ASSEMBLY HEALTH COMMITTEE

STATEMENT TO

ASSEMBLY, No. 493

STATE OF NEW JERSEY

DATED: FEBRUARY 5, 1996

The HEALTH Committee reports favorable Assembly Bill No. 493.      The Assembly Health Committee favorably reports Assembly Bill No. 493.

      This bill requires that Medicaid prescription drug benefits be provided on a fee-for service basis based upon reimbursement formulas established by the Commissioner of Human Services and prohibits the inclusion of such benefits in a managed care plan offered in this State. The bill prohibits the Commissioner of Insurance from approving for utilization in the Medicaid program a health benefits plan offered by an insurer or HMO which provides prescription drug benefits. The bill takes effect on the 60th day after enactment.

      This bill is identical to Senate Bill No. 234 (Inverso), which is currently pending in the Senate Human Services Committee. The bill is also identical to Assembly Bill No. 3246 (Vandervalk) and Senate Bill No. 2316 (Inverso) from the 1994-95 session.

      This bill was prefiled for introduction in the 1996-97 session pending technical review. As reported, the bill includes the changes required by technical review which has been performed.