S T A T E O F N E W Y O R K ________________________________________________________________________ 2964 2011-2012 Regular Sessions I N S E N A T E February 3, 2011 ___________ Introduced by Sen. KRUGER -- read twice and ordered printed, and when printed to be committed to the Committee on Finance AN ACT in relation to creating a temporary state commission to study and evaluate medicaid reimbursement plans and rates for prescription drugs THE PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM- BLY, DO ENACT AS FOLLOWS: 1 Section 1. Legislative findings and declaration. The legislature here- 2 by finds and declares that the health needs of New York state's indigent 3 and elderly residents demand that our medicaid program provide ready 4 access to medication. In structuring the program to most effectively 5 achieve this goal, we must give due consideration to the important role 6 played by pharmacists who choose to participate in the program and the 7 need to provide them the level of monetary compensation for medicaid 8 prescriptions necessary to maintain their businesses. 9 Furthermore, we must analyze the current operation of the medicaid 10 prescription drug reimbursement program with an eye towards its restruc- 11 ture, in order to provide for an improved system that evidences fiscal 12 responsibility, greater efficiency of management and better service to 13 its recipients. 14 Therefore, a need exists for a thorough study and assessment of the 15 medicaid reimbursement plans and rates for prescription drugs used else- 16 where in the country, for the costs involved in operations and manage- 17 ment in the pharmaceutical industry, as well as for a study of any 18 potential cost saving measures related to the medicaid prescription drug 19 reimbursement program, and for the submission to the governor and legis- 20 lature of a report containing the conclusions and recommendations of 21 such study. 22 S 2. A temporary state commission on the medicaid prescription drug 23 reimbursement program is hereby created to study, evaluate and make 24 recommendations concerning medicaid reimbursement plans and rates for EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets [ ] is old law to be omitted. LBD06513-01-1 S. 2964 2 1 prescription drugs. The subjects of such study and report shall include 2 but not be limited to: 3 (a) medicaid reimbursement formulas in this state and in contiguous 4 and comparable states for prescription drugs; 5 (b) pharmaceutical dispensing fees in this state and in contiguous and 6 comparable states for prescription drugs; 7 (c) average costs involved in operations and management in the pharma- 8 ceutical industry in this state and in contiguous and comparable states, 9 including an examination of the practice of wholesaler - pharmacy 10 discounts for prescription drugs; and average pharmacy operating 11 expenses including but not limited to rent, equipment costs and employee 12 wages; 13 (d) any potential cost-saving measures related to the medicaid 14 prescription drug reimbursement program, including but not limited to 15 the implementation of a statewide computerized identification system for 16 medicaid prescription drug recipients and providers. 17 S 3. The temporary state commission shall consist of 16 members who 18 shall be the following: the commissioner of the department of temporary 19 and disability assistance or his representative; 5 members who shall be 20 appointed by the governor; 3 members who shall be appointed by the 21 majority leader of the senate and 3 members who shall be appointed by 22 the speaker of the assembly; 2 members who shall be appointed by the 23 minority leader of the senate and 2 members who shall be appointed by 24 the minority leader of the assembly; 3 of these members shall be pharma- 25 cists participating in the medicaid program in the state of New York; 2 26 members shall be physicians licensed to practice in the state of New 27 York; and 3 members shall be recipients of medicaid in the state of New 28 York, or their advocates. The governor shall designate the chairperson. 29 Vacancies in the membership of the commission shall be filled in the 30 manner provided for original appointments. 31 S 4. The chairperson shall have the power to set the agenda or action 32 plan for the commission; establish commission workplace and methodol- 33 ogies; review and approve reports and recommendations; assign committee 34 members specific duties, tasks and responsibilities; request the tempo- 35 rary assignment of any state employees he or she deems necessary to 36 carry out specific projects or tasks essential to the commission's 37 purpose; call meetings of commission members and be able to contract out 38 for the assistance of specialists in the private sector. 39 S 5. The commission may meet within and without the state, shall hold 40 public hearings, and shall have all the powers of a legislative commit- 41 tee pursuant to the legislative law. 42 S 6. The members of the commission shall receive no compensation for 43 their services but shall be allowed their actual and necessary expenses 44 incurred in the performance of their duties hereunder. 45 S 7. The commission, with such support of the governor as may be need- 46 ed, may request and shall receive from any department, division, board, 47 bureau, commission or agency of the state or of any political subdivi- 48 sion thereof such assistance and data as will enable it properly to 49 carry out its activities hereunder and effectuate the purposes herein 50 set forth. 51 S 8. The commission shall make a report of its findings and recommen- 52 dations regarding medicaid reimbursement plans, and for an equitable 53 reimbursement rate for pharmacists and medicaid recipients in New York 54 state to the governor and the legislature on or before February 1, 2012. 55 S 9. This act shall take effect immediately.