NY State Senate Bill 2009-S2978B

Archive: Last Bill Status - In Assembly 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

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Date of Action	Assembly Actions - Lowercase Senate Actions - UPPERCASE
Jul 01, 2010	referred to labor delivered to assembly passed senate
Jun 28, 2010	amended on third reading 2978b
Jun 23, 2010	amended on third reading (t) 2978a
May 24, 2010	advanced to third reading
May 18, 2010	2nd report cal.
May 17, 2010	1st report cal.547
Jan 06, 2010	referred to labor
Mar 09, 2009	referred to labor

Votes

- Jul 1, 2010 - Floor Vote
  S2978B
  
  Aye
  
  56
  
  Nay
  
  3
  
  Absent
  
  2
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Floor Vote: Jul 1, 2010
      
      aye (56)
      
      Adams
      
      Addabbo Jr.
      
      Aubertine
      
      Bonacic
      
      Breslin
      
      DeFrancisco
      
      Diaz
      
      Dilan
      
      Duane
      
      Espada
      
      Farley
      
      Flanagan
      
      Foley
      
      Fuschillo
      
      Golden
      
      Griffo
      
      Hassell-Thompson
      
      Huntley
      
      Johnson
      
      Johnson
      
      Klein
      
      Krueger
      
      Kruger
      
      LaValle
      
      Lanza
      
      Larkin
      
      Leibell
      
      Libous
      
      Little
      
      Marcellino
      
      Maziarz
      
      Nozzolio
      
      Onorato
      
      Oppenheimer
      
      Padavan
      
      Parker
      
      Peralta
      
      Perkins
      
      Ranzenhofer
      
      Robach
      
      Saland
      
      Sampson
      
      Savino
      
      Schneiderman
      
      Serrano
      
      Seward
      
      Skelos
      
      Smith
      
      Squadron
      
      Stachowski
      
      Stavisky
      
      Stewart-Cousins
      
      Thompson
      
      Valesky
      
      Winner
      
      Young
      
      nay (3)
      
      Hannon
      
      McDonald
      
      Volker
      
      absent (2)
      
      Alesi
      
      Montgomery
      
      excused (1)
      
      Morahan
  May 17, 2010 - Labor Committee Vote
  S2978B
  
  Aye
  
  10
  
  Nay
  
  0
  
  Aye with Reservations
  
  5
  
  Absent
  
  0
  
  Excused
  
  1
  
  Abstained
  
  0
  - - Labor Committee Vote: May 17, 2010
      
      aye (10)
      
      Addabbo Jr.
      
      Breslin
      
      Dilan
      
      Klein
      
      McDonald
      
      Onorato
      
      Perkins
      
      Savino
      
      Stachowski
      
      Stewart-Cousins
      
      aye wr (5)
      
      Alesi
      
      Fuschillo
      
      Leibell
      
      Marcellino
      
      Robach
      
      excused (1)
      
      Morahan

Bill Amendments

Original

B (Active)

co-Sponsors

View additional co-sponsors

2009-S2978 - Details

See Assembly Version of this Bill:: A6992
Current Committee:: Assembly Labor
Law Section:: Workers' Compensation Law
Laws Affected:: Amd §§13 & 88, rpld §88, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S3749
2013-2014: S1754

2009-S2978 - Summary

Relates to prescription prices and pharmacies for injured employees.

2009-S2978 - Sponsor Memo

                                 BILL NUMBER:  S2978

 TITLE OF BILL :
An act to amend the workers' compensation law, in relation to
prescription prices and pharmacies for injured employees


 PURPOSE :
This legislation would restore the ability of a claimant, in a
workers' compensation case, to choose a pharmacy to provide necessary
medication for his or her injuries if such pharmacy adheres to the
published prices for medications.

 SUMMARY OF PROVISIONS :

Section 1 - amends section 13 subdivision (i) of the Workers
Compensation law and adds two new paragraphs 6 and 7 as follows:

* allows a claimant to use the pharmacy of their choice if the
pharmacy adheres to the published prices for medications;
* defines what information the carrier must publish regarding the cost
of medication and the process by which this information is to be made
public; and,
* allows a pharmacy to have standing in a disputed workers
compensation claim.

Section 2 - provides for an immediate effective date

 EXISTING LAW :
Section 13 subdivision (i) allows an employer or carrier to require
claimants obtain prescription medicines from the pharmacy it has
contracted with.

 JUSTIFICATION :
The Workers Compensation Reform Bill, Chapter 6 of the Laws of 2007,
made significant and important changes to the workers compensation
law. Included in these changes was the creation of a pharmaceutical
fee schedule that should result in significant savings to the State of
New York. But, when this legislation was passed and signed into law,
language was placed into the legislation that eliminated an employee's
ability to choose his or her pharmaceutical care. The ability to
choose one's own pharmacy is an important right. The choice of a
pharmacy ensures that the employee gets the best possible healthcare
and it eliminates the ability of an employer or carrier to control the
employee's healthcare options. Currently, an overwhelming majority of
the states in the United States provide an employee with the ability
to choose his or her own pharmacy. New York has always taken this
position and the bill would simply restore the rights of the employee
to choose their own healthcare provided that the pharmacy they choose
adheres to the established fee schedule.

 LEGISLATIVE HISTORY :
2009 Session: New Legislation

 FISCAL IMPLICATIONS :
Savings to the workers compensation system were derived from the
creation of a pharmaceutical fee schedule that was established by
Chapter 6 of the Laws of 2007. The changes to the legislation would
not impact that fee schedule and therefore would not impose any
additional costs to the state.

 LOCAL FISCAL IMPLICATIONS :
None.

 EFFECTIVE DATE :
This act shall take effect immediately.

2009-S2978 - Bill Text download pdf

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

                                  2978

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 9, 2009
                               ___________

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

AN  ACT  to  amend  the  workers'  compensation  law,  in  relation   to
  prescription prices and pharmacies for injured employees

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

  Section 1. Paragraph 5 of subdivision (i) of section 13 of  the  work-
ers'  compensation  law,  as  added  by chapter 6 of the laws of 2007 is
amended and two new paragraphs 6 and 7 are added to read as follows:
  (5) Notwithstanding any other provision of this chapter, if an employ-
er or carrier has contracted with a pharmacy to provide prescribed medi-
cine to claimants, then such employer or carrier may  require  claimants
to  obtain  all prescribed medicines from the pharmacy with which it has
contracted, except if a medical emergency occurs and  it  would  not  be
reasonably  possible  to obtain immediately required prescribed medicine
from the pharmacy with which the employer or carrier has a contract.  An
employer  or  carrier that requires claimants to obtain prescribed medi-
cines from a pharmacy with which it has a contract must notify claimants
of the pharmacy  or  pharmacies  with  which  it  has  a  contract,  the
locations  and  addresses  of the pharmacy or pharmacies, if applicable,
how to initially fill and refill prescriptions through the mail,  inter-
net,  telephone  or other means, and any other required information that
must be supplied to the pharmacy or pharmacies. If the pharmacy or phar-
macies with which the employer or carrier contracts does not offer  mail
order  service and does not have a physical location within a reasonable
distance from the claimant, as defined by regulation of the  board,  the
claimant  may  obtain prescribed medicines at the pharmacy or pharmacies
of his or her choice and the employer or carrier will be liable for such
charges in accordance with the fee schedule prescribed in section  thir-
teen-o  of this chapter.  PROVIDED, HOWEVER, THAT AN EMPLOYER OR CARRIER
SHALL BE PROHIBITED FROM REFUSING TO ALLOW A CLAIMANT TO UTILIZE A PHAR-

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD10198-01-9

S. 2978                             2

MACY OF HIS OR HER CHOICE TO FURNISH THE PRESCRIBED MEDICATIONS REQUIRED
BY THE CLAIMANT AS LONG AS  SUCH  PHARMACY'S  CHARGES  COMPLY  WITH  THE
PUBLISHED PRICES AS DEFINED IN PARAGRAPH SIX OF THIS SUBDIVISION.
  (6)  IF AN EMPLOYER OR CARRIER HAS CONTRACTED WITH A PHARMACY PURSUANT
TO PARAGRAPH FIVE OF THIS SUBDIVISION  THEN  SUCH  EMPLOYER  OR  CARRIER
SHALL  BE  REQUIRED  TO  SUBMIT AND PUBLISH THE PRICES FOR ALL AVAILABLE
MEDICINES, INCLUDING ALL MANAGEMENT FEES  THAT  ARE  PAID  FOR  PHARMACY
SERVICES,  TO THE BOARD. THE BOARD SHALL ESTABLISH RULES AND REGULATIONS
TO PROVIDE FOR THE DISSEMINATION AND ACCESS OF THE PRICES SUBMITTED  AND
PUBLISHED  BY  THE  EMPLOYER  OR  CARRIER  TO  ANY  PHARMACY WHO HAS NOT
CONTRACTED WITH AN EMPLOYER OR CARRIER.
  (7) ANY PHARMACY THAT HAS PROVIDED PRESCRIBED MEDICINE TO  A  CLAIMANT
AND  HAS  NOT BEEN REIMBURSED IN ACCORDANCE WITH THE PROVISIONS OF PARA-
GRAPH ONE OF THIS SUBDIVISION SHALL BE ENTITLED TO  MAINTAIN  AN  ACTION
AGAINST  THE  EMPLOYER  AND  CARRIER  TO RECOVER THE AMOUNTS DUE TO SUCH
PHARMACY PURSUANT TO THIS SUBDIVISION IN ACCORDANCE WITH REGULATIONS  TO
BE  ESTABLISHED  BY THE BOARD OR THE CHAIRMAN. WHERE A PHARMACY BILL HAS
BEEN DETERMINED TO BE DUE AND OWING IN ACCORDANCE WITH THE PROVISIONS OF
THIS SUBDIVISION, THE BOARD SHALL INCLUDE IN THE  AMOUNT  OF  THE  AWARD
INTEREST  OF NOT MORE THAN ONE AND ONE-HALF PERCENT PER MONTH PAYABLE TO
THE PHARMACY IN ACCORDANCE WITH THE RULES AND REGULATIONS PROMULGATED BY
THE BOARD.
  S 2. This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2009-S2978A - Details

See Assembly Version of this Bill:: A6992
Current Committee:: Assembly Labor
Law Section:: Workers' Compensation Law
Laws Affected:: Amd §§13 & 88, rpld §88, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S3749
2013-2014: S1754

2009-S2978A - Summary

Relates to prescription prices and pharmacies for injured employees.

2009-S2978A - Sponsor Memo

                                BILL NUMBER:S2978A

TITLE OF BILL:
An act to amend the workers' compensation law, in relation to
prescription prices and pharmacies for injured employees and to repeal
section 88 of such law relating thereto

PURPOSE:
This legislation would restore the ability of a claimant, in a workers'
compensation case, to choose a pharmacy to provide necessary medication
for his or her injuries if such pharmacy adheres to the published prices
for medications.

SUMMARY OF PROVISIONS:
Section 1 - amends paragraph 5 of subdivision (i) of section 13 of the
Workers Compensation law and adds three new paragraphs 6, 7 and 8 as
follows:

* allows a claimant to use the pharmacy of their choice if the pharmacy
adheres to the published prices for medications;
* defines what information the carrier must publish regarding the cost
of medication and the process by which this information is to be made
public;
* allows a pharmacy to have standing in a disputed workers compensation
claim; and,
* provides that an "initial fill" cannot be for more than 14 days within

the first 72 hours of initial medical care.

Section 2 - amends section 88 of the worker's compensation law deleting
language regarding administrative expenditures

Section 3 - repeals section 88 of the workers compensation law

Section 4 - provides for an immediate effective date

EXISTING LAW:
Section 13 subdivision (i) allows an employer or carrier to require
claimants obtain prescription medicines from the pharmacy it has
contracted with.

JUSTIFICATION:
The Workers Compensation Reform Bill, Chapter 6 of the Laws of 2007,
made significant and important changes to the workers compensation law.
Included in these changes was the creation of a pharmaceutical fee sche-
dule that should result in significant savings to the State of New York.
But, when this legislation was passed and signed into law, language was
placed into the legislation that eliminated an employee's ability to
choose his or her pharmaceutical care. The ability to choose one's own
pharmacy is an important right.  The choice of a pharmacy ensures that
the employee gets the best possible healthcare and it eliminates the
ability of an employer or carrier to control the employee's healthcare
options. Currently, an overwhelming majority of the states in the United

States provide an employee with the ability to choose his or her own
pharmacy. New York has always taken this position and the bill would
simply restore the rights of the employee to choose their own healthcare
provided that the pharmacy they choose adheres to the established fee
schedule.

LEGISLATIVE HISTORY:
2009 Session: New Legislation

FISCAL IMPLICATIONS:
Savings to the workers compensation system were derived from the
creation of a pharmaceutical fee schedule that was established by Chap-
ter 6 of the Laws of 2007. The changes to the legislation would not
impact that fee schedule and therefore would not impose any additional
costs to the state.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

2009-S2978A - Bill Text download pdf

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

                                 2978--A
    Cal. No. 547

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 9, 2009
                               ___________

Introduced  by  Sens.  SAVINO,  ADDABBO, DIAZ, DILAN, KRUEGER, STAVISKY,
  THOMPSON -- read twice and ordered printed, and  when  printed  to  be
  committed to the Committee on Labor -- recommitted to the Committee on
  Labor  in  accordance with Senate Rule 6, sec. 8 -- reported favorably
  from said committee, ordered to first and second report, ordered to  a
  third  reading,  amended and ordered reprinted, retaining its place in
  the order of third reading

AN  ACT  to  amend  the  workers'  compensation  law,  in  relation   to
  prescription prices and pharmacies for injured employees and to repeal
  section 88 of such law relating thereto

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

  Section 1. Paragraph 5 of subdivision (i) of section 13 of  the  work-
ers'  compensation  law,  as  added  by chapter 6 of the laws of 2007 is
amended and three new paragraphs 6,  7  and  8  are  added  to  read  as
follows:
  (5) Notwithstanding any other provision of this chapter, if an employ-
er or carrier has contracted with a pharmacy to provide prescribed medi-
cine  to  claimants, then such employer or carrier may require claimants
to obtain all prescribed medicines from the pharmacy with which  it  has
contracted,  except  if  a  medical emergency occurs and it would not be
reasonably possible to obtain immediately required  prescribed  medicine
from  the pharmacy with which the employer or carrier has a contract. An
employer or carrier that requires claimants to obtain  prescribed  medi-
cines from a pharmacy with which it has a contract must notify claimants
of  the  pharmacy  or  pharmacies  with  which  it  has  a contract, the
locations and addresses of the pharmacy or  pharmacies,  if  applicable,
how  to initially fill and refill prescriptions through the mail, inter-
net, telephone or other means, and any other required  information  that
must be supplied to the pharmacy or pharmacies. If the pharmacy or phar-
macies  with which the employer or carrier contracts does not offer mail

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

                                                           LBD10198-02-0

S. 2978--A                          2

order service and does not have a physical location within a  reasonable
distance  from  the claimant, as defined by regulation of the board, the
claimant may obtain prescribed medicines at the pharmacy  or  pharmacies
of his or her choice and the employer or carrier will be liable for such
charges  in accordance with the fee schedule prescribed in section thir-
teen-o of this chapter.  PROVIDED, HOWEVER, THAT AN EMPLOYER OR  CARRIER
SHALL BE PROHIBITED FROM REFUSING TO ALLOW A CLAIMANT TO UTILIZE A PHAR-
MACY OF HIS OR HER CHOICE TO FURNISH THE PRESCRIBED MEDICATIONS REQUIRED
BY  THE  CLAIMANT  AS  LONG  AS  SUCH PHARMACY'S CHARGES COMPLY WITH THE
PUBLISHED PRICES AS DEFINED IN PARAGRAPH SIX OF THIS SUBDIVISION.
  (6) IF AN EMPLOYER OR CARRIER HAS CONTRACTED WITH A PHARMACY  PURSUANT
TO  PARAGRAPH  FIVE  OF  THIS  SUBDIVISION THEN SUCH EMPLOYER OR CARRIER
SHALL BE REQUIRED TO SUBMIT AND PUBLISH THE  PRICES  FOR  ALL  AVAILABLE
MEDICINES,  INCLUDING  ALL  MANAGEMENT  FEES  THAT ARE PAID FOR PHARMACY
SERVICES, TO THE BOARD. THE BOARD SHALL ESTABLISH RULES AND  REGULATIONS
TO  PROVIDE FOR THE DISSEMINATION AND ACCESS OF THE PRICES SUBMITTED AND
PUBLISHED BY THE EMPLOYER  OR  CARRIER  TO  ANY  PHARMACY  WHO  HAS  NOT
CONTRACTED WITH AN EMPLOYER OR CARRIER.
  (7)  ANY  PHARMACY THAT HAS PROVIDED PRESCRIBED MEDICINE TO A CLAIMANT
AND HAS NOT BEEN REIMBURSED IN ACCORDANCE WITH THE PROVISIONS  OF  PARA-
GRAPH  ONE  OF  THIS SUBDIVISION SHALL BE ENTITLED TO MAINTAIN AN ACTION
AGAINST THE EMPLOYER AND CARRIER TO RECOVER  THE  AMOUNTS  DUE  TO  SUCH
PHARMACY  PURSUANT TO THIS SUBDIVISION IN ACCORDANCE WITH REGULATIONS TO
BE ESTABLISHED BY THE BOARD OR THE CHAIRMAN. WHERE A PHARMACY  BILL  HAS
BEEN DETERMINED TO BE DUE AND OWING IN ACCORDANCE WITH THE PROVISIONS OF
THIS  SUBDIVISION,  THE  BOARD  SHALL INCLUDE IN THE AMOUNT OF THE AWARD
INTEREST OF NOT MORE THAN ONE AND ONE-HALF PERCENT PER MONTH PAYABLE  TO
THE PHARMACY IN ACCORDANCE WITH THE RULES AND REGULATIONS PROMULGATED BY
THE BOARD.
  (8)  NOTWITHSTANDING  ANY OTHER PROVISION IN THIS CHAPTER, THE INITIAL
FILL OF A PRESCRIPTION MEDICINE IN CONNECTION WITH A CLAIM FOR  BENEFITS
UNDER  THIS  CHAPTER  SHALL  NOT CONTAIN A SUPPLY OF SUCH MEDICINE FOR A
PERIOD OF LONGER THAN FOURTEEN DAYS. FOR THE PURPOSES OF THIS PARAGRAPH,
"INITIAL FILL" SHALL BE DEFINED AS A PRESCRIPTION OR  A  COMBINATION  OF
PRESCRIPTIONS FOR MEDICATION ISSUED BY AN AUTHORIZED MEDICAL PROVIDER AT
THE  TIME  OF  DISCOVERY  OF  INJURY  OR  ILLNESS  BUT SHALL NOT INCLUDE
PRESCRIPTIONS THAT MAY BE WRITTEN SEVENTY-TWO HOURS  OR  MORE  FROM  THE
TIME OF INITIAL MEDICAL CARE.
  S 2.  Section 88 of the workers' compensation law, as amended by chap-
ter 635 of the laws of 1996, is amended to read as follows:
  S 88. Administration expenses. The entire expense of administering the
state  insurance  fund shall be paid out of such fund which shall not be
considered an agency or a fund of the state for the purposes of  section
four  of the state finance law.  The portion of such expenses applicable
and chargeable to the disability benefits fund shall be determined on an
equitable  basis  with  due  allowance  for  the  division  of  overhead
expenses.   There shall be submitted to the director of the budget quar-
terly financial statements on a calendar year basis.  In no  case  shall
the  amount  of  administrative expenditures so authorized for an entire
year from the workers' compensation fund exceed twenty-five  per  centum
of  the  earned  premiums for such insurance for that year.  [In no case
shall the amount of administrative expenditures authorized for the disa-
bility benefits fund for an entire year exceed twenty-five per centum of
the premiums earned by that fund for such insurance for that  year.]  No
payment,  expenditure or refund out of the state insurance fund shall be
subject to pre-audit by the department of audit and control as  provided

S. 2978--A                          3

by section one hundred eleven of the state finance law. All appointments
to  positions in the state insurance fund shall be made subject to civil
service requirements.
  S  3. Section 88 of the workers' compensation law, as amended by chap-
ter 6 of the laws of 2007, is REPEALED.
  S 4.  This act shall take effect immediately.

co-Sponsors

View additional co-sponsors

2009-S2978B (ACTIVE) - Details

See Assembly Version of this Bill:: A6992
Current Committee:: Assembly Labor
Law Section:: Workers' Compensation Law
Laws Affected:: Amd §§13 & 88, rpld §88, Work Comp L
Versions Introduced in Other Legislative Sessions:: 2011-2012: S3749
2013-2014: S1754

2009-S2978B (ACTIVE) - Summary

Relates to prescription prices and pharmacies for injured employees.

2009-S2978B (ACTIVE) - Sponsor Memo

                                BILL NUMBER:S2978B

TITLE OF BILL:
An act
to amend the workers' compensation law, in relation to prescription
prices and pharmacies for injured employees
and to repeal section 88 of such law relating thereto

PURPOSE:
This legislation would restore the ability of a claimant, in
a workers' compensation case, to choose a pharmacy to provide
necessary medication for his or her injuries if such pharmacy adheres
to the published prices for medications.

SUMMARY OF PROVISIONS:
Section 1 - amends paragraph 5 of subdivision (i) of section 13 of the
Workers Compensation law and adds three new paragraphs 6, 7 and 8 as
follows:

* allows a claimant to use the pharmacy of their choice if the
pharmacy adheres to the published prices for medications;
* allows a pharmacy to have standing in a disputed workers
compensation claim; and,
* provides that an "initial fill" cannot be
for more than 14 days within the first 72 hours of initial medical
care.

Section 2 - amends section 88 of the worker's compensation law
deleting language regarding administrative expenditures

Section 3 - repeals section 88 of the workers compensation law

Section 4 - provides for an immediate effective date

EXISTING LAW:
Section 13 subdivision (i) allows an employer or carrier
to require claimants obtain prescription medicines from the pharmacy
it has contracted with.

JUSTIFICATION:
The Workers Compensation Reform Bill, Chapter 6 of the
Laws of 2007, made significant and important changes to the workers
compensation law. Included in these changes was the creation of a
pharmaceutical fee schedule that should result in significant savings
to the State of New York. But, when this legislation was passed and
signed into law, language was placed into the legislation that
eliminated an employee's ability to choose his or her pharmaceutical
care. The ability to choose one's own pharmacy is an important right.
The choice of a pharmacy ensures that the employee gets the best
possible healthcare and it eliminates the ability of an employer or
carrier to control the employee's healthcare options. Currently, an

overwhelming majority of the states in the United States provide an
employee with the ability to choose his or her own pharmacy. New York
has always taken this position and the bill would simply restore the
rights of the employee to choose their own healthcare provided that
the pharmacy they choose adheres to the established fee schedule.

LEGISLATIVE HISTORY:
2009 Session: New Legislation

FISCAL IMPLICATIONS:
Savings to the workers compensation system were
derived from the creation of a pharmaceutical fee schedule that was
established by Chapter 6 of the Laws of 2007. The changes to the
legislation would not impact that fee schedule and therefore would
not impose any additional costs to the state.

LOCAL FISCAL IMPLICATIONS:
None.

EFFECTIVE DATE:
This act shall take effect immediately.

2009-S2978B (ACTIVE) - Bill Text download pdf

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

                                 2978--B
    Cal. No. 547

                       2009-2010 Regular Sessions

                            I N  S E N A T E

                              March 9, 2009
                               ___________

Introduced  by  Sens.  SAVINO,  ADDABBO, DIAZ, DILAN, KRUEGER, STAVISKY,
  THOMPSON -- read twice and ordered printed, and  when  printed  to  be
  committed to the Committee on Labor -- recommitted to the Committee on
  Labor  in  accordance with Senate Rule 6, sec. 8 -- reported favorably
  from said committee, ordered to first and second report, ordered to  a
  third  reading,  amended and ordered reprinted, retaining its place in
  the order of third reading -- again  amended  and  ordered  reprinted,
  retaining its place in the order of third reading

AN   ACT  to  amend  the  workers'  compensation  law,  in  relation  to
  prescription prices and pharmacies for injured employees and to repeal
  section 88 of such law relating thereto

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

  Section  1.  Paragraph 5 of subdivision (i) of section 13 of the work-
ers' compensation law, as added by chapter 6 of  the  laws  of  2007  is
amended  and  three  new  paragraphs  6,  7  and  8 are added to read as
follows:
  (5) [Notwithstanding any other provision of this chapter,  if]  IF  an
employer or carrier has contracted with a pharmacy to provide prescribed
medicine  to claimants, then such employer or carrier may require claim-
ants to obtain all prescribed medicines from the pharmacy with which  it
has contracted, except if a medical emergency occurs and it would not be
reasonably  possible  to obtain immediately required prescribed medicine
from the pharmacy with which the employer or carrier has a contract.  An
employer  or  carrier that requires claimants to obtain prescribed medi-
cines from a pharmacy with which it has a contract must notify claimants
of the pharmacy  or  pharmacies  with  which  it  has  a  contract,  the
locations  and  addresses  of the pharmacy or pharmacies, if applicable,
how to initially fill and refill prescriptions through the mail,  inter-
net,  telephone  or other means, and any other required information that
must be supplied to the pharmacy or pharmacies. If the pharmacy or phar-

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

                                                           LBD10198-04-0

S. 2978--B                          2

macies with which the employer or carrier contracts does not offer  mail
order  service and does not have a physical location within a reasonable
distance from the claimant, as defined by regulation of the  board,  the
claimant  may  obtain prescribed medicines at the pharmacy or pharmacies
of his or her choice and the employer or carrier will be liable for such
charges in accordance with the fee schedule prescribed in section  thir-
teen-o of this chapter.
   (6)  NOTWITHSTANDING  PARAGRAPH FIVE OF THIS SUBDIVISION, AN EMPLOYER
OR CARRIER SHALL BE PROHIBITED FROM REFUSING  TO  ALLOW  A  CLAIMANT  TO
UTILIZE  A PHARMACY OF HIS OR HER CHOICE TO FURNISH THE PRESCRIBED MEDI-
CATIONS REQUIRED BY THE CLAIMANT AS  LONG  AS  SUCH  PHARMACY'S  CHARGES
COMPLY WITH THE PUBLISHED PRICES.
  (7)  ANY  PHARMACY THAT HAS PROVIDED PRESCRIBED MEDICINE TO A CLAIMANT
AND HAS NOT BEEN REIMBURSED IN ACCORDANCE WITH THE PROVISIONS  OF  PARA-
GRAPH  ONE  OF  THIS SUBDIVISION SHALL BE ENTITLED TO MAINTAIN AN ACTION
AGAINST THE EMPLOYER AND CARRIER TO RECOVER  THE  AMOUNTS  DUE  TO  SUCH
PHARMACY  PURSUANT TO THIS SUBDIVISION IN ACCORDANCE WITH REGULATIONS TO
BE ESTABLISHED BY THE BOARD OR THE CHAIRMAN. WHERE A PHARMACY  BILL  HAS
BEEN DETERMINED TO BE DUE AND OWING IN ACCORDANCE WITH THE PROVISIONS OF
THIS  SUBDIVISION,  THE  BOARD  SHALL INCLUDE IN THE AMOUNT OF THE AWARD
INTEREST OF NOT MORE THAN ONE AND ONE-HALF PERCENT PER MONTH PAYABLE  TO
THE PHARMACY IN ACCORDANCE WITH THE RULES AND REGULATIONS PROMULGATED BY
THE BOARD.
  (8)  NOTWITHSTANDING  ANY OTHER PROVISION IN THIS CHAPTER, THE INITIAL
FILL OF A PRESCRIPTION MEDICINE IN CONNECTION WITH A CLAIM FOR  BENEFITS
UNDER  THIS  CHAPTER  SHALL  NOT CONTAIN A SUPPLY OF SUCH MEDICINE FOR A
PERIOD OF LONGER THAN FOURTEEN DAYS. FOR THE PURPOSES OF THIS PARAGRAPH,
"INITIAL FILL" SHALL BE DEFINED AS A PRESCRIPTION OR  A  COMBINATION  OF
PRESCRIPTIONS FOR MEDICATION ISSUED BY AN AUTHORIZED MEDICAL PROVIDER AT
THE  TIME  OF  DISCOVERY  OF  INJURY  OR  ILLNESS  BUT SHALL NOT INCLUDE
PRESCRIPTIONS THAT MAY BE WRITTEN SEVENTY-TWO HOURS  OR  MORE  FROM  THE
TIME OF INITIAL MEDICAL CARE.
  S 2.  Section 88 of the workers' compensation law, as amended by chap-
ter 635 of the laws of 1996, is amended to read as follows:
  S 88. Administration expenses. The entire expense of administering the
state  insurance  fund shall be paid out of such fund which shall not be
considered an agency or a fund of the state for the purposes of  section
four  of the state finance law.  The portion of such expenses applicable
and chargeable to the disability benefits fund shall be determined on an
equitable  basis  with  due  allowance  for  the  division  of  overhead
expenses.   There shall be submitted to the director of the budget quar-
terly financial statements on a calendar year basis.  In no  case  shall
the  amount  of  administrative expenditures so authorized for an entire
year from the workers' compensation fund exceed twenty-five  per  centum
of  the  earned  premiums for such insurance for that year.  [In no case
shall the amount of administrative expenditures authorized for the disa-
bility benefits fund for an entire year exceed twenty-five per centum of
the premiums earned by that fund for such insurance for that  year.]  No
payment,  expenditure or refund out of the state insurance fund shall be
subject to pre-audit by the department of audit and control as  provided
by section one hundred eleven of the state finance law. All appointments
to  positions in the state insurance fund shall be made subject to civil
service requirements.
  S 3. Section 88 of the workers' compensation law, as amended by  chap-
ter 6 of the laws of 2007, is REPEALED.
  S 4.  This act shall take effect immediately.

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Senate Bill S2978B

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