S T A T E   O F   N E W   Y O R K
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                                  4618

                       2011-2012 Regular Sessions

                          I N  A S S E M B L Y

                            February 4, 2011
                               ___________

Introduced  by  M.  of  A.  ENGLEBRIGHT -- read once and referred to the
  Committee on Health

AN ACT to amend the elder law and the social services law,  in  relation
  to payments for multiple source prescription drugs

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

  Section 1.   Subparagraph 2 of  paragraph  (a)  of  subdivision  1  of
section  250  of  the  elder law, as amended by section 6-a of part A of
chapter 58 of the laws of 2008, is amended to read as follows:
  (2) The upper limit, if any, set by the centers for medicare and medi-
caid services for such multiple source drug AND THE DEPARTMENT OF HEALTH
TOGETHER WITH THE PHARMACY ADVISORY COMMITTEE SHALL DETERMINE THE IMPACT
OF SUCH UPPER LIMIT PAYMENTS FOR DRUGS  IMPLEMENTED  UNDER  THE  DEFICIT
REDUCTION  ACT  OF 2005 AND SHALL REPORT TO THE DIRECTOR OF THE DIVISION
OF THE BUDGET, SECRETARY OF THE SENATE FINANCE COMMITTEE  AND  SECRETARY
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE ON SUCH IMPACT AND SHALL ADJUST
PHARMACY  DISPENSING  FEES  FOR  MULTIPLE  SOURCE  PRESCRIPTION DRUGS TO
COMPENSATE FOR ANY REDUCTION AS A RESULT OF THE UPPER LIMITS IMPLEMENTED
UNDER THE DEFICIT REDUCTION ACT OF 2005 AT SUCH TIME THAT THE NEW  UPPER
LIMITS ARE IMPLEMENTED, or
  S  2.  Subparagraph  (i)  of paragraph (b) of subdivision 9 of section
367-a of the social services law, as amended by section 10 of part C  of
chapter 58 of the laws of 2008, is amended to read as follows:
  (i)  if  the drug dispensed is a multiple source prescription drug for
which an upper limit has been set by the federal  centers  for  medicare
and medicaid services, the lower of: (A) an amount equal to the specific
upper  limit  set  by  such  federal  agency  for  the  multiple  source
prescription drug; (B) the estimated acquisition cost of  such  drug  to
pharmacies  which,  for  purposes  of  this subparagraph, shall mean the
average wholesale price of a prescription drug based on the package size
dispensed from, as reported by the  prescription  drug  pricing  service

 EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                      [ ] is old law to be omitted.
                                                           LBD08839-01-1
              

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used  by the department, less twenty-five percent thereof; (C) the maxi-
mum acquisition cost, if any, established pursuant to paragraph  (e)  of
this  subdivision;  or (D) the dispensing pharmacy's usual and customary
price  charged  to  the  general  public,  and  THE DEPARTMENT OF HEALTH
TOGETHER WITH THE PHARMACY ADVISORY COMMITTEE SHALL DETERMINE THE IMPACT
OF SUCH UPPER LIMIT PAYMENTS FOR DRUGS  IMPLEMENTED  UNDER  THE  DEFICIT
REDUCTION  ACT  OF 2005 AND SHALL REPORT TO THE DIRECTOR OF THE DIVISION
OF THE BUDGET, SECRETARY OF THE SENATE FINANCE COMMITTEE  AND  SECRETARY
OF THE ASSEMBLY WAYS AND MEANS COMMITTEE ON SUCH IMPACT AND SHALL ADJUST
PHARMACY  DISPENSING  FEES  FOR  MULTIPLE  SOURCE  PRESCRIPTION DRUGS TO
COMPENSATE FOR ANY REDUCTION AS A RESULT OF THE UPPER LIMITS IMPLEMENTED
UNDER THE DEFICIT REDUCTION ACT OF 2005 AT SUCH TIME THAT THE NEW  UPPER
LIMITS ARE IMPLEMENTED, AND
  S  3.  This  act shall take effect immediately 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 expiration
and reversion of such subdivision pursuant to section 4 of chapter 19 of
the laws of 1998, as amended, and shall be deemed to expire therewith.