S.B. 202

1

PHARMACEUTICAL COMPETITIVE PRICING
2 2011 GENERAL SESSION
3 STATE OF UTAH
4 Chief Sponsor: Curtis S. Bramble
5 House Sponsor: ____________
6
7 LONG TITLE
8 General Description:
9 This bill amends the Medical Assistance Act to establish a competitive bidding process
10 for drug product equivalents.
11 Highlighted Provisions:
12 This bill:
13 . defines terms;
14 . establishes criteria for the competitive bidding process; and
15 . requires the Division of Health Care Financing to rebid the program at least once
16 every five years.
17 Money Appropriated in this Bill:
18 None
19 Other Special Clauses:
20 None
21 Utah Code Sections Affected:
22 ENACTS:
23 26-18-2.5, Utah Code Annotated 1953
24
25 Be it enacted by the Legislature of the state of Utah:
26 Section 1. Section 26-18-2.5 is enacted to read:
27 26-18-2.5. Medicaid drugs -- Competitive bidding.

28 (1) As used in this section:
29 (a) "Drug product equivalent" means a drug product that is designated as the
30 therapeutic equivalent of another drug product in the Approved Drug Products with
31 Therapeutic Equivalence Evaluations prepared by the Center for Drug Evaluation and Research
32 of the Federal Food and Drug Administration.
33 (b) "Drug product equivalent" includes a generic form of a prescription drug that is
34 available in generic form and has an A rating in the United States Pharmacopeia and Drug
35 Index.
36 (2) The division shall establish a competitive bid process to bid out drug product
37 equivalent program benefits.
38 (3) The division shall use the following criteria to evaluate bids under this section:
39 (a) ability to manage expenses of the drug product equivalents;
40 (b) proven ability to handle medical insurance;
41 (c) efficiency of claim paying procedures;
42 (d) provider contracting, discounts, and adequacy of network; and
43 (e) other criteria established by the division.
44 (4) The department shall request bids for the program's benefits:
45 (a) in 2012; and
46 (b) at least once every five years thereafter.
47 (5) Title 63G, Chapter 6, Utah Procurement Code, shall apply to this section.




Legislative Review Note
as of 2-14-11 10:33 AM

Office of Legislative Research and General Counsel