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PARRIS N. GLENDENING, Governor Ch. 464
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(1) its progress in complying with subsections (a), (b), and (c) of this
section;
(2) an analysis of the estimated costs of implementing the fee-for-service
reimbursement rate system proposed under subsections (a), (b), and (c) of this section;
(3) any proposed changes to the fee-for-service reimbursement rates for
the public mental health system; and
(4) the schedule for implementing any proposed changes.
SECTION 3. AND BE IT FURTHER ENACTED, That:
(a) The Department of Health and Mental Hygiene shall consult with
representatives of the pharmaceutical and pharmacy industries, authorized
prescribers, and patient advocates to identify and implement alternative pharmacy
cost containment measures.
(b) (1) The Department may not implement a reduction in the pharmacy
reimbursement rate until October 1, 2002.
(2) The Department of Health and Mental Hygiene may not increase the
total copayment collection from enrollees in the Medicaid program, including enrollees
in managed care organizations.
(c) On or before October 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, the Department of Health and Mental Hygiene shall implement cost
containment measures with respect to pharmacy reimbursement in a manner that
achieves the level of savings that would have been achieved if the pharmacy
reimbursement reduction took effect on July 1, 2002.
(d) On or before October 1, 2002, the Department shall report, in accordance
with § 2-1246 of the State Government Article, to the Senate Finance Committee, the
Senate Budget and Taxation Committee, the House Economic Matters Committee, and
the House Environmental Matters Committee on the pleasures that have been taken to
identify and implement alternative cost containment measures and the projected cost
savings attributed to these measures.
(e) On or before October 1, 2002, the Department shall report, in accordance
with § 2-1246 of the State Government Article, to the Senate Finance Committee, the
Senate Budget and Taxation Committee, the House Economic Matters Committee, and
the House Environmental Matters Committee on the pharmacy dispensing fee for the
Medicaid and Maryland Pharmacy Assistance Programs. In preparing the report, the
Department shall consult with representatives from the community and independent
pharmacies. The report may include the following:
(1) an analysis of the dispensing fee structure in other states;
(2) an analysis of current reports and literature concerning dispensing
fees in state prescription drug programs; and
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- 3713 -
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