and (c) to that pharmacy benefits manager by each

pharmacy that fills or refills a prescription under this state's

medical assistance program. The department shall include this

information on the website under this section. This subsection does

not require a pharmacy that fills or refills a prescription under

this state's medical assistance program to provide any additional

information than that currently being reported by the pharmacy to

the person that the department has contracted to serve as its

pharmacy benefits manager for this state's medical assistance

program.

(4) The department shall establish and maintain a toll-free

telephone number that a person may call for information on

prescription drug programs available in this state, including, but

not limited to, free and discounted prescription drug programs. The

department may utilize an existing toll-free telephone line to

satisfy this requirement.

(5) The department shall establish a mechanism by which a

pharmacy listed on the prescription drug website may notify the

department of an incorrect usual and customary price for a drug

product available at that pharmacy and submit the correct usual and

customary price. The mechanism shall allow the pharmacy to submit

the correct usual and customary price for a drug product to the

department in a format prescribed by the department via electronic

mail, facsimile, toll-free telephone number, or other method of

electronic submission. Within 3 business days of receipt of the

submission, the department shall verify whether the information

submitted is accurate and, if so, shall update the website with the

correct usual and customary price for the drug product.

(6) Beginning June 1, 2008, and annually each year after 2008,

the department shall prepare and submit a report that assesses the

accuracy of the usual and customary prices posted on the website as

received from the pharmacy benefits manager for the state's medical

assistance program and from any other pharmacy benefits manager

that supplies information to the department. The department shall

include in the report the number of notifications of incorrect

usual and customary prices received from pharmacies, the number of

those notifications that were verified, and the number of drug

product prices that were corrected on the website. The report shall

be submitted to the governor, the legislature, and representatives

of the house and senate fiscal agencies.

(7) As used in this section, "usual and customary price" means

that price that is comparable to what a pharmacy would charge a

cash-paying customer without insurance. Usual and customary price