HOUSE BILL REPORT
2SHB 1095


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.

As Passed House:
January 22, 2007

Title: An act relating to implementing the part D drug copayment program.

Brief Description: Implementing the part D drug copayment program.

Sponsors: By House Committee on Appropriations (originally sponsored by Representatives Barlow, Hinkle, Appleton, Green, Ormsby, Schual-Berke, Cody, Blake, B. Sullivan, Hurst, O'Brien, Clibborn, Morrell, Conway, Kenney, Linville, Rolfes, Moeller and Dunn; by request of Governor Gregoire).

Brief History:

Health Care & Wellness: 1/15/07 [DPS];

Appropriations: 1/18/07 [DP2S(w/o sub HCW)].

Floor Activity:

Passed House: 1/22/07, 92-0.

Brief Summary of Second Substitute Bill
  • The Department of Social and Health Services may offer Medicare Part D copayment coverage to individuals who are eligible for Medicaid and Medicare, subject to the availability of amounts appropriated for this specific purpose.


HOUSE COMMITTEE ON HEALTH CARE & WELLNESS

Majority Report: The substitute bill be substituted therefor and the substitute bill do pass. Signed by 13 members: Representatives Cody, Chair; Morrell, Vice Chair; Hinkle, Ranking Minority Member; Alexander, Assistant Ranking Minority Member; Barlow, Campbell, Condotta, Curtis, Green, Moeller, Pedersen, Schual-Berke and Seaquist

Staff: Dave Knutson (786-7146).


HOUSE COMMITTEE ON APPROPRIATIONS

Majority Report: The second substitute bill be substituted therefor and the second substitute bill do pass and do not pass the substitute bill by Committee on Health Care & Wellness. Signed by 31 members: Representatives Sommers, Chair; Dunshee, Vice Chair; Alexander, Ranking Minority Member; Bailey, Assistant Ranking Minority Member; Haler, Assistant Ranking Minority Member; Anderson, Buri, Chandler, Cody, Conway, Darneille, Ericks, Fromhold, Grant, Haigh, Hinkle, Hunt, Hunter, Kagi, Kenney, Kessler, Linville, McDermott, McDonald, McIntire, Morrell, Pettigrew, Priest, Schual-Berke, Seaquist and P. Sullivan.

Staff: Bernard Dean (786-7130).

Background:

Congress passed, and the President signed, the Medicare Prescription Drug, Improvement, and Modernization Act in December 2003. It required that as of January 1, 2006 individuals who are dually eligible for Medicare and Medicaid must receive their prescription drug coverage through Medicare Part D and be assessed a co-pay on each prescription they fill in an amount between $1 and $5. Prior to this change, these individuals received their prescription drug coverage through the Medicaid program and did not make any co-pay. There are approximately 100,000 individuals who are dually eligible for Medicare and Medicaid. The Governor's 2007-09 biennial budget submittal assumes approximately $26 million General Fund-State will be expended to provide co-payment coverage for the dual eligible population.

Summary of Second Substitute Bill:

The Department of Social and Health Services is authorized to offer Medicare Part D co-payment coverage to individuals who are eligible for medical assistance or the medically needy program and Medicare, subject to available funds.

Appropriation: None.

Fiscal Note: Available.

Effective Date: The bill takes effect 90 days after adjournment of session in which bill is passed.

Staff Summary of Public Testimony: (Health Care & Wellness)

(In support) None.

(Opposed) None.

Staff Summary of Public Testimony: (Appropriations)

(In support) We should never allow a senior citizen in Washington to fall through any crack in the new Medicare Part D prescription drug program. They must now make copayments of $1 to $5 for each drug. These are our most vulnerable citizens in the state and are over 65 years of age or disabled. Their average household income is around $600 per month, if that, and they average seven prescription drugs per month. They simply don't have enough money to cover an extra $20, $30, or $40 a month for this new federal requirement.

This bill reinforces existing state policy to ensure that some of our most vulnerable citizens aren't burdened by copays, which serve only to deter their access to life saving and cost saving medications.

Northwest Kidney Centers help patients find prescription drug coverage and about 40 percent of dialysis patients are dual eligibles. They take eight to 10 medications a month and this bill makes a huge difference to these low-income individuals living with illness.

(Opposed) None.

Persons Testifying: (Health Care & Wellness) None.

Persons Testifying: (Appropriations) Representative Barlow, prime sponsor; Jonathan Seib, Governor's Policy Office; and Joyce Jackson, Northwest Kidney Center.

Persons Signed In To Testify But Not Testifying: (Health Care & Wellness) None.

Persons Signed In To Testify But Not Testifying: (Appropriations) None.