Text: SF02117                           Text: SF02119
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Bills and Amendments: General Index     Bill History: General Index



Senate File 2118

Partial Bill History

Bill Text

PAG LIN
  1  1    Section 1.  NEW SECTION.  231.61  PHARMACEUTICAL ASSISTANCE
  1  2 PROGRAM ESTABLISHED.
  1  3    1.  For the purposes of this section, unless the context
  1  4 otherwise requires:
  1  5    a.  "Eligible person" means a person, sixty-five years of
  1  6 age or older with an annual net income of not more than one
  1  7 hundred fifty percent of the federal poverty level, as defined
  1  8 by the most recent poverty income guidelines published by the
  1  9 United States department of health and human services, or a
  1 10 person sixty-five years of age or older, who with the person's
  1 11 spouse has an annual net income of not more than one hundred
  1 12 fifty percent of the federal poverty level, as defined by the
  1 13 most recent poverty income guidelines published by the United
  1 14 States department of health and human services.  "Eligible
  1 15 person" does not include a person who is eligible for
  1 16 financial assistance for the purchase of prescription drugs
  1 17 under another local, state, or federal program to the extent
  1 18 that the other program provides financial assistance for the
  1 19 purchase of prescription drugs.
  1 20    b.  "Prescription drug" means a prescription drug as
  1 21 defined in section 155A.3.
  1 22    c.  "Program" means the pharmaceutical assistance program
  1 23 established in this section.
  1 24    d.  "Reasonable cost" means a charge which is equal to the
  1 25 average wholesale cost of the prescription drug and the
  1 26 additional dispensing pharmacy's usual fee, not to exceed the
  1 27 seventy-fifth percentile of usual and customary fees in this
  1 28 state, as determined by the Iowa department of public health.
  1 29    2.  A pharmaceutical assistance program is created within
  1 30 the department to provide for subsidization of the
  1 31 prescription drug costs of eligible persons in rural and urban
  1 32 areas throughout the state.  The director shall appoint an
  1 33 advisory committee to make recommendations to the commission
  1 34 in the creation of the program and in adoption of rules to
  1 35 implement the program.  The Iowa pharmaceutical association
  2  1 shall assist the commission in the creation and implementation
  2  2 of the program.
  2  3    3.  The commission shall adopt rules to implement this
  2  4 section.  The rules shall provide for all of the following:
  2  5    a.  A means to determine the eligibility of a person,
  2  6 including proof of the person's actual and anticipated annual
  2  7 net income, evidence of complete or partial payment for the
  2  8 costs of prescription drugs from a provider other than the
  2  9 program, and other provisions consistent with this section.
  2 10    b.  Issuance by the department of a participation card upon
  2 11 approval of an application.  The annual fee for participation
  2 12 in the program is eighty dollars.  An initial application
  2 13 shall be accompanied by proof of the date of birth of the
  2 14 person.
  2 15    c.  A prescription copayment of twenty percent of the
  2 16 reasonable cost of the prescription which shall be collected
  2 17 from the person participating in the program by the dispensing
  2 18 pharmacy not to exceed eight hundred dollars in prescription
  2 19 costs for each calendar year.  Thereafter, a copayment of
  2 20 forty percent of the reasonable cost of prescriptions in
  2 21 excess of eight hundred dollars for the remainder of any
  2 22 calendar year shall be collected.  The balance of the
  2 23 reasonable costs shall be paid by the department to the
  2 24 dispensing pharmacy after submission of a claim to the
  2 25 department.
  2 26    d.  A provision that if the cost of the prescription drug
  2 27 exceeds the reasonable cost and the prescription drug is
  2 28 available under a generic name, the eligible person may obtain
  2 29 the trade name drug rather than the generic drug by paying the
  2 30 difference in the amounts of the trade name drug and generic
  2 31 name drug.  However, if the prescribing practitioner indicates
  2 32 on the prescription that a substitution of the trade name drug
  2 33 is prohibited, the eligible person is subject only to payment
  2 34 of the copayment amount.
  2 35    e.  A reimbursement system which includes on-line point of
  3  1 service claims transmission and adjudication, with utilization
  3  2 review.
  3  3    f.  A form of identification for persons to use in proving
  3  4 eligibility.  The form of identification shall include a
  3  5 conspicuous notation of the penalties for violation of this
  3  6 section.
  3  7    g.  A requirement that prescriptions contain the name,
  3  8 address, and identification number of the eligible person.
  3  9    h.  A provision to ensure choice of pharmaceutical services
  3 10 by the eligible person.
  3 11    4.  A person who supplies false information to establish
  3 12 eligibility for the program or to obtain reimbursement is
  3 13 guilty of a serious misdemeanor.  
  3 14                           EXPLANATION
  3 15    This bill creates a pharmaceutical assistance program in
  3 16 the department of elder affairs to provide for subsidization
  3 17 of prescription drug costs of eligible persons 65 years of age
  3 18 and older with limited incomes, as established in the bill.
  3 19 The Iowa department of public health is required to develop a
  3 20 reasonable cost, which includes a dispensing fee, for
  3 21 prescription drugs.  The department of elder affairs is
  3 22 required to adopt rules regarding copayments, reimbursement
  3 23 policies for generic and trade name drugs, a reimbursement
  3 24 system for dispensers, a form of identification for eligible
  3 25 persons, and requirements for information included in a
  3 26 prescription.  A person who supplies false information in
  3 27 order to become eligible for the program or to obtain
  3 28 reimbursement is guilty of a serious misdemeanor.  
  3 29 LSB 3757SS 77
  3 30 pf/cf/24.1
     

Text: SF02117                           Text: SF02119
Text: SF02100 - SF02199                 Text: SF Index
Bills and Amendments: General Index     Bill History: General Index

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