S111-2011 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

S111-2011 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.

S111-2011 Text

                      S T A T E   O F   N E W   Y O R K
  ________________________________________________________________________

                                     111

                         2011-2012 Regular Sessions

                              I N  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.




   EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                        [ ] is old law to be omitted.
                                                             LBD02204-01-1