Nevada Code § 422.40527

Regulations on certain subjects relating to administration of pharmacy benefits; establishment of Nevada Average Acquisition Cost benchmark; report. [Effective on the effective date of the initial contract entered into between the Nevada Health Authority and the state pharmacy benefit manager pursuant to NRS 422.4053 , as amended by section 12 of chapter 390, Statutes of Nevada 2025, at page 2605 .]
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1. The Authority shall adopt regulations
establishing:
(a) The criteria that a pharmacy benefit manager
must meet in order to be eligible to enter into a contract with the Authority
pursuant to NRS 422.4053 to serve as
the state pharmacy benefit manager.
(b) The methodology for reimbursement to
pharmacies, other than those pharmacies described in paragraph (c), for
providing benefits under a contract entered into pursuant to subsection 1 of NRS 422.4053 or paragraph (a) of
subsection 2 of NRS 422.4053 .
(c) The methodology for reimbursement to
pharmacies owned by a health care facility that is registered as a covered
entity pursuant to 42 U.S.C. 256b under a contract entered into pursuant to
subsection 1 of NRS 422.4053 or
paragraph (a) of subsection 2 of NRS
422.4053 .
(d) Dispensing fees paid to pharmacies and
pharmacists for providing benefits under a contract entered into pursuant to subsection
1 of NRS 422.4053 or paragraph (a) of
subsection 2 of NRS 422.4053 . In
establishing those dispensing fees, the Authority may consider applicable
guidance promulgated by the Centers for Medicare and Medicaid Services of the
United States Department of Health and Human Services.
(e) A requirement that providers must submit to
the Authority or state pharmacy benefit manager data from claims, as prescribed
by the Authority, relating to the actual acquisition costs of drugs purchased
by the providers from pharmacies owned by health care facilities that are
registered as covered entities pursuant to 42 U.S.C. 256b.
2. To the extent authorized by federal
law, the dispensing fees established pursuant to paragraph (d) of subsection 1
may vary by pharmacy type, including, without limitation, rural and
independently owned pharmacies, pharmacies owned by a corporation operating in
multiple states and pharmacies owned by a health care facility that is
registered as a covered entity pursuant to 42 U.S.C. 256b.
3. To the extent practicable, the
methodology for reimbursement established pursuant to paragraph (b) of
subsection 1 must:
(a) Generate the maximum amount of savings for
the State with respect to the cost of prescription drugs;
(b) Provide rates of reimbursement for drugs
which are based on the actual cost of acquiring a drug, to the extent that doing
so would result in a reduction of expenditures on prescription drugs by the
Authority; and
(c) Utilize the Nevada Average Acquisition Cost
price benchmark for the purposes set forth in paragraph (b), if established
pursuant to subsection 4.
4. Except as otherwise provided in this
subsection, the Authority shall establish a pricing benchmark to be known as
Nevada Average Acquisition Cost to measure the average, actual cost of
prescription drugs purchased by pharmacies and other providers in this State directly
from manufacturers and wholesalers of prescription drugs or from any other
sources. The Authority shall establish the Nevada Average Acquisition Cost only
if, in the determination of the Authority, the development of the benchmark
would result in a reduction of spending on prescription drugs by the Authority or
otherwise result in a net reduction of expenditures by the State. To facilitate
the establishment of the Nevada Average Acquisition Cost price benchmark, the Authority
may:
(a) Establish a survey that must be completed
periodically by pharmacies and other providers who purchase prescription drugs;
(b) Utilize any data provided to the Authority by
the state pharmacy benefit manager or a health management organization with
which the Authority has contracted pursuant to NRS 422.4053 ;
(c) Utilize any other data which is accessible to
the Authority, including, without limitation, data furnished to the Authority
by providers;
(d) Utilize methodologies similar to those
established by the Centers for Medicare and Medicaid Services of the United
States Department of Health and Human Services with respect to the National
Average Acquisition Cost pricing benchmark; and
(e) Adopt such regulations as may otherwise be
necessary to carry out the purposes of this section.
5. On or before February 1 of each
odd-numbered year occurring after the establishment of the Nevada Average
Acquisition Cost price benchmark, if established, the Authority shall:
(a) Compile a report concerning the actual or
estimated savings generated for the State during the immediately preceding two
calendar years from the establishment and utilization of the Nevada Average
Acquisition Cost price benchmark; and
(b) Submit the report compiled pursuant to
paragraph (a) to the Director of the Legislative Counsel Bureau for transmittal
to the next regular session of the Legislature.
6. As used in this section:
(a) Actual acquisition cost has the meaning
ascribed to it in 42 C.F.R. 447.502.
(b) Provider means a person or entity who
participates in Medicaid as a provider of goods or services.

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