AN ACT RELATING TO HUMAN SERVICES -- THE RHODE ISLAND PRESCRIPTION DRUG PURCHASING POOL ACT (Establishes a state-run prescription drug purchasing pool, available for participation by nonstate public employers, private employers, and health insurance carriers, to maximize the value of drug discounts available to participants.)

H8383

2026 -- H 8383
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STATE OF RHODE ISLAND
IN GENERAL ASSEMBLY
JANUARY SESSION, A.D. 2026
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A N A C T
RELATING TO HUMAN SERVICES -- THE RHODE ISLAND PRESCRIPTION DRUG
PURCHASING POOL ACT

Introduced By:
Representatives Spears, Cotter, Donovan, Speakman, Caldwell, Read,
Shanley, McEntee, Fogarty, and Carson

Date Introduced:
April 01, 2026

Referred To:
House Health & Human Services
(Attorney General)
It is enacted by the General Assembly as follows:
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SECTION 1. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby
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amended by adding thereto the following chapter:
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CHAPTER 23
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THE RHODE ISLAND PRESCRIPTION DRUG PURCHASING POOL ACT
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40-23-1. Short title.

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This chapter shall be known and may be cited as the "Rhode Island Prescription Drug
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Purchasing Pool Act."
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40-23-2. Definitions.

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As used in this chapter:
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(1) "Department" means the department of administration.
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(2) "Director" means the director of administration.
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(3) "Health insurance carrier" means an entity subject to the insurance laws and regulations
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of this state or subject to the jurisdiction of the office of the health insurance commissioner that
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offers health insurance, health benefits, or contracts for healthcare services, including prescription
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drug coverage, to large groups, small groups, or individuals on or outside the Rhode Island health
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benefit exchange pursuant to § 42-157-1.
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(4) "Nonstate public employer" means a municipality, fire district, or other political
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subdivision of the state including, but not limited to, a school district, public institution of higher

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education or quasi-public agency or authority within the state.
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(5) "Participants" means participants in the Rhode Island prescription drug purchasing
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pool.
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(6) "Qualified private employer" means a self-insured private employer doing business in
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this state.
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40-23-3. Establishment.

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(a) There is hereby established the Rhode Island prescription drug purchasing pool. The
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director shall offer nonstate public employers, qualified private employers, and health insurance
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carriers the option to purchase prescription drugs for their employees, employees' dependents and
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retirees under the purchasing authority of the state, subject to the provisions of § 40-23-5(b).
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(b) The director shall promulgate rules and regulations to establish procedures to
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determine:
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(1) Eligibility requirements for participation;
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(2) Enrollment procedures;
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(3) Duration of participation;
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(4) Requirements regarding payment; and
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(5) Procedures for withdrawal from and termination of participation by nonstate public
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employers, qualified private employers, and health insurance carriers.
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(c) The director is authorized to:
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(1) Promulgate rules to implement the provisions of this section in accordance with chapter
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35 of title 42 ("administrative procedures");
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(2) Reassess and renegotiate contractual arrangements for pharmacy benefit management
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and related services as necessary to maximize discounts and value delivered to participants while
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minimizing administrative expenses; and
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(3) Consider and enter into multistate prescription drug purchasing pool arrangements as
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appropriate to maximize discounts and value delivered to participants.
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40-23-4. Stop-loss coverage.

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(a) The director may obtain stop-loss coverage issued pursuant to chapter 8.2 of title 27
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(“stop-loss insurance”); provided that, such coverage otherwise complies with the provisions of
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this chapter.
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(b) The director may offer participants the option to purchase stop-loss coverage from an
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insurer at a rate negotiated by the director.
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40-23-5. Joint and collective participation.

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(a) Two (2) or more nonstate public employers or qualified private employers may join

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together for the purpose of purchasing prescription drugs for their employees, employees'
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dependents and retirees. Such arrangement shall not constitute a multiple employer welfare
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arrangement, as defined in the Employee Retirement Income Security Act of 1974 (29 U.S.C. §
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1002), as amended from time to time.
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(b) The director may offer nonstate public employers, qualified private employers, and
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licensed insurance carriers the option to purchase prescription drugs through the plan set forth in
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collective bargaining agreement executed between the State of Rhode Island and authorized
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representatives of the unions representing state employees if the director determines that allowing
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such nonstate public employers, qualified private employers, or licensed insurance carrier such
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option is consistent with the collective bargaining agreement.
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(1) Such determination shall not be required if the director establishes a separate
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prescription drug purchasing plan or plans for nonstate public employers, qualified private
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employers, and licensed insurance carriers.
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40-23-6. Construction.

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The Rhode Island prescription drug purchasing pool does not constitute a risk pool, and all
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participants shall pay the full cost of their own claims and prescription drugs.
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40-23-7. Coordination with prescription drug discount program.

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(a) The director may coordinate the Rhode Island prescription drug purchasing pool with
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the state's prescription drug discount program set forth in § 42-66.2.1-2 including, but not limited
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to, purchasing prescription drugs for the prescription drug discount program through the Rhode
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Island prescription drug purchasing pool, and offering discounts, rebates, and prices secured
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through the Rhode Island prescription drug purchasing pool to participants in the state's prescription
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drug discount program.
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(b) In pursuing such coordination, the department of human services shall collaborate with
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the director of the department of administration to ensure the state's prescription drug discount
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program is being used in a manner that maximizes enrollment and minimizes prices paid by
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enrollees for prescription drugs.
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SECTION 2. This act shall take effect upon passage.
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EXPLANATION
BY THE LEGISLATIVE COUNCIL
OF
A N A C T
RELATING TO HUMAN SERVICES -- THE RHODE ISLAND PRESCRIPTION DRUG
PURCHASING POOL ACT
***
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This act would establish a state-run prescription drug purchasing pool, available for
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participation by nonstate public employers, private employers, and health insurance carriers, to
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maximize the value of drug discounts available to participants.
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This act would take effect upon passage.
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