HCS HB 47 -- MISSOURI SENIOR Rx PROGRAM

SPONSOR:  Portwood

COMMITTEE ACTION:  Voted "do pass" by the Committee on Senior
Security by a vote of 18 to 0.

Under current law, pharmaceutical manufacturers participating in
the Missouri Senior Rx Program are required to pay a rebate of
15% on all drugs.  For drugs sold after July 1, 2003, this
substitute sets the rebate at 15% for brand name drugs and 11%
for generic drugs.  For all drugs sold prior to July 1, 2003, the
rebate is 15%.

The substitute contains an emergency clause.

FISCAL NOTE:  Estimated Net Savings to Senior Rx Fund of
$5,200,000 in FY 2004, $6,200,000 in FY 2005, and $6,500,000 in
FY 2006.

PROPONENTS:  Supporters say that the bill is necessary to fix the
Senior Rx Program.  The bill reduces the rebate on generic drugs
from 15% to 11%.  Without this reduction, generic pharmaceutical
companies may choose to stop participating in the Senior Rx
Program.  This would make it difficult to obtain generic drugs,
increasing the cost paid by seniors for prescription medications.

Testifying for the bill were Representative Page; Senior Rx
Program; Lieutenant Governor Joe Maxwell; Silver-Haired
Legislature; Geneva Pharmaceuticals, Inc.; AARP; Teva
Pharmaceuticals, USA; and Missouri Retailers Association.

OPPONENTS:  There was no opposition voiced to the committee.

Alice Hurley, Legislative Analyst

Missouri House of Representatives
Last Updated July 25, 2003 at 10:10 am