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March Legislative Update


State Legislation

House Bill 12

House Bill 12 was introduced by Rep. Sears.  The bill would implement some of the recommendations of a 2006 Medicaid performance audit that is estimated to save $122 million per year.  The bill involves several key concepts, including capturing program costs; piloting alternative Medicaid care models; implementing a Medicaid case management program for individuals in fee-for-service programs; creating a disease management program for fee-for-service individuals; and piloting a Medicaid e-prescribing program.  This bill would also require each Medicaid provider selected by ODJFS to post a surety bond.  ODJFS will select the providers to which the surety bond requirement is to be applied and must include, at a minimum, each provider who has been investigated for any criminal offense of fraud.  ODJFS will set the amount of the bond for each provider required to post a surety bond at a level that reflects the level of risk of fraud by the provider.  This bill has been assigned to the House Health & Aging Committee

House Bill 71

House Bill 71 was reintroduced  by Rep. Luckie from the last General Assembly. This bill would create the Ohio Official Prescription Program, requiring all prescribers to obtain tamper-proof prescription pads from the Board of Pharmacy. It also mandates that physicians check OARRS before issuing a prescription for a controlled substance, and that pharmacists check OARRS before dispensing a controlled substance.  The bill has been assigned to the House Health & Aging Committee.

House Bill 93

House Bill 93 was introduced by Rep. Burke and would require prescribers to check OARRS before dispensing a controlled substance; create a $150 Terminal Distributor License with a Pain Management Clinic classification; establish a penalty of up to $5,000 for physicians who fail to obtain a license; define “pain management clinics” with an exemption for hospitals, medical and dental schools, and hospice; authorize the State Board of Pharmacy to suspend a terminal distributor license if there is clear and convincing evidence that the provider presents a danger of immediate and serious harm to others; prohibit prescribers from dispensing controlled substances that exceed a 72-hour dosage; restrict prescribers’ ability to dispense controlled substances that exceed 2,500 dosage units in any 30-day period; require Medicaid recipients who are found to have obtained drugs that are not medically necessary to fill prescriptions at a single pharmacy; and authorize the Board of Pharmacy, Ohio Department of Alcohol and Drug Addiction Services, and the Attorney General’s Office to create a statewide Drug Take Back Program.


Federal Legislation

The following Federal update was provided by NCPA.

IRS 1099 Expanded Tax Requirement Repealed by Congress

The U.S. Senate recently passed an amendment that repeals a provision of the Patient Protection and Affordable Care Act (PPACA) which expanded 1099 tax reporting requirements for businesses that purchase goods and services of more than $600. The amendment was offered as part of the FAA Air Transportation Modernization and Safety Improvement Act, which passed the Senate in February. The House Ways and Means Committee also approved a bill that would repeal the expanded Form 1099 reporting requirements, voting 21 to 15 to send the measure to the full House of Representatives.  One provision of the House bill, called the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayments Act of 2011 (HR 705), would repeal the expanded information reporting requirements enacted as part of last year’s health reform legislation.

FSA OTC Repeal Bill to be Introduced

In February, Sen. Kay Hutchison (R-TX,) and Rep. Erik Paulsen (R-MN) introduced The Patient’s Freedom to Choose Act.  This legislation would repeal the provision in the Patient Protection and Affordable Care Act (PPACA)which prohibits consumers from using their pre-tax flexible spending accounts (FSAs) to pay for over the counter (OTC) medicines unless the patient has a prescription.  

If you have any questions or comments about the issues mentioned in this article, please contact Kelly Vyzral, Director of Government Affairs, at 614.586.1497 or

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