TO: | Honorable Jane Nelson, Chair, Senate Committee on Health & Human Services |
FROM: | John Keel, Director, Legislative Budget Board |
IN RE: | HB3486 by Delisi (Relating to a health care facility's return of certain unused drugs to a pharmacy and to reimbursement or credit under the state's medical assistance program for returned drugs. ), Committee Report 2nd House, Substituted |
Fiscal Year | Probable Net Positive/(Negative) Impact to General Revenue Related Funds |
---|---|
2004 | $962,475 |
2005 | $2,266,999 |
2006 | $2,644,178 |
2007 | $3,071,907 |
2008 | $3,559,893 |
Fiscal Year | Probable Revenue Gain/(Loss) from VENDOR DRUG REBATES-MEDICAID 706 |
Probable Savings/(Cost) from GR MATCH FOR MEDICAID 758 |
Probable Savings/(Cost) from FEDERAL FUNDS 555 |
---|---|---|---|
2004 | ($244,248) | $1,206,723 | $1,815,177 |
2005 | ($570,673) | $2,837,672 | $4,295,741 |
2006 | ($665,620) | $3,309,798 | $5,010,458 |
2007 | ($773,292) | $3,845,199 | $5,820,962 |
2008 | ($896,133) | $4,456,026 | $6,745,648 |
The bill would provide for the return of certain unused prescription drugs to the Medicaid Vendor Drug Program. The payment to pharmacies would be reduced by the amount of unused, unadulterated medication returned to the pharmacy.
The Board of Pharmacy would be required to adopt rules. It is assumed that this would result in no significant fiscal impact.
The Health and Human Services Commission (HHSC) assumes that four percent of the prescriptions for nursing home residents would be returned. The total number of returned prescriptions is assumed to be 124,132 in fiscal year 2004, 258,637 in fiscal year 2005, 269,355 in fiscal year 2006, 280,129 in fiscal year 2007, and 291,334 in fiscal year 2008. HHSC assumes that 50 percent of the prescribed drug supply per prescription would be returned for restocking. The total adjusted cost-savings per prescription of the returned drugs is estimated to be $24.60 in fiscal year 2004, $27.58 in fiscal year 2005, $30.89 in fiscal year 2006, $34.51 in fiscal year 2007, and $38.45 in fiscal year 2008.
Rebates would be adjusted based upon the total cost-savings of the returned products. HHSC assumes that the loss of Medicaid rebates would be approximately eight percent of the total cost-savings.
The program would be implemented in March 2004.
Source Agencies: | 515 Board of Pharmacy, 529 Health and Human Services Commission
|
LBB Staff: | JK, JO, EB, KF, AJ
|