AK HB227

Department of Health and Social Services may not pay for or list generic drugs unless the manufacturer establishes prices through an open and competitive bidding process designed to obtain the lowest price.

Competitive bidding process defined as pricing established by open advertisement based on contract scope, specifications, terms, and conditions with publicly available evaluation criteria.

Generic drug defined as an unpatented copy of a name-brand drug that is identical in strength, dosage form, route of administration, indications, dosing, labeling, efficacy, and safety.

Department must remove all generic drugs from its preferred drug list within six months of the effective date if they have not undergone a competitive bidding process consistent with this Act.

Act takes effect July 1, 2012.