Legislation designed to consolidate numerous state-run
prescription drug benefit plans into one program is being looked at
by the House, according to state Rep. Martin Causer,
R-Turtlepoint.

On Tuesday, Causer said the 14 plans would be dovetailed into
one program dubbed “One Pennsylvania,” and be under the umbrella of
the Department of Aging, which already oversees the state’s premier
drug programs PACE and PACENET.

“By managing all of Pennsylvania’s prescription drug assistance
programs through one program, the state will help save taxpayers
money by making government more efficient,” Causer said. “While
maintaining the high quality service of these programs, the
legislation would also reduce administrative cost burdens and
increase their efficiency.”

Also supporting the legislation – House Bill 2263 – are Reps.
Kathy Rapp, R-Warren, and Dan Surra, D-Kersey.

Causer said the consolidation would allow the state to collect
more best-price rebates from pharmaceutical companies and enjoy a
consumer price index cap on increases in drug prices, among other
things.

“We want to make sure pharmacies are adequately compensated,”
Causer said, adding while meeting with a pharmacist from
Coudersport on Monday he was shown examples where through medical
assistance programs the amount being reimbursed from the state was
less than what the pharmacy had paid for the prescriptions.

“The … initiative would put the Commonwealth in a better
position to offer our residents the best prices available for a
wide range of pharmaceuticals,” Causer said. “Furthermore, it would
institute a fair compensation system for pharmacy providers.”

According to a copy of the legislation, the reimbursement to
pharmacies would include costs associated with the following:
acquisition and delivery to the pharmacy; inventory management;
storage and security; quality assurance; and for compliance with
regulatory requirements.

The legislation also notes that pharmacies will be paid within
21 days of the department’s receipt of the appropriate
substantiation of the transaction. Pharmacies will also be entitled
to interest for any payment not made within the 21-day period.

In addition to PACE and PACENET, the new program would
administer the following plans: medical assistance; Special
Pharmaceutical Benefit Program in the Department of Public Welfare;
End Stage Renal Program in the Department of Health; any other
state-run pharmacy programs recognized by the Centers for Medicaid
and Medicare Services as a state pharmaceutical assistance program;
Public School Employees’ Retirement System prescription drug plan;
State Employees’ Retirement System prescription drug plan; State
Employees’ Benefit Trust Fund prescription drug plan; any program
that uses state funds, including money from the Lottery Fund, to
provide prescription drug assistance to Medicare recipients; and
programs where the state purchases or reimburses affiliates or
designees for a pharmacy benefit, such as the Children’s Health
Insurance Program (CHIP), workers’ compensation programs and any
program administered by the Department of Corrections.

Causer said the new program wouldn’t change any benefits people
already receive.

“PACE and PACENET are some of the best programs in the country,”
Causer said. “Other states look to us for that. Anytime we can make
these programs more efficient it will only benefit our
residents.”

According to Causer, the proposed changes are not related to
those taking place at the federal level with the Medicare Part D
prescription drug benefit program, which confused many elderly
residents.

Officials said the legislation is still being reviewed by the
House Aging and Older Adult Services Committee. Causer said he
wasn’t sure when the committee might consider it.

Causer has been involved in similar legislation before. The
lawmaker created a bill which calls for the development of a new
state emergency medical services department, which would transfer
EMS responsibilities from the Department of Health and in the
future provide increased support and funding to emergency services
agencies statewide.

Rapp was not immediately available for comment regarding the new
legislation.