Revision: March 18, 2011, midnight
HB 642-FN – AS AMENDED BY THE HOUSE
15Mar2011… 0565h
2011 SESSION
01/05
HOUSE BILL 642-FN
AN ACT requiring the departments of health and human services and administrative services to jointly issue a certain request for information.
SPONSORS: Rep. Rosenwald, Hills 22; Rep. Kurk, Hills 7; Rep. Nordgren, Graf 9
COMMITTEE: Health, Human Services and Elderly Affairs
This bill requires the commissioners of the departments of health and human services and administrative services to issue a request for information (RFI) soliciting information regarding the feasibility of unifying the public payors of health care benefits in a single pharmacy benefits manager. Under this bill, if the RFI suggests there would be savings under such system, the commissioners shall issue a request for proposal.
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Explanation: Matter added to current law appears in bold italics.
Matter removed from current law appears [in brackets and struckthrough.]
Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.
15Mar2011… 0565h
11-0675
01/05
STATE OF NEW HAMPSHIRE
In the Year of Our Lord Two Thousand Eleven
AN ACT requiring the departments of health and human services and administrative services to jointly issue a certain request for information.
Be it Enacted by the Senate and House of Representatives in General Court convened:
1 Request for Information Relative to Single Pharmacy Benefits Manager. The commissioners of the departments of health and human services and administrative services shall jointly issue a request for information (RFI) to solicit information on the feasibility and opportunities for efficiency or savings presented by unifying the public payors of health care benefits, including, but not limited, to Medicaid, state employees and retirees, and municipal employees and retirees, in a single pharmacy benefits manager. The RFI required under this section shall be issued no later than 90 days after passage of this act. The commissioners shall submit a report to the governor, speaker of the house of representatives, president of the senate, and the oversight committee on health and human services established in RSA 126-A:13 no later than 60 days following the completion of the RFI process summarizing the information received. If the RFI suggests that there would be increased efficiency and savings, the commissioners shall jointly issue a request for proposal (RFP) within 6 months of the report required under this section and the cost of the RFP shall be borne by the affected groups in proportion to their covered lives.
2 Effective Date. This act shall take effect upon its passage.
LBAO
11-0675
Revised 02/15/11
HB 642 FISCAL NOTE
AN ACT requiring the departments of health and human services and administrative services to jointly issue a certain request for information.
FISCAL IMPACT:
The Department of Administrative Services states this bill will increase state general fund expenditures by $100,000 in FY 2012. There will be no fiscal impact on county and local expenditures, or state, county, and local revenue.
METHODOLOGY:
The Department of Administrative Services states it would utilize a benefits consultant to prepare the Request for Information (RFI). The Department does not have the staff expertise to determine the pricing and administrative specifications for preparation of the RFI. The Department indicated employee benefit plans are dramatically different from other publicly funded programs such as Medicaid, the State Children’s Health Insurance Program, or health care in the correctional facilities. To develop the request for information, analysis would be necessary to identify the public sector groups, review each plan’s requirements, assess whether a single vendor could manage the plans, review regulatory issues, and survey other state experiences with similar arrangements. Assessment of possible savings and efficiencies could include identification of membership, current spending on drugs, current PBM arrangements, and the potential market strength of a combined plan. The Department estimated the cost to prepare the request for information to be $100,000 based on other consultant projects it has paid for in the past, but indicated it would not be able to cover the cost from existing appropriations.
The Department of Health and Human Services states it would perform its responsibilities under this bill utilizing existing resources.