F.__Reimbursement for prescription generic drugs must be capped at maximum allowable costs or the MaineCare bid price, whichever is lower;

G.__Incentives must be implemented to reward the use of mail order; and

H.__All participating plans must share in the savings realized through the pooled purchasing effort.

Sec. LL-2. 5 MRSA §12004-G, sub-§14-E is enacted to read:

14-E. Pharmaceut- Not 5 MRSA

Human ical Cost Authorized §2001

Services Management

Council

Sec. LL-3. Calculation and transfer. Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings in Part B, section 1 that applies against each General Fund account for all departments and agencies from savings in the cost of health insurance attributable to maximizing the cost effectiveness of the pharmaceutical benefit provided by publicly offered health insurance plans and shall transfer the amounts by financial order upon the approval of the Governor. These transfers are considered adjustments to appropriations in fiscal years 2005-06 and 2006-07. The State Budget Officer shall provide the joint standing committee of the Legislature having jurisdiction over appropriations and financial affairs a report of the transferred amounts no later than January 15, 2007.

Sec. LL-4. Calculation and transfer. Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings in Part B, section 1 that applies against the General Purpose Aid for Local Schools and Retired Teachers' Health Insurance General Fund accounts within the Department of Education from savings in the cost of health insurance attributable to maximizing the cost effectiveness of the pharmaceutical benefit provided by publicly offered health insurance plans and shall transfer the amounts by financial order upon the approval of the Governor. These transfers are considered adjustments to appropriations in fiscal year 2006-07. The State Budget Officer shall provide the joint standing committee of the Legislature having jurisdiction over appropriations and financial