Relates to establishing the New York state prescription medication cost containment program.
TITLE OF BILL: REVISED 12/30/11 An act to amend the civil service law, in relation to the New York state prescription medication cost containment program
PURPOSE: To enhance cost savings to New York State in the procurement of prescription medications for its civil service employees, retirees and dependents.
SUMMARY OF PROVISIONS: Section 1. Amends the Civil Service Law by adding a new section 159-d. Authorizes the president of the Civil Service Commission to create the New York State Prescription Medication Cost Containment Program. Provides that New York State residents who are New York State civil service employees or New York State residents who are retired from New York state civil service and who participate in the New York state health insurance plan (NYSHIP), and their dependents, shall be offered several options to fill medical prescriptions through a Canadian mail order company.
Section 2. Collective Bargaining.
Section 3. 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 New York State Civil Service employees and retirees.
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.480 - Defeated in Civil Service and Pensions/A.1098 Referred to Governmental Employees 2010: S.6210B - Reported and Committed to Finance/A.9207B - Amended and Recommitted to Governmental Employees
FISCAL IMPACT: Anticipated 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 ________________________________________________________________________ 480 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 Civil Service and Pensions AN ACT to amend the civil service 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 civil service law is amended by adding a new section 159-d to read as follows: S 159-D. NEW YORK STATE PRESCRIPTION MEDICATION COST CONTAINMENT PROGRAM. 1. THE PRESIDENT, AS DEFINED IN SUBDIVISION TWO OF SECTION TWO OF THIS CHAPTER 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 ARE EMPLOYED IN THE CIVIL SERVICE OF THE STATE OR NEW YORK STATE RESIDENTS WHO ARE RETIRED FROM STATE SERVICE AND ARE PARTICIPATING IN THE NEW YORK STATE HEALTH INSURANCE PLAN (NYSHIP) AND THEIR DEPENDENTS, SEVERAL OPTIONS TO FILL MEDICAL PRESCRIPTIONS THROUGH A CANADIAN MAIL ORDER COMPANY. SUCH COMPANIES SHALL BE SELECTED THROUGH COMPETITIVE BIDDING PROCESS, TO BE DESIGNED AND IMPLEMENTED BY THE PRESIDENT, AS DEFINED IN SUBDIVISION TWO OF SECTION TWO OF THIS CHAPTER. CANADIAN DRUG SUPPLIERS SHALL INCLUDE, BUT SHALL NOT BE LIMITED TO ALL MANUFACTURERS AND DISTRIBUTORS BY CANADA'S RESEARCHED BASED PHARMACEUTICAL COMPANIES. S 2. Nothing contained in this act shall supersede or diminish the terms of a collective bargaining agreement. S 3. 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. LBD03249-01-1