2012 -- H 7792

=======

LC01880

=======

STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2012

____________

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS - PATIENT PROTECTION ACT

     Introduced By: Representatives Naughton, Slater, Valencia, and Diaz

     Date Introduced: February 28, 2012

     Referred To: House Corporations

It is enacted by the General Assembly as follows:

1-1

     SECTION 1. Section 5-48.1-3 of the General Laws in Chapter 5-48.1 entitled "Patient

1-2

Protection Act" is hereby amended to read as follows:

1-3

     5-48.1-3. Prohibited acts. -- (a) Whoever knowingly and willfully solicits or receives

1-4

any remuneration (including any kickback, bribe, or rebate) directly or indirectly, overtly or

1-5

covertly, in cash or in kind; (1) in return for referring an individual to a person for the furnishing,

1-6

or arranging for the furnishing, of any health care service or item; or (2) in return for purchasing,

1-7

leasing, ordering, or arranging for or recommending purchasing, leasing, or ordering, any health

1-8

care good, facility, service, or item is guilty of a misdemeanor, and upon conviction, shall be

1-9

fined not more than one thousand dollars ($1,000), or imprisoned for not more than one year, or

1-10

both.

1-11

      (b) Whoever knowingly and willfully offers or pays any remuneration (including any

1-12

kickback, bribe, or rebate) directly or indirectly, overtly or covertly, in cash or in kind, to any

1-13

person to induce that person: (1) to refer an individual to a person for the furnishing, or arranging

1-14

for the furnishing of, any health care item or service; or (2) to purchase, lease, order, or arrange

1-15

for or recommend purchasing, leasing, or ordering any health care good, facility, service, or item

1-16

is guilty of a misdemeanor, and upon conviction, shall be fined not more than one thousand

1-17

dollars ($1,000), or imprisoned for not more than one year, or both.

1-18

      (c) Subsections (a) and (b) of this section do not apply to:

1-19

      (1) A discount or other reduction in price obtained by a provider of services or other

1-20

entity if the reduction in price is properly disclosed and appropriately reflected in the costs

2-1

claimed or charges made by the provider;

2-2

      (2) Any amount paid by an employer to an employee (who has a bona fide employment

2-3

relationship with the employer) for employment in the provision of health care services;

2-4

      (3) Any amount paid by a vendor of goods or services to a person authorized to act as a

2-5

purchasing agent for a group of individuals or entities who are furnishing health care services, if:

2-6

      (i) The person has a written contract, with each individual or entity, which specifies the

2-7

amount to be paid the person, which amount may be a fixed amount or a fixed percentage of the

2-8

value of the purchases made by each individual or entity under the contract; and

2-9

      (ii) In the case of an entity that is a provider of services, the person shall disclose (in the

2-10

form and manner that the director requires) to the entity and, upon request, to the director, the

2-11

amount received from each vendor with respect to purchases made by or on behalf of the entity.

2-12

      (4) A waiver of any coinsurance under part B of title XVIII by a federally qualified

2-13

health care center with respect to an individual who qualifies for subsidized services under a

2-14

provision of the Public Health Service Act.

2-15

      (5) Any payment practice specified in regulations promulgated pursuant to section 14(a)

2-16

of the Medicare and Medicaid Patient and Program Protection Act of 1987, (see 42 U.S.C. section

2-17

1320a-7b), or to chapter 66.2 of title 42 relating to Pharmaceutical Assistance to the Elderly.

2-18

      (6) A discount or other reduction in price on a health care item or a limited-time free

2-19

supply of such item which is made available to an individual, if such item is provided through a

2-20

"point of sale" or "mail-in" coupon or through other similar means, for either: (i) a drug licensed

2-21

by the United States food and drug administration (FDA) as a biological product, pursuant to

2-22

section 351 of the public health services act, 42 USC 262 or by FDA regulations and policies; or

2-23

(ii) a drug for which there is no other alternative within the same therapeutic class, as defined and

2-24

identified in the U.S. pharmacopeia/national formulary compendium.

2-25

     SECTION 2. This act shall take effect upon passage.

=======

LC01880

========

EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N A C T

RELATING TO BUSINESSES AND PROFESSIONS - PATIENT PROTECTION ACT

***

3-1

     This act would limit the “point of sale”/”mail in coupon” exemption under the Patient

3-2

Protection Act to certain products determined by the FDA to be biological products pursuant to

3-3

federal law, or to products for which there is no generic alternative.

3-4

     This act would take effect upon passage.

=======

LC01880

=======