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





SPONSOR: Picraux DATE TYPED: 03/02/01 HB 302/aHFL#1
SHORT TITLE: Prescription Drug Benefit for Seniors SB
ANALYST: Carrillo


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



Retiree Health Care Authority

State Agency on Aging

Health Policy Commission



SUMMARY



Synopsis of HFL. Amendment #1



House Floor Amendment #1 to House Bill 302 clarifies the language referring to the contracted discounted price available to the Retiree Health Care Authority.



Synopsis of Original Bill



House Bill 302 proposes to amend the Retiree Health Care Act, specifically Section 10-7C-5, to provide a senior prescription drug program. The bill establishes the Senior Prescription Drug Program Fund.



Significant Issues



The eligibility criteria set forth in HB302 is:

A qualifying senior will pay an annual enrollment fee not to exceed $60.00. The Retiree Health Care Authority (RHCA) will collect and use the enrollment fees for program administration costs, including disseminating general information about the program.



The amount a qualifying senior pays for a prescription drug shall not exceed the total cost of the dispensing fee plus the discounted price made available to or negotiated by the RHCA.



FISCAL IMPLICATIONS



HB302 creates the Senior Prescription Drug Program Fund and provides for revenues from an annual enrollment fee, not to exceed $60.00 per year per individual. The bill includes a non-reverting clause.



The fiscal implications of the proposed legislation are indeterminate at this time. The fiscal impacts, both costs and revenue, depend on the number of eligible seniors enrolling in the program.



ADMINISTRATIVE IMPLICATIONS



The administrative impact depends on the number of eligible seniors enrolling in the program, and their customer service needs.



CONFLICT/DUPLICATION/COMPANIONSHIP/RELATIONSHIP



HB302 relates to:

TECHNICAL ISSUES



HB302 does not include a provision making the fees collected for the program subject to legislative appropriation.



WJC/njw:ar