S T A T E O F N E W Y O R K
________________________________________________________________________
7762
I N S E N A T E
May 12, 2016
___________
Introduced by Sen. HANNON -- read twice and ordered printed, and when
printed to be committed to the Committee on Health
AN ACT to amend the public health law, in relation to directing the
department of health to make bi-annual assessments of non-preferred
drugs for recipients of medical assistance and to submit an annual
report to the legislature thereon
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 272 of the public health law is amended by adding a
new subdivision 15 to read as follows:
15.(A) IN MEDICAID FEE-FOR-SERVICE, THE DEPARTMENT SHALL MAKE BI-ANNU-
AL ASSESSMENTS OF NON-PREFERRED DRUGS IN THE BEST CLINICAL INTERESTS OF
NEW YORK MEDICAID BENEFICIARIES. SUCH DEPARTMENT SHALL INCLUDE, AT THE
MANUFACTURER'S OPTION, A NON-PREFERRED DRUG AS A PREFERRED DRUG WHEN AT
LEAST THIRTY-FIVE PERCENT OF PRESCRIPTIONS FILLED IN THAT DRUG'S CLASS
IN THE PREVIOUS TWO QUARTERS WERE FOR A NON-PREFERRED DRUG ON THE
PREFERRED DRUG LIST, PROVIDED THAT THE MANUFACTURER OF SUCH PREVIOUSLY
NON-PREFERRED DRUG AGREES TO THE REBATE REQUIRED UNDER SECTION 1927 OF
THE SOCIAL SECURITY ACT AND AN ADDITIONAL SUPPLEMENTAL REBATE. THE
DEPARTMENT AND THE MANUFACTURER MAY NEGOTIATE THE ALTERNATIVE SUPPLE-
MENTAL REBATE. THE PREVIOUSLY NON-PREFERRED DRUG SHALL NOT BE DISADVAN-
TAGED, INCLUDING BUT NOT LIMITED TO IMPOSING PRIOR AUTHORIZATION OR
UTILIZATION MANAGEMENT REQUIREMENTS, RELATIVE TO THE OTHER PREFERRED
DRUGS IN ITS CLASS OTHER THAN WHAT IS REQUIRED BY THE FDA-APPROVED
LABEL.
(B) THE DEPARTMENT SHALL PROVIDE AN ANNUAL REPORT TO THE LEGISLATURE
THAT OUTLINES, WITH RESPECT TO ANY DRUG CLASS ON THE PREFERRED DRUG LIST
IN WHICH ONLY A SINGLE THERAPEUTIC PATHWAY, WHICH MAY INVOLVE ONE OR
MORE DRUGS PRESCRIBED IN COMBINATION FOR THE SAME PATIENT, IS PREFERRED,
THE FINANCIAL IMPACT OF THE STATE'S PREFERRED DRUG LIST DECISION, THE
CLINICAL EVIDENCE THE STATE RELIED ON IN ESTABLISHING PREFERENCES FOR
THE CLASS, AND THE CLINICAL CRITERIA THAT PERMIT BENEFICIARIES TO ACCESS
NON-PREFERRED DRUGS IN SUCH A CLASS.
S 2. This act shall take effect immediately.
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.