Effective: October 17, 2019
Latest Legislation: House Bill 166 - 133rd General Assembly
(A) Not later than July 1, 2020, the medicaid director shall establish an annual benchmark for prescribed drug spending growth under the medicaid program. If the director determines that prescribed drug spending in a given year is projected to exceed the benchmark for that year, the director shall identify specific prescribed drugs that significantly contribute to exceeding the benchmark.
(B) For a prescribed drug identified by the director under division (A) of this section, the director shall determine if there is a current supplemental rebate for that drug between the drug's manufacturer and the department or its designee. If there is a current supplemental rebate for the drug, the director may renegotiate the supplemental rebate agreement. If there is not a supplemental rebate for the drug, the director shall evaluate whether to pursue a supplemental rebate agreement for the drug with the drug manufacturer. In making that evaluation, the director may consider any of the following:
(1) The prescribed drug's actual cost to the state;
(2) Whether the drug's manufacturer is providing significant discounts or rebates for other prescribed drugs under the medicaid program;
(3) Any other information the director considers relevant.
(C)(1) If the director determines that a prescribed drug rebate agreement renegotiation is warranted under division (B) of this section, the director shall establish a target rebate amount. In determining the target rebate amount, the director may consider any of the following:
(a) Publicly available information relevant to pricing the prescribed drug;
(b) Information the department has that is relevant to the pricing of the drug;
(c) Information relating to value-based pricing of the drug for medicaid recipients;
(d) The seriousness and prevalence of the conditions for which the drug is prescribed;
(e) The drug's volume of use among medicaid recipients;
(f) The effectiveness of the drug in treating conditions for which it is prescribed or improving a patient's health, quality of life, or overall health outcomes;
(g) The likelihood that use of the drug will reduce the need for other medical care, including hospitalization;
(h) The average wholesale price, wholesale acquisition cost, and retail price of the drug, and the cost of the drug under the medicaid program, not including any rebates received for the drug under the program;
(i) In the case of generic drugs, the number of manufacturers that produce the drug;
(j) Whether there are pharmaceutical equivalents to the drug;
(k) Any other information the director considers relevant.
(2) In negotiating a new rebate agreement under division (B) of this section, the director shall seek to negotiate an amount that is equal to the target rebate amount under division (C)(1) of this section. The director shall not enter into a rebate agreement that is less than sixty per cent of the target rebate amount. If no rebate agreement is established or renegotiated under this section, the director may consider removing the drug from the medicaid program's preferred drug list and imposing a prior authorization requirement on the drug in accordance with section 5160.34 of the Revised Code.
(D) The director shall publish a list of the prescribed drugs it identifies as being responsible for increasing spending above the annual benchmark for prescribed drug spending growth.
Structure Ohio Revised Code
Chapter 5164 | Medicaid State Plan Services
Section 5164.01 | Definitions.
Section 5164.02 | Rules to Implement Chapter.
Section 5164.03 | Mandatory and Optional Services.
Section 5164.05 | Coverage of Services Provided by Outpatient Health Facilities.
Section 5164.06 | Medicaid Coverage of Occupational Therapy Services.
Section 5164.061 | Chiropractic Services.
Section 5164.07 | Coverage of Inpatient Care and Follow-Up Care for a Mother and Her Newborn.
Section 5164.08 | Breast Cancer and Cervical Cancer Screening.
Section 5164.09 | Equivalent Coverage for Orally and Intravenously Administered Cancer Medications.
Section 5164.091 | Coverage for Opioid Analgesics.
Section 5164.10 | Coverage of Tobacco Cessation Medications and Services.
Section 5164.14 | Medicaid Coverage for Health Care Service Provided by Pharmacist.
Section 5164.15 | Mental Health Services.
Section 5164.16 | Coverage of One or More State Plan Home and Community-Based Services.
Section 5164.17 | Medicaid Coverage of Tobacco Cessation Services.
Section 5164.20 | Medicaid Not to Cover Drugs for Erectile Dysfunction.
Section 5164.26 | Healthcheck Component.
Section 5164.29 | Revised Medicaid Provider Enrollment System.
Section 5164.291 | Provider Credentialing Committee.
Section 5164.30 | Provider Agreement With Department Required.
Section 5164.301 | Medicaid Provider Agreements for Physician Assistants.
Section 5164.31 | Funding for Implementing the Provider Screening Requirements.
Section 5164.32 | Expiration of Medicaid Provider Agreements.
Section 5164.33 | Denying, Terminating, and Suspending Provider Agreements.
Section 5164.34 | Criminal Records Check of Provider Personnel, Owners and Officers.
Section 5164.341 | Criminal Records Check by Independent Provider.
Section 5164.342 | Criminal Records Checks by Waiver Agencies.
Section 5164.35 | Provider Offenses.
Section 5164.37 | Suspension of Provider Agreement Without Notice.
Section 5164.38 | Adjudication Orders of Department.
Section 5164.39 | Hearing Not Required Unless Timely Requested.
Section 5164.44 | Employee Status of Independent Provider.
Section 5164.45 | Contracts for Examination, Processing, and Determination of Medicaid Claims.
Section 5164.46 | Electronic Claims Submission Process; Electronic Fund Transfers.
Section 5164.47 | Contracting for Review and Analysis, Quality Assurance and Quality Review.
Section 5164.471 | Summary Data Regarding Perinatal Services.
Section 5164.48 | Medicaid Payments Made to Organization on Behalf of Providers.
Section 5164.55 | Final Fiscal Audits.
Section 5164.56 | Lien for Amount Owed by Provider.
Section 5164.57 | Recovery of Medicaid Overpayments.
Section 5164.58 | Agency Action to Recover Overpayment to Provider.
Section 5164.59 | Deduction of Incorrect Payments.
Section 5164.60 | Interest on Medicaid Provider Excess Payments.
Section 5164.61 | Scope of Available Remedies for Recovery of Excess Payments.
Section 5164.70 | Limitations on Medicaid Payments for Services.
Section 5164.71 | Payments for Freestanding Medical Laboratory Charges.
Section 5164.72 | Limitations on Payments for Inpatient Hospital Care.
Section 5164.721 | Claims by Freestanding Birthing Centers.
Section 5164.73 | Division of Payments Between Physician or Podiatrist and Nurse.
Section 5164.74 | Reimbursement of Graduate Medical Education Costs.
Section 5164.741 | Payment for Graduate Medical Education Costs to Noncontracting Hospitals.
Section 5164.75 | Medicaid Payment for a Drug Subject to a Federal Upper Reimbursement Limit.
Section 5164.751 | State Maximum Allowable Cost Program.
Section 5164.752 | Determining Maximum Dispensing Fee.
Section 5164.753 | Dispensing Fee.
Section 5164.754 | Agreement for Multiple-State Drug Purchasing Program.
Section 5164.755 | Supplemental Drug Rebate Program.
Section 5164.757 | E-Prescribing Applications.
Section 5164.759 | Outpatient Drug Use Review Program.
Section 5164.7510 | Pharmacy and Therapeutics Committee.
Section 5164.7511 | Medication Synchronization for Medicaid Recipients.
Section 5164.7512 | Definitions for Sections 5164.7512 to 5164.7514.
Section 5164.7514 | Step Therapy Exemption Process.
Section 5164.7515 | Annual Benchmark for Prescribed Drug Spending Growth.
Section 5164.761 | Beta Testing of Updates to Billing Codes or Payment Rates.
Section 5164.78 | Medicaid Payment Rates for Certain Neonatal and Newborn Services.
Section 5164.80 | Public Notice for Changes to Payment Rates for Medicaid Assistance.
Section 5164.82 | Payment for Provider-Preventable Condition.
Section 5164.85 | Enrolling in Group Health Plan.
Section 5164.86 | Qualified State Long-Term Care Insurance Partnership Program.
Section 5164.88 | Coordinated Care Through Health Homes.
Section 5164.881 | Health Home Services.
Section 5164.89 | Case Management of Nonemergency Transportation Services.
Section 5164.90 | Transition of Medicaid Recipients to Community Settings.
Section 5164.91 | Integrated Care Delivery System.
Section 5164.911 | Integrated Care Delivery System Evaluation.
Section 5164.912 | Integrated Care Delivery System Standardized Claim Form.
Section 5164.92 | Advanced Diagnostic Imaging Services Coverage Under Medicaid Program.
Section 5164.93 | Incentive Payments for Adoption and Use of Electronic Health Record Technology.
Section 5164.94 | Delivery of Services in Culturally and Linguistically Appropriate Manners.
Section 5164.95 | Standards for Payments for Telehealth Services; Eligible Practitioners.
Section 5164.951 | Standards for Medicaid Payments for Services Provided Through Teledentistry.