Illinois General Assembly - Bill Status for SB0003

Creates 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.

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.

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.

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.

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