Ch. 102                                    1996 LAWS OF MARYLAND

providing for the effective dates of this Act; and generally relating to the
substitution of generic forms of certain prescription drugs under the Maryland
Medical Assistance Program and the Maryland Pharmacy Assistance Program.

BY repealing and reenacting, with amendments,
Article - Health - General
Section 15-118 and 15-124(b)(l) and (c)
Annotated Code of Maryland
(1994 Replacement Volume and 1995 Supplement)

BY repealing and reenacting, with amendments,

Article - Health - General

Section 15-124(b)(1) and (c)

Annotated Code of Maryland

(1994 Replacement Volume and 1995 Supplement)

(As enacted by Chapter 401 of the Acts of the General Assembly of 1991, as
amended by Chapter 98 of the Acts of the General Assembly of 1993, and as
amended by Chapter 573 of the Acts of the General Assembly of 1995)

Preamble

WHEREAS, Generic equivalents of prescription drugs are far less expensive than
brand name drugs; and

WHEREAS, Several pharmacy insurance programs, such as the State employee
program, require substitution of therapeutically equivalent generic forms of drugs as soon
as the generic forms are included in "Approved Drug Products with Therapeutic
Equivalence Evaluations", a publication by the U.S. Department of Health and Human
Services that is also known as the "Orange Book"; and

WHEREAS, Current law requires the Maryland Medical Assistance Program to
publish additions to the Program list of equivalent generic drugs 60 days before a
substitution may be required; and

WHEREAS, As compared with other pharmacy insurance programs, these
required delays double the amount of time before State pharmacy insurance programs
may institute cost-saving substitutions of generic drugs; and

WHEREAS, In its Point-of-Sale system, the Department of Health and Mental
Hygiene now has the ability to advise pharmaceutical providers electronically regarding
the payment of a generic drug in the State formulary, thus providing prompt and
meaningful notice; and

WHEREAS, Repeal of current notice requirements would provide for substantial
cost savings of approximately $250,000 in State funds each year by allowing the State to
require generic substitutions on a more timely and efficient basis; now, therefore,

SECTION 1. BE IT ENACTED BY THE GENERAL ASSEMBLY OF
MARYLAND, That the Laws of Maryland read as follows:

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