PUBLIC Law Chapter 20

component of the program or the total cost of any covered

purchase of a generic prescription drug or medication under the

supplemental component of the program does not exceed the sum of

$2 plus 20% of the price allowed for that prescription under

program rules ~~or $2, whichever is greater~~. For the supplemental

component of the program except as otherwise provided in this

subsection, the total cost paid by the individual for any covered

purchase of a prescription drug or medication may not exceed the

cost of the program for that drug or medication minus the $2 paid

by the program. The commissioner shall establish annual limits

on the costs incurred by eligible household members for

prescriptions or nonprescription drugs or medications covered

under the program on or prior to May 31, 2001, after which the

program must pay 80% of the cost of all prescriptions or

nonprescription drugs or medications covered by the supplemental

component of the program on May 31, 2001. The limits must be set

by the commissioner by rule as necessary to operate the program

within the program budget;

Sec. GGG-4. 22 MRSA §254, sub-§8, as amended by PL 2001, c. 691, §1
and affected by §6, is further amended to read:

8. Drug rebate program. Effective May 1, 1992, payment must
be denied for drugs from manufacturers that do not enter into a
rebate agreement with the department ~~for prescription drugs~~
~~included in the list of approved drugs under this program~~. Each
agreement must provide that the pharmaceutical manufacturer make
rebate payments for both the basic and supplemental components of
the program to the department according to the following
schedule.

B. For the quarters beginning October 1, 1992, the rebate
percentage is equal to the percentage recommended by the
federal Center for Medicare and Medicaid Services of the
manufacturer's wholesale price for the total number of
dosage units of each form and strength of a prescription
drug that the department reports as reimbursed to providers
of prescription drugs, provided payments are not due until
30 days following the manufacturer's receipt of utilization
data supplied by the department, including the number of
dosage units reimbursed to providers of prescription drugs
during the period for which payments are due.

C. Beginning October 1, 1998, the department shall seek to
achieve an aggregate rebate amount from all rebate
agreements that is 6 percentage points higher than that
required by paragraph B of this subsection, provided such
rebates result in a net increase in the rebate revenue
available to the elderly low-cost drug program. In the
event the department is not able to achieve the rebate

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