Establishes the prescription drug discount program; repealer

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 280-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 280-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 t.he 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.