103RD GENERAL ASSEMBLY
State of Illinois
2023 and 2024
HB1536

 

Introduced 1/31/2023, by Rep. Hoan Huynh

 

SYNOPSIS AS INTRODUCED:
 
305 ILCS 5/5-5.12  from Ch. 23, par. 5-5.12

    Amends the Medical Assistance Article of the Illinois Public Aid Code. Provides the no appropriation may be expended to a managed care organization under contract with the Department of Healthcare and Family Services unless the managed care organization, and its pharmacy benefits manager, allows prescription drug benefits to be provided by specialty pharmacies that are certified in the Business Enterprise Program and accredited by at least 2 different accreditation entities for specialty pharmacy services on the same terms and conditions by any willing provider that is qualified for network participation and authorized to dispense prescription drugs. Prescription drug benefits include those that are managed both as a part of the overall healthcare benefits package, medical and pharmacy benefits that are integrated into one package through a managed care organization, and pharmacy benefits that are separately administered or subcontracted through a pharmacy benefits manager. Defines "specialty pharmacy". Effective July 1, 2023.


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A BILL FOR

 

HB1536LRB103 04823 KTG 49833 b

1    AN ACT concerning public aid.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Public Aid Code is amended by
5changing Section 5-5.12 as follows:
 
6    (305 ILCS 5/5-5.12)  (from Ch. 23, par. 5-5.12)
7    Sec. 5-5.12. Pharmacy payments.
8    (a) Every request submitted by a pharmacy for
9reimbursement under this Article for prescription drugs
10provided to a recipient of aid under this Article shall
11include the name of the prescriber or an acceptable
12identification number as established by the Department.
13    (b) Pharmacies providing prescription drugs under this
14Article shall be reimbursed at a rate which shall include a
15professional dispensing fee as determined by the Illinois
16Department, plus the current acquisition cost of the
17prescription drug dispensed. The Illinois Department shall
18update its information on the acquisition costs of all
19prescription drugs no less frequently than every 30 days.
20However, the Illinois Department may set the rate of
21reimbursement for the acquisition cost, by rule, at a
22percentage of the current average wholesale acquisition cost.
23    (c) (Blank).

 

 

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1    (d) The Department shall review utilization of narcotic
2medications in the medical assistance program and impose
3utilization controls that protect against abuse.
4    (e) When making determinations as to which drugs shall be
5on a prior approval list, the Department shall include as part
6of the analysis for this determination, the degree to which a
7drug may affect individuals in different ways based on factors
8including the gender of the person taking the medication.
9    (f) The Department shall cooperate with the Department of
10Public Health and the Department of Human Services Division of
11Mental Health in identifying psychotropic medications that,
12when given in a particular form, manner, duration, or
13frequency (including "as needed") in a dosage, or in
14conjunction with other psychotropic medications to a nursing
15home resident or to a resident of a facility licensed under the
16ID/DD Community Care Act or the MC/DD Act, may constitute a
17chemical restraint or an "unnecessary drug" as defined by the
18Nursing Home Care Act or Titles XVIII and XIX of the Social
19Security Act and the implementing rules and regulations. The
20Department shall require prior approval for any such
21medication prescribed for a nursing home resident or to a
22resident of a facility licensed under the ID/DD Community Care
23Act or the MC/DD Act, that appears to be a chemical restraint
24or an unnecessary drug. The Department shall consult with the
25Department of Human Services Division of Mental Health in
26developing a protocol and criteria for deciding whether to

 

 

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1grant such prior approval.
2    (g) The Department may by rule provide for reimbursement
3of the dispensing of a 90-day supply of a generic or brand
4name, non-narcotic maintenance medication in circumstances
5where it is cost effective.
6    (g-5) On and after July 1, 2012, the Department may
7require the dispensing of drugs to nursing home residents be
8in a 7-day supply or other amount less than a 31-day supply.
9The Department shall pay only one dispensing fee per 31-day
10supply.
11    (h) Effective July 1, 2011, the Department shall
12discontinue coverage of select over-the-counter drugs,
13including analgesics and cough and cold and allergy
14medications.
15    (h-5) On and after July 1, 2012, the Department shall
16impose utilization controls, including, but not limited to,
17prior approval on specialty drugs, oncolytic drugs, drugs for
18the treatment of HIV or AIDS, immunosuppressant drugs, and
19biological products in order to maximize savings on these
20drugs. The Department may adjust payment methodologies for
21non-pharmacy billed drugs in order to incentivize the
22selection of lower-cost drugs. For drugs for the treatment of
23AIDS, the Department shall take into consideration the
24potential for non-adherence by certain populations, and shall
25develop protocols with organizations or providers primarily
26serving those with HIV/AIDS, as long as such measures intend

 

 

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1to maintain cost neutrality with other utilization management
2controls such as prior approval. For hemophilia, the
3Department shall develop a program of utilization review and
4control which may include, in the discretion of the
5Department, prior approvals. The Department may impose special
6standards on providers that dispense blood factors which shall
7include, in the discretion of the Department, staff training
8and education; patient outreach and education; case
9management; in-home patient assessments; assay management;
10maintenance of stock; emergency dispensing timeframes; data
11collection and reporting; dispensing of supplies related to
12blood factor infusions; cold chain management and packaging
13practices; care coordination; product recalls; and emergency
14clinical consultation. The Department may require patients to
15receive a comprehensive examination annually at an appropriate
16provider in order to be eligible to continue to receive blood
17factor.
18    (i) On and after July 1, 2012, the Department shall reduce
19any rate of reimbursement for services or other payments or
20alter any methodologies authorized by this Code to reduce any
21rate of reimbursement for services or other payments in
22accordance with Section 5-5e.
23    (j) On and after July 1, 2012, the Department shall impose
24limitations on prescription drugs such that the Department
25shall not provide reimbursement for more than 4 prescriptions,
26including 3 brand name prescriptions, for distinct drugs in a

 

 

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130-day period, unless prior approval is received for all
2prescriptions in excess of the 4-prescription limit. Drugs in
3the following therapeutic classes shall not be subject to
4prior approval as a result of the 4-prescription limit:
5immunosuppressant drugs, oncolytic drugs, anti-retroviral
6drugs, and, on or after July 1, 2014, antipsychotic drugs. On
7or after July 1, 2014, the Department may exempt children with
8complex medical needs enrolled in a care coordination entity
9contracted with the Department to solely coordinate care for
10such children, if the Department determines that the entity
11has a comprehensive drug reconciliation program.
12    (k) No medication therapy management program implemented
13by the Department shall be contrary to the provisions of the
14Pharmacy Practice Act.
15    (l) Any provider enrolled with the Department that bills
16the Department for outpatient drugs and is eligible to enroll
17in the federal Drug Pricing Program under Section 340B of the
18federal Public Health Service Act shall enroll in that
19program. No entity participating in the federal Drug Pricing
20Program under Section 340B of the federal Public Health
21Service Act may exclude fee-for-service Medicaid from their
22participation in that program, however, entities defined in
23Section 1905(l)(2)(B) of the Social Security Act are excluded
24from this requirement. This subsection does not apply to
25outpatient drugs billed to Medicaid managed care
26organizations.

 

 

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1    (m) No appropriation may be expended to a managed care
2organization under contract with the Department unless the
3managed care organization, and its pharmacy benefits manager,
4allows prescription drug benefits to be provided by specialty
5pharmacies that are:
6        (1) certified in the Business Enterprise Program as
7    defined in the Business Enterprise for Minorities, Women,
8    and Persons with Disabilities Act; and
9        (2) accredited by at least 2 different accreditation
10    entities for specialty pharmacy services,
11    on the same terms and conditions by any willing provider
12that is qualified for network participation and authorized to
13dispense prescription drugs. Prescription drug benefits
14include those that are managed both as a part of the overall
15healthcare benefits package, medical and pharmacy benefits
16that are integrated into one package through a managed care
17organization, and pharmacy benefits that are separately
18administered or subcontracted through a pharmacy benefits
19manager. As used in this subsection, "specialty pharmacy"
20means a licensed pharmacy in Illinois that solely or largely
21provides only medications that are oral, infusion, or
22injectable for individuals with serious health conditions
23requiring complex therapies that include, but are not limited
24to, the following: cancer, hepatitis C, rheumatoid arthritis,
25HIV/Aids, multiple sclerosis, cystic fibrosis, organ
26transplantation, human growth hormone deficiencies, and

 

 

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1bleeding disorders.
2(Source: P.A. 102-558, eff. 8-20-21; 102-778, eff. 7-1-22.)
 
3    Section 99. Effective date. This Act takes effect July 1,
42023.