SENATE BILL REPORT

SB 5889

BYSenator Hansen

Prohibiting insurance providers from contracting with out-of-state providers for the direct provision of pharmaceuticals.

Senate Committee on Health Care & Corrections

Senate Hearing Date(s):February 3, 1988

Senate Staff:Don Sloma (786-7414)

AS OF FEBRUARY 3, 1988

BACKGROUND:

Under health benefit plans the cost of prescription drugs are covered to some degree.  Those drugs may be purchased at a local pharmacy or via the mail from a mail service pharmacy, normally located out-of-state.

Mail service pharmacies are regulated on a federal level and by the states in which they are domiciled.  However, the states into which these drugs flow are often powerless to restrict or regulate the dispensing process.

SUMMARY:

The State Employees' Insurance Board may not fill state employees' individual drug prescriptions with drugs purchased from out-of-state providers.

Disability and group disability contractors, health care service contractors, and health maintenance organizations are prohibited from contracting with out-of-state pharmacies or suppliers of pharmaceuticals for prescription drugs directly dispensed to consumers.

Appropriation:    none

Revenue:    none

Fiscal Note:      none requested