Bill Text: NY S06937 | 2009-2010 | General Assembly | Introduced

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Bill Title: Directs the department of health to evaluate and report on Medicaid prescription drug reimbursement to retail pharmacies; creates a workgroup to conduct study and report findings to the legislature concerning the effect of reimbursement methodology on costs.

Spectrum: Partisan Bill (Democrat 1-0)

Status: (Introduced - Dead) 2010-02-26 - REFERRED TO HEALTH [S06937 Detail]

Download: New_York-2009-S06937-Introduced.html

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                           S T A T E   O F   N E W   Y O R K
       ________________________________________________________________________
                                         6937
                                   I N  S E N A T E
                                   February 26, 2010
                                      ___________
       Introduced  by  Sen. VALESKY -- read twice and ordered printed, and when
         printed to be committed to the Committee on Health
       AN ACT to direct the department of health  to  evaluate  and  report  on
         Medicaid prescription drug reimbursement to retail pharmacies
         THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
       BLY, DO ENACT AS FOLLOWS:
    1    Section 1. The commissioner of health shall establish in  the  depart-
    2  ment  of health a Medicaid pharmacy reimbursement workgroup (referred to
    3  in this act as the "workgroup") for the purpose of assisting the commis-
    4  sioner of health in studying Medicaid prescription drug reimbursement to
    5  retail pharmacies. The workgroup shall consist  of  16  members,  to  be
    6  appointed  as  follows:  4 members shall be appointed by the governor, 3
    7  members shall be appointed by the speaker of  the  assembly,  3  members
    8  shall  be  appointed  by the temporary president of the senate, 1 member
    9  shall be appointed by the minority leader of the senate,  and  1  member
   10  shall be appointed by the minority leader of the assembly. The chairs of
   11  the assembly and senate fiscal and health committees, or their designees
   12  shall  serve  as ex-officio members. The work group shall include: (a) 3
   13  representatives of organizations of chain and independent retail pharma-
   14  cies, 3 prescription drug manufacturers and wholesalers, 2 advocates for
   15  Medicaid recipients, and other stakeholders; (b) 2 appropriate officials
   16  of the department of health; and (c) 2 academic  or  other  professional
   17  experts on prescription drug reimbursement.
   18    S 2. 1. The workgroup's study shall include but need not be limited to
   19  an analysis of:
   20    (a)  how  the current reimbursement methodology relates to pharmacies'
   21  actual costs for wholesale purchasing of drugs and  dispensing  Medicaid
   22  prescriptions,  including  but  not limited to inventory acquisition and
   23  management, payroll costs,  employee  benefits,  professional  liability
   24  insurance,  licenses and other fees, professional services such as coor-
   25  dination of benefits, patient counseling and prescription verifications,
   26  facility costs including rent, mortgage interest, insurance, real estate
   27  taxes, utilities, maintenance, permits and delivery  expenses,  contain-
   28  ers, labels and supplies, specialized packaging, transaction fees, tele-
        EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                             [ ] is old law to be omitted.
                                                                  LBD11995-07-0
       S. 6937                             2
    1  phone, data management, computer systems and support, bad debt including
    2  uncollected co-pays, and payment lag times;
    3    (b)  the  comparative  merits  of  reimbursement methodologies used in
    4  other states or allowed by the Federal government;
    5    (c) the effect of New York's current and possible alternative  method-
    6  ologies on the financial viability of pharmacies, access to prescription
    7  drugs  for  Medicaid recipients, controlling wholesale prices, and costs
    8  to the Medicaid system;
    9    (d) the actual cost to New York of the  pharmacy  benefit  considering
   10  the  total  amount paid to pharmacies after federal participation, minus
   11  the total amount collected by New York in  rebates  from  pharmaceutical
   12  manufacturers,  and  separately identifying product costs and dispensing
   13  fees.
   14    2. The department of health and other  state  agencies  shall  provide
   15  assistance to the workgroup in conducting its work. Members of the work-
   16  group  shall receive no compensation for their service as members of the
   17  workgroup but may receive reimbursement for their reasonable and  neces-
   18  sary  expenses  incurred  in  connection with their participation in the
   19  workgroup. A public official or employee may serve as a  member  of  the
   20  workgroup.
   21    S  3.  The  commissioner of health shall report his or her preliminary
   22  findings and recommendations  relating  to  Medicaid  prescription  drug
   23  reimbursement  to  retail pharmacies to the governor and the legislature
   24  no later than January first after this act shall have become a  law  and
   25  may provide further findings and recommendations thereafter.
   26    S 4. This act shall take effect immediately.