Relates to not for profit pharmacies operated by an institution of higher education; requires policies issued by a Medicaid managed care provider to consider such pharmacies to be in the provider's pharmacy network.
NEW YORK STATE ASSEMBLY MEMORANDUM IN SUPPORT OF LEGISLATION submitted in accordance with Assembly Rule III, Sec 1(f)
BILL NUMBER: A7922A
SPONSOR: Steck TITLE OF BILL:
An act to amend the social services law, in relation to not for profit
pharmacies operated by an institution of higher education
PURPOSE OR GENERAL IDEA OF BILL:
The purpose of this bill is to enable patients to use a not for profit
pharmacy operated by an institution of higher education located in a low
income or medically underserved area for their pharmacy care and to
provide pharmacy students with experience working in underserved areas.
SUMMARY OF SPECIFIC PROVISIONS:
Section 1 adds a new subdivision 34 to section 364-j of social services
law and provides that patients with a Medicaid Managed Care plan can use
a not for profit pharmacy operated by an institution of higher education
located in a low income or medically underserved area for their pharmacy
care.
Section 2 provides an effective date.
JUSTIFICATION:
New York has two not for profit pharmacies operated by an institution of
higher education located in Albany and Schenectady counties. Such phar-
macies offer the dual benefit of improving access to pharmacy and
related health care services in medically underserved communities and
providing a distinct, innovative learning experience for students pursu-
ing the pharmacist profession. The mission of these pharmacies is to
bring pharmacy care and related services to medically underserved popu-
lations where they are. This can lead to greater medication adherence,
improved health outcomes and lower hospitalization rates and fewer emer-
gency room visits as a result. A 2016 study by the Journal of Managed
Care & Specialty Pharmacy found that integrating pharmacies and medical
services in the community can lead to significant cost savings of $58
per member per month, approximately $700,000 per 1,000 patients annual-
ly. The convenient location of these pharmacies remove barriers for
obtaining medication such as transportation, which reduces the need for
other expensive health care services, saving patients and the health
care system money in the long term.
The not for profit pharmacies also provide students studying to be phar-
macists with the unique experience of serving communities that may have
limited access to medical care. Pharmacists who are given experience
working in underserved areas will have a greater understanding and
appreciation of the needs of those who live in such areas, increasing
the likelihood that they will decide to work with these communities
after completing their studies.
Ensuring that patients have choice and the ability to utilize the unique
and accessible services of such not for profit pharmacies is critical.
Bringing accessible health care to medically underserved communities is
a priority in New York State and the mission of these pharmacies. This
bill helps to bring needed pharmacy and related care to those who need
it the most right in their own communities and neighborhoods.
PRIOR LEGISLATIVE HISTORY:
None
FISCAL IMPLICATIONS:
None
EFFECTIVE DATE:
This act shall take effect in 60 days.
STATE OF NEW YORK
________________________________________________________________________
7922--A
2017-2018 Regular Sessions
IN ASSEMBLY
May 19, 2017
___________
Introduced by M. of A. STECK, FAHY, McDONALD -- read once and referred
to the Committee on Health -- committee discharged, bill amended,
ordered reprinted as amended and recommitted to said committee
AN ACT to amend the social services law, in relation to not for profit
pharmacies operated by an institution of higher education
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 364-j of the social services law is amended by
2 adding a new subdivision 34 to read as follows:
3 34. For any policy issued by a Medicaid managed care provider under
4 this section which provides coverage for prescription drugs, the provid-
5 er shall offer to include in its pharmacy network any pharmacy regis-
6 tered under section sixty-eight hundred eight of the education law, that
7 is a not for profit entity, operated by an institution of higher educa-
8 tion, is located in a postal zip code in which the managed care provider
9 has enrollees, and that primarily serves low income individuals or an
10 underserved population, to enable plan enrollees to fill any covered
11 drug prescription at such pharmacy and the pharmacy shall be paid the
12 same reimbursement amount for covered prescription drugs as other phar-
13 macies participating in the provider's network.
14 § 2. This act shall take effect on the ninetieth day after it shall
15 have become a law; provided that the commissioner of health shall make
16 regulations and take other actions reasonably necessary to implement
17 this act on such date; and provided, however, that the amendments to
18 section 364-j of the social services law made by section one of this act
19 shall not affect the repeal of such section and shall be deemed repealed
20 therewith.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD11701-02-7
