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                                                       PRINTER'S NO. 992

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 15 Session of 2007


        INTRODUCED BY COSTA, STACK, TARTAGLIONE, KASUNIC, KITCHEN,
           MELLOW, MUSTO AND FUMO, MAY 8, 2007

        REFERRED TO PUBLIC HEALTH AND WELFARE, MAY 8, 2007

                                     AN ACT

     1  Amending Title 40 (Insurance) of the Pennsylvania Consolidated
     2     Statutes, providing for drug retail price registry.

     3     The General Assembly of the Commonwealth of Pennsylvania
     4  hereby enacts as follows:
     5     Section 1.  Title 40 of the Pennsylvania Consolidated
     6  Statutes is amended by adding a part to read:
     7                              PART IV
     8                         HEALTH CARE REFORM
     9  Chapter
    10    71.  (Reserved)
    11    72.  Affordability
    12    73.  (Reserved)
    13    74.  (Reserved)
    14    75.  Miscellaneous Provisions
    15                             CHAPTER 71
    16                             (RESERVED)
    17                             CHAPTER 72


     1                           AFFORDABILITY
     2  Sec.
     3  7201.  (Reserved).
     4  7202.  (Reserved).
     5  7203.  (Reserved).
     6  7204.  (Reserved).
     7  7205.  (Reserved).
     8  7206.  (Reserved).
     9  7207.  (Reserved).
    10  7207.  (Reserved).
    11  7208.  (Reserved).
    12  7209.  Transparency in price and quality for consumers.
    13  § 7201.  (Reserved).
    14  § 7202.  (Reserved).
    15  § 7203.  (Reserved).
    16  § 7204.  (Reserved).
    17  § 7205.  (Reserved).
    18  § 7206.  (Reserved).
    19  § 7207.  (Reserved).
    20  § 7208.  (Reserved).
    21  § 7209.  Transparency in price and quality for consumers.
    22     (a)  The Pennsylvania Drug Retail Price Registry.--
    23         (1)  The council shall establish and maintain a registry
    24     to be known as the Pennsylvania Drug Retail Price Registry
    25     for the purpose of making retail price information for the
    26     150-most-frequently prescribed prescription drugs, together
    27     with their generic equivalents where applicable, readily
    28     available to consumers in this Commonwealth.
    29             (i)  The drug price registry shall include the
    30         information submitted to the council under this
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     1         subsection and the name and address of each pharmacy
     2         providing the information and shall be organized by zip
     3         code.
     4             (ii)  The drug price registry shall be updated
     5         monthly by the council and shall be posted on the
     6         council's Internet website in a format that is conducive
     7         to review and comparison by consumers of prescription
     8         drug retail prices charged by pharmacies in each zip code
     9         within this Commonwealth. It shall include a toll-free
    10         telephone number maintained by the council that consumers
    11         may call to obtain reprints of the registry.
    12             (iii)  The website shall be designed so that the
    13         consumer may download and print the displayed information
    14         and shall include at least the following:
    15                 (A)  Internet web links to other government
    16             resources that provide information relating to the
    17             regulation of prescription drugs and Federal and
    18             State health care coverage and pharmaceutical
    19             assistance programs.
    20                 (B)  An advisory statement alerting consumers of
    21             the need to tell their health care practitioner and
    22             pharmacist about all the medications they may be
    23             taking and to ask them how to avoid harmful
    24             interactions between those drugs, if any.
    25                 (C)  Clearly understandable language that is
    26             designed to assist consumers in understanding the
    27             content of and how to access the information made
    28             available on the website pursuant to this subsection.
    29         (2)  Within 30 days following the effective date of this
    30     section, the director of PACE shall determine and submit to
    20070S0015B0992                  - 3 -     

     1     the Pennsylvania Bulletin for publication a list of the 150-
     2     most-frequently prescribed prescription drugs in this
     3     Commonwealth and their generic equivalents and the unit
     4     amount to be used for price reporting purposes. The list
     5     shall be updated by the director of PACE annually thereafter,
     6     and each such update shall be submitted to the Legislative
     7     Reference Bureau for publication as a notice in the
     8     Pennsylvania Bulletin.
     9         (3)  Every pharmacy selling pharmaceuticals at retail in
    10     this Commonwealth shall submit to the council for inclusion
    11     in the drug price registry, in a form and manner prescribed
    12     by the council, on the 10th day of each calendar month
    13     beginning with the first calendar month following publication
    14     of the list described in paragraph (2), its prior monthly
    15     retail prices for each drug on the list and its generic
    16     equivalent, together with the amount of the dispensing fee.
    17     In addition, each such pharmacy shall make the list and its
    18     prices available to its customers at the pharmacy retail site
    19     upon request.
    20             (i)  Each pharmacy retail site shall post a sign that
    21         notifies customers of the availability of its price list
    22         in a conspicuous location that is either at or adjacent
    23         to the place where prescriptions are presented for
    24         compounding and dispensing, in the customer waiting area
    25         or in the area where prescribed drugs are delivered.
    26             (ii)  The provisions of this paragraph shall not be
    27         construed to prevent a pharmacy from changing its current
    28         retail price at any time, provided that the listed price
    29         available at the pharmacy retail site is updated at least
    30         weekly to reflect the new retail price.
    20070S0015B0992                  - 4 -     

     1         (4)  The State Board of Pharmacy may impose a fine of up
     2     to $1,000 per day for each day that a pharmacy fails to
     3     comply with any of the provisions of this paragraph. A
     4     separate fine may be imposed for each failure to comply. All
     5     fines shall be due 30 days from receipt of notice of each
     6     such failure. Funds collected pursuant to this paragraph
     7     shall be deposited into the CAP Fund.
     8     (b)  The Pennsylvania Hospital Payment Registry.--
     9         (1)  The council shall also establish and maintain a
    10     registry to be known as the Pennsylvania Hospital Payment
    11     Registry for the purpose of making readily available to
    12     consumers information regarding the payments received by
    13     hospitals for the 150-most-frequent admission diagnoses and
    14     the 150-most-frequently dispensed drugs.
    15             (i)  The hospital payment registry shall include the
    16         information submitted to the council under this
    17         subsection and the name and address of each hospital
    18         providing the information and shall be organized by zip
    19         code.
    20             (ii)  The hospital payment registry shall be updated
    21         annually by the council and shall be posted on the
    22         council's Internet website in a format that is conducive
    23         to review and comparison by consumers of reimbursement
    24         data from hospitals in each zip code of this
    25         Commonwealth. It shall include a toll-free telephone
    26         number maintained by the council that consumers may call
    27         to obtain reprints of the registry.
    28             (iii)  The website shall be designed so that the
    29         consumer may download and print the displayed information
    30         and shall include at least the following:
    20070S0015B0992                  - 5 -     

     1                 (A)  Internet web links to other government
     2             resources that provide information relating to the
     3             regulation of hospitals and health insurance.
     4                 (B)  Clearly understandable language that is
     5             designed to assist consumers in understanding the
     6             content of and how to access the information made
     7             available on the website pursuant to this subsection.
     8             (iv)  The information on the hospital payment
     9         registry may be combined with other data collected by the
    10         council and posted on the council's Internet website to
    11         provide comparative information useful to consumers
    12         selecting a hospital for medical care.
    13         (2)  Within 90 days following the effective date of this
    14     section and on or before January 31 of each year thereafter,
    15     all hospitals shall submit to the council for inclusion in
    16     the hospital payment registry, in a form and manner
    17     prescribed by the council, all of the following:
    18             (i)  The 150-most-frequent admission diagnoses and
    19         the 150-most-frequently dispensed drugs (both
    20         prescription and nonprescription) in the hospital during
    21         the preceding year.
    22             (ii)  The amount an individual enrolled in a high
    23         deductible health plan with a health savings account is
    24         required to pay for the diagnoses and drugs described in
    25         subparagraph (i).
    26             (iii)  The average payment the hospital has
    27         negotiated with third-party payers for the diagnoses and
    28         drugs described in subparagraph (i).
    29             (iv)  The amount an uninsured patient is charged for
    30         the diagnoses and drugs described in subparagraph (i).
    20070S0015B0992                  - 6 -     

     1         (3)  A hospital shall make the list and payments received
     2     available to its patients at the hospital site upon request.
     3     The hospital shall post a sign that notifies patients of the
     4     availability of the list at or adjacent to the place where
     5     patients are admitted to the hospital and at the place where
     6     patients receive financial counseling.
     7     (c)  The Pennsylvania Outpatient Procedure Payment
     8  Registry.--
     9         (1)  The council shall also establish and maintain a
    10     registry to be known as the Pennsylvania Outpatient Procedure
    11     Payment Registry for the purpose of making readily available
    12     to consumers information regarding the payments received by
    13     ambulatory surgical facilities and imaging centers for the
    14     50-most-frequent outpatient procedures.
    15             (i)  The outpatient procedure payment registry shall
    16         include the information submitted to the council under
    17         this subsection and the name and address of each
    18         outpatient facility providing the information and shall
    19         be organized by zip code.
    20             (ii)  The outpatient procedure payment registry shall
    21         be updated annually by the council and shall be posted on
    22         the council's Internet website in a format that is
    23         conducive to review and comparison by consumers of
    24         reimbursement data from outpatient facilities in each zip
    25         code of this Commonwealth. It shall include a toll-free
    26         telephone number maintained by the council that consumers
    27         may call to obtain reprints of the registry.
    28             (iii)  The website shall be designed so that the
    29         consumer may download and print the displayed information
    30         and shall include at least the following:
    20070S0015B0992                  - 7 -     

     1                 (A)  Internet web links to other government
     2             resources that provide information relating to the
     3             regulation of outpatient facilities and health
     4             insurance.
     5                 (B)  Clearly understandable language that is
     6             designed to assist consumers in understanding the
     7             content of and how to access the information made
     8             available on the website pursuant to this subsection.
     9             (iv)  The information on the outpatient procedure
    10         payment registry may be combined with other data
    11         collected by the council and posted on the council's
    12         Internet website to provide comparative information
    13         useful to consumers selecting a provider of medical care.
    14         (2)  Within 90 days following the effective date of this
    15     section and on or before January 31 of each year thereafter,
    16     all ambulatory surgical facilities and all imaging centers
    17     shall submit to the council for inclusion in the outpatient
    18     procedure payment registry, in a form and manner prescribed
    19     by the council, the 50-most-frequent procedures performed at
    20     the ambulatory surgical facility or imaging center during the
    21     preceding year, the charge for each such procedure and the
    22     average third-party reimbursement for each such procedure.
    23         (3)  The council, in consultation with the Department of
    24     Health, may determine that the same information should be
    25     obtained from other health care providers that primarily
    26     perform outpatient procedures other than for primary or
    27     chronic care, and, 90 days following publication of notice in
    28     the Pennsylvania Bulletin, those health care providers shall
    29     submit to the council for inclusion in the outpatient
    30     procedure payment registry the information set forth in
    20070S0015B0992                  - 8 -     

     1     paragraph (2).
     2     (d)  Guidelines.--The council may adopt guidelines to
     3  effectuate the purposes of this section.
     4     (e)  Enforcement.--In addition to any other remedy available,
     5  the council may impose a civil penalty of up to $500 per day for
     6  each failure of a facility to provide the council the
     7  information required under this section. All fines collected
     8  under this subsection shall be deposited in the CAP Fund.
     9                             CHAPTER 73
    10                             (RESERVED)
    11                             CHAPTER 74
    12                             (RESERVED)
    13                             CHAPTER 75
    14                      MISCELLANEOUS PROVISIONS
    15  Sec.
    16  7501.  Regulations.
    17  7502.  Enforcement.
    18  7503.  Severability.
    19  § 7501.  Regulations.
    20     (a)  Regulations promulgated under this part.--Except as
    21  otherwise provided in this part, the promulgation of regulations
    22  under this part by Commonwealth agencies given the authority to
    23  promulgate regulations shall, until three years from the
    24  effective date of this section, be exempt from the following:
    25         (1)  Section 205 of the Commonwealth Documents Law.
    26         (2)  The Commonwealth Attorneys Act.
    27         (3)  The Regulatory Review Act.
    28     (b)  Other regulations.--If, in the determination of the head
    29  of a Commonwealth agency given authority to promulgate
    30  regulations under this part, rulemaking is needed for purposes
    20070S0015B0992                  - 9 -     

     1  of the safety of patients in this Commonwealth, the Commonwealth
     2  agency may promulgate a final-omitted regulation under the
     3  Regulatory Review Act.
     4  § 7502.  Enforcement.
     5     (a)  Determination of violation.--Upon a determination that a
     6  person licensed by the Insurance Department has violated any
     7  provision of this part, the department may, subject to 2 Pa.C.S.
     8  Chs. 5 Subch. A (relating to practice and procedure of
     9  Commonwealth agencies) and 7 Subch. A (relating to judicial
    10  review of Commonwealth agency action) do any of the following:
    11         (1)  Issue an order requiring the person to cease and
    12     desist from engaging in the violation.
    13         (2)  Suspend or revoke or refuse to issue or renew the
    14     certificate or license of the offending party or parties.
    15         (3)  Impose an administrative penalty of up to $5,000 for
    16     each violation.
    17         (4)  Seek restitution.
    18         (5)  Impose any other penalty or pursue any other remedy
    19     deemed appropriate by the commissioner.
    20     (b)  Other remedies.--The enforcement remedies imposed under
    21  this section are in addition to any other remedies or penalties
    22  which be imposed by any other applicable statute, including the
    23  act of July 22, 1974 (P.L.589, No.205), known as the Unfair
    24  Insurance Practices Act. A violation by any person of this part
    25  is deemed an unfair method of competition and an unfair or
    26  deceptive act or practice under the Unfair Insurance Practices
    27  Act.
    28     (c)  No private cause of action.--Nothing in this part shall
    29  be construed as to create or imply a private cause of action for
    30  violation of this part.
    20070S0015B0992                 - 10 -     

     1  § 7503.  Severability.
     2     (a)  General rule.--The provisions of this part are
     3  severable. If any provision of this part or its application to
     4  any person or circumstance is held invalid, the invalidity shall
     5  not affect other provisions or applications of this part which
     6  can be given effect without the invalid provision or
     7  application.
     8     (b)  (Reserved).
     9     (c)  (Reserved).
    10     Section 2.  This act shall take effect in 60 days.














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