Relates to establishing the NYS prescription medication cost containment program

BILL NUMBER:S1387

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 multi-billion dollar 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

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.