2013 Maryland Code
STATE PERSONNEL AND PENSIONS
§ 2-502 - Establishment and scope of Program; allowable changes

§2-502.

(a) There is a State Employee and Retiree Health and Welfare Benefits Program, to be developed and administered by the Secretary.

(b) (1) The Program:

(i) subject to the regulations adopted under § 2-503 of this subtitle, shall encompass all units in the Executive, Judicial, and Legislative branches of State government, including any unit with an independent personnel system;

(ii) shall include the health insurance benefit options established by the Secretary; and

(iii) except as provided in paragraph (2) of this subsection, may include any other benefit option that the Secretary considers appropriate.

(2) The Program may not contain any of the benefits provided under Division II or Title 35 or Title 37 of this article.

§ 2-502 - 1. Maryland Rx Program.

(a) "Maryland Rx Program" defined. -- In this section, "Maryland Rx Program" means a purchasing pool for pharmacy benefits that meets the requirements of this section.

(b) Program established; purpose. -- The Department shall establish a Maryland Rx Program to achieve savings on the cost of prescription drugs for:

(1) the State Employee and Retiree Health and Welfare Benefits Program; and

(2) any local government or other entity identified under this subtitle that satisfies the conditions for participation established by the Department.

(c) Savings methodology. -- The Maryland Rx Program shall seek savings through:

(1) a preferred list of covered prescription drugs;

(2) rebates from drug manufacturers;

(3) negotiated discounts; and

(4) other cost-saving measures.

(d) Responsibility for costs of purchasing drugs. --

(1) Each entity that participates in the Maryland Rx Program shall be responsible for the cost of drugs purchased by or on behalf of the entity.

(2) The cost of drugs purchased by or on behalf of the State Employee and Retiree Health and Welfare Benefits Program shall be paid in accordance with the State budget and the provisions of this subtitle.

(e) Start-up funds. -- The State may:

(1) provide start-up funds for the Maryland Rx Program; and

(2) recoup any start-up funds from savings achieved for participating entities through the Maryland Rx Program.

(f) Administrative fees; contracts. -- The Department may:

(1) charge an administrative fee to an entity sufficient to offset the administrative costs resulting from the entity's participation in the Maryland Rx Program; and

(2) contract with a pharmacy benefit manager or other entity to administer the Maryland Rx Program.

(g) Preference for contracts with nonprofit entities. -- If the Department contracts with a pharmacy benefit manager or other entity to administer the Maryland Rx Program, the Department shall consider contracting with a nonprofit entity.

(h) Regulations. -- The Department shall adopt regulations to implement this section.