Substitute the following for Amendment No. 9 by Wohlgemuth:
Section 2.09. On page 66, between lines 12 and 13, add new
subsections (b), (c), (d), (e), and (f) to read as follows and
reletter accordingly:
(b) For purposes of this section, the term "supplemental
rebates" shall mean cash rebates paid by a pharmaceutical
manufacturer to the State on the basis of quarterly Medicaid
utilization data relating to such manufacturer's products,
pursuant to a State supplemental rebate agreement negotiated with
such manufacturer and approved by the federal government under
Section 1927 of the federal Social Security Act.
(c) The commission may enter into a written agreement with a
manufacturer to accept certain program benefits in lieu of
supplemental rebates, as such term is defined herein, only if:
1) the program benefit yields savings that are at least
equal to the amount the manufacturer would have provided under a
cash supplemental rebate during the current biennium;
2) the manufacturer annually guarantees and posts a
performance bond in the amount of the anticipated savings, as
described in subdivision (1), prior to entering into the agreement,
with a guarantee that the manufacturer will forfeit the bond to the
state if the anticipated savings are not achieved for that year; and
3) the program benefit is in addition to other program
benefits currently offered by the manufacturer to recipients of
medical assistance or related programs.
(d) For the purposes of this section, a program benefit means
is a disease management programs authorized under this title, a
drug product donation programs, drug utilization control programs,
prescriber and beneficiary counseling and education, fraud and
abuse initiatives, and other services or administrative
investments with guaranteed savings to a program operated by a
health and human service agency.
(e) Other than as required to satisfy the provisions of this
section, such program investments shall be deemed an alternative
to, and not the equivalent of, supplemental rebates and shall be
treated in the State's submissions to the federal government
(including, as appropriate, waiver requests and quarterly Medicaid
claims) so as to maximize the availability of federal matching
payments.
(f) Agreements by the commission to accept program benefits
as defined by this section:
(1) may not prohibit the commission from entering into
similar agreements related to different drug classes with other
entities;
(2) shall be limited to a time period expressly
determined by the commission;
(3) shall be determined by the commission to provide
anticipated savings to the state in an amount at least equal to the
amount the manufacturer would have provided under a cash
supplemental rebate during the current biennium;
(4) may only cover products that have received approval
by the Federal Drug Administration at the time of the agreement, and
new products approved after the agreement may be incorporated only
under an amendment to the agreement."
Amend proposed CSHB 2292, in Section 2.09 of the bill, in
proposed Sec. 531.070, Government Code by adding a new subsection
(3) on page 67, line 11 to read as follows:
(3) Other program benefits as specified in subsection
(b).
Amend proposed CSHB 2292, in Section 2.11 of the bill, in
proposed Sec. 531.072, Government Code by adding a new subsection
(4) on page 69, line 3 to read as follows:
(4) "Program benefit offerings solely or in
conjunction with rebates and other pricing information."
Amend proposed CSHB 2292, in Section 2.13 of the bill, in
proposed Sec. 531.074(h), Government Code on page 73, line 4, by
striking "of" and inserting the following between
"cost-effectiveness" and "a":
"and any program benefit associated with"