LEGISLATIVE FISCAL ESTIMATE TO

ASSEMBLY, No. 1966

STATE OF NEW JERSEY

DATED: SEPTEMBER 9, 1996

      Assembly Bill No.1966 of 1996 establishes the Pharmaceutical Di⁴scount Program (PDP) in the Department of Human Services (DHS). This program would enable residents of the State who are not eligible for the Pharmaceutical Assistance to the Aged and Disabled (PAAD) program and who are:

∙    recipients of disability insurance benefits under Title II of the federal Social Security Act (42 U.S.C. §401 et seq.),

∙    certified by a licensed physician to have acquired immune deficiency syndrome or who have tested positive for the human immunodeficiency virus, or

∙    65 years of age and over

with annual income of less than $35,000 if single or, if married, with income of less than $50,000, to pay an amount for a prescription drug which is equal to the amount paid by PAAD plus the required PAAD copayment. Income amounts would be adjusted annually on a basis similar to the annual adjustment in the PAAD income limits.

      DHS would determine eligibility and would issue a PDP identification card to all eligible persons.

      Department Comments:

       DHS and the Office of Management and Budget have not provided any fiscal information on the legislation.

      Office of Legislative Services Comments:

      Under the terms of the legislation, the cost of any discount provided to PDP participants would be absorbed by pharmacies, not the State.

      DHS would incur costs associated with eligibility verification and issuing a PDP identification card. Such costs cannot be determined as the actual number of persons that may apply for PDP is not known. In view of PDP's income limits, several hundred thousand persons may apply for the program. As administrative costs associated with the PAAD program which serves about 200,000 persons will cost an estimated $6.9 million in FY 1996, administrative costs associated with PDP should equal or exceed current PAAD administrative costs.

      This legislative fiscal estimate has been produced by the Office of Legislative Services due to the failure of the Executive Branch to respond to our request for a fiscal note.

This fiscal estimate has been prepared pursuant to P.L.1980, c.67.