What's happening
This bill creates a program allowing eligible elderly New York residents to fill prescriptions via Canadian mail order companies.
Why it matters
Expands access to lower-cost medications. By allowing eligible seniors to fill prescriptions via Canadian mail order companies, the bill aims to help those on fixed incomes better afford necessary medicines, potentially reducing financial strain and improving medication adherence.
Introduces state oversight and quality control. The executive director must design a competitive bidding process to select Canadian suppliers, suggesting an effort to ensure reliability, safety, and value rather than leaving seniors to navigate foreign pharmacies on their own.
Could increase price competition and systemic savings. By introducing Canadian suppliers into the market, the bill may pressure U.S. pharmaceutical companies to lower prices, potentially benefiting the broader health system and not just direct participants.
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Who cares
Headline styles
Lower Prescription Drug Costs
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to aging
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
4918
2017-2018 Regular Sessions
IN SENATE
March 3, 2017
Introduced by Sen. DIAZ -- read twice and ordered printed, and when printed to be committed to the Committee on Aging
AN ACT to amend the elder law, in relation to the New York state prescription medication cost containment program
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. The elder law is amended by adding a new section 249-a to read as follows:
§ 249-a. New York state prescription medication cost containment program. 1. The executive director is authorized and directed to create the New York state prescription medication cost containment program.
2. Such program shall offer New York state residents who qualify for the elderly pharmaceutical insurance coverage program pursuant to section two hundred forty-two of this article, several options to fill medical prescriptions through a Canadian mail order company. Such companies shall be selected through competitive bidding process, to be designed and implemented by the executive director. Canadian drug suppliers shall include, but shall not be limited to all manufacturers and distributors by Canada's research based pharmaceutical companies.
§ 2. This act shall take effect on the one hundred eightieth day after it shall have become a law.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD07304-01-7
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
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
2016: S.470 - REFERRED TO AGING/A.1999- referred to aging 2105: S.470 - REFERRED TO AGING/A.1999- referred to aging 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.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.