Existing law requires the Department of Health and Human Services to compile: (1) a list of prescription drugs that the Department determines to be essential for treating diabetes and asthma in this State; and (2) a list of such prescription drugs that have been subject to a significant price increase. (NRS 439B.630) Sections 1.3-4, 9.3 and 9.5 of this bill define certain terms relating to prescription drugs. Section 10 of this bill: (1) removes the requirement that the Department compile a list of essential asthma drugs; and (2) requires the Department to compile a list of prescription drugs with a wholesale acquisition cost exceeding $40 for a course of therapy that have undergone a price increase of 10 percent during the immediately preceding year or 20 percent during the immediately preceding 2 years. Section 19.5 of this bill makes a conforming change to reflect the changes made by section 10. Existing law requires a manufacturer of prescription drugs or a pharmacy benefit manager to report certain information concerning drugs on the list of essential asthma and diabetes drugs to the Department. (NRS 439B.635, 439B.640, 439B.645) Sections 11-13 of this bill require those reports to also include information concerning drugs on the list of drugs with a wholesale acquisition cost that exceeds $40 for a course of therapy and have undergone a price increase of 10 percent during the immediately preceding year or 20 percent during the immediately preceding 2 years. Section 13 of this bill additionally revises and expands the information that a pharmacy benefit manager is required to report concerning drugs on that list and drugs on the list of essential diabetes drugs. Section 6 of this bill requires a wholesaler of prescription drugs to report to the Department certain information concerning the drugs on those lists. Section 16 of this bill requires the Department to adopt regulations establishing the form and manner in which wholesalers are required to report that information. Sections 6 and 11-13 of this bill require a report submitted by a manufacturer, pharmacy benefit manager or wholesaler to be accompanied by statement signed under penalty of perjury affirming the accuracy of the information in the report. Existing law provides that pharmacy benefit managers are not required to report information relating to prescription drug coverage that is a part of a plan regulated under the federal Employee Retirement Income Security Act, but that such a plan may require a pharmacy benefit manager to report that information by contract. (NRS 439B.645) In Rutledge v. Pharm. Care Mgmt. Ass'n, the United States Supreme Court held that states are authorized to impose general requirements governing pharmacy benefit managers on pharmacy benefit managers that manage such coverage. (141 S. Ct. 474, 481 (2020)) Section 13 removes the exemption for such coverage from requirements for the reporting of information by pharmacy benefit managers, thereby requiring a pharmacy benefit manager to report information relating to such coverage regardless of whether they are required to do so by contract. Existing law requires the Department to analyze the information reported concerning the prices of prescription drugs and compile a report concerning the reasons for and effect of the pricing. (NRS 439B.650) Section 14 of this bill: (1) revises the information that must be included in that report; and (2) requires the Department to present the findings in the report at a public hearing. Existing law authorizes the Department to impose an administrative penalty against a manufacturer, pharmacy benefit manager or nonprofit organization that fails to report required information. (NRS 439B.695) Section 18 of this bill: (1) authorizes the imposition of an administrative penalty against a wholesaler that fails to report the information required by section 6; and (2) revises the manner in which the Department is authorized to use the money collected through those penalties. Existing law excludes information reported by manufacturers, pharmaceutical sales representatives and pharmacy benefit managers from protection under trade secret law in this State. (NRS 600A.030) Section 19 of this bill similarly excludes information reported by wholesalers from such protection.

Statutes affected:
As Introduced: 439B.600, 439B.630, 439B.635, 439B.640, 439B.645, 439B.650, 439B.670, 439B.685, 439B.690, 439B.695, 600A.030
Reprint 1: 439B.600, 439B.620, 439B.630, 439B.635, 439B.640, 439B.645, 439B.650, 439B.670, 439B.685, 439B.695, 600A.030, 689A.405
Reprint 2: 439B.600, 439B.605, 439B.620, 439B.630, 439B.635, 439B.640, 439B.645, 439B.650, 439B.670, 439B.685, 439B.695, 600A.030, 689A.405
As Enrolled: 439B.600, 439B.605, 439B.620, 439B.630, 439B.635, 439B.640, 439B.645, 439B.650, 439B.670, 439B.685, 439B.695, 600A.030, 689A.405