Senate Bill No. 555

(By Senator K. Facemyer)

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[Introduced February 18, 2011; referred to the Committee on Health and Human Resources; and then to the Committee on Finance.]

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A BILL to amend the Code of West Virginia, 1931, as amended, by adding thereto a new section, designated §9-5-15a, relating to requiring the Secretary of the Department of Health and Human Resources to establish a competitive bid process for generic drug manufacturers to assure that generic drugs are furnished to Medicaid recipients at a competitively bid low cost.

Be it enacted by the Legislature of West Virginia:

    That the Code of West Virginia, 1931, as amended, be amended by adding thereto a new section, designated §9-5-15a, to read as follows:

ARTICLE 5. MISCELLANEOUS PROVISIONS.

§9-5-15a. Medicaid program; competitive bid process for generic drug manufacturers.

    (a) This section shall be known as "The Medicaid Generic Drug Competition and Savings Act."

    (b) For the purposes of this section:

    (1) “Competitive bid process” means a transparent procurement method in which bids from generic manufacturers are invited by openly advertising the scope, specifications, and terms and conditions of proposed contracts as well as the criteria by which the bids will be evaluated. The objective of competitive bidding is to establish the lowest price at which generic drugs may be procured by stimulating competition and by preventing favoritism.

    (2) “Generic drugs” means copies of brand name drugs that are no longer protected by patents. Generics are drugs that contain the same active ingredients, are identical in strength, dosage form, and route of administration as the brand name innovator drug and has the same indications, dosing, and labeling and provides the same efficacy and safety profile to patients as the brand name innovator drug.

    (3) “Generic manufacturers” means those manufacturers that manufacture generic drugs and distribute those generic drugs in this state.

    (4) “Medicaid” means the Medicaid program, established in Title XIX of the Social Security Act, which provides medical benefits to groups of low-income people.

    (5) “Secretary” means the Secretary of the Department of Health and Human Resources.

    (c) Notwithstanding any provision of this code to the contrary, the secretary shall require all generic drug manufacturers whose products are to be provided to Medicaid recipients to compete in a competitive bid process created by the secretary to ensure that the Department of Health and Human Resources is providing Medicaid recipients with quality generic products at a competitively bid low cost.

    NOTE: The purpose of this bill is to require the Secretary of the Department of Health and Human Resources to establish a competitive bid process for generic drug manufacturers to assure that generic drugs are furnished to Medicaid recipients at a competitively bid low cost.

    This section is new; therefore, strike-throughs and underscoring have been omitted.