97TH GENERAL ASSEMBLY
State of Illinois
2011 and 2012
SB1759

 

Introduced 2/9/2011, by Sen. John J. Millner

 

SYNOPSIS AS INTRODUCED:
 
305 ILCS 5/5-5.12b new

    Amends the Illinois Public Aid Code. Provides that the Department of Healthcare and Family Services shall require all generic drug manufacturers whose products are to be provided to Medicaid recipients to compete in a competitive bidding process created by the Department to ensure that the Department is providing Medicaid recipients with quality generic products at a competitively bid cost.


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FISCAL NOTE ACT MAY APPLY

 

 

A BILL FOR

 

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1    AN ACT concerning public aid.
 
2    Be it enacted by the People of the State of Illinois,
3represented in the General Assembly:
 
4    Section 5. The Illinois Public Aid Code is amended by
5adding Section Section 5-5.12b as follows:
 
6    (305 ILCS 5/5-5.12b new)
7    Sec. 5-5.12b. Medicaid Generic Drug Competition and
8Savings.
9    (a) Definitions. As used in this Section:
10    "Medicaid" means the medical assistance program
11established under this Article or the federal medical
12assistance program established under Title XIX of the Social
13Security Act.
14    "Generics" or "generic drugs" means copies of brand-name
15drugs that are no longer protected by patents, including drugs
16that contain the same active ingredients, are identical in
17strength, dosage form, and route of administration as the
18brand-name innovator drug, and have the same indications,
19dosing, and labeling and provide the same efficacy and safety
20profile to patients as the brand-name innovator drugs.
21    "Generic manufacturers" means manufacturers, both domestic
22and international, that manufacture generic drugs and
23distribute those generic drugs throughout the State of Illinois

 

 

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1through various distribution systems.
2    "Competitive bidding" means a transparent procedure in
3which bids from generic manufacturers are invited by openly
4advertising the scope, specifications, terms, and conditions
5of the proposed contract as well as the criteria by which the
6bids will be evaluated. The objective of competitive bidding is
7obtaining goods at the lowest prices by stimulating competition
8and by preventing favoritism.
9    (b) Legislative Findings.
10        (1) With every prescription filled with a generic, the
11    consumer receives the same medicine as the brand-name drug,
12    with the same quality and same result, but at a much lower
13    cost.
14        (2) For more than 25 years, America's generic
15    pharmaceutical industry has been providing Food and Drug
16    Administration (FDA) approved generic versions of
17    brand-name medicines at a savings to consumers of 30% to as
18    much as 80%.
19        (3) Millions of Medicaid recipients nationwide are
20    using generics to treat a variety of medical conditions,
21    including infection, heart disease, and cancer. Generics
22    are rigorously tested by the FDA and must prove that they
23    are the same medicine with the same active ingredients,
24    strengths, and dosages as their brand-name counterparts.
25    Today, there are thousands of generic drugs available and
26    all are manufactured and inspected under the same strict

 

 

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1    quality guidelines as brand-name drugs.
2        (4) For most brand-name products there are multiple
3    generics available and these generics can vary greatly in
4    price.
5        (5) While the State Medicaid program has encouraged the
6    use of generic drugs by Medicaid recipients, it has not
7    taken advantage of the savings that could be generated by
8    taking advantage of the competition among generic
9    manufacturers whose pricing of generic drugs varies
10    greatly.
11    (c) Competitive Bidding. The Department of Healthcare and
12Family Services shall require all generic drug manufacturers
13whose products are to be provided to Medicaid recipients to
14compete in a competitive bidding process created by the
15Department to ensure that the Department is providing Medicaid
16recipients with quality generic products at a competitively bid
17cost.