senate Bill S121

Amended

Establishes the prescription drug discount program; repealer

download pdf

Sponsor

Bill Status


  • Introduced
  • In Committee
  • On Floor Calendar
    • Passed Senate
    • Passed Assembly
  • Delivered to Governor
  • Signed/Vetoed by Governor
view actions

actions

  • 07 / Jan / 2009
    • REFERRED TO HEALTH
  • 24 / Feb / 2009
    • REPORTED AND COMMITTED TO CODES
  • 17 / Mar / 2009
    • REPORTED AND COMMITTED TO FINANCE
  • 19 / Mar / 2009
    • AMEND AND RECOMMIT TO FINANCE
  • 19 / Mar / 2009
    • PRINT NUMBER 121A
  • 06 / Jan / 2010
    • REFERRED TO HEALTH

Summary

Establishes the prescription drug discount program; establishes that the purpose of the program is to provide access to prescription drugs to participants at a discounted price and to allow for the negotiating of rebates that are exempt from the "best price" rule of the federal social security act; provides for the distribution of rebate funds and repeals a certain provision of the public health law relating thereto.

do you support this bill?

Bill Details

Versions:
S121
S121A
Legislative Cycle:
2009-2010
Current Committee:
Senate Health
Versions Introduced in 2007-2008 Legislative Cycle:
S8393

Sponsor Memo

BILL NUMBER: S121

TITLE OF BILL :
An act to amend the public health law, in relation to creating the
prescription drug discount program and to repeal certain provisions of
the public health law relating thereto


PURPOSE OR GENERAL IDEA OF BILL :
This bill aims to improve the health of New York residents by making
prescription drugs more accessible and affordable.

SUMMARY OF SPECIFIC PROVISIONS :
Section 1 sets forth-legislative findings and purpose. It further
declares that the legislature intends to lower enrollment in public
health insurance programs by providing more affordable prescription
drugs and thus be exempt from the "best price" rule of title XIX of
the federal social security act. If further declares that the program
shall help reduce the cost of prescription drugs to those lacking
prescription drug coverage and those facing gaps in coverage.

Section 2 designates sections 270-277 of the article 2-A of the public
health law as Title I and amends it to add a title heading.

Section 3 amends article 2-A of the public health law to add a new
Title II that creates the Prescription Drug Discount Card.

Section 280 of the title defines "Contractor," "Covered Drug,"
"Fiduciary relationship," "Manufacturer," "Participant,"
"Participating retailer," "Program," and "Rebate agreement."

Section 28O-a of the title establishes the program in the department
of health for the purpose of providing access to prescription drugs at
reduced cost, by deriving state revenue from rebates and applying that
revenue to reducing costs for participants. It also directs the
commissioner to apply for any necessary waivers to implement the title
and allows the commissioner to create regulations if necessary.

Section 28O-b describes the procedure through which the board shall
contract with administrators to manage the program.

Section 280-c requires the commissioner to negotiate agreements with
suppliers in which the suppliers pay rebates to the fiscal
administrator of the program for prescription drugs purchased by
participants in the program. It provides that the commissioner may
limit access to drugs covered under the program to those which are
extended a rebate by manufacturers.

Section 280-d sets forth the formula used to set the discounted retail
prices participants in the program pay for prescription drugs.

Section 280-e outlines the distribution of the rebate funds to the
retailers or individual participants, as appropriate.

Section 280-f describes the procedure for participants to register for
the program. It directs the commissioner to advise every participant
that the program does not apply to any drugs where payment is provided
in whole or in part by a third-party payor. Section 280-g requires
the department of health to promote the program through education and
outreach.

Section 4 of the bill redesignates section 280 of the public health
law, as created by section 75 of Part C of a chapter of the laws of
2008, as section 280-h of the public health law. It also creates a new
subdivision two in section 280-h that directs the commissioner to
enroll anyone who enrolled in the prescription drug discount card
under section 280-h of the public health law into the program created
by Title II of the public health law and cease enrolling people under
section 280-h.

Section 5 provides for the repeal of section 280-h of the public
health law.

Section 6 is a severability clause.

Section 7 of the bill establishes effective dates.

JUSTIFICATION :
For many people, prescription drugs are necessary for health and life.
Increasing prescription drug costs limit their accessibility,
especially for seniors, who tend to need them most. These costs also
place a burden on health insurance plans and publicly funded medical
assistance programs. This bill intends to alleviate those burdens and
improve access to necessary medication by organizing the collective
market power of New York's prescription drug consumers to negotiate
rebates with suppliers.

PRIOR LEGISLATIVE HISTORY :
2006: A.6336-B - passed the Assembly
2007: A.3848 - passed Assembly Committee on Health S.8393 Referred to
Health

FISCAL IMPLICATIONS :
This bill will have no fiscal impact.

EFFECTIVE DATE :
This act shall take effect immediately; except that section 4 of the
act shall be deemed to have taken effect on the same day as section 75
of Part C of chapter 58 of the laws of 2008. Section 5 shall take
effect 180 days after the act shall become a law
view bill text
The Bill text is not available.

Comments

Open Legislation comments facilitate discussion of New York State legislation. All comments are subject to moderation. Comments deemed off-topic, commercial, campaign-related, self-promotional; or that contain profanity or hate speech; or that link to sites outside of the nysenate.gov domain are not permitted, and will not be published. Comment moderation is generally performed Monday through Friday.

By contributing or voting you agree to the Terms of Participation and verify you are over 13.