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

SPONSOR:	Feldman		DATE TYPED:	1/30/02		HB
SHORT TITLE:		Prescription Drug Alternatives				SB	SJM 23
					ANALYST:		Dunbar

APPROPRIATION

Appropriation Contained		Estimated Additional Impact		Recurring or Non-Rec	Fund Affected
FY02	FY03	FY02	FY03
			NFI

(Parenthesis ( ) Indicate Expenditure Decreases)

Relates to SB 118, SJM 22, SB 91 and HB 149

SOURCES OF INFORMATION

Responses Received From

Department of Health (DOH)

Health Policy Commission (HPC)

SUMMARY

Synopsis of Bill

SJM023 requests the State Agency on Aging to lead a cooperative effort comprised of statewide medical provider associations and pharmacists to develop a voluntary program that will allow “brown bag assessments” of all prescription drugs used by individuals. The task force will also provide information on alternative therapeutic and generic substitutions at the point of sale, explore appropriate incentives to ensure full participation by pharmacists, physicians and other prescribing health care providers. The memorial further indicates that the program develop a mechanism to identify program participants, and report any legislative recommendations to the Interim Legislative Health and Human Services Committee on September 2002.

Significant Issues

According to DOH, SJM 23 would establish a clear and immediate health benefit to an active partnership between a patient and his/her physician and pharmacist for anyone taking prescriptions drugs. The department further notes that SJM 23 would require an annual review of the prescription drugs being taken by the senior citizen which will ensure that antagonistic drugs are identified and that the most appropriate drug regime is being pursued and will result in overall improved health outcomes for senior citizens who participate.

FISCAL IMPLICATIONS

None identified

ADMINISTRATIVE IMPLICATIONS

None identified

RELATIONSHIP

SB 118 would appropriate $115,000 for the expansion of the prescription drug outreach efforts of the State Agency on Aging.

SJM 22 requests a study regarding provision of free prescription, drugs to low-income senior citizens.

HB 149 appropriates $25,000 to the State Agency on Aging for expenditure for the purpose of assessing the potential for initiating any necessary planning and waivers to establish a prescription bulk-purchasing program utilizing the special prescription drug purchasing prerogatives of one or more Native American prescription drug programs.

SB 9 creates a senior drug prescription program to provide a prescription drug benefit to New Mexico seniors who are residents of New Mexico, over the age of 65 years, and have no other prescription

TECHNICAL ISSUES

The sponsor of the bill may wish to define "Brown Bag".

OTHER SUBSTANTIVE ISSUES

HPC recognizes that senior citizens generally pay higher prices for prescription drugs, may not be taking their appropriate dosages due to cost or lack of knowledge, and may not realize that there could be alternative therapeutic or generic drugs, which would provide the same benefits at lower costs.

According to HPC annual “brown bag assessments” may reduce the number of preventable injuries that elderly people experience, often related to improper medication intake.

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

SOURCES OF INFORMATION

Responses Received From

BD/njw