Master FIR (1988)

NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature. The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

F I S C A L I M P A C T R E P O R T

SPONSOR:	King		DATE TYPED:	02/15/01		HB	537
SHORT TITLE:		Prescription Drug ID Cards				SB
					ANALYST:		Wilson

APPROPRIATION

Appropriation Contained

Estimated Additional Impact

Recurring

or Non-Rec

Fund

Affected

FY01

FY02

FY01

FY02

See Narrative

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Public Regulation Commission

Health Policy Commission (HPC)

General Services Department (GSD)

Attorney General's Office (AG)

SUMMARY

Synopsis of Bill

HB 537 requires the Superintendent of Insurance, following guidelines recommended by a national council for prescription drug programs, to design a uniform prescription drug identification card to be utilized by all health insurers, HMOs, managed care organizations, pharmacy benefit managers, and prescription drug purchasing cooperative functioning with a self-insurance plan or by any other method.

Significant Issues.

There is currently a lack of uniformity in cards used to provide evidence of coverage for prescription drugs.
HB 537 will not regulate ERISA plans.

FISCAL IMPLICATIONS

The PRC wrote that "the costs of implementing the provisions of HB 537 are unknown, but could be substantial.

ADMINISTRATIVE IMPLICATIONS

The PRC was not able to estimate the administrative costs.

TECHNICAL ISSUES

The AG states that HB 537 does not explicitly require regulations. They also note that HB 537 should specifically identify the "national council."

OTHER SUBSTANTIVE ISSUES

The National Council for Prescription Drug Programs (NCPDP) is an organization developing standards for healthcare information specifically related to the prescription drug and pharmacy community.
Pharmacists would save time entering new patients and/or new insurance information into their computer, as they would readably be able to locate the necessary information for claims processing.
Pharmacists would not need to spend as much time on the telephone contacting Help Desks for information.
Patients would spend less time at the pharmacy waiting for prescriptions.

All cards may be lost, stolen or destroyed. Several issues come to mind when a card is lost or stolen. First, how is the card replaced: Who will do this and where will the data come from: If the card holds the medical record, will it be irretrievably lost.? Must the record begin anew at this point: If the card is found (or stolen) by an unethical person, and it contains a patient's medical record or the key to a medical record, how will it be disabled to avoid abuse? Will another individual be able to use the card for medical services, or obtain sensitive information? And finally, who will pay for the replacement?

DW/ar