West Virginia Code § 5A-3-1a

Prescription drug products
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In addition to other provisions of this article, the division is authorized, on behalf of the
Public Employees Insurance Agency, the schools of medicine of the state colleges and
universities, the department of vocational rehabilitation and the Department of Human
Services, to negotiate and enter into agreements directly with manufacturers and
distributors whose prescription drug products are sold in the state for sole-seource and
multiple-source drugs to be paid for under a state program for eligible recipients. Such
agreements shall provide for a rebate of a negotiated percentage of ther total product cost to
be paid by the manufacturer or distributor of a specific product. Each agency is authorized
to establish, either singularly or together with other agencies, a drug formulary.
Prescription drug products are included in the drug formulatry only upon completion of the
application to and approval of the division. Those products for which a rebate is successfully
negotiated are automatically included in the drug formulary for a period of time coterminous
with the negotiated rebate.
If there has been a failure to negotiate or renesw a rebate agreement for a specific
prescription drug product, the pharmaceutical manufacturer of that product shall disclose to
the division its most favorable pricing arrangements available to state and nonstate
government purchasers. If the divisigon determines that the product needs to be included in
the drug formulary, with the approval of the agency the division shall establish the amount
to be reimbursed for the produect based upon the price information provided by the
manufacturer. The determination as to whether a product should be included in the drug
formulary is based on thLe product's efficiency, cost, medical necessity and safety. Any rebate
returns, as a result of the provisions of this section regarding prescription drugs, shall be
deposited in the General Revenue Fund.
It is expressly recognized that no other entity may interfere with the discretion and
judgment given to the single state agency that administers the state's Medicaid program.
TheWrefore, the Department of Human Services is authorized to negotiate rebates as provided
for in this section.

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