Ch. 102                                    1996 LAWS OF MARYLAND

Program shall notify all pharmacies under contract with the Program in writing of changes
in the Pharmaceutical Benefit Program rules or requirements at least 30 days before the
change is effective.

(2)     Changes that require 30 days' advance written notice under paragraph
(1) of this subsection are:

(i) Exclusion of coverage for classes of drugs as specified by contract;

(ii) Changes in prior or preauthorization procedures; and

(iii) Selection of new prescription claims processors.

(3)     If the Program fails to provide advance notice as required under
paragraph (1) of this subsection, it shall honor and pay in full any claim under the
Program rules or requirements that existed before the change for 30 days after the
postmarked date of the notice.

(4)     NOTWITHSTANDING ANY OTHER PROVISION OF LAW, THE NOTICE
REQUIREMENTS OF THIS SUBSECTION DO NOT APPLY TO THE ADDITION OF NEW
GENERIC DRUGS AUTHORIZED UNDER § 12-508 OF THE HEALTH OCCUPATIONS
ARTICLE.

(e) (D) The Secretary shall adopt regulations to carry out the provisions of this
section [and to identify those drugs that meet the criteria required under subsection (c)
of this section].

SECTION 2. AND BE IT FURTHER ENACTED, That the Laws of Maryland
read as follows:

Article - Health - General

15-124.

(b)     (1) (I) Reimbursement under the Maryland Pharmacy Assistance
Program shall be limited to maintenance drugs, anti-infectives, and AZT as specified in.
regulations to be issued by the Secretary after consultation with the Maryland
Pharmacists Association.

(II) 1. For any drug on the Program's interchangeable drug list, the
Program shall reimburse providers in an amount not more than it would reimburse for the
drug's generic equivalent, unless the individual's physician states, in his or her own
handwriting, on the face of the prescription, that a specific brand is "medically necessary"
AND INCLUDES A MEDICAL REASON WHY THE GENERIC CANNOT BE USED for the
particular patient.

2. IF AN APPROPRIATE GENERIC DRUG IS NOT GENERALLY
AVAILABLE, THE DEPARTMENT MAY WAIVE THE REIMBURSEMENT REQUIREMENT
UNDER SUB-SUBPARAGRAPH 1 OF THIS SUBPARAGRAPH.

(c)     (1) [Unless] EXCEPT AS PROVIDED UNDER PARAGRAPH (4) OF THIS
SUBSECTION AND UNLESS the change is made by an emergency regulation, the Maryland
Pharmacy Assistance Program shall notify all pharmacies under contract with the

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