2016 -- S 2509

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LC004960

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     STATE OF RHODE ISLAND

IN GENERAL ASSEMBLY

JANUARY SESSION, A.D. 2016

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A N   A C T

     RELATING TO INSURANCE - PHARMACY FREEDOM OF CHOICE - FAIR

COMPETITION AND PRACTICES

     

     Introduced By: Senators Miller, Goldin, Crowley, Lombardo, and Nesselbush

     Date Introduced: February 25, 2016

     Referred To: Senate Health & Human Services

     It is enacted by the General Assembly as follows:

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     SECTION 1. Section 27-29.1-7 of the General Laws in Chapter 27-29.1 entitled

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"Pharmacy Freedom of Choice - Fair Competition and Practices" is hereby amended to read as

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follows:

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     27-29.1-7. Regulation of pharmacy benefits managers. – (a) Pharmacy benefits

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managers shall be included within the definition of third-party administrator under chapter 20.7 of

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this title and shall be regulated as such. The annual report filed by third-party administrators with

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the department of business regulation shall include: contractual language that provides a complete

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description of the financial arrangements between the third-party administrator and each of the

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insurers covering benefit contracts delivered in Rhode Island; and if the third-party administrator

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is owned by or affiliated with another entity or entities, it shall include an organization chart and

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brief description which shows the relationships among all affiliates within a holding company or

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otherwise affiliated. Such reporting shall be in a format required by the director and filed with the

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department as a public record as defined and regulated under chapter 2 of title 38.

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     (b) At the time of filing, a one dollar ($1.00) per covered life per month fee shall be paid

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to the department of business regulation.

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     (c) The funds accruing to the state as provided in subsection (b) of this section shall be

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deposited into a restricted receipt account, managed by the secretary of the executive office of

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health and human services. The funds shall be expended on treatment for opioid use disorders as

 

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determined by the secretary to meet the recommendations of the governor's overdose prevention

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and intervention task force.

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     SECTION 2. This act shall take effect upon passage.

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EXPLANATION

BY THE LEGISLATIVE COUNCIL

OF

A N   A C T

     RELATING TO INSURANCE - PHARMACY FREEDOM OF CHOICE - FAIR

COMPETITION AND PRACTICES

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     This act would add a one ($1.00) dollar fee per covered life per month to be paid when

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filing the annual report required of third party administrators of pharmacy benefit plans. The

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funds would go into a restricted receipt account and would be expended on opioid use disorders.

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     This act would take effect upon passage.

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