Chapter 869 Oregon Laws 2001

 

AN ACT

 

SB 9

 

Relating to prescription drug assistance; appropriating money; limiting expenditures; and declaring an emergency.

 

Be It Enacted by the People of the State of Oregon:

 

          SECTION 1. (1) The Patient Prescription Drug Assistance Program is established. The purpose of the program is to match low-income Oregonians who lack prescription drug benefit coverage with prescription drug assistance programs offered by pharmaceutical companies.

          (2) The program shall:

          (a) Provide information on:

          (A) Eligibility requirements and coverage provided by publicly funded prescription drug benefit programs administered by the Department of Human Services; and

          (B) The process for applying to receive publicly funded prescription drug benefits;

          (b) Assist a patient in applying to pharmaceutical companies for free or discounted prescription drug medications if the patient is not eligible for any publicly funded prescription drug benefit program;

          (c) Provide information, in an organized and easily understood manner, to patients, physicians, pharmacists and pharmacies regarding patient qualifications for prescription drug assistance programs;

          (d) Increase awareness of the various prescription drug assistance programs offered by pharmaceutical companies; and

          (e) Establish a toll-free hotline and Internet website to increase public awareness of the Patient Prescription Drug Assistance Program and to provide public access to the information and services provided through the program.

          (3)(a) The College of Pharmacy at Oregon State University shall operate the Patient Prescription Drug Assistance Program until June 30, 2003, and may operate the program thereafter unless the Department of Human Services enters into a contract described in paragraph (b) of this subsection.

          (b) For periods on or after July 1, 2003, the Department of Human Services may contract with any pharmacy provider to operate the Patient Prescription Drug Assistance Program.

 

          SECTION 2. There is appropriated to the Department of Higher Education, for the biennium beginning July 1, 2001, out of the General Fund, the amount of $100,000 for the College of Pharmacy at Oregon State University to implement section 1 of this 2001 Act.

 

          SECTION 3. As used in this section and sections 4 and 6 of this 2001 Act:

          (1) “Eligible person” means a resident of this state who:

          (a) Is 65 years of age or older;

          (b) Has a gross annual income that does not exceed the lesser of the maximum amount established by the Department of Human Services by rule or 185 percent of the federal poverty guidelines;

          (c) Has not been covered under any public or private prescription drug benefit program for the previous six months; and

          (d) Has less than $2,000 in resources.

          (2) “Enrollee” means a person who has been found to be eligible for the Senior Prescription Drug Assistance Program, who has paid an enrollment fee of up to $50 and who has a Senior Prescription Drug Assistance Program enrollment card issued by the Department of Human Services.

          (3) “Federal poverty guidelines” means the most recent poverty guidelines as published annually in the Federal Register by the United States Department of Health and Human Services.

          (4) “Income” has the meaning given that term in ORS 413.005.

          (5) “Resources” includes but is not limited to cash, checking and savings accounts, certificates of deposit, money market funds, stocks and bonds. “Resources” does not include the primary residence or car of an eligible person.

          (6) “Senior Prescription Drug Assistance Program price” means the price of a prescription drug paid by an enrollee that is equal to or less than the Medicaid price.

 

          SECTION 4. (1) The Senior Prescription Drug Assistance Program is created in the Department of Human Services. The purpose of the program is to provide financial assistance to eligible persons for the purchase of prescription drugs.

          (2) A pharmacy shall charge an enrollee the Senior Prescription Drug Assistance Program price for a prescription drug upon presentation of a Senior Prescription Drug Assistance Program enrollment card.

          (3) A pharmacy may charge the enrollee an amount established by the Department of Human Services to cover the professional dispensing fee, which may not exceed the fee paid by the state Medicaid program.

          (4) This section does not apply to over-the-counter medications.

          (5) The department shall provide a mechanism to calculate and transmit the Senior Prescription Drug Assistance Program price to the pharmacy.

          (6) A person seeking to participate in the Senior Prescription Drug Assistance Program shall apply annually by completing and mailing a one-page application and including payment of an enrollment fee established by the department, not to exceed $50. The department shall issue an enrollment card annually to enrollees of the program. Each individual’s application shall be considered separately, regardless of the number of persons in the individual’s household.

          (7) The maximum prescription drug assistance available annually to an enrollee is $2,000.

          (8) Subject to funds available, the Department of Human Services may adjust the Senior Prescription Drug Assistance Program price to subsidize up to 50 percent of the Medicaid price of the prescription drug, using a sliding scale based on the income and resources of an enrollee.

          (9)(a) The department shall adopt rules that:

          (A) Identify critical access pharmacies; and

          (B) Provide for additional reimbursement to critical access pharmacies that participate in the Senior Prescription Drug Assistance Program.

          (b) In addition, a critical access pharmacy may charge an enrollee a fee of not more than $2 per prescription. The $2 charge shall be annually adjusted for inflation using the U.S. City Average Consumer Price Index, as defined in ORS 316.037.

 

          SECTION 5. Notwithstanding ORS 323.455 and section 3, chapter 385, Oregon Laws 1995, if cigarette tax revenues for the biennium beginning July 1, 2001, that are dedicated to funding the Oregon Health Plan under ORS 323.455 (4) and section 3 (3), chapter 385, Oregon Laws 1995, equal $175 million, any additional cigarette tax revenues raised during the biennium beginning July 1, 2001, that otherwise would be distributed to the Oregon Health Plan shall be credited to the Senior Prescription Drug Assistance Fund established under section 6 of this 2001 Act.

 

          SECTION 6. The Senior Prescription Drug Assistance Fund is established separate and distinct from the General Fund. The Senior Prescription Drug Assistance Fund may receive any appropriations, allocations, federal moneys or gifts designated for the Senior Prescription Drug Assistance Program. The moneys in the Senior Prescription Drug Assistance Fund are continuously appropriated to the Department of Human Services and shall be used to reimburse retail pharmacies for subsidized prices provided to enrollees and to reimburse the department for the costs of administering the program, including contracted services costs, computer costs, professional fees paid to retained pharmacies and other reasonable program costs. Interest earned on the fund accrues to the fund.

 

          SECTION 7. Notwithstanding any other law, the amount of $1 is established for the biennium beginning July 1, 2001, as the maximum limit for payment of expenses from moneys in the Senior Prescription Drug Assistance Fund for the Senior Prescription Drug Assistance Program established under section 4 of this 2001 Act and the expenses of the Department of Human Services in administering the program.

 

          SECTION 8. The Department of Human Services shall adopt rules necessary to implement section 4 of this 2001 Act.

 

          SECTION 9. The Department of Human Services shall seek any waivers from the Centers on Medicare and Medicaid Services necessary to implement section 4 of this 2001 Act.

 

          SECTION 10. The Department of Human Services may contract with a pharmacy provider or a pharmacy benefits manager to provide services under the Senior Prescription Drug Assistance Program established under section 4 of this 2001 Act.

 

          SECTION 11. This 2001 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2001 Act takes effect on its passage.

 

Approved by the Governor July 30, 2001

 

Filed in the office of Secretary of State July 30, 2001

 

Effective date July 30, 2001

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