Assembly Bill No. 384–Assemblymen Koivisto, McClain, Ohrenschall, Parks, Anderson, Christensen, Claborn, Leslie and Pierce

 

March 17, 2003

____________

 

Referred to Committee on Health and Human Services

 

SUMMARY—Makes various changes concerning provision of prescription drugs by Department of Human Resources. (BDR 38‑775)

 

FISCAL NOTE:  Effect on Local Government: No.

                           Effect on the State: Yes.

 

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EXPLANATION – Matter in bolded italics is new; matter between brackets [omitted material] is material to be omitted.

 

AN ACT relating to public welfare; making in skeleton form various changes concerning the provision of prescription drugs by the Department of Human Resources; creating the Pharmacy and Therapeutics Committee within the Department; and providing other matters properly relating thereto.

 

THE PEOPLE OF THE STATE OF NEVADA, REPRESENTED IN

SENATE AND ASSEMBLY, DO ENACT AS FOLLOWS:

 

1-1  Section 1. Title 38 of NRS is hereby amended by adding

1-2  thereto a new chapter to consist of the provisions set forth as

1-3  sections 2 to 12, inclusive, of this act.

1-4  Sec. 2.  As used in this chapter, unless the context otherwise

1-5  requires, the words and terms defined in sections 3 and 4 of this

1-6  act have the meanings ascribed to them in those sections.

1-7  Sec. 3.  “Department” means the Department of Human

1-8  Resources.

1-9  Sec. 4.  “Committee” means the Pharmacy and Therapeutics

1-10  Committee established pursuant to section 6 of this act.

1-11      Sec. 5.  The Department shall include in each program

1-12  administered by the Department that provides prescription drugs a

1-13  requirement that any prescription drug provided by the program

2-1  must, unless exempted by the Department at the recommendation

2-2  of the Committee pursuant to subsection 7 of section 9 of this act,

2-3  either:

2-4  1.  Be on the list of preferred prescription drugs created

2-5  pursuant to section 11 of this act; or

2-6  2.  Require prior authorization before the prescription drug

2-7  may be provided.

2-8  Sec. 6.  1.  The Pharmacy and Therapeutics Committee,

2-9  consisting of 11 members appointed by the Governor, is hereby

2-10  created in the Department.

2-11      2.  The Governor shall appoint to the Committee:

2-12      (a) Six members who are physicians licensed to practice

2-13  medicine in this state;

2-14      (b) Four members who are pharmacists registered in this state,

2-15  one who must have a doctoral degree in pharmacy and be

2-16  employed by a hospital licensed in this state, and one who must

2-17  have a doctoral degree in pharmacy and be employed by a retail

2-18  pharmacy licensed in this state; and

2-19      (c) One member appointed from a list of three persons

2-20  provided by the Department.

2-21      3.  The Governor shall appoint to the Committee persons with

2-22  a broad range of knowledge and expertise in issues concerning

2-23  drug therapy.

2-24      4.  A person must not be appointed to the Committee if he is

2-25  employed by, compensated by in any manner, has a financial

2-26  interest in, or is otherwise affiliated with a business or corporation

2-27  that manufacturers prescription drugs.

2-28      5.  The term of a person appointed to the Committee pursuant

2-29  to paragraph (a) or (b) of subsection 2 who fails to satisfy the

2-30  requirements set forth in the paragraph pursuant to which he was

2-31  appointed terminates immediately upon such failure.

2-32      Sec. 7.  1.  The Governor shall appoint the Chairman of the

2-33  Committee from among its members.

2-34      2.  After the initial terms, the term of each member of the

2-35  Committee is 2 years. A member may be reappointed.

2-36      3.  A vacancy occurring in the membership of the Committee

2-37  must be filled for the remainder of the unexpired term in the same

2-38  manner as the original appointment.

2-39      4.  The Committee shall meet at least once every 6 months and

2-40  at the times and places specified by a call of the Chairman of the

2-41  Committee.

2-42      5.  A majority of the members of the Committee constitutes a

2-43  quorum for the transaction of business, and the affirmative vote of

2-44  a majority of the members of the Committee is required to take

2-45  action.

3-1  Sec. 8.  1.  Members of the Committee serve without

3-2  compensation, except that a member of the Committee is entitled,

3-3  while engaged in the business of the Committee, to receive the per

3-4  diem allowance and travel expenses provided for state officers and

3-5  employees generally.

3-6  2.  Each member of the Committee who is an officer or

3-7  employee of the State of Nevada or a local government must be

3-8  relieved from his duties without loss of his regular compensation

3-9  so that he may prepare for and attend meetings of the Committee

3-10  and perform any work necessary to carry out the duties of the

3-11  Committee in the most timely manner practicable. A state agency

3-12  or local governmental entity shall not require an officer or

3-13  employee who is a member of the Committee to make up the time

3-14  that he is absent from work to carry out his duties as a member of

3-15  the Committee or to use annual vacation or compensatory time for

3-16  the absence.

3-17      Sec. 9.  The Committee shall:

3-18      1.  Advise the Department on issues relating to the provision

3-19  of prescription drugs by programs administered by the

3-20  Department;

3-21      2.  Recommend guidelines to the Department for prescription

3-22  drugs that are provided by programs administered by the

3-23  Department;

3-24      3.  Identify the prescription drugs which should be included

3-25  on the list of preferred prescription drugs developed by the

3-26  Department pursuant to section 11 of this act;

3-27      4.  Identify classes of therapeutic prescription drugs for its

3-28  review and perform a clinical analysis of each drug included in

3-29  each class that is identified for review;

3-30      5.  Advise the Department concerning the negotiation of

3-31  supplemental rebates and other program benefits with

3-32  manufacturers of prescription drugs pursuant to section 12 of this

3-33  act;

3-34      6.  Ensure that a manufacturer of prescription drugs who

3-35  agrees to provide a supplemental rebate or other program benefit

3-36  to the Department pursuant to section 12 of this act has an

3-37  opportunity to present evidence which supports the inclusion of its

3-38  prescription drugs on the list of preferred prescription drugs

3-39  developed by the Department pursuant to section 11 of this act;

3-40  and

3-41      7.  Identify prescription drugs which should be exempt from

3-42  the requirements of section 5 of this act because a change of a

3-43  prescription of a patient might be detrimental to the patient,

3-44  including, without limitation, prescription drugs, equipment and

3-45  supplies for the treatment of diabetes, antiretroviral prescription

4-1  drugs that are prescribed for a person infected with the human

4-2  immunodeficiency virus, prescription drugs that are prescribed for

4-3  a person with a mental illness, and prescription drugs for family

4-4  planning and birth control.

4-5  Sec. 10.  The Committee may:

4-6  1.  Apply for and accept any gift, donation, bequest, grant or

4-7  other source of money to aid the Committee in carrying out its

4-8  duties;

4-9  2.  With the approval of the Director of the Department, enter

4-10  into contracts for any services necessary to carry out its duties;

4-11      3.  Establish subcommittees to investigate and analyze specific

4-12  issues that arise as the Committee carries out its duties;

4-13      4.  Conduct investigations and hold hearings in connection

4-14  with its review and analysis; and

4-15      5.  Direct the Department to assist in its research,

4-16  investigations, review and analysis.

4-17      Sec. 11.  The Department shall develop a list of preferred

4-18  prescription drugs to be used by each program administered by the

4-19  Department that provides prescription drugs. The list must

4-20  include:

4-21      1.  Prescription drugs identified by the Committee pursuant to

4-22  subsection 3 of section 9 of this act;

4-23      2.  Prescription drugs which are prescribed for the treatment

4-24  of the same condition or disease as, but are less expensive than,

4-25  the prescription drugs identified by the Committee pursuant to

4-26  subsection 3 of section 9 of this act; and

4-27      3.  Certain prescription drugs which are included in the

4-28  supplemental rebate program operated by the Department

4-29  pursuant to section 12 of this act.

4-30      Sec. 12.  The Department shall:

4-31      1.  Negotiate supplemental rebates with manufacturers of

4-32  prescription drugs, including, without limitation, cash rebates;

4-33      2.  Negotiate other program benefits with manufacturers of

4-34  prescription drugs, including, without limitation, programs for the

4-35  management of disease, programs for the donation of prescription

4-36  drugs, drug utilization control programs, programs to educate and

4-37  counsel prescribers and beneficiaries of prescription drugs, and

4-38  programs for the prevention of fraud and abuse involving

4-39  prescription drugs; and

4-40      3.  Consider the placement of each prescription drug

4-41  manufactured by a manufacturer who agrees to provide a

4-42  supplemental rebate or other program benefit to the Department

4-43  on the list of preferred prescription drugs developed by the

4-44  Department pursuant to section 11 of this act.

5-1  Sec. 13.  As soon as practicable after July 1, 2003, the

5-2  Governor shall appoint to the Pharmacy and Therapeutics

5-3  Committee:

5-4  1.  Three physicians licensed to practice medicine in this state

5-5  and two pharmacists registered in this state to serve initial terms of 1

5-6  year;

5-7  2.  Three physicians licensed to practice medicine in this state

5-8  and two pharmacists registered in this state to serve initial terms of 2

5-9  years; and

5-10      3.  One member appointed from the list provided by the

5-11  Department of Human Resources to serve an initial term of 2 years.

5-12      Sec. 14.  This act becomes effective on July 1, 2003.

 

5-13  H