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| SPONSOR: | HCPAC | DATE TYPED: | 03/15/01 | HB | 877/HCPACS | ||
| SHORT TITLE: | Prescription Program Act | SB | |||||
| ANALYST: | Wilson | ||||||
| Recurring
or Non-Rec |
Fund
Affected | ||||
| FY01 | FY02 | FY01 | FY02 | ||
| See Narrative | |||||
(Parenthesis ( ) Indicate Expenditure Decreases)
SOURCES OF INFORMATION
LFC files
Agency on Aging (AOA)
SUMMARY
Synopsis of Bill
HB 877/HCPACS resolves that the Department of Health shall establish a voluntary statewide program to provide access to a variety of prescription medications at the lowest possible rate for certain residents of the State Subsidy Grants will be paid directly to participating insurers.
The Department of Health may adjust the requirements and terms of the program to ensure compliance with a new or existing federal prescription drug program. The Department of health shall report the Legislative Finance Committee recommended changes if a federal drug prescription program is enacted.
Significant Issues
The bill requires that the Department of Health include safeguards to ensure that participants have appropriate access to medically necessary medications even if pharmaceutical management programs are implemented. This substitute, in fact deleted the requirement for a formulary. It is difficult to understand how the program will effectuate any savings if any cost control programs are prohibited.
The AOA has pointed out that there are some issues connected to the eligibility requirements. Anyone over 60 is eligible, which does not track with medicare requirements. In addition the bill
states that one must be "ineligible for medicaid or other prescription drug coverage" which includes almost everyone since most people are eligible, they just cannot afford prescription drug coverage.
FISCAL IMPLICATIONS
HB 877/HCPACS relies on private support and possible federal grants and support for funding. If the program is funded the Department of Health will most likely return to the legislature for operational funds. The bill in fact makes an appropriation, but does not in fact do so.
ADMINISTRATIVE IMPLICATIONS
HB will require staffing and support, but the Department of Health has no provided any specific information.
TECHNICAL ISSUES
HB 877/HCPACS adds "making an appropriation" to the title, but does not do so.
DW/ar