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        PRIOR PRINTER'S NO. 3637                      PRINTER'S NO. 3889

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2635 Session of 1990


        INTRODUCED BY ITKIN, KUKOVICH, DeWEESE, PIEVSKY, COHEN,
           TANGRETTI, STUBAN, MERRY, BATTISTO, DIETTERICK, FAIRCHILD,
           BILLOW, MELIO, HERSHEY, TELEK, JOHNSON AND TRELLO,
           JUNE 4, 1990

        AS AMENDED ON THIRD CONSIDERATION, HOUSE OF REPRESENTATIVES,
           JUNE 27, 1990

                                     AN ACT

     1  Amending the act of November 24, 1976 (P.L.1163, No.259),
     2     entitled "An act relating to the prescribing and dispensing
     3     of generic equivalent drugs," requiring the department to
     4     publish notice of approved generically equivalent drugs.

     5     The General Assembly of the Commonwealth of Pennsylvania
     6  hereby enacts as follows:
     7     Section 1.  The definition of "generically equivalent drug"
     8  in section 2 of the act of November 24, 1976 (P.L.1163, No.259),
     9  referred to as the Generic Equivalent Drug Law, is amended to
    10  read:
    11     Section 2.  As used in this act:
    12     * * *
    13     "Generically equivalent drug" means a drug product [having
    14  the same generic name, dosage form and labeled potency, meeting
    15  standards of the United States Pharmacopoeia or National
    16  Formulary or their successors, if applicable, and not found in
    17  violation of the requirements of the United States Food and Drug


     1  Administration or the Pennsylvania Department of Health.] that
     2  the Commissioner of Food and Drugs of the United States Food and
     3  Drug Administration has approved as safe and effective and has
     4  determined to be therapeutically equivalent, as listed in "The
     5  Approved Drug Products with Therapeutic Equivalence
     6  Evaluations," (Food and Drug Administration "Orange Book"), BUT   <--
     7  DOES NOT MEAN A DRUG PRODUCT FOUND ON THE UNITED STATES FOOD AND
     8  DRUG ADMINISTRATION'S LIST OF NARROW THERAPEUTIC RANGE DRUGS
     9  UNLESS APPROVED BY THE SECRETARY, WITH THE ADVICE OF THE
    10  PENNSYLVANIA DRUG, DEVICE AND COSMETIC BOARD.
    11     * * *
    12     Section 2.  Section 3(a) and (f) of the act, amended December
    13  15, 1988 (P.L.1257, No.154), are amended to read:
    14     Section 3.  (a)  Whenever a pharmacist receives a
    15  prescription for a brand name drug [he shall, unless requested
    16  otherwise by the purchaser, substitute a less expensive
    17  generically equivalent drug product listed in the formulary of
    18  generic and brand name drug products developed by the Department
    19  of Health as provided in section 5(b) unless the prescriber
    20  indicates otherwise.] the pharmacist shall substitute a less
    21  expensive generically equivalent drug unless requested otherwise
    22  by the purchaser or indicated otherwise by the prescriber. The
    23  bottom of every prescription blank shall be imprinted with the
    24  words "substitution permissible" and shall contain one signature
    25  line for the physician's or other authorized prescriber's
    26  signature. The prescriber's signature shall validate the
    27  prescription and, unless the prescriber handwrites "brand
    28  necessary" or "brand medically necessary," shall designate
    29  approval of substitution of a drug by a pharmacist pursuant to
    30  this act. Imprinted conspicuously on the prescription blanks
    19900H2635B3889                  - 2 -

     1  shall be the words: "In order for a brand name product to be
     2  dispensed, the prescriber must handwrite 'brand necessary' or
     3  'brand medically necessary' in the space below." All information
     4  printed on the prescription blank shall be in eight-point
     5  uppercase print. In the case of an oral prescription, there will
     6  be no substitution if the prescriber expressly indicates to the
     7  pharmacist that the brand name drug is necessary and
     8  substitution is not allowed. Substitution of a less expensive
     9  generically equivalent drug [product] shall be contingent on
    10  whether the pharmacy has the brand name or generically
    11  equivalent drug in stock.
    12     * * *
    13     (f)  No pharmacist shall substitute a generically equivalent
    14  drug [product for a prescribed brand name drug product if the
    15  brand name drug product or the generic drug type is not included
    16  in the formulary developed by the Department of Health in
    17  accordance with the provisions of section 5(b).] for a
    18  prescribed brand name drug unless the generically equivalent
    19  drug meets the definition of generically equivalent drug set
    20  forth in this act and the secretary has not prohibited the use
    21  of the drug in accordance with section 5.
    22     Section 3.  Sections 4(b) and 5 of the act are amended to
    23  read:
    24     Section 4.  * * *
    25     (b)  Every pharmacy shall post in a conspicuous place, easily
    26  accessible to the general public, a list of commonly used
    27  generically equivalent drugs [from the formulary] containing the
    28  generic names and brand names where applicable.
    29     * * *
    30     Section 5.  (a)  The Department of Health shall have the
    19900H2635B3889                  - 3 -

     1  power and its duty shall be to:
     2     (1)  Administer and enforce the provisions of this act.
     3     (2)  Adopt necessary regulations consistent with this act.
     4     (3)  Publicize the provisions of this act.
     5     (4)  [Distribute in cooperation with the Pennsylvania Board
     6  of Pharmacy periodically an updated formulary of generically
     7  equivalent drug products to all pharmacies in the Commonwealth.]
     8  Publish by notice in the Pennsylvania Bulletin the addition or
     9  deletion of generically equivalent drugs and any determination
    10  by the secretary to not recognize a generically equivalent drug
    11  in accordance with section 5(b). The department shall also
    12  provide notice that a complete list of generically equivalent
    13  drugs may be obtained from the United States Food and Drug
    14  Administration. This notice shall be published at least every
    15  three months.
    16     (b)  [The Secretary of Health in cooperation with the
    17  Pennsylvania Drug, Device and Cosmetic Board shall within 180
    18  days of the effective date of this act establish a formulary of
    19  generically equivalent drugs and the name of their
    20  manufacturers. In compiling the list of generic and brand name
    21  drug products for inclusion in the formulary, the secretary may
    22  adopt in whole or in part formularies adopted by the United
    23  States Department of Health, Education and Welfare for their
    24  maximum allowable cost program for drug reimbursements under
    25  Title XVIII and Title XIX of the Social Security Act. In the
    26  event of an emergency, as determined by the secretary to affect
    27  the health or safety of the public, the secretary may remove a
    28  drug product from the list without public hearings. If the
    29  formulary for the maximum allowable cost program is adopted by
    30  the secretary, formal hearings as required in the act of June 4,
    19900H2635B3889                  - 4 -

     1  1945 (P.L.1388, No.422), known as the "Administrative Agency
     2  Law," may be waived otherwise the inclusions of all drugs in the
     3  formulary shall be in compliance with the provisions of the
     4  Administrative Agency Law. The formulary may be added to or
     5  deleted from upon the motion of the secretary or on the petition
     6  of any interested party however before such addition or deletion
     7  the secretary shall request the advice in writing from the Drug,
     8  Device and Cosmetic Board whether a drug should be added or
     9  deleted. Such advice shall be rendered to the secretary within a
    10  reasonable time. After considering the available facts, the
    11  secretary shall make a finding with respect to such drug and may
    12  issue a regulation on its substitution for a period of one year.
    13  The status of such drugs as well as the formulary shall be
    14  reviewed annually by the secretary.] The secretary, with the
    15  advice of the Pennsylvania Drug, Device and Cosmetic Board, may
    16  determine that a drug shall not be recognized as a generically
    17  equivalent drug for purposes of substitution in Pennsylvania and
    18  the time after which recognition shall be restored.
    19     Section 4.  This act shall take effect in 60 days.








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