NY State Senate Bill 2009-S3901

Archive: Last Bill Status - In Senate Committee Finance Committee

Introduced
- In Committee Assembly
- In Committee Senate
- On Floor Calendar Assembly
- On Floor Calendar Senate
- Passed Assembly
- Passed Senate
Delivered to Governor
Signed By Governor

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Actions

View Actions

	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Mar 08, 2010	reported and committed to finance
Jan 28, 2010	print number 3901b
Jan 28, 2010	amend and recommit to aging
Jan 06, 2010	referred to aging
May 28, 2009	print number 3901a
May 28, 2009	amend and recommit to finance
May 11, 2009	reported and committed to finance
Apr 03, 2009	referred to aging

Votes

- Mar 8, 2010 - Aging Committee Vote
  S3901
  
  10
  
  Aye
  
  0
  
  Nay
  
  2
  
  Aye with Reservations
  
  0
  
  Absent
  
  0
  
  Excused
  
  0
  
  Abstained
  - - Aging Committee Vote: Mar 8, 2010
      
      aye (10)
      
      Addabbo Jr.
      
      Diaz
      
      Farley
      
      Flanagan
      
      Golden
      
      Kruger
      
      Oppenheimer
      
      Savino
      
      Serrano
      
      Stavisky
      
      aye wr (2)
      
      LaValle
      
      Ranzenhofer

Bill Amendments

Original

B (Active)

2009-S3901 - Details

Current Committee:: Senate Finance
Laws Affected:: Amd §250, Eld L; amd §367-a, Soc Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1267
2013-2014: S3963

2009-S3901 - Summary

Relates to the amount of dispensing fees paid to pharmacies in EPIC and Medicaid; establishes the dispensing fee at eight dollars per prescription for patients in long term care facilities, intermediate care facilities for the developmentally disabled, assisted living programs and any other residential care facilities in which prescriptions are dispensed in unit-of-use packaging.

2009-S3901 - Sponsor Memo

                                 BILL NUMBER:  S3901

 TITLE OF BILL :
An act to amend the elder law and the social services law, in relation
to dispensing fees paid to pharmacies in EPIC and Medicaid


 PURPOSE OR GENERAL IDEA OF BILL :
This bill provides for the dispensing fee paid per prescription.

 SUMMARY OF SPECIFIC PROVISIONS :
Section One of the bill amends paragraph (c) of subdivision 1 of
section 250 of elder law related to the dispensing fee paid to
pharmacies for every prescription filled under EPIC program.  This
bill adds a new provision related to the dispensing fee paid to
pharmacies required to dispense medications in unit-of-use packaging.

Section two of the bill amends subparagraphs (i) and (ii) of paragraph
(d) of subdivision 9 of section 367-a of the social services law, as
amended by chapter 19 of the laws of 1998 related to the dispensing
fee paid to pharmacies for every prescription filled for persons
eligible to participate in the Medicaid program. The bill adds a new
subparagraph (iii) related to the dispensing fee paid to pharmacies
required to dispense medications in unit-of-use packaging.

 JUSTIFICATION :

The enacted 2008-2009 state budget reduces the amount allowed under
Medicaid and EPIC to cover the cost of prescription medication without
a counterbalancing increase in the dispensing fee paid to
participating pharmacies. Other state Medicaid programs such as
California pay higher dispensing fees in order to meet the
"reasonableness" standard in federal statutes governing Medicaid
programs. Unless the dispensing fee is adjusted prior to the enactment
of the new product cost allowance on July 1, 2008, it is possible that
New York will not meet this test. Moreover, given the high costs of
doing business in this state, publicly-financed prescription benefit
programs such as Medicaid and EPIC should not reimburse pharmacies at
a rate lower than every other state that has enacted deeply discounted
product reimbursement policies.

The actual cost of dispensing a prescription to a beneficiary in the
New York Medicaid program ranges between $8.79 and $14.04 according to
the survey conducted by Grant Thorton released in January, 2007.  We
apply the same survey results to dispensing fees paid under EPIC.
Although the dispensing fees in this legislation are below these
amounts, they are consistent with reimbursement policies that are in
place in other state Medicaid programs that discount the product
allowance as substantially as in the adopted NYS FY 2008-2009 budget.
With the high costs of living and doing. business, New York's Medicaid
and EPIC programs should not reimburse pharmacies at the very lowest
level in the country.  Doing so may reduce the pharmacy provider
network to unacceptable levels. Should that occur, both programs will
fail in their primary objective, to deliver medically necessary
healthcare of acceptable quality cost-containment parameters.

Although the legislature has restored millions to the cuts proposed by
the executive over the course of the past fourteen years, every state
budget has nevertheless left pharmacy providers with less
reimbursement than in the previous year. Virtually every health care
provider in the Medicaid program has faced regular decreases in
reimbursement, but no other provider category has been subject to the
cumulative percentage reductions as have the state's pharmacies. This
year's reduction of two and a half percentage points off average
wholesale price actually represents a 30% reduction in gross merging,
with a 60% decrease in net amounts, for example. Some pharmacy

providers have calculated the loss at $3 per prescription across all
prescriptions filled in both programs.

Pharmacies that provide prescription services for residents in
long-term care facilities and other forms of residential care incur
additional expense associated with preparing "blister packs" and other
forms of unit-of-use packaging that are required by regulation.  This
special packaging provides additional security against misuse or
overuse and enhances patient compliance that in turn reduces
unnecessary Medicaid spending associated with medication errors or
inappropriate use. The differential in the legislation is also based
on policies adopted by other states.

 PRIOR LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None. The changes proposed in this legislation are possible in the
context of the funds appropriated for spending on the pharmacy
benefit. First of all, national trends suggest that the rate of growth
in spending for prescription drugs has slowed. The proposed 6%
increase in the cost of the benefit is likely to be much lower.
Second, the proposed spending on prescription drugs does not take into
account the additional supplemental rebates generated by preferred
drug programs. In 2006 when the PDP was first implemented, the program
generated $30.5 million. Although the 2007 supplemental rebate amounts
not yet available, they will be significantly higher than in the
previous year when the Preferred Drug Program had just begun and the
number of therapeutic categories was considerably less than it was in
2007.  Third, although the dispensing fees in this bill appear to be
the same for brands and generics, differences in co-payments actually
provide pharmacy with a slight higher fee for dispensing generic
drugs. In the past, the state Medicaid program realized $21 million in
savings per year when generic utilization improved by one percent.
Savings in FY 2008-2009 will be very significant as a large number of
brand medications are scheduled to lose patent protection without a
comparable number of new branded drugs coming into the market. The
state is poised to realize the savings by virtue of two policies now
in place, namely the generic mandate and the Preferred Drug Program.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
July 1, 2009, to coincide with the new reimbursement rate for
pharmaceutical products dispensed under the Medicaid program.

2009-S3901 - Bill Text download pdf

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

                                  3901

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 3, 2009
                               ___________

Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Aging

AN ACT to amend the elder law and the social services law,  in  relation
  to dispensing fees paid to pharmacies in EPIC and Medicaid

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

  Section 1. Paragraph (c) of subdivision 1 of section 250 of the  elder
law is amended to read as follows:
  (c)  DISPENSING  FEE.  As  required  by paragraphs (a) and (b) of this
subdivision, a dispensing fee of [four] SEVEN dollars [fifty] AND  TWEN-
TY-FIVE cents [will apply to generic drugs and a dispensing fee of three
dollars  fifty  cents  will  apply to brand name drugs] PER PRESCRIPTION
SHALL APPLY, PROVIDED, HOWEVER, THAT FOR  PRESCRIPTION  DRUGS  DISPENSED
FOR  PATIENTS IN LONG TERM CARE FACILITIES, INTERMEDIATE CARE FACILITIES
FOR THE DEVELOPMENTALLY DISABLED,  ASSISTED  LIVING  PROGRAMS,  AND  ANY
OTHER  RESIDENTIAL  CARE FACILITIES IN WHICH PRESCRIPTIONS ARE DISPENSED
IN  UNIT-OF-USE  PACKAGING,  A  DISPENSING  FEE  OF  EIGHT  DOLLARS  PER
PRESCRIPTION SHALL APPLY.
  S  2.  Subparagraphs (i) and (ii) of paragraph (d) of subdivision 9 of
section 367-a of the social services law, as amended by  chapter  19  of
the  laws  of 1998, are amended and a new subparagraph (iii) is added to
read as follows:
  (i) for prescription drugs categorized as generic by the  prescription
drug  pricing  service  used by the department, [four] SEVEN dollars and
[fifty] TWENTY-FIVE cents per prescription; and
  (ii) for prescription drugs  categorized  as  brand-name  prescription
drug  by  the  prescription drug pricing service used by the department,
[three] SEVEN dollars and [fifty] TWENTY-FIVE cents per prescription[.];
AND
  (III) FOR PRESCRIPTION DRUGS CATEGORIZED AS BRAND OR  GENERIC  BY  THE
PRESCRIPTION  DRUG  PRICING SERVICE USED BY THE DEPARTMENT AND DISPENSED

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03877-01-9

S. 3901                             2

FOR PATIENTS IN LONG TERM CARE FACILITIES, INTERMEDIATE CARE  FACILITIES
FOR  THE  DEVELOPMENTALLY  DISABLED,  ASSISTED  LIVING PROGRAMS, AND ANY
OTHER RESIDENTIAL CARE FACILITIES IN WHICH PRESCRIPTIONS  ARE  DISPENSED
IN UNIT-OF-USE PACKAGING, EIGHT DOLLARS PER PRESCRIPTION.
  S  3. This act shall take effect July 1, 2009, provided, however, that
the amendments to subdivision 9 of section 367-a of the social  services
law  made by section two of this act shall not affect the repeal of such
subdivision and shall be deemed to be repealed therewith.

2009-S3901A - Details

Current Committee:: Senate Finance
Laws Affected:: Amd §250, Eld L; amd §367-a, Soc Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1267
2013-2014: S3963

2009-S3901A - Summary

2009-S3901A - Sponsor Memo

                                 BILL NUMBER:  S3901A

 TITLE OF BILL :
An act to amend the elder law and the social services law, in relation
to dispensing fees paid to pharmacies in EPIC and Medicaid


 PURPOSE OR GENERAL IDEA OF BILL :
This bill provides for the dispensing fee paid per prescription.

 SUMMARY OF SPECIFIC PROVISIONS :
Section One of the bill amends paragraph (c) of subdivision 1 of
section 250 of elder law related to the dispensing fee paid to
pharmacies for every prescription filled under EPIC program. This bill
adds a new provision related to the dispensing fee paid to pharmacies
required to dispense medications in unit-of-use packaging.

Section two of the bill amends subparagraphs (i) and (ii) of paragraph
(d) of subdivision 9 of section 367-a of the social services law, as
amended by chapter 19 of the laws of 1998 related to the dispensing
fee paid to pharmacies for every prescription filled for persons
eligible to participate in the Medicaid program. The bill adds a new
subparagraph (iii) related to the dispensing fee paid to pharmacies
required to dispense medications in unit-of-use packaging.

 JUSTIFICATION :

The enacted 2008-2009 state budget reduces the amount allowed under
Medicaid and EPIC to cover the cost of prescription medication without
a counterbalancing increase in the dispensing fee paid to
participating pharmacies. Other state Medicaid programs such as
California pay higher dispensing fees in order to meet the
"reasonableness" standard in federal statutes governing Medicaid
programs. Unless the dispensing fee is adjusted prior to the enactment
of the new product cost allowance on July 1, 2008, it is possible that
New York will not meet this test.  Moreover, given the high costs of
doing business in this state, publicly-financed prescription benefit
programs such as Medicaid and EPIC should not reimburse pharmacies at
a rate lower than every other state that has enacted deeply discounted
product reimbursement policies.

The actual cost of dispensing a prescription to a beneficiary in the
New York Medicaid program ranges between $8.79 and $14.04 according to
the survey conducted by Grant Thorton released in January, 2007.  We
apply the same survey results to dispensing fees paid under EPIC.
Although the dispensing fees in this legislation are below these
amounts, they are consistent with reimbursement policies that are in
place in other state Medicaid programs that discount the product
allowance as substantially as in the adopted NYS FY 2008-2009 budget.
With the high costs of living and doing. business, New York's Medicaid
and EPIC programs should not reimburse pharmacies at the very lowest
level in the country.  Doing so may reduce the pharmacy provider
network to unacceptable levels. Should that occur, both programs will
fail in their primary objective, to deliver medically necessary
healthcare of acceptable quality cost-containment parameters.

Although the legislature has restored millions to the cuts proposed by
the executive over the course of the past fourteen years, every state
budget has nevertheless left pharmacy providers with less
reimbursement than in the previous year. Virtually every health care
provider in the Medicaid program has faced regular decreases in
reimbursement, but no other provider category has been subject to the
cumulative percentage reductions as have the state's pharmacies. This
year's reduction of two and a half percentage points off average
wholesale price actually represents a 30% reduction in gross merging,
with a 60% decrease in net amounts, for example. Some pharmacy

providers have calculated the loss at $3 per prescription across all
prescriptions filled in both programs.

Pharmacies that provide prescription services for residents in
long-term care facilities and other forms of residential care incur
additional expense associated with preparing "blister packs" and other
forms of unit-of-use packaging that are required by regulation.  This
special packaging provides additional security against misuse or
overuse and enhances patient compliance that in turn reduces
unnecessary Medicaid spending associated with medication errors or
inappropriate use. The differential in the legislation is also based
on policies adopted by other states.

 PRIOR LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None. The changes proposed in this legislation are possible in the
context of the funds appropriated for spending on the pharmacy
benefit.  First of all, national trends suggest that the rate of
growth in spending for prescription drugs has slowed. The proposed 6%
increase in the cost of the benefit is likely to be much lower.
Second, the proposed spending on prescription drugs does not take into
account the additional supplemental rebates generated by preferred
drug programs. In 2006 when the PDP was first implemented, the program
generated $30.5 million.  Although the 2007 supplemental rebate
amounts not yet available, they will be significantly higher than in
the previous year when the Preferred Drug Program had just begun and
the number of therapeutic categories was considerably less than it was
in 2007. Third, although the dispensing fees in this bill appear to be
the same for brands and generics, differences in co-payments actually
provide pharmacy with a slight higher fee for dispensing generic
drugs. In the past, the state Medicaid program realized $21 million in
savings per year when generic utilization improved by one percent.
Savings in FY 2008-2009 will be very significant as a large number of
brand medications are scheduled to lose patent protection without a
comparable number of new branded drugs coming into the market. The
state is poised to realize the savings by virtue of two policies now
in place, namely the generic mandate and the Preferred Drug Program.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
April 1, 2010.

2009-S3901A - Bill Text download pdf

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

                                 3901--A

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 3, 2009
                               ___________

Introduced  by  Sen. ADDABBO -- read twice and ordered printed, and when
  printed to be committed to the Committee on Aging -- reported  favora-
  bly  from  said committee and committed to the Committee on Finance --
  committee discharged, bill amended, ordered reprinted as  amended  and
  recommitted to said committee

AN  ACT  to amend the elder law and the social services law, in relation
  to dispensing fees paid to pharmacies in EPIC and Medicaid

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

  Section  1. Paragraph (c) of subdivision 1 of section 250 of the elder
law is amended to read as follows:
  (c) DISPENSING FEE. As required by paragraphs  (a)  and  (b)  of  this
subdivision,  a dispensing fee of [four] SEVEN dollars [fifty] AND TWEN-
TY-FIVE cents [will apply to generic drugs and a dispensing fee of three
dollars fifty cents will apply to brand  name  drugs]  PER  PRESCRIPTION
SHALL  APPLY,  PROVIDED,  HOWEVER, THAT FOR PRESCRIPTION DRUGS DISPENSED
FOR PATIENTS IN LONG TERM CARE FACILITIES, INTERMEDIATE CARE  FACILITIES
FOR  THE  DEVELOPMENTALLY  DISABLED,  ASSISTED  LIVING PROGRAMS, AND ANY
OTHER RESIDENTIAL CARE FACILITIES IN WHICH PRESCRIPTIONS  ARE  DISPENSED
IN  UNIT-OF-USE  PACKAGING,  A  DISPENSING  FEE  OF  EIGHT  DOLLARS  PER
PRESCRIPTION SHALL APPLY.
  S 2. Subparagraphs (i) and (ii) of paragraph (d) of subdivision  9  of
section 367-a of the social services law, subparagraph (i) as amended by
chapter  19  of  the  laws  of  1998 and subparagraph (ii) as amended by
section 48 of part C of chapter 58 of the laws of 2009, are amended  and
a new subparagraph (iii) is added to read as follows:
  (i)  for prescription drugs categorized as generic by the prescription
drug pricing service used by the department, [four]  SEVEN  dollars  and
[fifty] TWENTY-FIVE cents per prescription; and
  (ii)  for  prescription  drugs  categorized as brand-name prescription
drugs by the prescription drug pricing service used by  the  department,

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03877-02-9

S. 3901--A                          2

[three]  SEVEN  dollars  and [fifty] TWENTY-FIVE cents per prescription,
provided, however, that for brand  name  prescription  drugs  reimbursed
pursuant  to subparagraph (ii) of paragraph (a-1) of subdivision four of
section  three  hundred  sixty-five-a  of this title, the dispensing fee
shall  be  [four]  EIGHT  dollars  and  [fifty]  TWENTY-FIVE  cents  per
prescription[.]; AND
  (III)  FOR  PRESCRIPTION  DRUGS CATEGORIZED AS BRAND OR GENERIC BY THE
PRESCRIPTION DRUG PRICING SERVICE USED BY THE DEPARTMENT  AND  DISPENSED
FOR  PATIENTS IN LONG TERM CARE FACILITIES, INTERMEDIATE CARE FACILITIES
FOR THE DEVELOPMENTALLY DISABLED,  ASSISTED  LIVING  PROGRAMS,  AND  ANY
OTHER  RESIDENTIAL  CARE FACILITIES IN WHICH PRESCRIPTIONS ARE DISPENSED
IN UNIT-OF-USE PACKAGING, EIGHT DOLLARS PER PRESCRIPTION.
  S 3. This act shall take effect April 1, 2010, provided, however, that
the amendments to subdivision 9 of section 367-a of the social  services
law  made by section two of this act shall not affect the repeal of such
subdivision and shall be deemed to be repealed therewith;  and  provided
further,  that if section 48 of part C of chapter 58 of the laws of 2009
shall not have taken effect on such effective date, then the  amendments
to subparagraph (ii) of paragraph d of subdivision 9 of section 367-a of
the  social services law made by section 2 of this act shall take effect
on the same date and in the same manner as section 48 of part C of chap-
ter 58 of the laws of 2009 takes effect.

2009-S3901B (ACTIVE) - Details

Current Committee:: Senate Finance
Laws Affected:: Amd §250, Eld L; amd §367-a, Soc Serv L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S1267
2013-2014: S3963

2009-S3901B (ACTIVE) - Summary

2009-S3901B (ACTIVE) - Sponsor Memo

                                 BILL NUMBER:  S3901B

 TITLE OF BILL :
An act to amend the elder law and the social services law, in relation
to dispensing fees paid to pharmacies in EPIC and Medicaid


 PURPOSE OR GENERAL IDEA OF BILL :
This bill provides for the dispensing fee paid per prescription.

 SUMMARY OF SPECIFIC PROVISIONS :
Section One of the bill amends paragraph (c) of subdivision 1 of
section 250 of elder law related to the dispensing fee paid to
pharmacies for every prescription filled under EPIC program. This bill
adds a new provision related to the dispensing fee paid to pharmacies
required to dispense medications in unit-of-use packaging.

Section two of the bill amends subparagraphs (i) and (ii) of paragraph
(d) of subdivision 9 of section 367-a of the social services law, as
amended by chapter 19 of the laws of 1998 related to the dispensing
fee paid to pharmacies for every prescription filled for persons
eligible to participate in the Medicaid program. The bill adds a new
subparagraph (iii) related to the dispensing fee paid to pharmacies
required to dispense medications in unit-of-use packaging.

 JUSTIFICATION :

The enacted 2008-2009 state budget reduces the amount allowed under
Medicaid and EPIC to cover the cost of prescription medication without
a counterbalancing increase in the dispensing fee paid to
participating pharmacies. Other state Medicaid programs such as
California pay higher dispensing fees in order to meet the
"reasonableness" standard in federal statutes governing Medicaid
programs. Unless the dispensing fee is adjusted prior to the enactment
of the new product cost allowance on July 1, 2008, it is possible that
New York will not meet this test.  Moreover, given the high costs of
doing business in this state, publicly-financed prescription benefit
programs such as Medicaid and EPIC should not reimburse pharmacies at
a rate lower than every other state that has enacted deeply discounted
product reimbursement policies.

The actual cost of dispensing a prescription to a beneficiary in the
New York Medicaid program ranges between $8.79 and $14.04 according to
the survey conducted by Grant Thorton released in January, 2007.  We
apply the same survey results to dispensing fees paid under EPIC.
Although the dispensing fees in this legislation are below these
amounts, they are consistent with reimbursement policies that are in
place in other state Medicaid programs that discount the product
allowance as substantially as in the adopted NYS FY 2008-2009 budget.
With the high costs of living and doing business, New York's Medicaid
and EPIC programs should not reimburse pharmacies at the very lowest
level in the country. Doing so may reduce the pharmacy provider
network to unacceptable levels.  Should that occur, both programs will
fail in their primary objective, to deliver medically necessary
healthcare of acceptable quality cost containment parameters.

Although the legislature has restored millions to the cuts proposed by
the executive over the course of the past fourteen years, every state
budget has nevertheless left pharmacy providers with less
reimbursement than in the previous year. Virtually every health care
provider in the Medicaid program has faced regular decreases in
reimbursement, but no other provider category has been subject to the
cumulative percentage reductions as have the state's pharmacies. This
year's reduction of two and a half percentage points off average
wholesale price actually represents a 30% reduction in gross merging,
with a 60% decrease in net amounts, for example. Some pharmacy

providers have calculated the loss at $3 per prescription across all
prescriptions filled in both programs.

Pharmacies that provide prescription services for residents in
long-term care facilities and other forms of residential care incur
additional expense associated with preparing "blister packs" and other
forms of unit-of-use packaging that are required by regulation.  This
special packaging provides additional security against misuse or
overuse and enhances patient compliance that in turn reduces
unnecessary Medicaid spending associated with medication errors or
inappropriate use. The differential in the legislation is also based
on policies adopted by other' states.

 PRIOR LEGISLATIVE HISTORY :
New bill.

 FISCAL IMPLICATIONS :
None. The changes proposed in this legislation are possible in the
context of the funds appropriated for spending on the pharmacy
benefit.  First of all, national trends suggest that the rate of
growth in spending for prescription drugs has slowed. The proposed 6%
increase in the cost of the benefit is likely to be much lower.
Second, the proposed spending on prescription drugs does not take into
account the additional supplemental rebates generated by preferred
drug programs. In 2006 when the PDP was first implemented, the program
generated $30.5 million.  Although the 2007 supplemental rebate
amounts not yet available, they will be significantly higher than in
the previous year when the Preferred Drug Program had just begun and
the number of therapeutic categories was considerably less than it was
in 2007. Third, although the dispensing fees in this bill appear to be
the same for brands and generics, differences in co-payments actually
provide pharmacy with a slight higher fee for dispensing generic
drugs. In the past, the state Medicaid program realized $21 million in
savings per year when generic utilization improved by one percent.
Savings in FY 2008-2009 will be very significant as a large number of
brand medications are scheduled to lose patent protection without a
comparable number of new branded drugs coming into the market. The
state is poised to realize the savings by virtue of two policies now
in place, namely the generic mandate and the Preferred Drug Program.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
April 1, 2011.

2009-S3901B (ACTIVE) - Bill Text download pdf

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

                                 3901--B

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              April 3, 2009
                               ___________

Introduced  by  Sens. ADDABBO, LITTLE -- read twice and ordered printed,
  and when printed to be committed to the Committee on Aging -- reported
  favorably from said  committee  and  committed  to  the  Committee  on
  Finance  --  committee  discharged, bill amended, ordered reprinted as
  amended and recommitted  to  said  committee  --  recommitted  to  the
  Committee on Aging in accordance with Senate Rule 6, sec. 8 -- commit-
  tee  discharged, bill amended, ordered reprinted as amended and recom-
  mitted to said committee

AN ACT to amend the elder law and the social services law,  in  relation
  to dispensing fees paid to pharmacies in EPIC and Medicaid

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

  Section 1. Paragraph (c) of subdivision 1 of section 250 of the  elder
law is amended to read as follows:
  (c)  DISPENSING  FEE.  As  required  by paragraphs (a) and (b) of this
subdivision, a dispensing fee of [four] SEVEN dollars [fifty] AND  TWEN-
TY-FIVE cents [will apply to generic drugs and a dispensing fee of three
dollars  fifty  cents  will  apply to brand name drugs] PER PRESCRIPTION
SHALL APPLY, PROVIDED, HOWEVER, THAT FOR  PRESCRIPTION  DRUGS  DISPENSED
FOR  PATIENTS IN LONG TERM CARE FACILITIES, INTERMEDIATE CARE FACILITIES
FOR THE DEVELOPMENTALLY DISABLED,  ASSISTED  LIVING  PROGRAMS,  AND  ANY
OTHER  RESIDENTIAL  CARE FACILITIES IN WHICH PRESCRIPTIONS ARE DISPENSED
IN  UNIT-OF-USE  PACKAGING,  A  DISPENSING  FEE  OF  EIGHT  DOLLARS  PER
PRESCRIPTION SHALL APPLY.
  S  2.  Subparagraphs (i) and (ii) of paragraph (d) of subdivision 9 of
section 367-a of the social services law, subparagraph (i) as amended by
chapter 19 of the laws of 1998  and  subparagraph  (ii)  as  amended  by
section  48 of part C of chapter 58 of the laws of 2009, are amended and
a new subparagraph (iii) is added to read as follows:

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD03877-04-0

S. 3901--B                          2

  (i) for prescription drugs categorized as generic by the  prescription
drug  pricing  service  used by the department, [four] SEVEN dollars and
[fifty] TWENTY-FIVE cents per prescription; and
  (ii)  for  prescription  drugs  categorized as brand-name prescription
drugs by the prescription drug pricing service used by  the  department,
[three]  SEVEN  dollars  and [fifty] TWENTY-FIVE cents per prescription,
provided, however, that for brand  name  prescription  drugs  reimbursed
pursuant  to subparagraph (ii) of paragraph (a-1) of subdivision four of
section three hundred sixty-five-a of this  title,  the  dispensing  fee
shall  be  [four]  EIGHT  dollars  and  [fifty]  TWENTY-FIVE  cents  per
prescription[.]; AND
  (III) FOR PRESCRIPTION DRUGS CATEGORIZED AS BRAND OR  GENERIC  BY  THE
PRESCRIPTION  DRUG  PRICING SERVICE USED BY THE DEPARTMENT AND DISPENSED
FOR PATIENTS IN LONG TERM CARE FACILITIES, INTERMEDIATE CARE  FACILITIES
FOR  THE  DEVELOPMENTALLY  DISABLED,  ASSISTED  LIVING PROGRAMS, AND ANY
OTHER RESIDENTIAL CARE FACILITIES IN WHICH PRESCRIPTIONS  ARE  DISPENSED
IN UNIT-OF-USE PACKAGING, EIGHT DOLLARS PER PRESCRIPTION.
  S 3. This act shall take effect April 1, 2011, provided, however, that
the  amendments to subdivision 9 of section 367-a of the social services
law made by section two of this act shall not affect the repeal of  such
subdivision and shall be deemed to be repealed therewith.

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Senate Bill S3901

Sponsored By

Archive: Last Bill Status - In Senate Committee Finance Committee

Mar 8, 2010 - Aging Committee Vote

Aging Committee Vote: Mar 8, 2010

Bill Amendments

2009-S3901 - Details

2009-S3901 - Summary

2009-S3901 - Sponsor Memo

2009-S3901 - Bill Text download pdf

2009-S3901A - Details

2009-S3901A - Summary

2009-S3901A - Sponsor Memo

2009-S3901A - Bill Text download pdf

2009-S3901B (ACTIVE) - Details

2009-S3901B (ACTIVE) - Summary

2009-S3901B (ACTIVE) - Sponsor Memo

2009-S3901B (ACTIVE) - Bill Text download pdf

Comments

Senate Bill S3901

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Sponsored By

Joseph P. Addabbo Jr.

Archive: Last Bill Status - In Senate Committee Finance Committee

Bill Amendments

2009-S3901 - Details

2009-S3901 - Summary

2009-S3901 - Sponsor Memo

2009-S3901 - Bill Text download pdf

2009-S3901A - Details

2009-S3901A - Summary

2009-S3901A - Sponsor Memo

2009-S3901A - Bill Text download pdf

2009-S3901B (ACTIVE) - Details

2009-S3901B (ACTIVE) - Summary

2009-S3901B (ACTIVE) - Sponsor Memo

2009-S3901B (ACTIVE) - Bill Text download pdf

Comments