Senate Bill 265 Prescription Drugs

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1 Senate Bill 265 Prescription Drugs REMARKS BY SENATOR YVANNA D. CANCELA SENATE COMMITTEE ON HEALTH AND HUMAN SERVICES MARCH 29, 2017 Thank you, Madam Chair. For the record, I am Yvanna Cancela, representing Senate District No. 10 in Clark County. Senate Bill 265 makes various changes related to prescription drugs. In brief, it requires the Department of Health and Human Services (DHHS) to identify essential prescription drugs for the treatment of diabetes, requires manufacturers of these drugs to submit information related to costs and to reimburse purchasers of those drugs if costs increase more than a certain amount each year, and requires that insurers be notified of imminent cost increases. The bill also requires pharmaceutical sales representatives to be licensed and report certain information annually, and it authorizes students who attend private school, as well as certain employees, to self-administer medication for certain conditions, including diabetes. Essential Diabetes Drugs and Reporting Requirements

2 Senate Bill 265 requires the DHHS to compile a list of the prescription drugs that it determines are essential for treating diabetes. The list must be updated annually and must include all forms of insulin and biguanides (medicine used to lower blood sugar) sold in Nevada. This bill requires the manufacturer of any prescription drug included on DHHS s list to reimburse a person who buys the drug if: The wholesale acquisition cost of the drug exceeds the highest price paid for the drug in certain foreign countries; or The manufacturer increased the wholesale acquisition cost of the drug during the previous calendar year by more than the increase in the Medical Care Component of the Consumer Price Index for that year. Manufacturers of essential diabetes medications must post on their website a list of all prescription drugs eligible for reimbursement. However, reimbursement requirements only apply to purchases made during the immediately preceding 12 months. In addition, manufacturers of essential diabetes drugs must report certain cost-related information to DHHS by May 1 of every year. Reports must include drug research and development costs; costs related to preclinical and clinical studies; the cost of producing the drug; administrative expenditures; profits from the drug; financial assistance provided through prescription assistance programs; 2

3 the drug s wholesale acquisition cost; and a history of any increases in the wholesale acquisition cost. Senate Bill 265 also requires nonprofit organizations that advocate for patients or fund medical research in Nevada to submit to DHHS certain information regarding contributions received from prescription drug manufacturers by February 1 each year. These reports must include: The amount of each contribution; The manufacturer who made it; and The percentage of the organization s total gross income attributed to each manufacturer s contribution. The bill further requires DHHS to compile the information submitted by drug manufacturers and nonprofit organizations and post it to the Department s website. If a manufacturer or nonprofit fails to report required information, DHHS may impose administrative penalties of up to $5,000 per day. The Department of Health and Human Services must work with Nevada s Commissioner of Insurance to establish and maintain a database of third party insurers that offer coverage of prescription drugs to Nevada residents. The bill requires the manufacturer of an essential diabetes drug to notify each third party in the database at least 90 days before increasing the wholesale acquisition cost of 3

4 those drugs by more than the increase in the Medical Care Component of the Consumer Price Index for the immediately preceding 12 months. In addition, S.B. 265 requires most health care insurers, carriers, and organizations that provide coverage for prescription drugs in this State, and for which a formulary is used, to publish on their public website a notice of all prescription drugs included on the list of essential diabetes drugs. They must indicate which drugs have been or will be removed from the formulary during the current plan year or the next plan year. This information must be posted at least 30 days prior to each open enrollment period and must be updated throughout the open enrollment period. Licensing Pharmaceutical Sales Representatives Another major piece of S.B. 265 requires the licensure of pharmaceutical sales representatives. Specifically, the bill prohibits a person from practicing as a pharmaceutical sales representative in Nevada for more than 15 days per year unless the person has a valid license from the Division of Public and Behavioral Health (DPBH), DHHS. In addition to obtaining a license, pharmaceutical sales reps must submit an annual report to DPBH containing information about health care providers they contacted, the drugs they marketed, and free samples they provided, among other things. 4

5 Self-Administration of Medication The last major change in S.B. 265 is that it creates a process to authorize students with asthma, anaphylaxis, or diabetes, who are enrolled in a private school, to self-administer medication to treat that condition. The bill creates the same authorization for employees. Similar provisions already exist in Nevada Revised Statutes for students in public schools. Closing Remarks Madam Chair, this concludes my remarks. I appreciate your consideration of S.B. 265 and urge your support. Thank you. 5