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

                                10492--A

                          I N  A S S E M B L Y

                              April 2, 2010
                               ___________

Introduced  by  M.  of  A.  ESPAILLAT,  SALADINO,  BURLING, CHRISTENSEN,
  COLTON, MILLMAN,  JEFFRIES,  BOYLAND,  CAHILL,  GIBSON,  McDONOUGH  --
  Multi-Sponsored  by -- M.  of A. BARRON, CASTRO, CRESPO, FIELDS, PHEF-
  FER, REILLY, TITONE -- read once and  referred  to  the  Committee  on
  Health  --  committee  discharged,  bill amended, ordered reprinted as
  amended and recommitted to said committee

AN ACT in relation to creating a temporary state commission to study and
  evaluate medicaid reimbursement plans and rates for prescription drugs

  THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND  ASSEM-
BLY, DO ENACT AS FOLLOWS:

  Section 1. Legislative findings and declaration. The legislature here-
by finds and declares that the health needs of New York state's indigent
and  elderly  residents  demand  that our medicaid program provide ready
access to medication. In structuring the  program  to  most  effectively
achieve  this goal, we must give due consideration to the important role
played by pharmacists who choose to participate in the program  and  the
need  to  provide  them  the level of monetary compensation for medicaid
prescriptions necessary to maintain their businesses.
  Furthermore, we must analyze the current  operation  of  the  medicaid
prescription drug reimbursement program with an eye towards its restruc-
ture,  in  order to provide for an improved system that evidences fiscal
responsibility, greater efficiency of management and better  service  to
its recipients.
  Therefore,  a  need  exists for a thorough study and assessment of the
medicaid reimbursement plans and rates for prescription drugs used else-
where in the country, for the costs involved in operations  and  manage-
ment  in  the  pharmaceutical  industry,  as  well as for a study of any
potential cost saving measures related to the medicaid prescription drug
reimbursement program, and for the submission to the governor and legis-
lature of a report containing the  conclusions  and  recommendations  of
such study.
  S  2.  A  temporary state commission on the medicaid prescription drug
reimbursement program is hereby created  to  study,  evaluate  and  make
recommendations  concerning  medicaid  reimbursement plans and rates for

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

                                                           LBD06419-03-0

A. 10492--A                         2

prescription drugs. The subjects of such study and report shall  include
but not be limited to:
  (a)  medicaid  reimbursement  formulas in this state and in contiguous
and comparable states for prescription drugs;
  (b) pharmaceutical dispensing fees in this state and in contiguous and
comparable states for prescription drugs;
  (c) average costs involved in operations and management in the pharma-
ceutical industry in this state and in contiguous and comparable states,
including an examination  of  the  practice  of  wholesaler  -  pharmacy
discounts   for  prescription  drugs;  and  average  pharmacy  operating
expenses including but not limited to rent, equipment costs and employee
wages;
  (d)  any  potential  cost-saving  measures  related  to  the  medicaid
prescription  drug  reimbursement  program, including but not limited to
the implementation of a statewide computerized identification system for
medicaid prescription drug recipients and providers.
  S 3. The temporary state commission shall consist of  16  members  who
shall  be the following: the commissioner of the department of temporary
and disability assistance or his representative; 5 members who shall  be
appointed  by  the  governor;  3  members  who shall be appointed by the
majority leader of the senate and 3 members who shall  be  appointed  by
the  speaker  of  the  assembly; 2 members who shall be appointed by the
minority leader of the senate and 2 members who shall  be  appointed  by
the minority leader of the assembly; 3 of these members shall be pharma-
cists  participating in the medicaid program in the state of New York; 2
members shall be physicians licensed to practice in  the  state  of  New
York;  and 3 members shall be recipients of medicaid in the state of New
York, or their advocates. The governor shall designate the  chairperson.
Vacancies  in  the  membership  of the commission shall be filled in the
manner provided for original appointments.
  S 4. The chairperson shall have the power to set the agenda or  action
plan  for  the  commission; establish commission workplace and methodol-
ogies; review and approve reports and recommendations; assign  committee
members  specific duties, tasks and responsibilities; request the tempo-
rary assignment of any state employees he  or  she  deems  necessary  to
carry  out  specific  projects  or  tasks  essential to the commission's
purpose; call meetings of commission members and be able to contract out
for the assistance of specialists in the private sector.
  S 5. The commission may meet within and without the state, shall  hold
public  hearings, and shall have all the powers of a legislative commit-
tee pursuant to the legislative law.
  S 6. The members of the commission shall receive no  compensation  for
their  services but shall be allowed their actual and necessary expenses
incurred in the performance of their duties hereunder.
  S 7. The commission, with such support of the governor as may be need-
ed, may request and shall receive from any department, division,  board,
bureau,  commission  or agency of the state or of any political subdivi-
sion thereof such assistance and data as  will  enable  it  properly  to
carry  out  its  activities hereunder and effectuate the purposes herein
set forth.
  S 8. The commission shall make a report of its findings and  recommen-
dations  regarding  medicaid  reimbursement  plans, and for an equitable
reimbursement rate for pharmacists and medicaid recipients in  New  York
state to the governor and the legislature on or before February 1, 2011.
  S 9. This act shall take effect immediately.