HOUSE BILL REPORT

HB 1565

This analysis was prepared by non-partisan legislative staff for the use of legislative members in their deliberations. This analysis is not a part of the legislation nor does it constitute a statement of legislative intent.

Brief Summary of Bill

Adds the Prescription Monitoring Program (PMP) to the allowable uses of Medicaid Fraud Penalty Account (Account) funds.
Requires that the PMP be funded entirely from the Account aside from voluntary contributions from private individuals and corporations.

Majority Report: Do pass. Signed by 30 members: Representatives Hunter, Chair; Ormsby, Vice Chair; Alexander, Ranking Minority Member; Chandler, Assistant Ranking Minority Member; Wilcox, Assistant Ranking Minority Member; Buys, Carlyle, Cody, Dahlquist, Dunshee, Fagan, Green, Haigh, Haler, Harris, Hudgins, Hunt, Jinkins, Kagi, Maxwell, Morrell, Parker, Pedersen, Pike, Ross, Schmick, Seaquist, Springer, Sullivan and Taylor.

Background:

Prescription Monitoring Program.

The 2007 Legislature authorized the Department of Health (DOH) to implement a Prescription Monitoring Program (PMP), subject to available funding, to monitor the prescribing and dispensing of schedule II through V controlled substances. Dispensers, who include practitioners and pharmacies, must electronically report information to the DOH about each prescription dispensed. Information in the PMP is available to prescribers and dispensers.

The 2007 legislation directed the DOH to seek federal grants to support the PMP and prohibits the DOH from charging a fee to practitioners or pharmacists for the PMP's operations.

In 2010 and 2011 the DOH received federal and private grants to develop and implement the PMP.

Medicaid Fraud Penalty Account.

The 2012 Legislature enacted legislation creating the Medicaid Fraud Penalty Account (Account). Civil penalties received from actions against Medicaid service providers and receipts from judgments or settlements under either the state Medicaid Fraud False Claims Act or federal False Claims Act must be deposited into the Account. Moneys in the Account may be appropriated for Medicaid services and Medicaid fraud prevention, detection, and enforcement activities.

Summary of Bill:

The Account may be used to fund the PMP. All operations and management of the PMP must be funded entirely from the Account, although voluntary contributions from private individuals and businesses may be used to assist in funding the PMP. The DOH must continue to seek federal grants to support the PMP.

Staff Summary of Public Testimony:

(In support) The program is a tool that helps protect client safety and prevent fraud, waste, and abuse. Prescription drug abuse is a national and local problem that causes unintentional deaths. The program also helps reduce costs by reducing hospitalizations, emergency room usage, and identifying and preventing Medicaid fraud. The value of the program comes from providers and dispensers using the data. The program also allows Medicaid to report on data such as when a client is paying cash for prescription drugs. The bill would provide ongoing funding for the program. The one caveat is that the Account is new and we hope that its viability continues.

(Opposed) None.