PRESCRIPTION DRUG DISCOUNT ACT Senate SponsorsSen. Debbie DeFrancesco Halvorson-M. Maggie Crotty-John M. Sullivan-Susan Garrett-Patrick Welch, Don Harmon, Jacqueline Y. Collins, William R. Haine, Barack Obama, Lawrence M. Walsh, George P. Shadid, Edward D. Maloney, Terry Link, Ira I. Silverstein, James F. Clayborne, Jr., Jeffrey M. Schoenberg, Donne E. Trotter, Vince Demuzio, Antonio Munoz, Martin A. Sandoval, Iris Y. Martinez, James A. DeLeo, Richard J. Winkel, Jr., Larry K. Bomke, Christine Radogno, Mattie Hunter, Rickey R. Hendon, Miguel del Valle, Kimberly A. Lightford, Carol Ronen, John J. Cullerton, Adeline Jay Geo-Karis, Louis S. Viverito, Kathleen L. Wojcik, Pamela J. Althoff, Emil Jones, Jr., James T. Meeks, Larry D. Woolard and Denny Jacobs House Sponsors(Rep. Jack D. Franks-Mary K. O'Brien-Robert F. Flider-Lovana Jones-William Delgado, Brandon W. Phelps, Gary Forby, Kevin Joyce, Michael K. Smith, Ricca Slone, Naomi D. Jakobsson, Eddie Washington, Lou Lang, William J. Grunloh, Elizabeth Coulson, Jim Watson, Bill Mitchell, Patricia R. Bellock and Robert Rita) 6/16/2003SenatePublic Act . . . . . . . . . 93-0018 New Act30 ILCS 105/5.595 newCreates the Senior Citizen Prescription Drug Discount Program Act. Provides that the Program shall be administered by the Department of Central Management Services to enable eligible senior citizens to purchase prescription drugs at discounted prices and that the Department shall (i) enroll eligible seniors into the Program, (ii) enter into rebate agreements with drug manufacturers, either itself or through an agent, and (iii) reimburse pharmacies for the cost of providing discounts using the proceeds from the manufacturer rebate agreements. Eligible seniors are persons who are Illinois residents and who are 65 years of age or older. Establishes a prescription pricing formula. Sets guidelines for the rebate agreements. Establishes application requirements for seniors and eligibility requirements for pharmacies. Requires the Department to adopt rules. Amends the State Finance Act to create the Senior Citizen Prescription Drug Discount Program Fund into which rebate payments and enrollment fees shall be deposited. Provides for an initial transfer from the General Revenue Fund into the Drug Discount Program Fund of $27,000,000 to be repaid to the General Revenue Fund out of rebate payments. Effective July 1, 2003.Senate Committee Amendment No. 1 Deletes everything after the enacting clause. Reinserts the bill as introduced but makes the following changes: (1) includes disabled persons as covered under the Program; (2) uses a preferred drug list rather than the Federal Supply Schedule; (3) requires the Department of Central Management Services to issue a request for proposals for bidders interested in administering the Program; (4) establishes the basis for entering into prescription pricing agreements between the Department and the Program administrator; (5) adds language concerning the obligations of Program administrators; and (6) makes other changes. Effective July 1, 2003.Fiscal Note (Department of Central Management Services) An initial GRF transfer of $1 million into the Senior Citizen and Disabled Persons Prescription Drug Discount Fund would be needed to pay for start-up costs, including 24 new staff, until enrollment fees are sufficient to pay for ongoing costs. Ongoing annual administrative costs are estimated to be approximately $23.4 million. Assuming one-third of eligible seniors and persons with disabilities enroll, the program would serve approximately 1,160,000 enrollees. Annual enrollment fees of $25 per enrollee would result in revenues totalling approximately $29 million per year. This amount would be sufficient to cover ongoing administrative costs. A GRF transfer of $27 million into the Senior Citizen and Disabled Persons Prescription Drug Discount Fund is required during the start-up period to facilitate program reimbursements to pharmacies. The bill anticipates sufficient revenues being received from manufacturer rebate agreements to reimburse pharmacies timely and includes a provision for automatic transfer of these start-up funds back to the GRF. However, we believe there will likely be insufficient rebate revenues to return the $28 million start-up cash to the GRF, or to compensate participating pharmacies.Senate Floor Amendment No. 3 Deletes everything after the enacting clause. Reinserts the provisions of Senate Amendment No. 1, with changes as follows. Provides that the reimbursement to pharmacies shall be subject to available funds and shall be equal to the difference between the amount paid by the eligible senior or disabled person under the program and (i) the average wholesale price minus 12% for brand name drugs, single-source generic drug products, and, for a period of 6 months, newly-released generic drug products and (ii) the average wholesale price minus 35% for generic drugs, but only if the amount paid by the eligible senior or disabled person is less than these amounts. Limits the amounts to be deposited into the Senior Citizens and Disabled Persons Prescription Drug Discount Program Fund to annual enrollment fees and other amounts to be allocated to the Department (excluding amounts to be used for compensation of pharmacies). Removes language authorizing the transfer of $27,000,000 into the Fund. Establishes specific items that must be included in the report on the program. Makes other changes. Effective July 1, 2003.Senate Floor Amendment No. 4 Provides that language prohibiting the program administrator from using funds generated from rebates, discounts, administrative fees, or other fees to promote its mail order pharmacy operation or that of an affiliate does not, however, limit the participation of an Illinois-licensed pharmacy under the Act if that pharmacy provides prescription drugs by mail order. 1/9/2003SenateFiled with Secretary by Sen. Debbie DeFrancesco Halvorson 1/9/2003SenateChief Co-Sponsor Sen. M. Maggie Crotty 1/9/2003SenateChief Co-Sponsor Sen. John M. Sullivan 1/9/2003SenateChief Co-Sponsor Sen. Susan Garrett 1/9/2003SenateChief Co-Sponsor Sen. Patrick Welch 1/9/2003SenateCo-Sponsor Sen. Don Harmon 1/9/2003SenateCo-Sponsor Sen. Jacqueline Y. Collins 1/9/2003SenateFirst Reading 1/9/2003SenateReferred to Rules 1/9/2003SenateAdded as Co-Sponsor Sen. William R. Haine 1/9/2003SenateAdded as Co-Sponsor Sen. Barack Obama 1/10/2003SenateAdded as Co-Sponsor Sen. Lawrence M. Walsh 1/13/2003SenateAdded as Co-Sponsor Sen. George P. Shadid 1/14/2003SenateAdded as Co-Sponsor Sen. Edward D. Maloney 1/15/2003SenateAdded as Co-Sponsor Sen. Terry Link 1/15/2003SenateAdded as Co-Sponsor Sen. Ira I. Silverstein 1/15/2003SenateAdded as Co-Sponsor Sen. James F. Clayborne, Jr. 1/21/2003SenateAdded as Co-Sponsor Sen. Jeffrey M. Schoenberg 1/23/2003SenateAdded as Co-Sponsor Sen. Donne E. Trotter 1/24/2003SenateAdded as Co-Sponsor Sen. Vince Demuzio 1/28/2003SenateAdded as Co-Sponsor Sen. Antonio Munoz 1/29/2003SenateAssigned to Health & Human Services 1/29/2003SenateAdded as Co-Sponsor Sen. Martin A. Sandoval 1/29/2003SenateAdded as Co-Sponsor Sen. Iris Y. Martinez 2/4/2003SenateAdded as Co-Sponsor Sen. James A. DeLeo 2/6/2003SenateAdded as Co-Sponsor Sen. Richard J. Winkel, Jr. 2/18/2003SenateSenate Committee Amendment No. 1 Filed with Secretary by Sen. Debbie DeFrancesco Halvorson 2/18/2003SenateSenate Committee Amendment No. 1 Referred to Rules 2/18/2003SenateSenate Committee Amendment No. 1 Rules Refers to Health & Human Services 2/18/2003SenateAdded as Co-Sponsor Sen. Larry K. Bomke 2/18/2003SenateAdded as Co-Sponsor Sen. Christine Radogno 2/19/2003SenateSenate Committee Amendment No. 1 Adopted 2/19/2003SenateDo Pass as Amended Health & Human Services; 011-000-000 2/19/2003SenatePlaced on Calendar Order of 2nd Reading February 26, 2003 2/19/2003SenateAdded as Co-Sponsor Sen. Mattie Hunter 2/20/2003SenateAdded as Co-Sponsor Sen. Rickey R. Hendon 2/20/2003SenateAdded as Co-Sponsor Sen. Miguel del Valle 2/20/2003SenateAdded as Co-Sponsor Sen. Kimberly A. Lightford 2/20/2003SenateAdded as Co-Sponsor Sen. Carol Ronen 2/21/2003SenateAdded as Co-Sponsor Sen. John J. Cullerton 2/26/2003SenateAdded as Co-Sponsor Sen. Adeline Jay Geo-Karis 2/26/2003SenateFiscal Note Requested by Sen. Dale A. Righter 3/5/2003SenateFiscal Note Filed Committee Amendment No. 1 3/6/2003SenateAdded as Co-Sponsor Sen. Louis S. Viverito 3/6/2003SenateAdded as Co-Sponsor Sen. Kathleen L. Wojcik 3/12/2003SenateAdded as Co-Sponsor Sen. Pamela J. Althoff 3/20/2003SenateSenate Floor Amendment No. 2 Filed with Secretary by Sen. Dale A. Righter 3/20/2003SenateSenate Floor Amendment No. 2 Referred to Rules 3/25/2003SenateSecond Reading 3/25/2003SenatePlaced on Calendar Order of 3rd Reading March 26, 2003 4/2/2003SenateSenate Floor Amendment No. 3 Filed with Secretary by Sen. Debbie DeFrancesco Halvorson 4/2/2003SenateSenate Floor Amendment No. 3 Referred to Rules 4/2/2003SenateSenate Floor Amendment No. 3 Rules Refers to Health & Human Services 4/2/2003SenateSenate Floor Amendment No. 4 Filed with Secretary by Sen. Debbie DeFrancesco Halvorson 4/2/2003SenateSenate Floor Amendment No. 4 Referred to Rules 4/2/2003SenateSenate Floor Amendment No. 3 Be Adopted Health & Human Services; 011-000-000 4/2/2003SenateRecalled to Second Reading 4/2/2003SenateSenate Floor Amendment No. 3 Adopted; Halvorson 4/2/2003SenatePlaced on Calendar Order of 3rd Reading April 3, 2003 4/3/2003SenateSenate Floor Amendment No. 4 Rules Refers to Executive 4/3/2003SenateSenate Floor Amendment No. 4 Be Adopted Executive; 011-000-000 4/4/2003SenateThird Reading Deadline Extended - Rule 2-10(e) to April 9, 2003. 4/8/2003SenateRecalled to Second Reading 4/8/2003SenateSenate Floor Amendment No. 4 Adopted; Halvorson 4/8/2003SenatePlaced on Calendar Order of 3rd Reading April 8, 2003 4/8/2003SenateThird Reading - Passed; 056-000-001 4/8/2003SenateSenate Floor Amendment No. 2 Tabled Pursuant to Rule 5-4(a) 4/9/2003HouseArrived in House 4/9/2003HouseChief House Sponsor Rep. Jack D. Franks 4/9/2003HouseFirst Reading 4/9/2003HouseReferred to Rules Committee 4/10/2003HouseAssigned to State Government Administration Committee 4/14/2003HouseAdded Alternate Chief Co-Sponsor Rep. Robert F. Flider 4/14/2003HouseAdded Alternate Chief Co-Sponsor Rep. Lovana Jones 4/15/2003HouseAdded Alternate Chief Co-Sponsor Rep. William Delgado 4/16/2003HouseAdded Alternate Chief Co-Sponsor Rep. Mary K. O'Brien 5/1/2003HouseDo Pass / Short Debate State Government Administration Committee; 011-000-000 5/1/2003HousePlaced on Calendar 2nd Reading - Short Debate 5/1/2003HouseAdded Alternate Co-Sponsor Rep. Brandon W. Phelps 5/1/2003HouseAdded Alternate Co-Sponsor Rep. Gary Forby 5/1/2003HouseAdded Alternate Co-Sponsor Rep. Kevin Joyce 5/1/2003HouseAdded Alternate Co-Sponsor Rep. Michael K. Smith 5/1/2003HouseAdded Alternate Co-Sponsor Rep. Ricca Slone 5/1/2003HouseAdded Alternate Co-Sponsor Rep. Naomi D. Jakobsson 5/1/2003HouseAdded Alternate Co-Sponsor Rep. Eddie Washington 5/1/2003HouseAdded Alternate Co-Sponsor Rep. Lou Lang 5/8/2003HouseSecond Reading - Short Debate 5/8/2003HousePlaced on Calendar Order of 3rd Reading - Short Debate 5/14/2003HouseAdded Alternate Co-Sponsor Rep. William J. Grunloh 5/14/2003HouseAdded Alternate Co-Sponsor Rep. Elizabeth Coulson 5/16/2003SenateAdded as Co-Sponsor Sen. Emil Jones, Jr. 5/16/2003HouseCommittee/3rd Reading Deadline Extended-Rule 9(b); May 23, 2003 5/20/2003HouseThird Reading - Short Debate - Passed 115-000-000 5/20/2003SenatePassed Both Houses 5/20/2003HouseAdded Alternate Co-Sponsor Rep. Jim Watson 5/20/2003HouseAdded Alternate Co-Sponsor Rep. Bill Mitchell 5/20/2003HouseAdded Alternate Co-Sponsor Rep. Patricia R. Bellock 5/20/2003HouseAdded Alternate Co-Sponsor Rep. Robert Rita 5/22/2003SenateAdded as Co-Sponsor Sen. James T. Meeks 5/22/2003SenateAdded as Co-Sponsor Sen. Larry D. Woolard 5/22/2003SenateAdded as Co-Sponsor Sen. Denny Jacobs 5/30/2003SenateSent to the Governor 6/16/2003SenateGovernor Approved 6/16/2003SenateEffective Date July 1, 2003 6/16/2003SenatePublic Act . . . . . . . . . 93-0018