HB 1404

Abstract

Canadian Prescription Drug Importation Program established.Establishes the Canadian Prescription Drug Importation Program, pending federalapproval and certification from the Secretary of the U.S. Department of Healthand Human Services. Under the Program, the Commissioner of Health is requiredto designate the Department of Health, the Commissioner, or another agency orofficer of the Commonwealth; a licensed drug wholesaler; or a nonprofit,nonstock corporation established by the Department as a public instrumentalityexercising public and essential governmental functions to (i) importprescription drugs from Canadian suppliers and (ii) distribute the importedprescription drugs to pharmacies or pharmacists in the Commonwealth thatcontract with the designated entity to make the imported prescription drugsavailable to residents of the Commonwealth at the cost prescribed in thecontract. The measure provides that only prescription drugs that have thehighest potential for cost savings to the Commonwealth shall be identified forimportation. The Program will authorize the designated entity to purchaseprescription drugs from a Canadian supplier and distribute the prescriptiondrugs to pharmacists and pharmacies that are in-network under a health planprovided by a health carrier, state employee health plan or local choice plan,and the Medicaid program. Contracts between the pharmacist or pharmacy and thedesignated entity will set the price at which the prescription drugs are to beprovided to covered individuals. The measure requires the Commissioner, byDecember 1, 2021, to review the proposed Program and, if the proposed Programis approved, to submit the proposed Program for federal review. The Departmentis also required to prepare an implementation plan, which is to be put intoeffect six months after the last to occur of (a) the enactment of anylegislation required for the establishment of the charge or assessment tofinance the Program and (b) receipt of notice that the proposed Program hasbeen approved and certified by the Secretary of the U.S. Department of Healthand Human Services.