Relates to establishing the NYS prescription medication cost containment program.
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 and 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 $17 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: 2012: S.111 - Referred to Health/ A.268 Referred to Aging 2011: S.111 - Notice of Committee Consideration Requested, Committee Discharged 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.
STATE OF NEW YORK ________________________________________________________________________ 1387 2013-2014 Regular Sessions IN SENATE (PREFILED) January 9, 2013 ___________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. LBD02624-01-3