PRINTER'S NO. 992
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 20070S0015B0992 - 2 -
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. D13L40BIL/20070S0015B0992 - 11 -