1Amending the act of June 2, 1915 (P.L.736, No.338), entitled, as
2reenacted and amended, "An act defining the liability of an
3employer to pay damages for injuries received by an employe
4in the course of employment; establishing an elective
5schedule of compensation; providing procedure for the
6determination of liability and compensation thereunder; and
7prescribing penalties," further providing for schedule of
8compensation.

9The General Assembly of the Commonwealth of Pennsylvania
10hereby enacts as follows:

11Section 1. Section 306(f.1)(3)(vi) of the act of June 2, 
121915 (P.L.736, No.338), known as the Workers' Compensation Act, 
13reenacted and amended June 21, 1939 (P.L.520, No.281) and 
14amended June 24, 1996 (P.L.350, No.57), is amended to read:

15Section 306. The following schedule of compensation is
16hereby established:

17* * *

18(f.1) * * *

19(3) * * *

1(vi) (A) The reimbursement for [prescription] drugs and
2professional pharmaceutical services shall be limited to one
3hundred [ten<-] per centum of the average wholesale price (AWP) of
4the product, calculated on a per unit basis, as of the date of 
5dispensing.

6(B) A physician seeking reimbursement for drugs dispensed by
7a physician shall include the original manufacturer's National
8Drug Code (NDC) number, as assigned by the Food and Drug
9Administration, on the bills and reports required under this
10section.

11(C) In no event may a physician seek reimbursement in excess
12of one hundred <-ten per centum of the AWP of the drugs dispensed
13by a physician as determined by reference to the original
14manufacturer's NDC number.

15(D) A repackaged NDC number may not be used and will not be
16considered the original manufacturer's NDC number. If a
17physician seeking reimbursement for drugs dispensed by a
18physician does not include the original manufacturer's NDC
19number on the bills and reports required by this section,
20reimbursement shall be limited to one hundred <-ten per centum of
21the AWP of the least expensive clinically equivalent drug,
22calculated on a per unit basis.

<-23(E) No outpatient provider, other than a pharmacy licensed
24in this Commonwealth or another state, may seek reimbursement
25for drugs dispensed in excess of an initial fifteen-day supply,
26commencing upon the employe's initial treatment following
27injury. Reimbursement shall be made for such fifteen-day supply
28at the rates set forth in this section.

29(E) <-No outpatient provider, other than a pharmacy licensed
30in this Commonwealth or another state, may do any of the
 

1following:

2(I) Seek reimbursement for a drug listed on Schedule II in
3section 4(2) of the act of April 14, 1972 (P.L.233, No.64),
4known as the "Controlled Substance, Drug, Device and Cosmetic
5Act," dispensed in excess of an initial seven-day supply,
6commencing upon the employe's initial treatment by a health care
7provider under the particular workers' compensation claim
8number. Should the employe require surgery, an additional 
9fifteen-day supply can be dispensed commencing on the date of 
10surgery.

11(II) Seek reimbursement for a drug listed on Schedule III in
12section 4(2) of the "Controlled Substance, Drug, Device and
13Cosmetic Act," which contains hydrocodone dispensed in excess of
14an initial seven-day supply, commencing upon the employe's
15initial treatment by a health care provider under the particular
16workers' compensation claim number.

17(III) Seek reimbursement for any other drug dispensed in
18excess of an initial twenty-day supply, commencing upon the
19employe's initial treatment by a health care provider under the
20particular workers' compensation claim number.

21(IV) Reimbursement for all drugs dispensed in accordance
22with this subsection shall be made at the rates set forth in
23this section.

24(F) No outpatient provider, other than a pharmacy licensed
25in this Commonwealth or another state, may seek reimbursement
26for an over-the-counter drug.

<-27(G) The Workers' Compensation Advisory Council shall
28annually conduct a study of the impact of this subclause,
29including calculation of the savings achieved in the dispensing
30of pharmaceuticals.

1 <-(G) (H) For purposes of this subclause, clinical
2equivalence, in reference to a drug, means the drug has chemical
3equivalents which, when administered in the same amounts, will
4provide essentially the same therapeutic effect as measured by
5the control of a symptom or a disease.

6* * *

7Section 2. This act shall take effect in 60 days.