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S.B. 202





Chief Sponsor: Curtis S. Bramble

House Sponsor: ____________

             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
             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

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