HB5340 101ST GENERAL ASSEMBLY

LRB101 19204 KTG 68667 b

101ST GENERAL ASSEMBLY
State of Illinois
2019 and 2020
HB5340

Introduced , by Rep. Anna Moeller

SYNOPSIS AS INTRODUCED:

New Act

Creates the Illinois Pharmaceutical Collaborative Act. Requires the Department of Healthcare and Family Services to convene the Illinois Pharmaceutical Collaborative (Collaborative) to address the rising cost of pharmaceutical drugs. Provides that the Collaborative shall be chaired by the Director of Healthcare and Family Services and its activities shall be coordinated by the Department. Provides that the Collaborative shall meet twice a year and that its mission shall be to coordinate the efforts of State and local government entities to identify and implement opportunities for cost savings with regard to the purchase of pharmaceuticals, particularly pharmaceuticals that are considered high-cost drugs. Contains provisions concerning the composition and duties of the Collaborative; Department contracts with manufacturers and suppliers of single source or multisource pharmaceuticals; the appointment of a pharmaceutical benefits manager; State participation in a prescription drug bulk purchasing program; and reporting requirements.

FISCAL NOTE ACT MAY APPLY

A BILL FOR

AN ACT concerning pharmaceuticals.

Be it enacted by the People of the State of Illinois, represented in the General Assembly:

Section 1. Short title. This Act may be cited as the Illinois Pharmaceutical Collaborative Act.

Section 5. Findings and declarations.

(a) Despite prior legislative attempts to encourage the participation of State and local entities in a bulk purchasing program aimed at lowering government expenses, pharmaceutical drug prices are skyrocketing, and State and local spending on these drugs is increasing.

(b) This Act is intended to improve the situation by revising the organizational framework to better facilitate the cooperation of State and local agencies to reduce the costs of pharmaceuticals they purchase.

(c) Both State and local entities will benefit from a collaboration to track high-cost pharmaceuticals, achieve the best value in procurement and pricing of pharmaceuticals, identify important issues related to prescription drug pricing and procurement, and increase the Department of Healthcare and Family Services purchasing power.

Section 10. The Illinois Pharmaceutical Collaborative.

(a) The Department of Healthcare and Family Services shall convene the Illinois Pharmaceutical Collaborative in accordance with this Act to address the rising cost of pharmaceutical drugs.

(b) The Illinois Pharmaceutical Collaborative shall be chaired by the Director of Healthcare and Family Services, or his or her designee.

(c) The activities of the Illinois Pharmaceutical Collaborative shall be coordinated by the Department of Healthcare and Family Services.

(d) The Illinois Pharmaceutical Collaborative shall meet at least twice per year. The mission of the Illinois Pharmaceutical Collaborative shall be to coordinate the efforts of State and local government entities to identify and implement opportunities for cost savings with regard to the purchase of pharmaceuticals, particularly pharmaceuticals that are considered high-cost drugs.

Section 15. Composition of the Illinois Pharmaceutical Collaborative.

(a) The following agencies shall be members of, and shall each appoint a representative to, the Illinois Pharmaceutical Collaborative:

(1) The Department of Corrections.

(2) The Department of Veterans' Affairs.

(3) The Department of Human Services.

(4) The Department of Financial and Professional Regulation.

(5) The Department of Central Management Services.

(6) The Department of Labor.

(7) The Department of Public Health.

(8) The Board of Higher Education.

(b) The Speaker of the House of Representatives and the President of the Senate shall each appoint a representative to the Illinois Pharmaceutical Collaborative. The Minority Leader of the House of Representatives and the Minority Leader of the Senate shall each appoint a representative to the Illinois Pharmaceutical Collaborative.

(c) Other State or local government agencies may also appoint a representative to the Illinois Pharmaceutical Collaborative, as determined by the Governor.

Section 20. Duties.

(a) The Illinois Pharmaceutical Collaborative shall perform all of the following functions:

(1) Coordinate best value clinical treatment protocols among members of the Illinois Pharmaceutical Collaborative.

(2) Leverage State and local governmental efficiencies and methodologies to achieve best value procurement, purchasing, and negotiation with manufacturers for discounts on pharmaceuticals.

(3) Investigate and implement options and strategies to achieve the greatest savings on pharmaceuticals, including all of the following:

(A) Encourage members of the Illinois Pharmaceutical Collaborative to develop and adopt the State's preferred drug list overseen by the Department of Healthcare and Family Services.

(B) Obtain the maximum transparency possible in administering the State's preferred drug list, including all forms of rebates, mail order income, and spreads.

(C) Join other State pharmaceutical purchasing programs in a consortium that is open to other private and public purchasers of pharmaceuticals.

(D) Join an independent association that produces comparative effectiveness research on pharmaceuticals using systematic reviews of scientific or medical studies that use clinical trials and are subject to peer review. The association's investigators shall comply with a conflict-of-interest policy that includes a formal, annual, written, self-declaration of no financial interest in any pharmaceutical company for at least the duration of the time that the person is working for the association.

(E) Obtain access to the drug discount program established under Section 340B of the federal Public Health Service Act (42 U.S.C. 256b).

(4) Establish and monitor performance and quality standards for protocols, guidelines, and contracts created for members of the Illinois Pharmaceutical Collaborative.

(5) Work with members of the Illinois Pharmaceutical Collaborative to track access to and State expenditures on specified high-cost drugs to inform the budget process.

(6) Recommend high-cost pharmaceuticals for cost value review by independent research organizations.

(7) Track new pharmaceuticals that are under review by the federal Food and Drug Administration, drugs that are likely to come on to the market in the near future, and drugs that may become high cost.

(8) Act as a forum for discussion where issues of interest related to pharmaceuticals can be identified and addressed.

(9) Collect information on drugs approved by the federal Food and Drug Administration that will be sold and used by members of the Illinois Pharmaceutical Collaborative.

(b) Nothing in this Section shall be construed to require the sharing of information that is prohibited by any other provision of law or contractual agreement, or the disclosure of information that may adversely affect potential pharmaceutical procurement by any State agency.

Section 25. Workgroups. The Illinois Pharmaceutical Collaborative shall form several workgroups in service of its goals that shall meet at least quarterly. The co-chairpersons of the Illinois Pharmaceutical Collaborative shall meet with the workgroup leads monthly. The workgroups formed shall include all of the following:

(1) A clinical workgroup.

(2) A policy workgroup.

(3) A procurement workgroup.

(4) A local outreach workgroup.

Section 30. Contracts.

(a) Notwithstanding any other provision of law, the Department of Healthcare and Family Services, in accordance with this Act, may enter into exclusive or nonexclusive contracts on a bid or negotiated basis with manufacturers and suppliers of single source or multisource pharmaceuticals. The Department of Healthcare and Family Services may obtain from those manufacturers and suppliers discounts, rebates, or refunds based on quantities purchased insofar as permissible under federal law. Contracts entered into in accordance this Act may include price discounts, rebates, refunds, or other strategies aimed at managing escalating prescription pharmaceutical drug prices.

(b) Contracts under this Act shall be exempt from the Illinois Procurement Code.

Section 35. Pharmaceutical benefits manager. The Department of Healthcare and Family Services may appoint and contract with a pharmaceutical benefits manager or other entity to facilitate the acquisition of pharmaceuticals purchased in accordance with this Act. The pharmaceutical benefits manager or other entity may do all of the following:

(1) Negotiate price discounts, rebates, or other options that achieve the greatest savings on pharmaceuticals with pharmaceutical manufacturers and wholesalers.

(2) Purchase pharmaceuticals for participating State or local governmental entities.

(3) Act as a consultant to the Department of Healthcare and Family Services and the Illinois Pharmaceutical Collaborative.

Section 40. Prescription drug bulk purchasing program.

(a) The following State agencies shall participate in the prescription drug bulk purchasing program authorized under this Act.

(1) The Department of Public Health.

(2) The Department of Corrections.

(3) The Department of Human Services' Division of Developmental Disabilities.

(b) Any State, local, or public agency governmental entity, other than a State agency specified in subsection (a), may elect to participate in the coordinated purchasing program.

Section 45. Reports. On or before July 1, 2021, the Department of Healthcare and Family Services shall submit a report to the appropriate policy and fiscal committees of the General Assembly on the activities of the Illinois Pharmaceutical Collaborative. The report shall be filed annually until 2025. The report shall include, but not be limited to, all of the following:

(1) The number and a description of the contracts entered into with pharmaceutical benefits managers or other pharmaceutical drug purchasing agents.

(2) The number and a description of entities that elect to participate in pharmaceutical purchasing coordinated by the Illinois Pharmaceutical Collaborative.

(3) The per month cost of pharmaceuticals for each member agency.

(4) Other options and strategies that have been or will be undertaken by the Illinois Pharmaceutical Collaborative in accordance with this Act.

(5) The progress made with regard to the investigation and implementation of options and strategies to achieve the greatest savings on pharmaceuticals.

(6) The estimated cost savings attributable to activities that have been or will be undertaken by the Illinois Pharmaceutical Collaborative.