This bill amends RSA 126-A:3, V to require pharmacists to dispense brand name drugs to Medicaid beneficiaries when those drugs are included on the Department of Health and Human Services' preferred drug list. The current law prioritizes the substitution of generic drugs unless a prescribing practitioner specifies that a brand name drug is medically necessary. The new language allows for brand name drugs to be dispensed without prior authorization for generics, provided they are on the preferred list. Additionally, the bill introduces a new provision that permits the Chief Medical Officer of the Department to issue standing orders for certain Medicaid-covered over-the-counter medications, medical supplies, and laboratory tests when deemed medically necessary and cost-effective.

The bill is expected to result in net savings for the Medicaid program, with projected savings of $1.1 million in FY 2026, $3.4 million in FY 2027, and $4.5 million in FY 2028. These savings are anticipated to arise from increased rebate revenue from pharmaceutical manufacturers, which may make brand name drugs more cost-effective than generics in certain cases. The bill also includes protections for healthcare professionals who issue standing orders, shielding them from criminal or civil liability for actions taken in good faith under this new provision. The act is set to take effect on July 1, 2025.

Statutes affected:
Introduced: 126-A:3