ASSEMBLY, No. 2417

 

STATE OF NEW JERSEY

 

INTRODUCED OCTOBER 7, 1996

 

 

By Assemblymen ROMANO and ZECKER

 

 

An Act to amend "An Act making appropriations for the support of the State Government and the several purposes for the fiscal year ending June 30, 1997 and regulating the disbursement thereof," passed June 28, 1996 (P.L.1996, c.42).

 

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

 

           1. The following provisions in Section 1 of P.L.1996, c.42 are amended to read as follows:

 

GRANTS-IN-AID

54 DEPARTMENT OF HUMAN SERVICES

24 Special Health Services

7540 Division of Medical Assistance and Health Services --

 Grants-In-Aid Notwithstanding the provisions of any other law or regulation to the contrary, effective July 1, 1996 or at the earliest date thereafter consistent with the notice provisions of 42 CFR §447.205 where applicable, no funds appropriated in the Payments for Medical Assistance Recipients -- Prescription Drugs account and in the Pharmaceutical Assistance to the Aged and Disabled program classification shall be expended except under the following conditions: (a) reimbursement for prescription drugs shall be based on the Average Wholesale Price less a 10% discount, [(b) prescription drugs dispensed by a retail pharmacy shall be limited to a 34-day or 100 unit dose supply, whichever is greater,] (Deleted by amendment, P.L. , c. )(pending before the Legislature as this bill) (c) the current prescription drug dispensing fee structure set as a variable rate of $3.73 to $4.07 in effect on June 30, 1996 shall remain in effect through fiscal year 1997, including the current increments for patient consultation, impact allowances, and allowances for 24 hour emergency services, (d)reimbursement for non-legend drugs including protein replacement supplements, specialized infant formulas and food oils, devices or supplies shall be on the basis of the Estimated Acquisition Cost (EAC), identified in current national price compendia for other appropriate sources, and their supplements, minus the appropriate regression, plus dispensing fee, and (e) reimbursement shall continue for all providers who supply protein nutritional supplements and specialized infant formulas, subject to all applicable regulations established by the Commissioner of Human Services, and provided further, however, that the Commissioner of Human Services may, after an audit or other equivalent documentation demonstrating provider non-compliance, terminate any agreements with such provider.

 

STATE AID

54 DEPARTMENT OF HUMAN SERVICES

50 Economic Planning, Development and Security

53 Economic Assistance and Security -- State Aid

7550 Division of Family Development

Notwithstanding the provisions of any other law or regulation to the contrary, effective July 1, 1996, no funds appropriated to the Payments to Municipalities for Cost of General Assistance account shall be expended for prescription drugs except under the following conditions: (a) reimbursement for prescription drugs shall be based on the Average Wholesale Price less a 10% discount, [ (b)prescription drugs dispensed by a retail pharmacy shall be limited to a 34-day or 100 unit dose supply, whichever is greater,] (Deleted by amendment, P.L. , c. )(pending before the Legislature as this bill) (c) the current prescription drug dispensing fee structure set as a variable rate of $3.73 to $4.07 in effect on June 30, 1996 shall remain in effect through fiscal year 1997, including the current increments for patient consultation, impact allowances, and allowances for 24 hour emergency services, (d) reimbursement for non-legend drugs including protein replacement supplements, specialized infant formulas and food oils, devices or supplies shall be on the basis of the Estimated Acquisition Cost (EAC), identified in current national price compendia for other appropriate sources, and their supplements, minus the appropriate regression, plus dispensing fee, and (e) reimbursement shall continue for all providers who supply protein nutritional supplements and specialized infant formulas, subject to all applicable regulations established by the Commissioner of Human Services, and provided further, however, that the Commissioner of Human Services may, after an audit or other equivalent documentation demonstrating provider non-compliance, terminate any agreements with such provider.

 

CASINO REVENUE FUND

GRANTS-IN-AID

54 DEPARTMENT OF HUMAN SERVICES

20 Physical and Mental Health

24 Special Health Services

7540 Division of Medical Assistance and Health Services --

Grants-In-AidNotwithstanding the provisions of any other law or regulation to the contrary, effective July 1, 1996 no funds appropriated in the Pharmaceutical Assistance for the Aged and Disabled program classification shall be expended except under the following conditions: (a) reimbursement for prescription drugs shall be based on the Average Wholesale Price less a 10% discount, [(b) prescription drugs dispensed by a retail pharmacy shall be limited to a 34-day or 100 unit dose supply, whichever is greater,] (Deleted by amendment, P.L. , c. )(pending before the Legislature as this bill) (c) the current prescription drug dispensing fee structure set as a variable rate of $3.73 to $4.07 in effect on June 30, 1996 shall remain in effect through fiscal year 1997, including the current increments for patient consultation, impact allowances, and allowances for 24 hour emergency services, (d) reimbursement for non-legend drugs including protein replacement supplements, specialized infant formulas and food oils, devices or supplies shall be on the basis of the Estimated Acquisition Cost (EAC), identified in current national price compendia for other appropriate sources, and their supplements, minus the appropriate regression, plus dispensing fee, and (e) reimbursement will continue for all providers who supply protein nutritional supplements and specialized infant formulas, subject to all applicable regulations established by the Commissioner of Human Services, and provided further, however, that the Commissioner of Human Services may, after an audit or other equivalent documentation demonstrating provider non-compliance, terminate any agreements with such provider.

 

    2. This act shall take effect immediately and be retroactive to July 1, 1996. 

STATEMENT

 

    This bill removes the 34-day or 100-unit dose supply limitation on the dispensing of prescription drugs by a retail pharmacy under the Medicaid, general assistance and PAAD programs, as provided in P.L.1996, c.42 (the annual appropriations act for Fiscal Year 1997).

 

 

                             

 

Removes limitation on dispensing of prescription drugs by retail pharmacy under Medicaid, general assistance and PAAD programs.