SUBSTITUTE FOR HOUSE BILL NO. 5254 A bill to amend 1984 PA 233, entitled "Prudent purchaser act," (MCL 550.51 to 550.63) by adding sections 3c and 3d. THE PEOPLE OF THE STATE OF MICHIGAN ENACT: SEC. 3C. AN ORGANIZATION THAT ESTABLISHES A PROVIDER PANEL OF PHARMACY PROVIDERS SHALL NOT DO ANY OF THE FOLLOWING: (A) REQUIRE A PHARMACY PROVIDER TO PARTICIPATE IN A NETWORK, CONTRACT, OR ARRANGEMENT FOR PHARMACY BENEFIT SERVICES AS A CONDITION FOR PARTICIPATION IN ANY OTHER NETWORK, CONTRACT, OR ARRANGEMENT FOR THE PROVISION OF PHARMACY BENEFIT SERVICES. (B) PROHIBIT A PHARMACY PROVIDER FROM PARTICIPATING IN A NETWORK, CONTRACT, OR ARRANGEMENT FOR PHARMACY BENEFIT SERVICES BECAUSE THE PHARMACY PROVIDER PARTICIPATES IN ANY OTHER NETWORK, CONTRACT, OR ARRANGEMENT FOR THE PROVISION OF PHARMACY BENEFIT SERVICES. THIS SUBDIVISION DOES NOT APPLY TO AN ORGANIZATION THAT IS A HEALTH CARE CORPORATION OPERATING PURSUANT TO TEE NONPROFIT HEALTH CARE CORPORATION REFORM ACT, 1980 PA 350, MCL 550.1101 TO 550.1704. (C) TERMINATE ANY PANEL PHARMACY PROVIDER'S CONTRACT FOR PHARMACY BENEFIT SERVICES OR WITHHOLD COMPENSATION DUE A PANEL PHARMACY PROVIDER SOLELY BECAUSE THE PROVIDER HAS COMMUNICATED WITH OR ADVOCATED ON BEHALF OF 1 OR MORE PROSPECTIVE, CURRENT, OR FORMER PANEL PATIENTS CONCERNING THE TERMS OF A PAYER'S HEALTH BENEFIT PLAN THAT RELATE TO THE PATIENT'S NEEDS OR THE METHOD BY WHICH THE PROVIDER IS COMPENSATED FOR SERVICES PROVIDED. SEC. 3D. (1) AN ORGANIZATION THAT ESTABLISHES A PROVIDER PANEL OF PHARMACY PROVIDERS SHALL NOT TERMINATE ANY PANEL PHARMACY PROVIDER'S CONTRACT FOR PHARMACY BENEFIT SERVICES WITHOUT DOING ALL OF THE FOLLOWING: (A) ESTABLISHING REASONABLE CAUSE. (B) AFFORDING THE PHARMACY PROVIDER A RIGHT TO APPEAL THE DECISION TO AN INDEPENDENT HEARING OFFICER OR A QUALIFIED THIRD PARTY ARBITRATOR. (C) PROVIDING WRITTEN NOTICE OF THE REASONS FOR TERMINATION NOT LESS THAN 60 DAYS BEFORE THE EFFECTIVE TERMINATION DATE UNLESS THE TERMINATION IS BASED ON THE LOSS OF THE PHARMACY'S LICENSE TO PRACTICE PHARMACY, LOSS OF PROFESSIONAL LIABILITY INSURANCE, OR CONVICTION OF FRAUD. (2) TERMINATION OF A CONTRACT BETWEEN AN ORGANIZATION AND A PHARMACY PROVIDER DOES NOT RELEASE THE ORGANIZATION FROM THE OBLIGATION TO MAKE ANY PAYMENT DUE AND OWING TO THE PHARMACY FOR SERVICES RENDERED PURSUANT TO THE CONTRACT. H02144'05 (H-1) DKH   Welcome | Latest News | Your Legislator | Mail Order | Questions Contact Us | Petition | Links Coalition for Quality Healthcare "Upholding high standards of personal service, assuring full access to consumer options and preserving the traditional contributions of local pharmacies to the state's economy" © Copyright 2004 Coalition for Quality Healthcare. All rights reserved.

Why You Should Support HB 5254! 11 / 1 / 2005 Medco's Clash With Clarity 1 / 5 / 2006   Local figures: In metropolitan Detroit, retail pharmacists last year dispensed generic medicines for 38 percent of the prescriptions they filled in the 10 most common therapeutic drug categories. Mail order companies used generics for 30.4 percent of those prescriptions. (Source: University of Minnesota research)