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Bill Summary · HB 940

Overview

HB 940 (Ohio, 136th General Assembly) proposes the Medical Shortage Protection Act. It seeks to prohibit certain price increases and cost-sharing during prescription drug shortages and to create a framework for penalties, civil actions, and a dedicated fund to address shortages. The bill applies to prescription drugs (including generics), drug therapy devices, and related supplies.

Purpose and intent

  • Prevent sharp price increases and higher cost-sharing during periods of drug shortages.
  • Provide remedies for consumers and ensure enforcement through penalties and civil actions.
  • Establish a dedicated Medical Shortage Fund to address shortages using money deposited under the act.

Key provisions

Price and cost-sharing protections during shortages

  • Supplier price cap: During a shortage period for a prescription drug (including generics) or a drug-therapy device/supply, no supplier may sell or offer the item at a rate more than 10% above the rate charged immediately prior to the shortage.
  • Health plan protections: During a shortage, health plan issuers (including administrators) may not impose cost sharing for the drug/device/supply at more than 10% above the prior amount charged.

Evidence of shortage

  • Shortage evidence includes:
    • Invocation of the federal Defense Production Act of 1950.
    • State emergency declaration by the governor related to the drug/device/supply, issued with advice from health officials, the state board of pharmacy, or licensed professional associations.

Enforcement and remedies

  • Consumer protections (courts): Violations of price/cost-sharing caps are treated as unconscionable acts or practices, with potential compensatory damages.
  • Damages for consumers: A prevailing consumer may recover six times their actual economic loss, plus court costs and attorney’s fees.
  • Penalties: Additional civil penalties may apply, including fines and per-day penalties during the shortage period, with specified ranges.

Medical Shortage Fund (new)

  • A dedicated fund in the state treasury to be used solely to address shortages of prescription drugs and related devices/supplies.
  • Fund is financed by money deposited under specific provisions of the act.

Civil and administrative penalties (Miscellaneous sections)

  • Various sections outline penalties for violations related to drug pricing, insurance practices, and administrative violations during shortages.
  • Civil actions may allow for sixfold damages and other penalties consistent with the act’s structure.

Who is affected

  • Suppliers and manufacturers of prescription drugs, generic drugs, and drug-therapy-related devices/supplies.
  • Health plan issuers and administrators (including insured and covered persons under the plan).
  • Consumers and patients purchasing or using affected drugs or devices during shortage periods.
  • State agencies (Director of Health, State Board of Pharmacy) and courts implementing enforcement and penalties.

Procedural and timeline aspects

  • Shortage periods trigger the price/cost-sharing caps; the exact duration is defined by the shortage period described in the act (and evidenced by the listed indicators).
  • Penalties and civil actions apply during and potentially after shortage periods, with damages calculated per the act’s formulas.
  • The act creates a temporary or ongoing Medical Shortage Fund for shortage mitigation and response.

Notes

  • The bill repeals existing sections 1345.99 and 3901.99 and renumbers/aligns provisions within a composite framework for consistency with prior amendments.
  • Named as the Medical Shortage Protection Act.
  • Sponsored by Representatives Cockley and Grim, with Grim and Cockley as co-sponsors.

Compiled from official sources — confirm details with the bill’s official record.

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