1 STATE OF OKLAHOMA
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2 1st Session of the 59th Legislature (2023)
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3 SENATE BILL 144 By: Hicks
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6 AS INTRODUCED
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7 An Act relating to prescription drugs; defining
7 terms; requiring certain report be compiled by the
8 Insurance Department by certain date; requiring
8 certain reports be submitted by certain drug
9 manufacturer by certain date; requiring certain
9 report be submitted by certain pharmacy benefits
10 manager; directing Department to publish certain
10 information on certain website; establishing data
11 requirements for publishing and physical component;
11 directing Department to promulgate rules; providing
12 for codification; and providing an effective date.
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15 BE IT ENACTED BY THE PEOPLE OF THE STATE OF OKLAHOMA:
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16 SECTION 1. NEW LAW A new section of law to be codified
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17 in the Oklahoma Statutes as Section 6970 of Title 36, unless there
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18 is created a duplication in numbering, reads as follows:
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19 A. As used in this section:
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20 1. “Manufacturer” means any person or entity that holds the
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21 national drug code for a prescription drug and is engaged in the
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22 production, preparation, propagation, compounding, conversion, or
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23 processing of drug products for treating diabetes in this state;
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 1 2. “Pharmacy” means a pharmacy as defined pursuant to Section
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2 353.1 of Title 59 of the Oklahoma Statutes; and
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3 3. “Pharmacy benefits manager” means a pharmacy benefits
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4 manager as defined pursuant to Section 6960 of Title 36 of the
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5 Oklahoma Statutes.
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6 B. On or before February 1 of each calendar year, the Insurance
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7 Department shall compile:
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8 1. A list of prescription drugs that the Department determines
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9 to be essential for treating diabetes in this state and the
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10 wholesale acquisition cost of each drug on the list. The list shall
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11 include, but not be limited to, all forms of insulin and biguanides
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12 marketed for sale in this state; and
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13 2. A list of prescription drugs described in paragraph 1 of
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14 this subsection that have been subject to an increase in the
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15 wholesale acquisition cost of a percentage equal to or greater than:
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16 a. the percentage increase in the medical care index of
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17 the Consumer Price Index, during the immediately
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18 preceding year, or
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19 b. twice the percentage increase in the medical care
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20 index of the Consumer Price Index, during the
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21 immediately preceding two calendar years.
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22 C. On or before April 1 of each calendar year, the manufacturer
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23 of a prescription drug that appears on the most current list
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24 compiled by the Department pursuant to subsection A of this section
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 1 shall prepare and submit to the Department, in a form to be
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2 prescribed by the Department, a report that shall include:
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3 1. The cost of the drug to the consumer;
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4 2. The total administrative expenditures relating to the drug
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5 including marketing and advertising costs;
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6 3. The profit that the manufacturer has earned from the drug
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7 and the percentage of the total profit of the manufacturer for the
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8 period during which the manufacturer has marketed the drug for sale
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9 that is attributable to the drug;
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10 4. The total amount of financial assistance that the
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11 manufacturer has provided through any patient prescription
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12 assistance program;
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13 5. The cost associated with coupons provided directly to
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14 consumers and for programs to assist consumers in paying copayments,
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15 and the cost to the manufacturer attributable to the redemption of
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16 those coupons and the use of those programs;
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17 6. The wholesale acquisition cost of the drug;
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18 7. A history of any increases in the wholesale acquisition cost
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19 of the drug over the five (5) years immediately preceding the date
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20 on which the report is submitted, including the amount of each
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21 increase expressed as a percentage of the total wholesale
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22 acquisition cost of the drug, the month and year in which each
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23 increase became effective, and any explanation for the increase;
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 1 8. The aggregate amount of all rebates that the manufacturer
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2 has provided to pharmacy benefits managers for sales of the drug
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3 within this state; and
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4 9. Any additional information deemed necessary by the
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5 Department for the purpose of analyzing the cost of prescription
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6 drugs that appear on the list compiled pursuant to subsection B of
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7 this section.
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8 D. On or before April 1 of a year in which a drug is included
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9 on the list compiled pursuant to subsection B of this section, the
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10 manufacturer of the drug shall submit to the Department a report
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11 describing the reasons for the increase in the wholesale acquisition
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12 cost of the drug described in that subsection. The report shall
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13 include, but not be limited to:
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14 1. A list of each factor that has contributed to the increase;
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15 2. The percentage of the total increase that is attributable to
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16 each factor;
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17 3. An explanation of the role of each factor in the increase;
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18 and
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19 4. Any other information prescribed by rule of the Department.
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20 E. Except as provided in this section, a pharmacy benefits
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21 manager shall submit to the Department a report that shall include:
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22 1. The total amount of all rebates that the pharmacy benefits
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23 manager negotiated with the manufacturers during the immediately
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 1 preceding calendar year for prescription drugs included on the list
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2 compiled by the Department pursuant to subsection B of this section;
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3 2. The total amount of all rebates described in paragraph 1 of
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4 this subsection that were retained by the pharmacy benefits manger;
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5 3. The total amount of all rebates described in paragraph 1 of
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6 this subsection that the pharmacy benefits manager negotiated for
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7 purchases of drugs for use by:
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8 a. recipients of Medicare,
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9 b. recipients of Medicaid,
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10 c. persons covered by third parties that are governmental
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11 entities not described in subparagraphs a and b of
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12 this paragraph,
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13 d. persons covered by third parties that are not
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14 governmental entities, and
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15 e. persons covered by a plan described in paragraph 4 of
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16 this subsection to the extent required by a contract
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17 entered into pursuant to paragraph 5 of this
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18 subsection;
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19 4. Except as otherwise provided in subparagraph c of paragraph
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20 3 of this subsection, the requirements of this section do not apply
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21 to the coverage of prescription drugs under a plan that is subject
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22 to the federal Employee Retirement Income Security Act of 1974 as
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23 amended or any information relating to that coverage; and
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 1 5. A plan described in paragraph 4 of this subsection may, by
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2 contract, require a pharmacy benefits manager that manages the
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3 coverage of prescription drugs under the plan to comply with the
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4 requirements of this section.
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5 F. The Department shall analyze the information submitted
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6 pursuant to subsections C, D, and E of this section and publish a
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7 report on the website created under subsection G of this section on
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8 the price of the prescription drugs that appear on the most current
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9 lists compiled by the Department pursuant to subsection B of this
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10 section, the reasons for any increases in those prices, and the
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11 effect of those prices on overall spending on prescription drugs in
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12 this state. The report may include, but not be limited to,
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13 opportunities for persons and entities in this state to lower the
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14 cost of drugs for the treatment of diabetes while maintaining access
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15 to the drugs.
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16 G. 1. The Department shall create and maintain a website, to
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17 be updated no less frequently than once each calendar quarter, and
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18 shall place or cause to be placed:
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19 a. the list of prescription drugs compiled by the
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20 Department pursuant to subsection B of this section,
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21 b. the wholesale acquisition cost of each prescription
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22 drug reported pursuant to subsection C of this
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23 section, and
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 1 c. the reports compiled by the Department pursuant to
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2 subsection F of this subsection.
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3 2. The Department shall ensure that the information placed on
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4 the website is organized so that each individual manufacturer has
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5 its own separate entry on the website.
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6 3. The Department may establish additional or alternative
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7 procedures by which a consumer who is unable to access the Internet
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8 or is otherwise unable to receive the information described in this
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9 section may access this data. This shall include, but not be
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10 limited to, maintaining copies of the data reported pursuant to this
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11 section maintained by the Department.
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12 H. The Department shall promulgate rules to effectuate the
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13 provisions of this section.
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14 SECTION 2. This act shall become effective November 1, 2023.
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16 59-1-1216 RD 1/4/2023 3:36:18 PM
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