BILL REQ. #:  Z-0519.1 

Read first time 01/20/2003.   Referred to Committee on Health Care.

     AN ACT Relating to prescription drugs to seniors; adding a new section to chapter 74.09 RCW; adding new sections to chapter 41.05 RCW; creating a new section; providing an effective date; and declaring an emergency.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF WASHINGTON:

NEW SECTION.  Sec. 1   (1) The legislature finds that prescription drugs are an effective and important part of efforts to maintain and improve the health of Washington state residents. Yet prescription drug expenditures in both the public and private sectors are growing at rates far in excess of consumer or medical inflation, placing a strain on the ability of persons who do not have affordable access to adequate prescription drug coverage to obtain prescription drugs. In addition, inappropriate use of prescription drugs can have serious health consequences for Washington state residents.
     (2) It is the intent of the legislature to develop a program to promote access to affordable prescription drug coverage to low-income persons who do not otherwise have adequate coverage to purchase necessary and appropriate prescription drugs.

NEW SECTION.  Sec. 2   A new section is added to chapter 74.09 RCW to read as follows:
     (1) There is established a program to be known as the medicaid senior prescription drug program. Neither the benefits of, nor the eligibility for, the program is considered to be an entitlement. To the extent funds are appropriated specifically for this purpose, and subject to any conditions placed on appropriations made for this purpose, the department shall design and administer the medicaid senior prescription drug program.
     (2) The department is directed to obtain necessary federal waivers to implement this program. Consistent with federal waiver conditions, the department is authorized to charge enrollment fees, premiums, or point-of-service cost-sharing to enrollees of the program.
     (3) Eligibility for this program is limited to persons: (a) Who are age sixty-five and older; (b) whose family income does not exceed two hundred percent of the federal poverty level as adjusted for family size and determined annually by the federal department of health and human services; (c) who do not otherwise have insurance that provides prescription drug coverage; and (d) who otherwise are eligible under Title XIX and the state's federal prescription drug waiver program.
     (4) The department is authorized to use a cost-effective prescription drug benefit design. Consistent with federal waiver conditions, this benefit design can be different than the benefit design offered under the medical assistance program. The benefit design may include a deductible benefit that provides coverage when enrollees incur higher prescription drug costs as defined by the department. The department also may offer more than one benefit design.
     (5) The department is authorized to limit enrollment of persons who qualify for the program so as to prevent an overexpenditure of appropriations for this program or to assure necessary compliance with federal waiver budget neutrality requirements.
     (6) Implementation of this section is subject to obtaining an approved federal waiver that allows for the collection of premiums from medicaid clients.
     (7) This program will be terminated within twelve months after implementation of a prescription drug benefit under Title XVIII of the social security act.

NEW SECTION.  Sec. 3   A new section is added to chapter 41.05 RCW to read as follows:
     The administrator shall, directly or by interagency agreement or contract, establish and operate a statewide senior prescription drug information clearinghouse. The clearinghouse shall:
     (1) Promote access to necessary prescription drugs for persons over age sixty-five who reside in Washington state;
     (2) Make information available on a statewide basis regarding private and public programs that provide financial assistance to seniors for the purchase of prescription drugs;
     (3) Provide educational information about methods to purchase prescription drugs most cost-effectively and efficiently, including information about generic drugs and the potential for dangerous drug interactions; and
     (4) Provide individual education and assistance regarding prescription drug financial assistance programs.
     Prior to July 1, 2005, the administrator shall provide for an evaluation of the effectiveness and potential continuation of the clearinghouse.

NEW SECTION.  Sec. 4   A new section is added to chapter 41.05 RCW to read as follows:
     (1) The administrator shall employ prescription drug purchasing methods including the establishment of a broad-based purchasing consortium of state, local, and private entities to achieve quality cost-effective prescription drug coverage for their respective employees, members, or clients. The administrator shall explore joint purchasing opportunities with other states to achieve quality cost-effective prescription drug coverage for those participating in the consortium.
     (2) Participation by local governments or private entities is purely voluntary. The administrator may charge reasonable administrative fees to those entities who choose to participate in the purchasing consortium.
     (3) Unaffiliated individuals who lack prescription drug coverage following payment of a reasonable annual enrollment fee shall receive reduced costs comparable to those negotiated by the consortium for its preferred prescription drugs.
     (4) The administrator shall establish an advisory committee representing the members of the consortium and consumers at large to advise the administrator and the consortium on the development and implementation of a cost-effective purchasing plan. The advisory committee shall file a report to the health care and fiscal committees of the legislature on the progress to date of the consortium by December 15, 2005.

NEW SECTION.  Sec. 5   A new section is added to chapter 41.05 RCW to read as follows:
     The consolidated prescription drug purchasing account is created in the custody of the state treasurer. All receipts under section 4(2) of this act from the fees from the preferred drug purchasing consortium created in section 4 of this act must be deposited into the account. Expenditures from the account may be used only for the purposes of section 4 of this act. Only the administrator or the administrator's designee may authorize expenditures from the account. The account is subject to allotment procedures under chapter 43.88 RCW, but an appropriation is not required for expenditures.

NEW SECTION.  Sec. 6   This act is necessary for the immediate preservation of the public peace, health, or safety, or support of the state government and its existing public institutions, and takes effect July 1, 2003.