Relates to establishing NYS prescription medication cost containment program

1 Co-sponsor

• Jesse Hamilton

Title of bill

An act to amend the civil service law, in relation to the New York state prescription medication cost containment program

Purpose

To enhance cost savings to New York State in the procurement of prescription medications for its civil service employees, retirees and dependents.

Summary of provisions

Section 1. Amends the Civil Service Law by adding a new section 159-d. Authorizes the president of the Civil Service Commission to create the New York State Prescription Medication Cost Containment Program. Provides that New York State residents who are New York State civil service employees or New York State residents who are retired from New York state civil service and who participate in the New York state health insurance plan (NYSHIP), and their dependents, shall be offered several options to fill medical prescriptions through a Canadian mail order company.

Section 2. Collective Bargaining.

Section 3. 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 New York State Civil Service employees and retirees.

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.1386 - Referred to Civil Service and Pensions/A.4003 - Referred to Governmental Employees

2013: S.1386 - Referred to Civil Service and Pensions/A.4003 - Referred to Governmental Employees.

2012: S.480- Referred to Civil Service and Pensions/A.1098 - Referred to Governmental Employees

2011: S.480 - Defeated in Civil Service and Pensions/A.1098 - Referred to Governmental Employees

2010: S.6210B - Reported and Committed to Finance/A.9207B - Amended and Recommitted to Governmental Employees

Fiscal impact

Anticipated savings to the state.

Effective date

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