Model Legislation and Contracts

State Purchasing Pool Buy-in

This model legislation allows small businesses and individuals to buy into a state employee prescription drug benefit purchasing pool. It authorizes non-state public employers, self-insured private employers, and insurance carriers who cover small groups or individuals to purchase drugs for their beneficiaries under the purchasing authority of the state. By adding more lives to a purchasing pool, purchasers can negotiate better prices for public employees and others who join the purchasing pool.

Model Legislation to Allow Buy-in into State Purchasing Pools for Prescription Drugs, January 2020.

Q&A: Prescription Drug State Purchasing Pools and Buy-in, January 2020.

NASHP Proposal for a State Purchasing Pool for Prescription Drugs, October 2019. This white paper provides a roadmap to help states navigate legal issues and implement a state purchasing pool.

Model Pharmacy Benefit Manager Contract Terms Help States Achieve Prescription Drug Savings, January 2020. This blog explains how establishing favorable PBM contract terms can be a state’s first step toward leveraging additional savings through a second strategy – implementing a state purchasing pool for prescription drugs.

NASHP’s Center for State Rx Drug Pricing develops model legislation and contracts to help states control rising prescription drug costs, and features the bills on its website. State officials interested in these model bills should contact Jennifer Reck for more information.