135.132 - INTERAGENCY PHARMACEUTICALS BULK PURCHASING COUNCIL.
135.132 INTERAGENCY PHARMACEUTICALS BULK PURCHASING
COUNCIL.
1. For the purposes of this section, "interagency
pharmaceuticals bulk purchasing council" or "council" means the
interagency pharmaceuticals bulk purchasing council created in this
section.
2. An interagency pharmaceuticals bulk purchasing council is
created within the Iowa department of public health. The department
shall provide staff support to the council and the department of
pharmaceutical care of the university of Iowa hospitals and clinics
shall act in an advisory capacity to the council. The council shall
be composed of all of the following members:
a. The director of public health, or the director's designee.
b. The director of human services, or the director's
designee.
c. The director of the department of administrative services,
or the director's designee.
d. A representative of the state board of regents.
e. The director of the department of corrections, or the
director's designee.
f. The director, or the director's designee, of any other
agency that purchases pharmaceuticals designated to be included as a
member by the director of public health.
3. The council shall select a chairperson annually from its
membership. A majority of the members of the council shall
constitute a quorum.
4. The council shall do all of the following:
a. Develop procedures that member agencies must follow in
purchasing pharmaceuticals. However, a member agency may elect not
to follow the council's procedures if the agency is able to purchase
the pharmaceuticals for a lower price than the price available
through the council. An agency that does not follow the council's
procedures shall report all of the following to the council:
(1) The purchase price for the pharmaceuticals.
(2) The name of the wholesaler, retailer, or manufacturer selling
the pharmaceuticals.
b. Designate a member agency as the central purchasing agency
for purchasing of pharmaceuticals.
c. Use existing distribution networks, including wholesale
and retail distributors, to distribute the pharmaceuticals.
d. Investigate options that maximize purchasing power,
including expanding purchasing under the medical assistance program,
qualifying for participation in purchasing programs under 42 U.S.C. §
256b, as amended, and utilizing rebate programs, hospital
disproportionate share purchasing, multistate purchasing alliances,
and health department and federally qualified health center
purchasing.
e. In collaboration with the department of pharmaceutical
care of the university of Iowa hospitals and clinics, make
recommendations to member agencies regarding drug utilization review,
prior authorization, the use of restrictive formularies, the use of
mail order programs, and copayment structures. This paragraph shall
not apply to the medical assistance program but only to the
operations of the member agencies.
5. The central purchasing agency may enter into agreements with a
local governmental entity to purchase pharmaceuticals for the local
governmental entity.
6. The council shall develop procedures under which the council
may disclose information relating to the prices manufacturers or
wholesalers charge for pharmaceuticals by category of pharmaceutical.
The procedure shall prohibit the council from disclosing information
that identifies a specific manufacturer or wholesaler or the prices
charged by a specific manufacturer or wholesaler for a specific
pharmaceutical. Section History: Recent Form
2003 Acts, ch 112, §1; 2003 Acts, ch 145, §286