Bill Details - HB658 (2019)

HB 658-FN - AS INTRODUCED

 

 

2019 SESSION

19-0802

01/10

 

HOUSE BILL 658-FN

 

AN ACT relative to price increases of drugs under the managed care law.

 

SPONSORS: Rep. Butler, Carr. 7; Rep. Marsh, Carr. 8; Rep. Knirk, Carr. 3; Sen. Sherman, Dist 24

 

COMMITTEE: Commerce and Consumer Affairs

 

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ANALYSIS

 

This bill clarifies the content of provider contract standards under the managed care law.

 

This bill is a result of the commission to study greater transparency in pharmaceutical costs and rebate programs established in 2018, 350.

 

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Explanation: Matter added to current law appears in bold italics.

Matter removed from current law appears [in brackets and struckthrough.]

Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

19-0802

01/10

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Nineteen

 

AN ACT relative to price increases of drugs under the managed care law.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Managed Care; Provider Contract Standards.  Amend the introductory paragraph of RSA 420-J:8, XV(b) to read as follows:

(b)  For every drug for which the health carrier or pharmacy benefit manager establishes a maximum allowable cost to determine the drug product reimbursement, the health carrier or pharmacy benefit manager shall:

2  New Subparagraph; Managed Care; Provider Contract Standards.  Amend RSA 420-J:8, XV by inserting after subparagraph (d) the following new subparagraph:

(e)  A carrier or pharmacy benefit manager shall include in its contract with the pharmacy terms limiting increases in the maximum allowable cost or other allowable payment maximums for drugs with a maximum allowable cost above $25 to 100 percent of the beginning maximum allowable cost on the first day of any 90-day period to the last day of the 90-day period, without approval of the department of insurance.  The carrier shall submit requests for approval to the department of insurance by including the national drug code and the increase requested.  The department shall report publicly the prescription drug name and increase in the annual report required under RSA 420-G:14-a, VI(a).

3  Effective Date.  This act shall take effect 60 days after its passage.

 

LBAO

19-0802

1/14/19

 

HB 658-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT relative to price increases of drugs under the managed care law.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2020

FY 2021

FY 2022

FY 2023

   Appropriation

$0

$0

$0

$0

   Revenue

Indeterminable

Indeterminable

Indeterminable

Indeterminable

   Expenditures

$0

$0

$0

$0

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [ X ] Other - Administration Fund

 

METHODOLOGY:

This bill amends RSA 420-J:8, XV by limiting increases under the managed care program to the maximum allowable cost or other allowable payment for drugs within a 90-day period without Department approval.  The Insurance Department states that to the extent the bill limits how fast claims costs can increase, it may impact the cost of insurance premiums and have a resulting impact on state insurance premium tax revenue.  The extent of any such impact is indeterminable.  The Department does not anticipate a fiscal impact to its operating budget.

 

The Department of Administrative Services states there would be no fiscal impact to Department revenue or expenditures.

 

The Department of Health and Services states there would be no fiscal impact to the Department through the Medicaid program since the Department is not defined as a health carrier regulated by the Insurance Department under RSA 420-J.

 

AGENCIES CONTACTED:

Department of Administrative Services, Insurance Department, and Department of Health and Human Services

 

Docket

Date Status
Jan. 3, 2019 Introduced 01/03/2019 and referred to Commerce and Consumer Affairs HJ 3 P. 23
Feb. 19, 2019 Public Hearing: 02/19/2019 10:30 am LOB 302
Feb. 21, 2019 Subcommittee Work Session: 02/21/2019 10:30 am LOB 302
Feb. 21, 2019 ==RECESSED== Executive Session: 02/21/2019 02:00 pm LOB 302
March 6, 2019 Subcommittee Work Session: 03/06/2019 02:30 pm LOB 302
March 8, 2019 Subcommittee Work Session: 03/08/2019 09:00 am LOB 302-304
March 8, 2019 ==CONTINUED== Executive Session: 03/08/2019 01:30 pm LOB 302-304
March 19, 2019 Committee Report: Inexpedient to Legislate for 03/19/2019 (Vote 20-0; CC) HC 16 P. 6
Committee Report: Inexpedient to Legislate (Vote 20-0; CC)
March 19, 2019 Inexpedient to Legislate: MA VV 03/19/2019 HJ 10 P. 14

Action Dates

Date Body Type
Feb. 19, 2019 House Hearing
Feb. 21, 2019 House Exec Session
March 8, 2019 House Exec Session
March 8, 2019 House Exec Session
House Floor Vote
March 19, 2019 House Floor Vote

Bill Text Revisions

HB658 Revision: 4931 Date: Jan. 16, 2019, 9:38 a.m.