D.__A preferred drug list identifies clinically efficacious high-quality prescription drugs that are also cost- effective; these drugs may not require prior approval.__The preferred drug list must to the extent possible be based on MaineCare's preferred drug list and must be advised by MaineCare's clinical drug utilization committee;

E.__Administrative efficiencies are realized by pooled purchasing; clinically efficacious, cost-effective drugs are preferred; and rebates are negotiated on behalf of the entire group;

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

G.__Incentives may be implemented to reward the use of mail order and community pharmacies will be given the opportunity to provide medications under the same terms as mail-order pharmacies; and

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

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

14-E. Pharmaceu- Not 5 MRSA

Human tical Cost Authorized §2031

Services Management

Council

Sec. PP-3. Calculation and transfer; health insurance savings; pharmaceutical benefit. Notwithstanding any other provision of law, the State Budget Officer shall calculate the amount of savings in section 4, as achieved and implemented by the State Employee Health Commission or from other savings achieved by the State Employee Health Commission consistent with this section, that apply against each General Fund account for all departments and agencies except legislative branch 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