SB 131 — INTERAGENCY PHARMACIES PURCHASING COUNCIL

SENATE BILL 131 54TH LEGISLATURE - STATEOFNEWMEXICO- FIRST SESSION, 2019 INTRODUCED BY Jeff Steinborn and Joanne J.

Ferrary Pursuant to House Rule 24-1, this document incorporates amendments that have been adopted prior to consideration of this measure by the House.

It is a tool to show the amendments in context and is not to be used for the purpose of amendments.

ESTABLISHING THE INTERAGENCY h PHARMACEUTICALS PURCHASING COUNCIL;

PROVIDING FOR COORDINATED g o PROCUREMENT OF PHARMACEUTICALS AND PHARMACEUTICAL BENEFITS t hr g e i k AMONG CERTAIN STATE AGENCIES AND OTHER GOVERNMENTAL ENTITIES h r i s AND FOR REPORTINGREPORTING. SFCº ;

MAKING8 ANBE APPROPRIATION.IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

.»SFCSECTION h1. , t, e u g e b l e e h BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF NEW MEXICO:

nINTERAGENCY dPHARMACEUTICALS dPURCHASING iCOUNCIL--CREATION--MEMBERSHIP--DUTIES.-- =A. = o h SECTION 1.

[NEWThe MATERIAL]"interagency INTERAGENCYpharmaceuticals PHARMACEUTICALSpurchasing lcouncil" ]is bcreated ,dand iis aadministratively ºattached eto PURCHASINGthe COUNCIL--CREATION--MEMBERSHIP--DUTIES.--general rservices idepartment. = r t e w d m a n o A.

The "interagency pharmaceuticals purchasing d m :

b e d s º o t n = .211507.6 s k m e e a n e d r e l u [ A d council" is created and is administratively attached to the general services department.

SB 131 Page 1 B.

Pursuant to its review of these strategies and related data, the interagency pharmaceuticals purchasing h council shall decide by vote which cost-containment strategies g o t hr it will recommend.

Constituent agencies shall make their own g e i k procurement decisions.

The secretary of general services shall h r i s serve as director of the council and shall be responsible for h , t, the coordination of the day-to-day activities of the council.

e u g e b l e e h C.

The interagency pharmaceuticals purchasing n d d i = = o h council shall be composed of the following eleven members l ] b ,d i a º e serving as voting, ex-officio members:

r i = r t e w d m a n o (1) the secretary of human services or the dsecretary's mdesignee; :

b e d s º o t n = .211507.6 s k m e - 2 - e a n e d r e l u [ A d secretary's designee;

(7) the executive director of the public SB 131 Page 2 school insurance authority or the executive director's designee;

(8) the superintendent of the Albuquerque h public school district or the superintendent's designee;

g o t hr (9) the president of the university of g e i k New Mexico or the president's designee;

and h r i s (10) two members, appointed by the governor, h , t, who are officers of, or representative of organizations that e u g e b l e e h represent, county, municipal or local government entities that n d d i = = o h participate in consolidated purchasing of pharmaceuticals or l ] b ,d i a º e pharmacy benefits with other constituent agencies.

r i = r t e w d m a n o D.

The interagency pharmaceuticals purchasing dcouncil mshall :convene its first meeting by September 1, 2019 at the call of the secretary of general services.

b e d s º o t n = .211507.6 s k m e - 3 - e a n e d r e l u [ A d council shall convene its first meeting by September 1, 2019 at the call of the secretary of general services.

The interagency pharmaceuticals purchasing council shall review and coordinate cost-containment SB 131 Page 3 strategies for the procurement of pharmaceuticals and pharmacy benefits and the pooling of risk for pharmacy services by the constituent agencies.

h (1) the benchmarking of pricing for u » r pharmaceuticals and pharmacy benefits to the pricing that the t h g e l i state's medical assistance plans achieve for pharmaceuticals h r i s and pharmacy benefits;

provided that the human services h , e h department shall seek federal authorization prior to making any t u g e b l e e , gh changes to medical assistance pharmaceuticals purchasing or n d d i = = o h pharmacy benefits;

l ] b ,d i a º r (2) active medical management to optimize e r = t e w d m a n o health outcomes and reduce costs;

d(3) mthe :establishment of a common formulary for all pharmaceuticals and pharmacy benefits plans offered by constituent agencies;

b r e t º o t n = .211507.6 s k m e - 4 - e a n e d r e l u [ A d (3) the establishment of a common formulary for all pharmaceuticals and pharmacy benefits plans offered by constituent agencies;

SB 131 Page 4 (7) identifying any opportunities for pooling risk among two or more constituent agencies or populations the constituent agencies serve;

(8) identifying any opportunities for consolidating purchasing with other entities and states of the h United States;

u » r (9) ensuring that all agencies, programs, t h g e l i clinics, hospitals and other health-related centers and h r i s entities, including those identified by the human services h , e h department pursuant to Paragraph (3) of Subsection A of Section t u g e b l e e , gh 27-2-12.13 NMSA 1978, that are eligible for pharmaceutical n d d i = = o h discounts pursuant to Section 340B of the federal Public Health l ] b ,d i a º r Service Act participate in that Section 340B federal e r = t e w d m a n o pharmaceutical price discount program;

d(10) midentifying :any opportunities for maximizing the use of generic pharmaceuticals where safe and cost-effective to do so;

b r e t º o t n = .211507.6 s k m e - 5 - e a n e d r e l u [ A d (10) identifying any opportunities for maximizing the use of generic pharmaceuticals where safe and cost-effective to do so;

(12) identifying ways to leverage constituent agencies' pharmaceutical and pharmacy benefits SB 131 Page 5 procurement to maximize the purchasing power of New Mexico residents purchasing pharmaceuticals and pharmacy benefits in the private sector;

(13) identifying other cost-saving opportunities for New Mexico residents purchasing h pharmaceuticals or pharmacy benefits in the private sector;

and u » r (14) identifying any other opportunities for t h g e l i maximizing efficiency and a high standard of health care h r i s quality.