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Ch. 439 2002 LAWS OF MARYLAND
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savings attributable to those efforts
during fiscal 2003.
The Department of Health and Mental
Hygiene (DHMH) shall not implement
any other pharmacy cost containment
measures until DHMH has worked
with representatives of the
pharmaceutical and pharmacy
industries, prescribers, and patient
advocates to identify cost
containment measures which will
produce savings of at least
$10,100,000 in fiscal 2003; and
By July 1, 2002, if additional cost
savings obtained as a result of
alternative_cost containment
measures are not sufficient to ensure
that on an annualized basis the
pharmacy cost containment assumed
in the fiscal 2003 budget will be
achieved, DHMH shall implement cost
containment measures with respect to
pharmacy reimbursement in a
manner that achieves the pharmacy
cost containment assumed in the
fiscal 2003 budget.
Further provided that $25,000,000 of
this appropriation for a physician
rate increase may only be expended to
increase fee-for-service physician
rates and for payments to Managed
Care Organizations (MCOs). MCOs
receiving these funds shall expend the
funds to pay network physicians at
least 100 percent of the new fee
schedule used in fee-for-service
Medicaid for evaluation and
management services. An MCO
wishing to spend the new resources to
increase other physician fees instead
of paying 100 percent of the new
Medicaid fee-for-service fee schedule
may request a waiver from DHMH.
DHMH may approve a waiver request
if an MCO demonstrates that at least
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