Bill S111-2011

Relates to establishing the NYS prescription medication cost containment program

Relates to establishing the NYS prescription medication cost containment program.

Details

Actions

  • Jan 4, 2012: REFERRED TO HEALTH
  • Mar 31, 2011: COMMITTEE DISCHARGED AND COMMITTED TO HEALTH
  • Feb 22, 2011: NOTICE OF COMMITTEE CONSIDERATION - REQUESTED
  • Jan 5, 2011: REFERRED TO AGING

Memo

BILL NUMBER:S111           REVISED 12/30/11

TITLE OF BILL: An act to amend the elder law, in relation to the New York state prescription medication cost containment program

PURPOSE: To enhance cost savings by the NYS EPIC program in procurement of prescription medications for recipients of the state's EPIC program.

SUMMARY OF PROVISIONS: Section 1 Amends the Elder Law by adding a new section, 249-a. Authorizes the Executive Director of the Elderly Pharmaceutical Insurance Coverage Program to create the New York State Prescription Medication Cost Containment Program. Provides that such program participants shall be offered several options to fill their medical prescriptions through a Canadian mail order company. Such companies shall be selected through a competitive bidding process, designed an implemented by the Director.

Section 2 - Effective Date

EXISTING LAW: None.

JUSTIFICATION: There is every indication that New York State will continue to face unprecedented multi-billion dollar budget deficits. As such, the State must be more creative in its approach to raising revenue and controlling expenses, without relying on the usual methods of raising taxes and cutting, or in some cases eliminating programs. Since prescription drug costs are among New York State's highest expenditures, one way the State can accomplish this goal is by creating the New York State Prescription Medication Cost Containment Program, which would be voluntary, for participants in the Elderly Pharmaceutical Insurance Program (EPIC).

This legislation is based on a program that has operated in Schenectady County since 2005. Since then, the County has realized savings of over $13.7 million, and in 2010 is expected to save $4.2 million. Additionally, County prescription drug costs have increased less than 8.9% since the program's inception. This figure compares favorably with the average of U.S. prescription drug programs which has seen prices escalate by more than 12% each year, or 76.2% over five years. Over 90% of Schenectady County's employees represented by two unions, CSEA and 1199, now participate in the program. If the smallest county in New York State has saved this much money, controlled its prescription drug costs and expanded program participation to over 90% of its employees, just imagine what New York State could accomplish through the implementation of this legislation.

LEGISLATIVE HISTORY:

2011: S.111 - Discharged from Aging and Committed to Health/A.268 Referred to Aging 2010: S.1645A - Advanced to Third Reading/A.7666A Referred to Aging 2009: S.1645A - Reported and Committed to Finance/A.7666 - Referred to Aging

FISCAL IMPLICATIONS: Potential cost savings to the state.

EFFECTIVE DATE: This law shall take effect on the one hundred eightieth day after it shall have become law.


Text

STATE OF NEW YORK ________________________________________________________________________ 111 2011-2012 Regular Sessions IN SENATE (PREFILED) January 5, 2011 ___________
Introduced by Sen. DIAZ -- read twice and ordered printed, and when printed to be committed to the Committee on Aging AN ACT to amend the elder law, in relation to the New York state prescription medication cost containment program THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: Section 1. The elder law is amended by adding a new section 249-a to read as follows: S 249-A. NEW YORK STATE PRESCRIPTION MEDICATION COST CONTAINMENT PROGRAM. 1. THE EXECUTIVE DIRECTOR IS AUTHORIZED AND DIRECTED TO CREATE THE NEW YORK STATE PRESCRIPTION MEDICATION COST CONTAINMENT PROGRAM. 2. SUCH PROGRAM SHALL OFFER NEW YORK STATE RESIDENTS WHO QUALIFY FOR THE ELDERLY PHARMACEUTICAL INSURANCE COVERAGE PROGRAM PURSUANT TO SECTION TWO HUNDRED FORTY-TWO OF THIS ARTICLE, SEVERAL OPTIONS TO FILL MEDICAL PRESCRIPTIONS THROUGH A CANADIAN MAIL ORDER COMPANY. SUCH COMPA- NIES SHALL BE SELECTED THROUGH COMPETITIVE BIDDING PROCESS, TO BE DESIGNED AND IMPLEMENTED BY THE EXECUTIVE DIRECTOR. CANADIAN DRUG SUPPLIERS SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO ALL MANUFACTURERS AND DISTRIBUTORS BY CANADA'S RESEARCHED BASED PHARMACEUTICAL COMPANIES. S 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.

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