LD 711
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LD 711 Title Page Resolve, To Lower the Costs of Prescription Drugs through the Use of the Federa... Page 2 of 2
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LR 1165
Item 1

 
Sec. 1. Study and report. Resolved: That the Department of Human
Services shall study and by January 1, 2004 shall provide a
report to the Joint Standing Committee on Health and Human
Services on the feasibility of providing discounted
prescription drugs to Maine's most vulnerable patient
populations through the use of Section 340B of the federal
Public Health Service Act, 42 United States Code, Section 256b
(1999), referred to in this resolve as "Section 340B." The
department shall work with other state agencies,
representatives of state employees and representatives of
health care providers and facilities in the State to provide
the following information:

 
1. Covered entities. A description of all health care
providers and facilities in the State potentially eligible for
designation as "covered entities" under Section 340B,
including without limitation all hospitals eligible as
disproportionate share hospitals; recipients of grants from
the United States Public Health Service; federally qualified
health centers; federally qualified look-alikes; state-
operated AIDS drug assistance programs; Ryan White CARE Act
Title I, Title II and Title III programs; tuberculosis, black
lung, family planning and sexually transmitted disease
clinics; hemophilia treatment centers; public housing primary
care clinics; and clinics for homeless people;

 
2. Potential applications and benefits. A listing of
potential applications of Section 340B and the potential
benefits to public, private and 3rd-party payors for
prescription drugs, including without limitation:

 
A. Application to inmates and employees in youth
correctional facilities, county jails and state prisons;

 
B. Maximizing the use of Section 340B within state-funded
managed care plans;

 
C. Including Section 340B providers in state bulk
purchasing initiatives; and

 
D. Utilizing sole source contracts with Section 340B
providers to furnish high-cost chronic care drugs;

 
3. Section 340B discounts. Discounts available through
Section 340B contracts, including estimated costs savings to
the State as a result of retail mark-up avoidance, negotiated
subceiling prices and coordination with the MaineCare program
in order to minimize costs to the program and to other
purchasers of prescription drugs; and


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