96TH GENERAL ASSEMBLY
State of Illinois
2009 and 2010
SB3846

 

Introduced 3/10/2010, by Sen. John J. Millner

 

SYNOPSIS AS INTRODUCED:
 
305 ILCS 5/5-5.12b new

    Amends the Illinois Public Aid Code. Provides that the Department of Healthcare and Family Services shall require all generic drug manufacturers whose products are to be provided to Medicaid recipients to compete in a competitive bidding process created by the Department to ensure that the Department is providing Medicaid recipients with quality generic products at a competitively bid cost.


LRB096 21417 KTG 38634 b

FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

SB3846 LRB096 21417 KTG 38634 b

1     AN ACT concerning 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 adding Section Section 5-5.12b as follows:
 
6     (305 ILCS 5/5-5.12b new)
7     Sec. 5-5.12b. Medicaid Generic Drug Competition and
8 Savings.
9     (a) Definitions. As used in this Section:
10     "Medicaid" means the medical assistance program
11 established under this Article or the federal medical
12 assistance program established under Title XIX of the Social
13 Security Act.
14     "Generics" or "generic drugs" means copies of brand-name
15 drugs that are no longer protected by patents, including drugs
16 that contain the same active ingredients, are identical in
17 strength, dosage form, and route of administration as the
18 brand-name innovator drug, and have the same indications,
19 dosing, and labeling and provide the same efficacy and safety
20 profile to patients as the brand-name innovator drugs.
21     "Generic manufacturers" means manufacturers, both domestic
22 and international, that manufacture generic drugs and
23 distribute those generic drugs throughout the State of Illinois

 

 

SB3846 - 2 - LRB096 21417 KTG 38634 b

1 through various distribution systems.
2     "Competitive bidding" means a transparent procedure in
3 which bids from generic manufacturers are invited by openly
4 advertising the scope, specifications, terms, and conditions
5 of the proposed contract as well as the criteria by which the
6 bids will be evaluated. The objective of competitive bidding is
7 obtaining goods at the lowest prices by stimulating competition
8 and by preventing favoritism.
9     (b) Legislative Findings.
10         (1) With every prescription filled with a generic, the
11     consumer receives the same medicine as the brand-name drug,
12     with the same quality and same result, but at a much lower
13     cost.
14         (2) For more than 25 years, America's generic
15     pharmaceutical industry has been providing Food and Drug
16     Administration (FDA) approved generic versions of
17     brand-name medicines at a savings to consumers of 30% to as
18     much as 80%.
19         (3) Millions of Medicaid recipients nationwide are
20     using generics to treat a variety of medical conditions,
21     including infection, heart disease, and cancer. Generics
22     are rigorously tested by the FDA and must prove that they
23     are the same medicine with the same active ingredients,
24     strengths, and dosages as their brand-name counterparts.
25     Today, there are thousands of generic drugs available and
26     all are manufactured and inspected under the same strict

 

 

SB3846 - 3 - LRB096 21417 KTG 38634 b

1     quality guidelines as brand-name drugs.
2         (4) For most brand-name products there are multiple
3     generics available and these generics can vary greatly in
4     price.
5         (5) While the State Medicaid program has encouraged the
6     use of generic drugs by Medicaid recipients, it has not
7     taken advantage of the savings that could be generated by
8     taking advantage of the competition among generic
9     manufacturers whose pricing of generic drugs varies
10     greatly.
11     (c) Competitive Bidding. The Department of Healthcare and
12 Family Services shall require all generic drug manufacturers
13 whose products are to be provided to Medicaid recipients to
14 compete in a competitive bidding process created by the
15 Department to ensure that the Department is providing Medicaid
16 recipients with quality generic products at a competitively bid
17 cost.