MISSISSIPPI LEGISLATURE

2000 Regular Session

To: Public Health and Welfare

By: Representative Rushing

AN ACT TO PROVIDE THAT, AS A CONDITION OF A PHARMACY'S PARTICIPATION IN THE MEDICAID PROGRAM, THE PHARMACY MUST CHARGE MEDICARE BENEFICIARIES A PRICE FOR PRESCRIPTION DRUGS THAT DOES NOT EXCEED THE MEDICAID REIMBURSEMENT RATE TO THE PHARMACY FOR THOSE PRESCRIPTION DRUGS AND AN AMOUNT SET BY THE DIVISION OF MEDICAID TO COVER ELECTRONIC TRANSMISSION CHARGES; TO PROVIDE THAT, AS A CONDITION OF RECEIVING A PERMIT TO OPERATE, ANY PHARMACY IN THIS STATE THAT DOES NOT PARTICIPATE IN THE MEDICAID PROGRAM MUST CHARGE MEDICARE BENEFICIARIES A PRICE FOR PRESCRIPTION DRUGS THAT IS NOT MORE THAN 10% ABOVE THE PHARMACY'S WHOLESALE PRICE FOR THOSE PRESCRIPTION DRUGS; TO AMEND SECTION 73-21-105, MISSISSIPPI CODE OF 1972, TO CONFORM TO THE PRECEDING PROVISION; AND FOR RELATED PURPOSES.

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

SECTION 1. (1) As a condition of a pharmacy's participation in the Medicaid program, the pharmacy shall charge Medicare beneficiaries a price for prescription drugs that does not exceed the Medicaid reimbursement rate to the pharmacy for those prescription drugs and an amount set by the Division of Medicaid to cover electronic transmission charges, upon the presentation of a valid prescription for the patient and the patient's Medicare card. However, Medicare beneficiaries shall not be allowed to use the Medicaid reimbursement rate for over-the-counter medications or compounded prescriptions.

(2) The Division of Medicaid shall provide a mechanism to calculate and transmit the price to the pharmacy, but shall not apply the Medicaid drug utilization review process for purposes of this section.

(3) The Division of Medicaid shall monitor pharmacy participation with the requirements of subsection (1) of this section and report to the Legislature annually on that participation. The report shall include, but shall not be limited to, information on any pharmacies that discontinue participation in the Medicaid program, and the reasons given for the discontinuance.

(4) If prescription drugs are added to the scope of benefits available under the federal Medicare program, the Legislative Budget Office shall report that fact to the appropriate committees of the Legislature. It is the intent of the Legislature to evaluate the need to continue the implementation of this section under those circumstances.

SECTION 2. (1) As a condition of receiving a permit to operate, any pharmacy in this state that does not participate in the Medicaid program shall charge Medicare beneficiaries a price for prescription drugs that is not more than ten percent (10%) above the pharmacy's wholesale price for those prescription drugs, upon presentation of a valid prescription for the patient and the patient's Medicare card. However, Medicare beneficiaries shall not be allowed to use the price required by this subsection for over-the-counter medications or compounded prescriptions.

(2) The State Board of Pharmacy shall monitor pharmacy compliance with the requirements of subsection (1) of this section and report to the Legislature annually on that compliance.

(3) If prescription drugs are added to the scope of benefits available under the federal Medicare program, the Legislative Budget Office shall report that fact to the appropriate committees of the Legislature. It is the intent of the Legislature to evaluate the need to continue the implementation of this section under those circumstances.

SECTION 3. Section 73-21-105, Mississippi Code of 1972, is amended as follows:

73-21-105. (1) Every facility/business that shall engage in the wholesale distribution of prescription drugs, to include without limitation, manufacturing in this state, distribution into this state, or selling or offering to sell in this state, or distribution from or within this state, shall register biennially with the Mississippi State Board of Pharmacy by applying for a permit on a form supplied by the board and accompanied by a fee as set by subsection (4) of this section. The Pharmacy Board shall by regulation determine the classification of permit(s) that shall be required.

(2) Every business/facility/pharmacy located in this state that engages in or proposes to engage in the dispensing and delivery of prescription drugs to consumers shall register with the Mississippi State Board of Pharmacy by applying for a permit on a form supplied by the board and accompanied by a fee as set by subsection (4) of this section. The Pharmacy Board shall by regulation determine the classification of permit(s) that shall be required. A business/facility/pharmacy described in this subsection must comply with Section 2 of this act as a condition of receiving a permit from the board under this section.

(3) The board shall establish by rule or regulation the criteria which each business shall meet to qualify for a permit in each classification. The board shall issue a permit to any applicant who meets the criteria as established. The board may issue various types of permits with varying restrictions to businesses where the board deems it necessary by reason of the type of activities conducted by the business requesting a permit.

(4) The board shall specify by rule or regulation the registration procedures to be followed, including, but not limited to, specification of forms for use in applying for such permits and times, places and fees for filing such applications. However, the biennial fee for an original or renewal permit shall not exceed Three Hundred Dollars ($300.00).

(5) Applications for permits shall include the following information about the proposed business:

(a) Ownership;

(b) Location;

(c) Identity of the responsible person or pharmacist licensed to practice in the state, who shall be the pharmacist in charge of the pharmacy, where one is required by this chapter, and such further information as the board may deem necessary.

(6) Permits issued by the board pursuant to this section shall not be transferable or assignable.

(7) The board shall specify by rule or regulation minimum standards for the responsibility in the conduct of any business/facility and/or pharmacy that has been issued a permit. The board is specifically authorized to require that the portion of the facility located in this state to which a pharmacy permit applies be operated only under the direct supervision of no less than one (1) pharmacist licensed to practice in this state, and to provide such other special requirements as deemed necessary. Nothing in this subsection shall be construed to prevent any person from owning a pharmacy.

(8) All businesses permitted by the board shall report to the board the occurrence of any of the following changes:

(a) Permanent closing;

(b) Change of ownership, management, location or pharmacist in charge;

(c) Any and all other matters and occurrences as the board may require by rule or regulation.

(9) Disasters, accidents and emergencies which may affect the strength, purity or labeling of drugs, medications, devices or other materials used in the diagnosis or the treatment of injury, illness and disease shall be immediately reported to the board.

(10) No business that is required to obtain a permit shall be operated until a permit has been issued for such business by the board. Any person, firm or corporation violating any of the provisions of this section shall be guilty of a misdemeanor and, upon conviction thereof, shall be punished by a fine of not less than One Hundred Dollars ($100.00) nor more than One Thousand Dollars ($1,000.00), or imprisonment in the county jail for not less than thirty (30) days nor more than ninety (90) days, or by both such fine and imprisonment. However, the provisions of this chapter shall not apply to physicians, dentists, veterinarians, osteopaths or other practitioners of the healing arts who are licensed under the laws of the State of Mississippi and are authorized to dispense and administer prescription drugs in the course of their professional practice.

SECTION 3. This act shall take effect and be in force from and after July 1, 2000.