Senate Bill S470

                                 BILL NUMBER:  S470

 TITLE OF BILL :  An act to amend the elder law, in relation to the
New York state prescription medication cost containment program

 PURPOSE :

To enhance cost savings by the NYS EPIC program in procurement of
prescription medications for recipients of the state's EPIC program.

 SUMMARY OF PROVISIONS :

Section 1. Amends the Elder Law by adding a new section, 249-a.
Authorizes the Executive Director of the Elderly Pharmaceutical
Insurance Coverage Program to create the New York State Prescription
Medication Cost Containment Program. Provides that such program
participants shall be offered several options to fill their medical
prescriptions through a Canadian mail order company. Such companies
shall be selected through a competitive bidding process, designed and
implemented by the Director.

Section 2. Effective Date.

 EXISTING LAW :

None.
              

 JUSTIFICATION :

There is every indication that New York State will continue to face
unprecedented budget deficits. As such, the State must be more
creative in its approach to raising revenue and controlling expenses,
without relying on the usual methods of raising taxes and cutting, or
in some cases eliminating programs. Since prescription drug costs are
among New York State's highest expenditures, one way the State can
accomplish this goal is by creating the New York State Prescription
Medication Cost Containment Program, which would be voluntary, for
participants in the Elderly Pharmaceutical Insurance Program (EPIC).

This legislation is based on a program that has operated in
Schenectady County since 2005. Since then, the County has realized
savings of over $17 million. Additionally, County prescription drug
costs have increased less than 8.9% since the program's inception.
This figure compares favorably with the average of U.S. prescription
drug programs which has seen prices escalate by more than 12% each
year, or 76.2% over five years. Over 90% of Schenectady County's
employees represented by two unions, CSEA and 1199, now participate in
the program. If the smallest county in New York State has saved this
much money, controlled its prescription drug costs and expanded
program participation to over 90% of its employees, just imagine what
New York State could accomplish through the implementation of this
legislation.

 LEGISLATIVE HISTORY :

2014: S.1387 - Referred to Aging/A.308 - Referred to Aging
2013: S.1387 - Reported and Committed to Finance/A.308 - Referred to
Aging
2012: S.111 - Referred to.Health/ A.268 Referred to Aging
2011: S.111 - Notice of Committee Consideration Requested, Committee
Discharged and Committed to Health/A.268 Referred to Aging
2010: S.1645A - Advanced to Third Reading/A.7666A Referred to Aging
2009: S.1645A - Reported and Committed to Finance/A.7666 - Referred to
Aging

 FISCAL IMPLICATIONS :
Potential cost savings to the state.

 EFFECTIVE DATE :
This law shall take effect on the one hundred eightieth day after it
shall have become law.