BILL REQ. #:  H-0672.1 

Read first time 01/18/2005.   Referred to Committee on Health Care.

     AN ACT Relating to reimportation of prescription drugs; amending RCW 70.14.050; adding a new section to chapter 70.14 RCW; and creating a new section.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

Sec. 1   RCW 70.14.050 and 2003 1st sp.s. c 29 s 9 are each amended to read as follows:
     (1) Each agency administering a state purchased health care program as defined in RCW 41.05.011(2) shall, in cooperation with other agencies, take any necessary actions to control costs without reducing the quality of care when reimbursing for or purchasing drugs. To accomplish this purpose, participating agencies may establish an evidence-based prescription drug program.
     (2) In developing the evidence-based prescription drug program authorized by this section, agencies:
     (a) Shall prohibit reimbursement for drugs that are determined to be ineffective by the United States food and drug administration;
     (b) Shall adopt rules in order to ensure that less expensive generic drugs will be substituted for brand name drugs in those instances where the quality of care is not diminished;
     (c) Where possible, may authorize reimbursement for drugs only in economical quantities;
     (d) May limit the prices paid for drugs by such means as negotiated discounts from pharmaceutical manufacturers, central purchasing, volume contracting, purchasing drugs from approved pharmacies or wholesalers in Canada as provided in section 2 of this act, or setting maximum prices to be paid;
     (e) Shall consider the approval of drugs with lower abuse potential in substitution for drugs with significant abuse potential;
     (f) May take other necessary measures to control costs of drugs without reducing the quality of care; and
     (g) Shall adopt rules governing practitioner endorsement and use of any list developed as part of the program authorized by this section.
     (3) Agencies shall provide for reasonable exceptions, consistent with RCW 69.41.190, to any list developed as part of the program authorized by this section.
     (4) Agencies shall establish an independent pharmacy and therapeutics committee to evaluate the effectiveness of prescription drugs in the development of the program authorized by this section.

NEW SECTION.  Sec. 2   A new section is added to chapter 70.14 RCW to read as follows:
     Each agency administering a state purchased health care program as defined in RCW 41.05.011(2) shall, in cooperation with other agencies, take any actions needed to:
     (1) Undertake bulk purchasing of drugs approved by the federal food and drug administration from Canadian pharmacies and wholesalers, upon approval of a waiver by the federal food and drug administration or upon passage of federal legislation authorizing bulk reimportation of prescription drugs;
     (2) Facilitate personal importation of drugs approved by the food and drug administration from Canadian pharmacies for individuals participating in state purchased health care programs. Personal importation shall be done in a manner consistent with the following conditions:
     (a) Prescription drugs purchased through personal importation shall be limited to drugs other than:
     (i) Injectable drugs;
     (ii) Biological products;
     (iii) Drugs inhaled during surgery;
     (iv) Drugs that have specific postmarketing monitoring programs;
     (v) Drugs that must be refrigerated or kept frozen;
     (vi) Narcotics; and
     (vii) Drugs that are highly susceptible to counterfeiting on the global market;
     (b) Prescription drugs purchased through personal importation shall be limited to those drugs that agencies administering state purchased health care programs determine will result in cost savings to their programs;
     (c) Any Canadian pharmacy participating in personal importation of drugs for individuals participating in state purchased health care programs shall meet retail pharmacy licensing standards established by the Washington state board of pharmacy;
     (d) The health care authority shall offer financial incentives to uniform medical plan enrollees for personal importation of prescription drugs that meet the standards established in (a) and (b) of this subsection.
     The health care authority shall develop an internet web site and use the pharmacy connection program established under RCW 41.05.520 to provide information to Washington residents regarding opportunities to purchase prescription drugs from Canada and the best means to ensure that any prescription drugs they purchase have been safely manufactured, distributed, and stored. The attorney general shall review the web site and the information provided through the pharmacy connection program and certify that they do not violate any applicable state or federal law.

NEW SECTION.  Sec. 3   If any part of this act is found to be in conflict with federal requirements that are a prescribed condition to the allocation of federal funds to the state, the conflicting part of this act is inoperative solely to the extent of the conflict and with respect to the agencies directly affected, and this finding does not affect the operation of the remainder of this act in its application to the agencies concerned. Rules adopted under this act must meet federal requirements that are a necessary condition to the receipt of federal funds by the state.