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





SPONSOR: Knauer DATE TYPED: 02/02/01 HB 303
SHORT TITLE: Standard Co-Pay on Prescription Drugs SB
ANALYST: Wilson


APPROPRIATION



Appropriation Contained
Estimated Additional Impact
Recurring

or Non-Rec

Fund

Affected

FY01 FY02 FY01 FY02
NFI



(Parenthesis ( ) Indicate Expenditure Decreases)



SOURCES OF INFORMATION



Health Policy Commission

Public Regulation Commission



SUMMARY



Synopsis of Bill



HB 303 amends the insurance code by adding new sections of law. These additions require that any health insurance contract that offers prescription drug benefits with co-payments shall require that co-payments shall be the same for any drug regardless of the method dispensed. HB 303 also amends NMSA 1978 Chapter 13 and applies to any health coverage offered under the Health Care Purchasing Act.



Significant Issues



Some plans offer different co-pays depending on whether or not the prescription is obtained from a retail pharmacy vs mail order. The different level of co-pay is used by the plan to give the insured an economic incentive to choose mail order. The plan usually has negotiated contracts through these suppliers that have lower costs. Plans use this method to lower health care costs.



RELATIONSHIP



Relates to -

SJM 8, Medicare Outpatient Pharmacy Benefit

SJM 9, Fill Prescriptions at Federal Health Centers

SB 140, Indian Prescription Drug Purchase

SB 141, Prescription Drug Fair Pricing Act

SB 142, NM Prescription Drug Senior Act

SB 143, Prescription Drug Senior Program

SB 144, Prescription Drug Bulk Purchasing

HJM 21, Affordable Drug Program Options for Seniors

HJM 22, Study Rising Costs of Prescription Drugs

HB 297, NM Prescription Drug Discount Act

HB 298, Native American Prescription Drug Program

HB 300, Special Prescription Drug Program for Seniors

HB 301, Prescription Drug Fair Pricing Act

HB 302, Prescription Drug Benefit for Seniors



TECHNICAL ISSUES



The Health Policy Commission states that Article 7 of Chapter 13 is a new section added to the Public Purchases and Property, which currently includes;



There is a question as to whether the placement in this Chapter of the NMSA is appropriate.



SUBSTANTIVE ISSUES





DW/ar:prr