MISSISSIPPI LEGISLATURE

1999 Regular Session

To: Public Health and Welfare

By: Representatives Howell, Barnett (92nd), Eaton, Franks, Hudson, Malone, Martinson, Read, Smith (35th), Stringer, Warren

AN ACT TO PROHIBIT ENTITIES THAT ADMINISTER PRESCRIPTION DRUG PROGRAMS THROUGH A NETWORK OF PARTICIPATING PHARMACIES FROM ISSUING CASH DISCOUNT CARDS THAT THE PARTICIPATING PHARMACIES MUST ACCEPT OR HONOR AS A CONDITION OF PARTICIPATION IN THE PRESCRIPTION DRUG PROGRAM, UNLESS THE ENTITY PAYS A PORTION OF THE COST OF THE DISCOUNT GIVEN BY THE PHARMACY FOR PRESCRIPTIONS PURCHASED WITH THE USE OF THE CASH DISCOUNT CARD; TO PROHIBIT ANY OTHER PERSONS OR ENTITIES FROM ISSUING CASH DISCOUNT CARDS UNLESS THE PERSON OR ENTITY PAYS A PORTION OF THE COST OF THE DISCOUNT GIVEN BY THE PHARMACY FOR PRESCRIPTIONS PURCHASED WITH THE USE OF THE CASH DISCOUNT CARD; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As used in this section:

(a) "Cash discount card" means a card, other than the program identification card of a member or participant of a prescription drug program, that allows the holder to obtain a discount on a prescription drug when paying for the prescription at the point-of-sale.

(b) "Prescription drug program" means a program or plan that provides coverages and benefits for prescription drugs for members or participants in the program, whether the program is a separate program or part of a health benefit plan.

(2) Any entity that administers a prescription drug program through a network of participating pharmacies for the benefit of any resident of the State of Mississippi shall not issue or distribute any cash discount card that the participating pharmacies must accept or honor as a condition or requirement of participation in the prescription drug program, or that the participating pharmacies must accept or honor if they accept or honor program identification cards held by members or participants of any prescription drug program administered by the entity, unless the entity pays a portion of the cost of the discount given by the pharmacy for prescriptions purchased with the use of the cash discount card.

(3) Any person or entity that is not subject to subsection (2) of this section shall not issue or distribute any cash discount card to any resident of the State of Mississippi unless the person or entity pays a portion of the cost of the discount given by the pharmacy for prescriptions purchased with the use of the cash discount card.

(4) Any provision in any prescription drug program or health benefit plan that is executed, delivered, renewed or otherwise contracted for in this state that is not in compliance with this section shall be void to the extent of the noncompliance.

(5) The provisions of this section shall not apply to the issuers of Medicare Supplement Insurance policies.

(6) The Office of Attorney General, Consumer Protection Division, shall enforce the provisions of this section.

SECTION 2. This act shall take effect and be in force from and after July 1, 1999.