SENATE, No. 1322

STATE OF NEW JERSEY

INTRODUCED JUNE 13, 1996

By Senator INVERSO

An Act concerning pharmaceutical manufacturer rebates and supplementing P.L.1947, c.156 (C.44:8-107 et seq.).

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. There act shall be known and may be cited as the "General Public Assistance Pharmaceutical Rebate Act."

    2. a. The general public assistance program established pursuant to P.L.1947, c.156 (C.44:8-107 et seq.) shall limit the coverage of pharmaceutical products to manufacturers who agree to provide rebates to the State pursuant to this act.

    b. The Commissioner of Human Services shall contract with manufacturers of pharmaceutical products to provide rebates for pharmaceutical products covered under the program on the same basis as is required under the Pharmaceutical Assistance to the Aged and Disabled program established pursuant to P.L.1975, c.194 (C.30:4D-20 et seq.).

    c. The rebate agreements entered into pursuant to this act between the Commissioner of Human Services and manufacturers participating in the program on the effective date of this act shall take effect on July 1, 1996 and shall be retroactive to that date if entered into after July 1, 1996.

    (1) A manufacturer of pharmaceutical products who is participating in the program on the effective date of this act shall enter into a rebate agreement with the commissioner within 30 days after the date the commissioner issues the rebate agreement for signature to continue its participation in the program. A participating manufacturer who does not enter into a rebate agreement shall not be eligible to participate in the program after the 60th day following the date the commissioner issues the rebate agreement for signature.

    (2) Notwithstanding the provisions of paragraph (1) of this subsection to the contrary, if a manufacturer of pharmaceutical products who was participating in the program on the effective date of this act or began participating during the period between the effective date of this act and the date the commissioner issues the rebate agreement for signature enters into a rebate agreement with the commissioner after the 30th day after the commissioner issues a rebate agreement for signature, the manufacturer shall be required to pay the rebate for any pharmaceutical products purchased by the program on or after July 1, 1996 or the date the manufacturer began participating in the program, whichever date is later.

    (3) A manufacturer of pharmaceutical products who was not participating in the program on the date the commissioner issued the rebate agreement for signature may enter into a rebate agreement with the commissioner and become a participating manufacturer. The rebate agreement shall take effect on the 30th day after the manufacturer enters into the rebate agreement.

    d. A manufacturer of pharmaceutical products who participates in the program pursuant to this act shall provide to the Commissioner of Human Services such information as the commissioner may request to carry out the purposes of this act.

    e. Any rebate agreement entered into between the Department of Human Services and a manufacturer of pharmaceutical products prior to the effective date of this act shall remain in effect and be considered a rebate agreement in compliance with this act until the date of expiration of the agreement or December 31, 1996, whichever date occurs sooner, or until either party terminates the agreement.

    3. This act shall take effect July 1, 1996.

STATEMENT

    This bill, the "General Public Assistance Pharmaceutical Rebate Act," requires manufacturers of pharmaceutical products, as a condition of participating in the general public assistance program established pursuant to P.L.1947, c.156 (C.44:8-107 et seq.), to enter into an agreement with the Commissioner of Human Services to provide a rebate to the State based on the amount of that manufacturer's pharmaceutical products purchased by the State program. The bill takes effect on July 1, 1996, and provides that the pharmaceutical rebate program will be administered on the same basis as the rebate program in the Pharmaceutical Assistance to the Aged and Disabled program.

Provides for pharmaceutical manufacturer rebates in the general public assistance program.