45th legislature - STATE OF NEW MEXICO - second session, 2002

FOR THE LEGISLATIVE HEALTH AND HUMAN SERVICES COMMITTEE

AND THE LEGISLATIVE HEALTH SUBCOMMITTEE

AN ACT

RELATING TO PRESCRIPTION DRUGS; REQUIRING REPORTING OF CERTAIN PRICES TO THE HUMAN SERVICES DEPARTMENT; PROVIDING LIMITATIONS; PROVIDING FOR ENFORCEMENT; MAKING AN APPROPRIATION.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

Section 1. AVERAGE MANUFACTURER PRICE--FILING--REPORTING.--

A. A person who manufactures a prescription drug, including a generic prescription drug, that is sold in New Mexico shall file with the human services department:

(1) the average manufacturer price for the drug; and

(2) the price that each wholesaler in this state pays the manufacturer to purchase the drug.

B. The information required under Subsection A of this section shall be filed annually or more frequently, as determined by the human services department.

C. A person who engages in the wholesale distribution of prescription drugs in New Mexico shall file with the human services department information showing the actual price at which the wholesaler or distributor sells a particular drug to a pharmacy.

D. As used in this section, "average manufacturer price" means the average price paid to the manufacturer for the drug in New Mexico, including rebates, discounts and market incentives, by wholesalers for drugs distributed to pharmacies, by class of trade, after deducting customary prompt-pay discounts.

Section 2. DISCLOSURE--LIMITATIONS.--Disclosure of information acquired pursuant to Section 1 of this act shall not identify a specific manufacturer, wholesaler or distributor by name or the prices charged by a specific manufacturer, wholesaler or distributor for a specific prescription drug.

Section 3. ENFORCEMENT.--The office of the attorney general may take action to investigate and enforce the requirements of Section 1 of this act.

Section 4. APPROPRIATION.--Twenty-five thousand dollars ($25,000) is appropriated from the general fund to the human services department for expenditure in fiscal year 2003 to process information received pursuant to Section 1 of this act. Any unexpended or unencumbered balance remaining at the end of fiscal year 2003 shall revert to the general fund.