To require the Director of Job and Family Services to analyze the fiscal impact of changes to the formula used to establish federal upper limits for generic drugs enacted by the Deficit Reduction Act of 2005 and to increase, subject to a maximum amount, the dispensing fees paid to pharmacists for dispensing generic drugs to Medicaid recipients for fiscal years 2008 and 2009.

Section 1. (A) As used in this section and Section 2 of this act, "multiple source drug" has the same meaning as in 42 U.S.C. 1396r-8(k)(7).

(B) Not later than thirty days after the effective date of the regulation that the United States Secretary of Health and Human Services must promulgate under Section 6001(c)(3) of the "Deficit Reduction Act of 2005," Pub. L. No. 109-171, the Director of Job and Family Services shall analyze the fiscal impact that the federal upper reimbursement limits established under 42 U.S.C. 1396r-8(e)(4), as amended by section 6001 of the "Deficit Reduction Act of 2005," will have on pharmacists in fiscal year 2008. The fiscal impact analysis shall include a projection of the revenue a pharmacist is expected to lose during fiscal year 2008 from each unit of multiple source drug dispensed to a Medicaid recipient.

(C) Notwithstanding section 5111.071 of the Revised Code, and subject to division (D) of this section, the Director shall, not later than ten days after completing the analysis required by division (B) of this section, increase the dispensing fee to be paid to pharmacists with a valid Medicaid provider agreement for dispensing a multiple source drug to a Medicaid recipient in fiscal year 2008. The amount of the increase shall be determined in a manner that compensates pharmacists for the loss of revenue the Director projects, under division (B) of this section, that pharmacists, on average, will incur during fiscal year 2008.

(D) The total amount the Director expends under division (C) of this section to pay the increase in the dispensing fee in fiscal year 2008 shall not exceed the total savings that the Medicaid program is projected to save in that fiscal year as a result of the changes to the federal upper reimbursement limits established in 42 U.S.C. 1396r-8(e)(4) that were enacted by section 6001 of the "Deficit Reduction Act of 2005."

Section 2. (A) Not later than March 15, 2008, the Director of Job and Family Services shall analyze the fiscal impact that the federal upper reimbursement limits established under 42 U.S.C. 1396r-8(e)(4), as amended by section 6001 of the "Deficit Reduction Act of 2005," Pub. L. No. 109-171, will have on pharmacists in fiscal year 2009. The fiscal impact analysis shall include a projection of the revenue a pharmacist is expected to lose during fiscal year 2009 from each unit of multiple source drug dispensed to a Medicaid recipient.

(B) Notwithstanding section 5111.071 of the Revised Code and subject to division (C) of this section, the Director shall, not later than ten days after completing the analysis required under division (A) of this section, increase the dispensing fee to be paid to pharmacists with a valid Medicaid provider agreement for dispensing a multiple source drug to a Medicaid recipient in fiscal year 2009. The amount of the increase shall be determined in a manner that compensates pharmacists for the loss of revenue the Director projects, under division (A) of this section, that pharmacists, on average, will incur during fiscal year 2009.

(C) The total amount the Director expends under division (B) of this section to pay the increase in the dispensing fee in fiscal year 2009 shall not exceed the total savings that the Medicaid program is projected to save in that fiscal year as a result of the changes to the federal upper reimbursement limits established in 42 U.S.C. 1396r-8(e)(4) that were enacted by section 6001 of the "Deficit Reduction Act of 2005."