093_HB2911 LRB093 07231 DRJ 07387 b 1 AN ACT in relation to public aid. 2 Be it enacted by the People of the State of Illinois, 3 represented in the General Assembly: 4 Section 5. The Illinois Public Aid Code is amended by 5 changing Section 5-5.12 and adding Section 5-5.12b as 6 follows: 7 (305 ILCS 5/5-5.12) (from Ch. 23, par. 5-5.12) 8 Sec. 5-5.12. Pharmacy payments. 9 (a) Every request submitted by a pharmacy for 10 reimbursement under this Article for prescription drugs 11 provided to a recipient of aid under this Article shall 12 include the name of the prescriber or an acceptable 13 identification number as established by the Department. 14 (b) Pharmacies providing prescription drugs under this 15 Article shall be reimbursed at a rate which shall include a 16 professional dispensing fee as determined by the Illinois 17 Department, plus the current acquisition cost of the 18 prescription drug dispensed. The Illinois Department shall 19 update its information on the acquisition costs of all 20 prescription drugs no less frequently than every 30 days. 21 However, the Illinois Department may set the rate of 22 reimbursement for the acquisition cost, by rule, at a 23 percentage of the current average wholesale acquisition cost. 24 (b-5) The State's Medicaid plan shall provide for a 25 program of differential dispensing fees for pharmacies that 26 (i) provide prescriptions for adult care homes under a unit 27 dose system in accordance with rules and regulations of the 28 State Board of Pharmacy and (ii) participate in the return of 29 unused medications program under this Article V. 30 The State's Medicaid plan shall include provisions for 31 differential ingredient cost reimbursement of generic and -2- LRB093 07231 DRJ 07387 b 1 brand name pharmaceuticals. The Department of Public Aid 2 shall set the rates for differential cost reimbursement of 3 generic and brand name pharmaceuticals by rule. 4 (c) Reimbursement under this Article for prescription 5 drugs shall be limited to reimbursement for 4 brand-name 6 prescription drugs per patient per month. This subsection 7 applies only if (i) the brand-name drug was not prescribed 8 for an acute or urgent condition, (ii) the brand-name drug 9 was not prescribed for Alzheimer's disease, arthritis, 10 diabetes, HIV/AIDS, a mental health condition, or respiratory 11 disease, and (iii) a therapeutically equivalent generic 12 medication has been approved by the federal Food and Drug 13 Administration. 14 Except where a prescriber has personally written 15 "dispense as written" or "D.A.W.," or has signed the 16 prescriber's name on the "dispense as written" signature 17 line, the Department of Public Aid may limit reimbursement 18 for a prescription under the medical assistance program to 19 the multisource generic equivalent drug. 20 No pharmacist participating in the medical assistance 21 program shall be required to dispense a prescription-only 22 drug that will not be reimbursed by the medical assistance 23 program. 24 (d) The Department shall not impose requirements for 25 prior approval based on a preferred drug list for 26 anti-retroviral or any atypical antipsychotics, conventional 27 antipsychotics, or anticonvulsants used for the treatment of 28 serious mental illnesses until 30 days after it has conducted 29 a study of the impact of such requirements on patient care 30 and submitted a report to the Speaker of the House of 31 Representatives and the President of the Senate. 32 (e) No requirements for prior authorization or other 33 restrictions on medications used to treat mental illnesses 34 such as schizophrenia, depression, or bipolar disorder may be -3- LRB093 07231 DRJ 07387 b 1 imposed on recipients of medical assistance. Medications that 2 must be made be available under the State's Medicaid plan 3 without restriction for persons with mental illnesses include 4 atypical antipsychotic medications, conventional 5 antipsychotic medications, and other medications used for the 6 treatment of mental illnesses. 7 (f) A prescription medication prescribed for a recipient 8 of medical assistance or a person who becomes eligible for 9 medical assistance shall not be subject to any requirement 10 for prior authorization under the State's Medicaid plan 11 unless (i) the prescription, including all authorized 12 refills, has expired or (ii) the practitioner who prescribed 13 the medication for the recipient prescribes a different 14 medication. 15 (Source: P.A. 92-597, eff. 6-28-02; 92-825, eff. 8-21-02; 16 revised 9-19-02.) 17 (305 ILCS 5/5-5.12b new) 18 Sec. 5-5.12b. Preferred drug formulary. 19 (a) The Department of Public Aid may establish a 20 statewide advisory committee pursuant to Section 12-4.20 of 21 this Code to advise the Department in the development of a 22 preferred formulary listing of drugs covered by the medical 23 assistance program. 24 (b) The Department shall evaluate drugs and drug classes 25 for inclusion in the State Medicaid preferred drug formulary 26 based on safety, effectiveness, and clinical outcomes of 27 treatments. In addition, the Department shall evaluate drugs 28 and drug classes to determine whether inclusion of those 29 drugs or drug classes in a starter-dose program would be 30 clinically efficacious and cost effective. If the factors of 31 safety, effectiveness, and clinical outcomes among drugs 32 being considered in the same class indicate no therapeutic 33 advantage, then the Department shall consider the cost -4- LRB093 07231 DRJ 07387 b 1 effectiveness and the net economic impact of the drugs in 2 making recommendations for inclusion in the State Medicaid 3 preferred drug formulary. Drugs that do not have a 4 significant, clinically meaningful therapeutic advantage in 5 terms of safety, effectiveness, or clinical outcomes over 6 other drugs in the same class that have been selected for the 7 preferred drug formulary may be excluded from the preferred 8 drug formulary and may be subject to prior authorization in 9 accordance with State and federal law, except for cases in 10 which, before July 1, 2004, a prescriber has personally 11 written "dispense as written" or "D.A.W." or has signed the 12 prescriber's name on the "dispense as written" signature 13 line. 14 (c) The Department shall consider the net economic 15 impact of drugs selected or excluded from the preferred drug 16 formulary and may gather information on the costs of specific 17 drugs, rebates, or discounts pursuant to 42 U.S.C. 1396r-8, 18 dispensing costs, dosing requirements, and utilization of 19 other drugs or other Medicaid health care services. 20 (d) The Department may accept all services, including, 21 but not limited to, disease state management, associated with 22 the delivery of pharmacy benefits under the medical 23 assistance program having a determinable cost effect, in 24 addition to the Medicaid prescription drug rebates required 25 pursuant to 42 U.S.C. section 1396r-8. 26 (e) The Department shall submit the State Medicaid 27 preferred drug formulary to the drug utilization review 28 program established under Section 11-26.1 of this Code for 29 review and policy recommendations. 30 Section 99. Effective date. This Act takes effect upon 31 becoming law.