92nd General Assembly
Summary of HB2236
   [ Home ]   [ Back ]   [ Legislation ]
Legislation:  
Please enter a bill number.



 Full Text  Bill Status
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