[§346-342]  State pharmacy assistance
program.  (a)  There is established within the department the state
pharmacy assistance program.  Provided that there are no federally approved
prescription drug plans available in the State that provide a full coverage
prescription drug benefit, the state pharmacy assistance program may coordinate
the prescription drug coverage with the federal medicare part D prescription
drug benefit, including related supplies, as determined by the department, to
each resident who meets the eligibility requirements as outlined in section
346-343.



(b)  The department may provide enrollment
assistance to eligible individuals into the state pharmacy assistance program. 
Enrollment for medicaid dual eligible persons shall begin no later than October
1, 2005.



(c)  The department shall allow any willing
prescription drug plan approved by the federal Centers for Medicare and
Medicaid Services to provide the coordination of benefits between the State's
medicare prescription drug program and the medicare part D drug benefit.



(d)  The department may administer the state
pharmacy assistance program or contract with a third party or parties in
accordance with chapter 103F to administer any single component or combination
of components of the state pharmacy assistance program, including outreach,
eligibility, enrollment, claims, administration, rebate negotiations and
recovery, and redistribution, in order to coordinate the prescription drug
benefits of the state pharmacy assistance program and the federal medicare part
D drug benefit.



(e)  Any contract with third parties to
administer any component of the state pharmacy assistance program shall be
established either at no cost to the State, or on a contingency‑fee basis
and with no up-front costs to the State, as may be negotiated by the
department.



(f)  Any contract with third parties to
administer any component of the state pharmacy assistance program shall
prohibit the contractor from receiving any compensation or other benefits from
any pharmaceutical manufacturer participating in the state pharmacy assistance
program.



(g)  A prescription drug manufacturer or
labeler that sells prescription drugs in the State may enter into a rebate
agreement with the department.  The rebate agreement may be agreed upon by the
manufacturer or the labeler to make rebate payments to the department each
calendar quarter or according to a schedule established by the department.



(h)  The department or contractor may negotiate
the amount of the rebate required from a manufacturer or labeler in accordance
with this part.



(i)  The department or contractor may take into
consideration the rebate calculated under the medicaid rebate program pursuant to
Title 42 United States Code section 1396r-8, the average wholesale price of
prescription drugs, and any other cost data related to prescription drug prices
and price discounts.



(j)  The department or contractor shall use
their best efforts to obtain the best possible rebate amount.



(k)  The department may prescribe the
application and enrollment procedures for prospective enrollees.



(l)  The department shall conduct ongoing
quality assurance activities similar to those used in the State's medicaid
program. [L 2005, c 209, pt of §2]