Washington State House of Representatives Office of Program Research	BILL ANALYSIS
Health Care Committee

HB 1652

Brief Description:  Developing a therapeutic and cost‑effective drug education and utilization system.

Sponsors:  Representatives Cody, Campbell, Edmonds and Edwards.

Brief Summary of Bill

$Directs the Health Care Authority to establish a drug education and utilization system including a state drug formulary for state purchased health care, except for the Medicaid Program operated by the Department of social and Health Services.

$Establishes two to five pilot disease management programs for persons receiving their health care coverage through the Health Care Authority or the Department of Social and Health Services.

Hearing Date:  2/9/01

Staff:  Dave Knutson (786‑7146).

Background: 

Many consumers, health care providers, and health care purchasers do not have all the information they need to make appropriate choices on the most therapeutic and cost‑effective use of prescription drugs.  Some specific diseases lend themselves to a coordinated disease management approach.  It may be possible to improve patient outcomes and contain health care costs through the use of a disease management program that includes physicians, pharmacists, and other appropriate health care providers.

Summary of Bill: 

The Health Care Authority will establish a prescription drug education and utilization system to promote therapeutic and cost‑effective utilization of prescription drugs by residents of Washington.  It will include a state formulary of prescription drugs for state purchased health care, excluding the medicaid program.  Another component will be an education effort for physicians, other prescribers, and consumers on the  therapeutic and cost‑effective utilization of prescription drugs.  It will also generate recommendations for continuing medical education requirements of individuals authorized to prescribe prescription drugs.  Finally, it will include a drug utilization review and drug utilization management program to improve the quality of pharmaceutical care through appropriate and medically necessary prescriptions provided through  state‑purchased health care.

The Health Care Authority and the Department of Social and Health Services will both develop two to five pilot disease management programs for individuals receiving health care services through each agency.  The Health Care Authority will determine which disease groups are appropriate for disease management.  The Department of Social and Health Services will target asthma, diabetes, heart failure, and other enumerated conditions.

Appropriation:  The Sum of $100,000 to the Health Care Authority for their responsibilities under this Act..

Fiscal Note:  Not Requested.

Effective Date:  The bill contains an emergency clause and takes effect on July 1, 2001.