Introduced Version






SENATE BILL No. 319

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DIGEST OF INTRODUCED BILL



Citations Affected: IC 16-18-2-331.5; IC 16-47.

Synopsis: Aggregate purchasing of prescription drugs. Allows county hospitals, nonprofit organizations, small businesses, and the state Medicaid program to participate in the aggregate prescription drug purchasing program. Repeals a provision prohibiting the state Medicaid program from participating in a multi-state prescription drug purchasing program. Requires the state personnel department to charge fees for certain administrative costs.

Effective: July 1, 2005.





Simpson




    January 6, 2005, read first time and referred to Committee on Health and Provider Services.







Introduced

First Regular Session 114th General Assembly (2005)


PRINTING CODE. Amendments: Whenever an existing statute (or a section of the Indiana Constitution) is being amended, the text of the existing provision will appear in this style type, additions will appear in this style type, and deletions will appear in this style type.
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SENATE BILL No. 319



    A BILL FOR AN ACT to amend the Indiana Code concerning health.

Be it enacted by the General Assembly of the State of Indiana:

    SECTION 1. IC 16-18-2-331.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 331.5. "Small business", for purposes of IC 16-47-1, has the meaning set forth in IC 16-47-1- 0.5.
    SECTION 2. IC 16-47-1-0.5 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 0.5. As used in this chapter, "small business" means a business that satisfies the following:
        (1) The business is independently owned and operated.
        (2) The principal office of the business is located in Indiana.
        (3) The business has not more than one hundred (100) employees.

    SECTION 3. IC 16-47-1-5 IS AMENDED TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 5. (a) The following shall participate in the program:
        (1) The department, for a health benefit plan:
            (A) described in section 2(1), 2(2), or 2(3) of this chapter; and


            (B) that provides coverage for prescription drugs.
        (2) A state educational institution, for a health benefit plan:
            (A) described in section 2(4) of this chapter; and
            (B) that provides coverage for prescription drugs;
        unless the budget agency determines that the state educational institution's participation in the program would not result in an overall financial benefit to the state educational institution.
    (b) The following may participate in the program:
        (1) A state agency other than the department that:
            (A) purchases prescription drugs; or
            (B) arranges for the payment of the cost of prescription drugs.
        (2) A local unit (as defined in IC 5-10-8-1).
        (3) The Indiana comprehensive health insurance association established under IC 27-8-10.
         (4) A county hospital under IC 16-22.
        (5) A small business.
        (6) A nonprofit organization that has not more than one hundred (100) employees.

    (c) The state Medicaid program may not participate in the program under this chapter.
    SECTION 4. IC 16-47-1-11 IS ADDED TO THE INDIANA CODE AS A NEW SECTION TO READ AS FOLLOWS [EFFECTIVE JULY 1, 2005]: Sec. 11. (a) The department shall adopt rules under IC 4-22-2 to charge an entity listed in section 5(b)(4) through 5(b)(6) of this chapter a fee to cover the administrative costs associated with the participation of the entity in the program.
    (b) The department, with the approval of the budget agency, may adopt rules under IC 4-22-2 to establish application requirements and an application process for the entities listed in section 5(b) of this chapter to participate in the program.

    SECTION 5. IC 16-47-2-2 IS REPEALED [EFFECTIVE JULY 1, 2005].