Sec. 1. 22 MRSA §2699-A is enacted to read:

The Pharmacy Cost Management Council, referred to in this section as "the council," is established to develop measures to control the cost of prescription drugs and expand the State's purchasing power.

1.__Definitions.__As used in this section, unless the context otherwise indicates, the following terms have the following meanings.

A.__"Federal supply schedule" means the price available to all federal agencies for the purchase of pharmaceuticals authorized in the federal Veterans' Health Care Act of 1992, Public Law 102-585.

B.__"Manufacturer" has the same meaning as provided in section 2697, subsection 1.

2.__Duties.__The council shall perform the following duties and shall report on the work of the council and any recommendations for legislation or agency initiatives to the joint standing committee of the Legislature having jurisdiction over health and human services matters and the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs by March 1st each year beginning in 2006.

A.__The council shall consider strategies for managing the increasing cost of prescription drugs, including, but not limited to:

(1)__Entering into prescription drug purchasing agreements, joint negotiations directly with manufacturers and labelers for prescription drugs using as a reference point the federal supply schedule;

(2)__Group purchasing pools that include state, county, municipal and other public agencies and public entities and health programs, employers, purchasers of prescription drugs and other states;

(3)__Standardized prices;

(4)__Preferred drug lists;

(5)__Pharmacy benefits management;