[§346-342]  State pharmacy assistanceprogram.  (a)  There is established within the department the statepharmacy assistance program.  Provided that there are no federally approvedprescription drug plans available in the State that provide a full coverageprescription drug benefit, the state pharmacy assistance program may coordinatethe prescription drug coverage with the federal medicare part D prescriptiondrug benefit, including related supplies, as determined by the department, toeach resident who meets the eligibility requirements as outlined in section346-343.

(b)  The department may provide enrollmentassistance to eligible individuals into the state pharmacy assistance program. Enrollment for medicaid dual eligible persons shall begin no later than October1, 2005.

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

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

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

(f)  Any contract with third parties toadminister any component of the state pharmacy assistance program shallprohibit the contractor from receiving any compensation or other benefits fromany pharmaceutical manufacturer participating in the state pharmacy assistanceprogram.

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

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

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

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

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

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