2026 -- H 8383

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LC006205

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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:

     SECTION 1. Title 40 of the General Laws entitled "HUMAN SERVICES" is hereby

amended by adding thereto the following chapter:

CHAPTER 23

THE RHODE ISLAND PRESCRIPTION DRUG PURCHASING POOL ACT

     40-23-1. Short title.

     This chapter shall be known and may be cited as the "Rhode Island Prescription Drug

Purchasing Pool Act."

     40-23-2. Definitions.

     As used in this chapter:

     (1) "Department" means the department of administration.

     (2) "Director" means the director of administration.

     (3) "Health insurance carrier" means an entity subject to the insurance laws and regulations

of this state or subject to the jurisdiction of the office of the health insurance commissioner that

offers health insurance, health benefits, or contracts for healthcare services, including prescription

drug coverage, to large groups, small groups, or individuals on or outside the Rhode Island health

benefit exchange pursuant to § 42-157-1.

     (4) "Nonstate public employer" means a municipality, fire district, or other political

subdivision of the state including, but not limited to, a school district, public institution of higher

education or quasi-public agency or authority within the state.

     (5) "Participants" means participants in the Rhode Island prescription drug purchasing

pool.

     (6) "Qualified private employer" means a self-insured private employer doing business in

this state.

     40-23-3. Establishment.

     (a) There is hereby established the Rhode Island prescription drug purchasing pool. The

director shall offer nonstate public employers, qualified private employers, and health insurance

carriers the option to purchase prescription drugs for their employees, employees' dependents and

retirees under the purchasing authority of the state, subject to the provisions of § 40-23-5(b).

     (b) The director shall promulgate rules and regulations to establish procedures to

determine:

     (1) Eligibility requirements for participation;

     (2) Enrollment procedures;

     (3) Duration of participation;

     (4) Requirements regarding payment; and

     (5) Procedures for withdrawal from and termination of participation by nonstate public

employers, qualified private employers, and health insurance carriers.

     (c) The director is authorized to:

     (1) Promulgate rules to implement the provisions of this section in accordance with chapter

35 of title 42 ("administrative procedures");

     (2) Reassess and renegotiate contractual arrangements for pharmacy benefit management

and related services as necessary to maximize discounts and value delivered to participants while

minimizing administrative expenses; and

     (3) Consider and enter into multistate prescription drug purchasing pool arrangements as

appropriate to maximize discounts and value delivered to participants.

     40-23-4. Stop-loss coverage.

     (a) The director may obtain stop-loss coverage issued pursuant to chapter 8.2 of title 27

(“stop-loss insurance”); provided that, such coverage otherwise complies with the provisions of

this chapter.

     (b) The director may offer participants the option to purchase stop-loss coverage from an

insurer at a rate negotiated by the director.

     40-23-5. Joint and collective participation.

     (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'

dependents and retirees. Such arrangement shall not constitute a multiple employer welfare

arrangement, as defined in the Employee Retirement Income Security Act of 1974 (29 U.S.C. §

1002), as amended from time to time.

     (b) The director may offer nonstate public employers, qualified private employers, and

licensed insurance carriers the option to purchase prescription drugs through the plan set forth in

collective bargaining agreement executed between the State of Rhode Island and authorized

representatives of the unions representing state employees if the director determines that allowing

such nonstate public employers, qualified private employers, or licensed insurance carrier such

option is consistent with the collective bargaining agreement.

     (1) Such determination shall not be required if the director establishes a separate

prescription drug purchasing plan or plans for nonstate public employers, qualified private

employers, and licensed insurance carriers.

     40-23-6. Construction.

     The Rhode Island prescription drug purchasing pool does not constitute a risk pool, and all

participants shall pay the full cost of their own claims and prescription drugs.

     40-23-7. Coordination with prescription drug discount program.

     (a) The director may coordinate the Rhode Island prescription drug purchasing pool with

the state's prescription drug discount program set forth in § 42-66.2.1-2 including, but not limited

to, purchasing prescription drugs for the prescription drug discount program through the Rhode

Island prescription drug purchasing pool, and offering discounts, rebates, and prices secured

through the Rhode Island prescription drug purchasing pool to participants in the state's prescription

drug discount program.

     (b) In pursuing such coordination, the department of human services shall collaborate with

the director of the department of administration to ensure the state's prescription drug discount

program is being used in a manner that maximizes enrollment and minimizes prices paid by

enrollees for prescription drugs.

     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

***

     This act would establish 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.

     This act would take effect upon passage.

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