Bill Text: NY A04233 | 2017-2018 | General Assembly | Introduced
Bill Title: Extends the preferred drug program to medicaid managed care providers and offers the program to other health plans.
Spectrum: Strong Partisan Bill (Democrat 28-2)
Status: (Introduced - Dead) 2018-01-03 - referred to ways and means [A04233 Detail]
Download: New_York-2017-A04233-Introduced.html
STATE OF NEW YORK ________________________________________________________________________ 4233 2017-2018 Regular Sessions IN ASSEMBLY February 1, 2017 ___________ Introduced by M. of A. GOTTFRIED, THIELE, RODRIGUEZ, MOSLEY, MAGNARELLI, LUPARDO, CRESPO, BLAKE, GALEF, JAFFEE, SEAWRIGHT, MONTESANO, TITONE, GUNTHER, LIFTON, SEPULVEDA, HOOPER, DINOWITZ, OTIS, JENNE, ABINANTI, HYNDMAN, ORTIZ -- Multi-Sponsored by -- M. of A. CARROLL, COOK, CROUCH, ENGLEBRIGHT, GLICK, SIMON -- read once and referred to the Committee on Health AN ACT to amend the social services law and the public health law, in relation to extending the preferred drug program to medicaid managed care providers and offering the program to other health plans; and to repeal certain provisions of the social services law relating thereto The People of the State of New York, represented in Senate and Assem- bly, do enact as follows: 1 Section 1. Legislative findings. This legislature finds that the costs 2 of many prescription drugs in the market have been escalating unreason- 3 ably. The preferred drug program and the clinical drug review program 4 under the public health law provide effective mechanisms for assuring 5 access to quality, effective and safe drugs to patients at reasonable 6 cost. Providing prescription drugs to Medicaid managed health care 7 provider participants through these programs will maximize the Medicaid 8 program's ability to negotiate more substantial rebates with drug 9 manufacturers (effectively, lower prices), while protecting Medicaid 10 managed care provider participants. Offering non-Medicaid health plans 11 the opportunity to use these programs will help lower costs for those 12 health plans and those who pay their premiums, while protecting individ- 13 uals covered by those plans, and will also further increase the negoti- 14 ating power of the programs. 15 § 2. The social services law is amended by adding a new section 365-i 16 to read as follows: 17 § 365-i. Prescription drugs in medicaid managed care programs. 1. 18 Definitions. (a) The definitions of terms in section two hundred seventy 19 of the public health law shall apply to this section. 20 (b) As used in this section, unless the context clearly requires 21 otherwise: EXPLANATION--Matter in italics (underscored) is new; matter in brackets [] is old law to be omitted. LBD09321-01-7A. 4233 2 1 (i) "Managed care provider" means a managed care provider under 2 section three hundred sixty-four-j of this article, a managed long term 3 care plan under section forty-four hundred three-f of the public health 4 law, or any other entity that provides or arranges for the provision of 5 medical assistance services and supplies to participants directly or 6 indirectly (including by referral), including case management, including 7 the managed care provider's authorized agents. 8 (ii) "Participant" means a medical assistance recipient who receives, 9 is required to receive or elects to receive his or her medical assist- 10 ance services from a managed care provider. 11 2. Providing and payment for prescription drugs for medicaid managed 12 care provider participants. Prescription drugs eligible for reimburse- 13 ment under this article prescribed in relation to a service provided by 14 a managed care provider shall be provided and paid for under the 15 preferred drug program and the clinical drug review program under title 16 one of article two-A of the public health law. The managed care provider 17 shall account to and reimburse the department for the net cost to the 18 department for prescription drugs provided to the managed care provid- 19 er's participants. Payment for prescription drugs shall be included in 20 the capitation payments to the managed care provider for services or 21 supplies provided to a managed care provider's participants. 22 § 3. Section 270 of the public health law is amended by adding a new 23 subdivision 15 to read as follows: 24 15. "Third-party health care payer" has its ordinary meanings and 25 includes an entity such as a fiscal administrator, or administrative 26 services provider that participates in the administration of a third- 27 party health care payer system. 28 § 4. The public health law is amended by adding a new section 274-a to 29 read as follows: 30 § 274-a. Use of preferred drug program and clinical drug review 31 program. The commissioner shall contract with any third-party health 32 care payer that so chooses, to use the preferred drug program and the 33 clinical drug review program to provide and pay for prescription drugs 34 for the third-party health care payer's enrollees. To contract under 35 this section, the third-party health care payer shall provide coverage 36 for prescription drugs authorized under this title. The third-party 37 health care payer shall account to and reimburse the department for the 38 net cost to the department for prescription drugs provided to the third- 39 party health care payer's enrollees. The contract shall include terms 40 required by the commissioner. 41 § 5. Section 272 of the public health law is amended by adding a new 42 subdivision 12 to read as follows: 43 12. No prior authorization shall be required under the preferred drug 44 program for: (a) atypical anti-psychotics; (b) anti-depressants; (c) 45 anti-retrovirals used in the treatment of HIV/AIDS; (d) anti-rejection 46 drugs used in the treatment of organ and tissue transplants; (e) 47 seizure, epilepsy, endocrine, hematologic and immunologic therapeutic 48 classes; and (f) any other therapeutic class for the treatment of mental 49 illness or HIV/AIDS, recommended by the committee and approved by the 50 commissioner under this title. 51 § 6. Subdivisions 25 and 25-a of section 364-j of the social services 52 law are REPEALED. 53 § 7. This act shall take effect on the one hundred eightieth day after 54 it shall have become a law; provided, however, that the commissioner of 55 health is immediately authorized and directed to take actions necessary 56 to implement this act when it takes effect.
