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37.86.1102    OUTPATIENT DRUGS, REQUIREMENTS

(1) These requirements are in addition to those contained in ARM 37.85.401 through 37.85.415.

(2) Drugs may not be filled or refilled without the authorization of the physician or other licensed practitioner who is authorized by law to prescribe drugs and is recognized by the Medicaid program.

(3) The department will only participate in the payment of legend and over the counter drugs listed on the department drug formulary, as determined by the Medicaid Drug Formulary Committee established by the department. The formulary committee is the Drug Use Review Board, established and operating in accordance with 42 USC 1396r-8 (2004), which governs Medicaid drug programs. The drug formulary includes a preferred drug list (PDL) of selected drugs that have a significant clinical benefit over other agents in the same therapeutic class and also represents good value to the department based on total cost. Prescribers must prescribe from the preferred drug list if medically appropriate.

(a) The PDL includes drugs subject to a Centers for Medicare and Medicaid Services (CMS) approved supplemental rebate agreement between the manufacturer and the department. Drugs in the same therapeutic class as those identified on the preferred drug list but not identified as a preferred drug are subject to prior authorization as outlined in (6)(c).

(4) The inappropriate use of drugs, as determined by professional review, may result in the imposition of a limitation upon the quantities of medications which are payable by the medical assistance program. Retroactive limitation will not be applied, unless the involved pharmacy has knowledge or can reasonably be expected to have had knowledge of the inappropriate use of drugs by the recipient.

(5) Each prescription shall be dispensed in the quantity ordered except that:

(a) Prescriptions for which a specific quantity has not been ordered shall be dispensed in sufficient quantities to cover the period of time for which the condition is being treated except for injectable antibiotics, which may be dispensed in sufficient quantities to cover a three-day period.

(b) Notwithstanding the above, prescriptions may not be dispensed in quantities greater than a 34-day supply.

(6) The department will not participate in the payment of a prescription drug:

(a) which the Secretary of Health and Human Services (HHS) has determined is less than effective for all conditions of use prescribed, recommended or suggested in the drug's labeling;

(b) that is not subject to a rebate agreement between the manufacturer and the secretary of HHS as required by 42 USC 1396r-8 (2004); and

(c) that does not meet prior authorization criteria as determined by the Medicaid Drug Formulary Committee, established and operating in accordance with 42 USC 1396r-8 (2004), without the existence of a prior authorization request approved by the department or its designated representative. A list of drugs subject to prior authorization, known as the prior authorization drug list, will be provided to interested Medicaid providers.

(7) The drug formulary, PDL and the prior authorization drug list will be updated by the department on a monthly basis, on the last day of each month. A copy of the most current listings may be obtained from the department website at www.dphhs.state.mt.us, or by writing to the Department of Public Health and Human Services, Health Resources Division, Acute Services Bureau, 1400 Broadway, P.O. Box 202951, Helena, MT 59620-2951.

(8) The department hereby adopts and incorporates by reference 42 USC 1396r-8 (2004) as a part of these rules. This section of the federal law sets forth the requirements that must be met by the department, drug manufacturers, and providers in order to receive reimbursement for outpatient drugs that have been dispensed. This statute describes rebate agreements, covered drugs, prior authorization, reimbursement limits, and drug use review programs. A copy of 42 USC 1396r-8 (2004) can be obtained by writing to the Department of Public Health and Human Services, Health Resources Division, Acute Services Bureau, 1400 Broadway, P.O. Box 202951, Helena, MT 59620-2951.

(9) The department will use the following procedures to develop the preferred drug list (PDL):

(a) The department will perform a pharmacoeconomic analysis of the Medicaid Pharmacy Program and identify therapeutic classes of drugs for possible PDL inclusion.

(b) The Department and the Drug Use Review (DUR) Board/Formulary Committee members will consider recommendations and determine which therapeutic drug classes will be reviewed at a meeting of the committee. Notice of the meeting and the therapeutic drug class to be considered will be posted on the department's web site in advance of the meeting date.

(c) The department will perform drug class reviews using peer-reviewed literature, established evidence-based practice methods, and local clinicians to interpret and apply practical experience to the structured evidence reviews. The department will also conduct supplemental rebate negotiations.

(d) The committee will combine its members' evaluations and the evaluations from the department to consider equivalent products within the drug class. Information used by the department and its contractors will be available to the public prior to the meeting. During the meeting, the committee will also hear comments from interested parties.

(e) The committee will recommend to the department which preferred agents should be selected for the specific therapeutic class.

(f) The department will make a final decision and post its decision on the department's web site.

History: 53-6-113, MCA; IMP, 53-6-101, 53-6-113, 53-6-141, MCA; NEW, 1980 MAR p. 2978, Eff. 11/29/80; AMD, 1982 MAR p. 105, Eff. 1/29/82; AMD, 1987 MAR p. 895, Eff. 7/1/87; AMD, 1988 MAR p. 753, Eff. 5/1/88; AMD, 1991 MAR p. 1039, Eff. 6/28/91; AMD, 1994 MAR p. 2443, Eff. 8/26/94; AMD, 1998 MAR p. 495, Eff. 2/13/98; TRANS, from SRS, 2000 MAR p. 481; EMERG, AMD, 2003 MAR p. 999, Eff. 5/9/03; AMD, 2004 MAR p. 1489, Eff. 7/2/04.

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