BILL REQ. #:  S-3961.1 

Read first time 01/21/2004.   Referred to Committee on Health & Long-Term Care.

     AN ACT Relating to drug purchasing cost controls; and amending RCW 70.14.050.

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, 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. Any list developed as part of the program authorized by this section must exclude drugs to treat mental illness.
     (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.