House Sponsors: FRANKS-CROTTY-HOFFMAN-MAY-DAVIS,MONIQUE, BOLAND, LANG, DAVIS,STEVE, MILLER, REITZ, FOWLER, FORBY, FLOWERS, RYAN, HOLBROOK, HARTKE, ACEVEDO, FRITCHEY, JONES,LOU, DART, GRANBERG, OSTERMAN, O'BRIEN, MURPHY, HANNIG, BUGIELSKI, CURRIE, MCKEON, BROSNAHAN, MCCARTHY, LYONS,JOSEPH, NOVAK, GILES, SCOTT, CAPPARELLI, DELGADO, MENDOZA, HAMOS, YOUNGE, HOWARD, KENNER, COLLINS, SLONE, CURRY,JULIE, JONES,SHIRLEY, TURNER,ART, YARBROUGH AND BURKE. Senate Sponsors: HALVORSON-SILVERSTEIN-DEL VALLE-LINK-WELCH Short description: PRESCRIPTION DRUG DISCOUNT ACT Synopsis of Bill as introduced: Creates the Senior Citizen Prescription Drug Discount Program Act. Provides that the Program shall be administered by the Department of Central Management Services to enable eligible senior citizens to purchase prescription drugs at discounted prices and that the Department shall (i) enroll eligible seniors into the Program, (ii) enter into rebate agreements with drug manufacturers, either itself or through an agent, and (iii) reimburse pharmacies for the cost of providing discounts using the proceeds from the manufacturer rebate agreements. Eligible seniors are persons who are Illinois residents and who are 65 years of age or older. Establishes a prescription pricing formula. Sets guidelines for the rebate agreements. Establishes application requirements for seniors and eligibility requirements for pharmacies. Requires the Department to adopt rules. Amends the State Finance Act to create the Senior Citizen Prescription Drug Discount Program Fund into which rebate payments and enrollment fees shall be deposited. Provides for an initial transfer from the General Revenue Fund into the Drug Discount Program Fund of $27,000,000 to be repaid to the General Revenue Fund out of rebate payments. Amends the Department of Central Management Services Law of the Civil Administrative Code of Illinois. Provides that the Department shall establish a Prescription Drug Purchasing Policy Office to determine and implement strategies for best price purchasing practices for State agencies that pay for prescription drugs by direct purchase or by other arrangements. Effective July 1, 2001. FISCAL NOTE (Department of Central Management Services) Increased expenditures would fall into two categories of costs, administrative and claim. The estimated increase in administra- tive costs is approximately $1,800,000, including hiring 23 staff and start-up costs of $1,000,000. A contract with a Pre- scription Benefit Manager (PBM) to assist with the administra- tion of this Program is estimated to cost $4,600,000 which would be covered by the seniors individual annual contribution to cover administrative costs. The claims cost is an estimated $62 million that CMS will have to pay to pharmacies to make up the difference between the Federal Supply Schedule (FSS) price and the Average Wholesale Price minus 10% (AWP-10%) and would not be recovered through negotiations for rebates because of the lack of control over drug purchases. The approximate total impact on CMS is $68.4 million of which $4.6 million would be recovered. FISCAL NOTE (Department on Aging) This bill has no fiscal impact on this Department. STATE MANDATES NOTE (Dept. of Commerce & Community Affairs) In the opinion of the Department of Commerce and Community Affairs (DCCA), HB 2236 does not create a State mandate under the State Mandates Act. HOME RULE NOTE (Dept. of Commerce & Community Affairs) The legislation does not contain language indicating a pre-emption of home rule powers and functions. Therefore, in the opinion of DCCA, HB 945 does not pre-empt home rule authority. Last action on Bill: SESSION SINE DIE Last action date: JAN-07-2003 Location: House Amendments to Bill: AMENDMENTS ADOPTED: HOUSE - 0 SENATE - 0 END OF INQUIRY Full Text Bill Status