Master FIR (1988)

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F I S C A L I M P A C T R E P O R T

SPONSOR:	Heaton		DATE TYPED:	01/28/01		HB	301
SHORT TITLE:		Prescription Drug Fair Pricing Act				SB
					ANALYST:		Wilson

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY01	FY02	FY01	FY02	Recurring or Non-Rec	Fund Affected
		NFI	NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to Senate Bill 140, Senate Bill 142, Senate Bill 143 and Senate Bill 144;

Duplicates Senate Bill 141.

SOURCES OF INFORMATION

Health Policy Commission

Board of Nursing

SUMMARY

Synopsis of Bill

House Bill 301 requires fair pricing and prohibits discrimination in drug pricing. A manufacturer or seller that offers prescription drugs in a transaction covered by this bill shall, during the same or substantially the same time period, offer the same terms and conditions for the drugs to any other purchaser. HB 301 covers transactions in which a manufacturer sells to a purchaser through a contractual agreement, purchase prices for similar volume purchases, rebates, free merchandise and samples. HB 301 does not prohibit a seller from offering or providing discounts as long as the discount is available to all purchasers on equal terms.

The following drug purchasers are exempted from the provisions of this bill:

•any federal, state or local government that directly purchases or procures prescription drugs;

• hospitals that purchase prescription drugs for their inpatients use, but not for resale or

outpatient use;

• charitable, non-profit health care providers, except those that offer, issue or administer a

health insurance policy or an employee benefit plan.

FISCAL IMPLICATIONS

HB 301 has no direct fiscal impact on State Agencies other than a possible increased caseload for the Attorney General and the Courts.

DUPLICATRES/RELATIONSHIP

Duplicates Senate Bill 141.

Relates to Senate Bill 140, Senate Bill 142, Senate Bill 143 and Senate Bill 144.

POSSIBLE QUESTIONS

Will HB 301 have a negative effect on the managed health care organizations ability to control drug costs?

DW/sb:prr