Washington State
House of Representatives
Office of Program Research
BILL
ANALYSIS

Health Care Committee

HB 1219

Brief Description: Authorizing a prescription drug purchasing consortium.

Sponsors: Representatives Cody, Schual-Berke, Morrell, Kessler, Simpson, Campbell, P. Sullivan, Williams, Chase, Dickerson, Quall, Kenney, O'Brien, Clibborn, Conway, Green, Lantz, Sells, Kagi, Ormsby, Wallace, McIntire, Upthegrove, Hasegawa and Kilmer; by request of Governor Gregoire.

Brief Summary of Bill
  • Requires the Health Care Authority to establish a prescription drug purchasing consortium, which may include political subdivisions, private entities, labor organizations, and individuals.

Hearing Date: 1/25/05

Staff: Dave Knutson (786-7146).

Background:

Agencies that administer state purchased health care programs participate in an evidence-based prescription drug purchasing program. Based on the findings of an independent pharmacy and therapeutics committee, a preferred drug list is established and negotiations with pharmaceutical manufacturers result in discounted prescription drug prices for state purchased health care programs. Only state agencies participate in the evidence-based prescription drug purchasing program.

Summary of Bill:

The administrator of the Health Care Authority will establish a prescription drug purchasing consortium. The consortium may include, on a voluntary basis, local government, private entities, labor organizations, and individuals without insurance, or who are underinsured for prescription drug coverage. The Health Care Authority will impose fees on participants to cover the administrative expense of operating the purchasing consortium. An eleven member advisory committee is created to provide input on the implementation of the purchasing consortium.

Appropriation: None.

Fiscal Note: Requested on 1/20/05.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.