Bill Text - HB572 (2018)

Extending the suspension of prior authorization requirements for a community mental health program on drugs used to treat mental illness.


Revision: March 13, 2017, 1:41 p.m.

HB 572-FN - AS INTRODUCED

 

 

2017 SESSION

17-0196

01/04

 

HOUSE BILL 572-FN

 

AN ACT extending the suspension of prior authorization requirements for a community mental health program on drugs used to treat mental illness.

 

SPONSORS: Rep. Snow, Hills. 42; Rep. Fothergill, Coos 1; Rep. Freitas, Hills. 14; Rep. Heath, Hills. 14; Rep. J. MacKay, Merr. 14; Rep. M. MacKay, Hills. 30; Rep. LeBrun, Hills. 32; Sen. Carson, Dist 14; Sen. Feltes, Dist 15; Sen. McGilvray, Dist 16

 

COMMITTEE: Health, Human Services and Elderly Affairs

 

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ANALYSIS

 

This bill extends the suspension of prior authorization requirement for a community mental health program on drugs used to treat mental illness.

 

 

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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Matter which is either (a) all new or (b) repealed and reenacted appears in regular type.

17-0196

01/04

 

STATE OF NEW HAMPSHIRE

 

In the Year of Our Lord Two Thousand Seventeen

 

AN ACT extending the suspension of prior authorization requirements for a community mental health program on drugs used to treat mental illness.

 

Be it Enacted by the Senate and House of Representatives in General Court convened:

 

1  Prior Authorization for Certain Prescription Drugs; Suspension; Repeal.  Amend 2015, 199:4, I as amended by 2016, 211:1 to read as follows:

I.  Section 3 of this act shall take effect June 30, [2017] 2018.

2  Effective Date.  This act shall take effect upon its passage.

 

LBAO

17-0196

Revised 3/13/17

 

HB 572-FN- FISCAL NOTE

AS INTRODUCED

 

AN ACT extending the suspension of prior authorization requirements for a community mental health program on drugs used to treat mental illness.

 

FISCAL IMPACT:      [ X ] State              [    ] County               [    ] Local              [    ] None

 

 

 

Estimated Increase / (Decrease)

STATE:

FY 2018

FY 2019

FY 2020

FY 2021

   Appropriation

$0

$0

$0

$0

   Revenue

$0

$0

$0

$0

   Expenditures

Indeterminable Increase

$0

$0

$0

Funding Source:

  [ X ] General            [    ] Education            [    ] Highway           [    ] Other

 

METHODOLOGY:

This bill extends the suspension of prior authorization requirements that relate to the ability of community mental health programs to prescribe medication that treats severe mental illness.  Currently, RSA 126-A:5, XIX(e) requires managed care organizations (MCO) providing prescription drug benefits to Medicaid recipients to suspend prior authorization requirements for medication prescribed at a community mental health center and used to treat severe mental illness such as schizophrenia, depression, or bipolar disorder. Absent legislative action, this provision will be repealed effective June 30, 2017. By extending the repeal date, this bill continues the suspension of prior authorization requirements until June 30, 2018. The contracted actuary retained by the Department of Health and Human Services projects that this extension will increase costs by  $4 million in FY 2018 in the form of higher capitated rates paid to the MCOs. This cost may be reduced, however, by the fact that NH receives rebates on prescription drugs as part of the federal Medicaid Drug Rebate Program.  Although the rebate amounts are indeterminable at the time of this writing, the Department anticipates that they may result in the net cost of the bill being as low as  $1,000,000 in FY18. The Department notes that this  $1,000,000 cost would be the best possible scenario. As this bill relates to the Medicaid program, any cost will be paid for with 50 percent state general funds and 50 percent federal funds, and so the general fund impact under this best-case scenario would be a cost of $500,000 in FY18.

 

AGENCIES CONTACTED:

Departments of Health and Human Services, Insurance, and Administrative Services, and New Hampshire Municipal Association and New Hampshire Association of Counties