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SPONSOR: | Knauer | DATE TYPED: | 02/02/01 | HB | HJM 22 | ||
SHORT TITLE: | Study Rising Costs of Prescription Drugs | SB | |||||
ANALYST: | Wilson |
Recurring
or Non-Rec |
Fund
Affected | ||||
FY01 | FY02 | FY01 | FY02 | ||
See Fiscal Narrative |
(Parenthesis ( ) Indicate Expenditure Decreases)
Relates to Senate Bills 98, 143, 141, 142 , S.M. 9 and House Bills 2, 297, 298, 300 and 392
SOURCES OF INFORMATION
Agency on Aging
Health Policy Commission
SUMMARY
Synopsis
HIM 22 requests the Health Policy Commission (HPC) conduct an in-depth study of the rising cost of prescription drugs in New Mexico. This study must include a targeted survey to consumers to identify populations affected by the rising cost, and an analysis of the cost and impact on access. Potential solutions must be presented to the Interim Legislative Health and Human Services Committee at its September 2001 meeting.
The recent Medicare managed care plan withdrawals left thousands of seniors without a prescription drug benefit. The purchase of Medi-Gap insurance plans remains one option, but unfortunately, these plans are not reasonably priced for the average senior. The rising cost of prescription drugs only adds to the dilemma, keeping thousands of seniors from purchasing their medication or settling for half or less the prescribed amounts.
FISCAL IMPLICATIONS
The HPC reports there are unencumbered contractual funds in FY01. These funds, which were targeted for other projects, could be used for this study. Projects identified previously, such as the updated analysis of health professional recruitment and retention issues, will be postponed or canceled.
The HPC says that the $200.0 in the HB 2 and SB 98 General Appropriation Acts for contractual services must be restored or they will not be able to comply with HJM 22 or other related health policy studies. The survey interview process alone may cost from $60.0 to $120.0, depending on survey type, precision of expected findings, and confidence in findings representing the entire state.
ADMINISTRATIVE IMPLICATIONS
HPC staff will have to conduct the HJM 22 study and provide administrative support such as travel, postage and printing.
RELATIONSHIP
Relates to:
SB 143, Prescription Drug Senior Program
SB 141, Prescription Drug Fair Pricing Act
SB 142, NM Drug Discount Act
HB 297, Prescription Drug Discount Program
HB 298, Indian Prescription Drugs
HB 300, Prescription Drug Senior Program
HB 301, Prescription Fair Pricing Act
HB 302, Prescription Drug Program Seniors
SJM 9, Prescription Assistance
HB 2, Appropriations Act
SB 98, General Appropriations Act of 2001
OTHER SUBSTANTIVE ISSUES
DW/prr:ar