SENATE HUMAN SERVICES COMMITTEE

STATEMENT TO

SENATE, No. 234

STATE OF NEW JERSEY

DATED: FEBRUARY 15, 1996

      The Senate Human Services Committee favorably reports Senate Bill No. 234.

      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 Assembly Bill No. 493 (Vandervalk/Weinberg) which was reported from the Assembly Health Committee on February 5, 1996 and is currently pending before the Assembly Appropriations Committee.

      This bill was pre-filed 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.