2003 Session

Budget Amendments - HB1400 (Committee Approved)

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Nonprofit Hospital Particip. in Drug Discount Prog.

Item 325 #8h

Item 325 #8h

First Year - FY2003 Second Year - FY2004
Health And Human Resources
Medical Assistance Services, Department of FY2003 $0 FY2004 ($750,000) GF
FY2003 $0 FY2004 ($766,070) NGF

Page 310, line 52, strike "$3,463,427,364" and insert "$3,461,911,294".
Page 327, after line 3, insert:
"UUU. The Department of Medical Assistance Services shall develop, with eligible not-for-profit hospitals whose Medicare disproportionate share adjustment percentages are greater than 11.75 percent, memoranda of understanding that enable these hospitals to qualify under the federal statute and participate in the federal 340B drug-pricing program.  The memoranda of understanding shall be established so that an eligible hospital becomes government-affiliated in accordance with federal guidelines (see Criteria For Hospital Participation in the 340B Drug-Pricing Program:  PHSA § 340(B)(a)(4)(L)(i); 42 U.S.C. § 256b(4)(L)(i)).  The Department shall report on completion of these efforts or the status of these efforts to the Governor and Chairmen of the House Appropriations and Senate Finance Committees by September 1, 2003."

(This amendment requires the Department of Medical Assistance Services to establish formal relationships with interested not-for-profit hospitals to enable them to become eligible to purchase drugs through the federal 340B Drug Pricing Program to receive discount prices, estimated to save the Medicaid program $750,000 in general funds and $766,070 in matching federal Medicaid funds in the second year. This is a recommendation of the Joint Legislative Audit and Review Commission from their special report "State Spending on Medical Supplies and Pharmaceuticals" in response to House Joint Resolution 773, 2001 General Assembly.)