HOUSE BILL No. 4437

 

April 14, 2015, Introduced by Rep. Yonker and referred to the Committee on Health Policy.

 

     A bill to amend 1978 PA 368, entitled

 

"Public health code,"

 

by amending sections 17702, 17704, 17709, and 17755 (MCL 333.17702,

 

333.17704, 333.17709, and 333.17755), sections 17702, 17704, and

 

17709 as amended by 2014 PA 280.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 17702. (1) "Agent" means an individual designated by a

 

prescriber to act on behalf of or at the discretion of that

 

prescriber as provided in section 17744.

 

     (2) "Biological drug product" means a biological product as

 

defined in 42 USC 262.

 

     (3) "Biosimilar" means that term as defined in 42 USC 262.

 

     (4) "Biosimilar drug product" means a biological drug product

 

that the FDA has determined to be biosimilar to a reference

 


product.

 

     (5) (2) "Brand name" means the registered trademark name given

 

to a drug product by its manufacturer.

 

     (6) (3) Except as otherwise provided in subsection (4), (7),

 

"compounding" means the preparation, mixing, assembling, packaging,

 

and labeling of a drug or device by a pharmacist under the

 

following circumstances:

 

     (a) Upon the receipt of a prescription for a specific patient.

 

     (b) Upon the receipt of a medical or dental order from a

 

prescriber or agent for use in the treatment of patients within the

 

course of the prescriber's professional practice.

 

     (c) In anticipation of the receipt of a prescription or

 

medical or dental order based on routine, regularly observed

 

prescription or medical or dental order patterns.

 

     (d) For the purpose of or incidental to research, teaching, or

 

chemical analysis and not for the purpose of sale or dispensing.

 

     (7) (4) "Compounding" does not include any of the following:

 

     (a) Except as provided in section 17748c, the compounding of a

 

drug product that is essentially a copy of a commercially available

 

product.

 

     (b) The reconstitution, mixing, or other similar act that is

 

performed pursuant to the directions contained in approved labeling

 

provided by the manufacturer of a commercially available product.

 

     (c) The compounding of allergenic extracts or biologic

 

products.

 

     (8) (5) "Compounding pharmacy" means a pharmacy that is

 

licensed under this part and is authorized to offer compounding


services under sections 17748, 17748a, and 17748b.

 

     (9) (6) "Current selling price" means the retail price for a

 

prescription drug that is available for sale from a pharmacy.

 

     Sec. 17704. (1) "Federal act" means the federal food, drug,

 

and cosmetic act, 21 USC 301 to 399f.

 

     (2) "Food and drug administration" Drug Administration" or

 

"FDA" means the United States food and drug administration.Food and

 

Drug Administration.

 

     (3) "Generic name" means the established or official name of a

 

drug or drug product.

 

     (4) "Harmful drug" means a drug intended for use by human

 

beings that is harmful because of its toxicity, habit-forming

 

nature, or other potential adverse effect; the method of its use;

 

or the collateral measures necessary to its safe and effective use

 

and that is designated as harmful by a rule promulgated under this

 

part.

 

     (5) "Interchangeable" means that term as defined in 42 USC

 

262.

 

     (6) "Interchangeable biological drug product" means a

 

biological drug product that has met the safety standards for

 

determining interchangeability under 42 USC 262 and is therefore

 

determined to be interchangeable with a reference product by the

 

FDA.

 

     (7) (5) "Internship" means an educational program of

 

professional and practical experience for an intern.

 

     Sec. 17709. (1) "Reference product" means that term as defined

 

in 42 USC 262.


     (2) (1) "Sign" means to affix one's signature manually to a

 

document or to use an electronic signature when transmitting a

 

prescription electronically.

 

     (3) (2) "Sterile pharmaceutical" means a dosage form of a drug

 

that is essentially free from living microbes and chemical or

 

physical contamination to the point at which it poses no present

 

risk to the patient, in accordance with USP standards. As used in

 

this subsection, "dosage form" includes, but is not limited to,

 

parenteral, injectable, and ophthalmic dosage forms.

 

     (4) (3) "Substitute" means to dispense, without the

 

prescriber's authorization, a different drug in place of the drug

 

prescribed.

 

     (5) (4) "USP standards" means the pharmacopeial standards for

 

drug substances, dosage forms, and compounded preparations based on

 

designated levels of risk as published in the official compendium.

 

     (6) (5) "Wholesale distributor" means a person, other than a

 

manufacturer, who supplies, distributes, sells, offers for sale,

 

barters, or otherwise disposes of, to other persons for resale,

 

compounding, or dispensing, a drug or device salable on

 

prescription only that the distributor has not prepared, produced,

 

derived, propagated, compounded, processed, packaged, or

 

repackaged, or otherwise changed the container or the labeling of

 

the drug or device.

 

     Sec. 17755. (1) When Except as otherwise provided in this

 

section, a pharmacist who receives a prescription for a brand name

 

drug product , the pharmacist may, or when a purchaser requests a

 

lower cost generically equivalent drug product, the pharmacist


shall or a biological drug product may dispense a lower cost but

 

not higher cost generically equivalent drug product or lower cost

 

interchangeable biological drug product if available in the

 

pharmacy. , except as provided in subsection (3). If Except as

 

otherwise provided in this section, upon the request of the

 

purchaser, a pharmacist who receives a prescription for a brand

 

name drug product or a biological drug product shall dispense a

 

lower cost generically equivalent drug product or lower cost

 

interchangeable biological drug product if available in the

 

pharmacy. The pharmacist shall notify the purchaser if a drug is

 

dispensed which that is not the prescribed brand , the purchaser

 

shall be notified and the prescription label name drug product or

 

the prescribed biological drug product. Except as otherwise

 

provided in section 17756, the pharmacist shall indicate both the

 

name of the brand name of the drug product prescribed or the

 

biological drug product prescribed and the generic name or

 

interchangeable biological drug product name of the brand drug

 

product dispensed and designate each respectively on the

 

prescription label. If Except as otherwise provided in section

 

17756, if the dispensed drug does not have a brand name, the

 

prescription label pharmacist shall indicate the generic name or

 

interchangeable biological drug product name of the drug product

 

dispensed , except as otherwise provided in section 17756.on the

 

prescription label.

 

     (2) If a pharmacist dispenses a generically equivalent drug

 

product or an interchangeable biological drug product under

 

subsection (1), the pharmacist shall pass on the savings in cost to


the purchaser or to the third party payment source if the

 

prescription purchase is covered by a third party pay contract. The

 

savings in cost is the difference between the wholesale cost to the

 

pharmacist of the 2 drug products.

 

     (3) If a pharmacist dispenses an interchangeable biological

 

drug product under subsection (1), the pharmacist shall indicate

 

the interchangeable biological drug product name and the full name

 

of the manufacturer, if available, of the interchangeable

 

biological drug product dispensed on the file copy of the

 

prescription.

 

     (4) (3) The pharmacist shall not dispense a generically

 

equivalent drug product or an interchangeable biological drug

 

product under subsection (1) if any of the following applies:

 

     (a) The prescriber, in the case of a prescription in writing

 

signed by the prescriber, writes in his or her own handwriting

 

"dispense as written" or "d.a.w." on the prescription.

 

     (b) The prescriber, having preprinted on his or her

 

prescription blanks the statement "another brand of a generically

 

equivalent drug product or an interchangeable biological drug

 

product, identical in dosage, form, and content of active

 

ingredients, may be dispensed unless initialed d.a.w.", writes in

 

his or her own handwriting, the initials "d.a.w." in a space, box,

 

or square adjacent to the statement.

 

     (c) The prescriber, in the case of a prescription other than

 

one 1 in writing signed by the prescriber, expressly indicates the

 

prescription is to be dispensed as communicated.

 

     (5) (4) A pharmacist may shall not dispense a drug product


with a total charge that exceeds the total charge of the drug

 

product originally prescribed, unless agreed to by the purchaser.

 

     (6) Except as otherwise provided in subsection (1), a

 

pharmacist must notify the prescriber before dispensing a

 

biosimilar drug product in place of a biological drug product.

 

     Enacting section 1. This amendatory act takes effect 90 days

 

after the date it is enacted into law.