S T A T E O F N E W Y O R K
________________________________________________________________________
8509
I N S E N A T E
March 8, 2022
___________
Introduced by Sen. CLEARE -- read twice and ordered printed, and when
printed to be committed to the Committee on Health
AN ACT to amend part FFF of chapter 56 of the laws of 2020 relating to
directing the department of health to remove the pharmacy benefit from
the managed care benefit package and to provide the pharmacy benefit
under the fee for service program, in relation to the effectiveness
thereof
THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
BLY, DO ENACT AS FOLLOWS:
Section 1. Section 1 of part FFF of chapter 56 of the laws of 2020
relating to directing the department of health to remove the pharmacy
benefit from the managed care benefit package and to provide the pharma-
cy benefit under the fee for service program, as amended by section 1 of
part C of chapter 57 of the laws of 2021, is amended to read as follows:
Section 1. The Legislature hereby finds and declares that medical
assistance for needy persons is a matter of public concern and a neces-
sity in promoting the public health and welfare and for promoting the
state's goal of making available to everyone, regardless of race, age,
gender, national origin or economic standing, uniform, high-quality
medical care. As the department of health is the single state agency
responsible for supervising the administration of the state's medical
assistance program (Medicaid), it is tasked with ensuring efficiency,
economy, and quality of care in providing benefits to the state's needy
persons. To this end and with the fiscal constraints facing our state in
mind, the department of health continues to analyze the Medicaid program
in search of ways to ensure Medicaid spending is held to the standard of
efficiency, economy, and quality of care. In consideration of this stan-
dard, the department of health is hereby directed to exercise its exist-
ing administrative authority to remove the pharmacy benefit from managed
care benefit package and instead provide the pharmacy benefit under the
fee for service program, except where otherwise required by federal law,
to ensure transparency and that the benefit is provided to the fullest
extent and as efficiently as possible; provided, however, that the
department of health shall not implement the transition of the pharmacy
EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD14961-01-2
S. 8509 2
benefit from the managed care benefit package to the fee for service
program sooner than April 1, [2023] 2021, and until it is satisfied that
all necessary and appropriate transition planning has occurred, in its
sole discretion, and federal approvals have been obtained and prepara-
tions have been made. Furthermore, to ensure an orderly transition,
continued access to medications, and appropriate patient education and
support, the department may establish uniform standards, payment poli-
cies and reimbursement methodologies for any sites where drugs may be
administered or dispensed under the fee for service program; provided
that, subject to the availability of federal financial participation,
when reimbursing covered entities, as defined under section 340B of the
public health service act (42 U.S.C. §256b), for drugs that would other-
wise be eligible for pricing under section 340B of the public health
service act, the department shall examine all reasonably available meth-
ods for determining actual acquisition cost and the professional
dispensing fee and, beginning in the fiscal year starting April 1,
[2023] 2021, review and adjust reimbursement for such drugs such that no
sooner than April 1, [2025] 2023, reimbursement shall be determined
based on a method that the commissioner determines that utilizes the
actual acquisition costs and professional dispensing fee.
§ 2. This act shall take effect immediately and shall be deemed to
have been in full force and effect on and after April 1, 2021.