AMENDED IN ASSEMBLY OCTOBER 22, 2002

SENIOR ASSEMBLY FEDERAL PROPOSAL NO. 2

INTRODUCED BY ASSEMBLY MEMBER PERSON

(COAUTHOR:  ASSEMBLY MEMBER CHOATE)

(COAUTHOR:  SENATOR RAMIRO MUNOZ)

LEGISLATIVE COUNSEL'S DIGEST

AFP 2:  MEDICARE PRESCRIPTION DRUG COSTS.

UNDER EXISTING LAW, THE MEDICARE LAW DOES NOT COVER MOST OUTPATIENT PRESCRIPTION DRUGS.

THIS MEASURE WOULD REQUEST THE LEGISLATURE AND THE GOVERNOR TO MEMORIALIZE THE PRESIDENT AND CONGRESS OF THE UNITED STATES TO ENACT LEGISLATION THAT WOULD REQUIRE THAT ALL HOLDERS OF VALID MEDICARE CARDS RECEIVE A STANDARD 20 PERCENT REDUCTION, AS ADJUSTED FOR INFLATION, IN THE COST OF THEIR PHARMACEUTICAL PRESCRIPTIONS.

VOTE:  MAJORITY.

AFP 2:  RELATING TO MEDICARE PRESCRIPTION DRUG COSTS

WHEREAS, THE MEDICARE LAW DOES NOT COVER THE COST OF MOST OUTPATIENT PRESCRIPTION DRUGS; AND

WHEREAS, THE HIGH COST OF PRESCRIPTION DRUGS IS A PROHIBITIVE AND UNDUE BURDEN FOR MIDDLE AND LOW-INCOME SENIORS; AND

WHEREAS, ACCORDING TO THE PHARMACEUTICAL PATIENT ASSISTANCE PROGRAM, ""THE HEALTH CARE FINANCING ADMINISTRATION (HCFA) PREDICTS THAT DRUG COSTS WILL GROW TO AN AVERAGE RATE OF 12.6 PERCENT A YEAR THROUGH 2010.''  INCREASING THE COSTS OF PRESCRIPTION DRUGS WITHOUT INSURANCE COVERAGE IS A FAST TRACK TO POVERTY, ISOLATION, ILLNESS, AND DEATH FOR SENIORS; AND

WHEREAS, MANY PHARMACEUTICAL COMPANIES HAVE RESPONDED INDIVIDUALLY BY INTRODUCING PRESCRIPTION DRUG PATIENT ASSISTANCE PROGRAMS WITH WIDELY DIFFERING ELIGIBILITY CRITERIA, INCLUDING FINANCIAL HARDSHIP, DIAGNOSIS, PERSONAL INSURANCE COVERAGE, AND OTHER FACTORS; AND

WHEREAS, EACH COMPANY REQUIRES THE USE OF SEPARATE APPLICATION MECHANISMS, SUCH AS COMPLICATED FORMS, SPECIAL IDENTIFICATION CARDS, OR REQUIREMENTS FOR PHYSICIANS TO WAIVE OR OTHERWISE ADJUST FEES; AND

WHEREAS, ACCORDING TO THE DIRECTORY OF PRESCRIPTION DRUG PATIENT ASSISTANCE PROGRAMS 2001-02, USED BY THE PHARMACEUTICAL RESEARCH AND MANUFACTURERS OF AMERICA (PHRMA), ""EACH COMPANY DETERMINES THE ELIGIBILITY CRITERIA FOR ITS PROGRAM.  ELIGIBILITY AND APPLICATION PROCESSES VARY.  BASIC ELIGIBILITY CRITERIA ARE LISTED IN THE DIRECTORY.  IF YOU DO NOT FIND THE ANSWER TO YOUR QUESTION HERE, YOU SHOULD CONTACT THE DRUG MANUFACTURER DIRECTLY.  TELEPHONE NUMBERS ARE LISTED IN THE DIRECTORY.  FOR NUMBERS NOT LISTED HERE, CONSULT A PHYSICIAN'S DESK REFERENCE (PDR);'' AND

WHEREAS, THOSE REQUIREMENTS PRESENT BARRIERS SUCH AS CONFUSING LANGUAGE AND INSUFFICIENT INFORMATION ABOUT PROGRAMS; AND

WHEREAS, SOME PRIVATE ENTERPRISES CHARGE FEES FOR ASSISTING SENIORS IN FILLING OUT THEIR APPLICATIONS FOR PRESCRIPTION DRUG COST RELIEF, THEREBY TAKING ADVANTAGE OF THIS COMPLICATED PROCESS; NOW, THEREFORE, BE IT

RESOLVED, BY THE SENIOR ASSEMBLY AND THE SENIOR SENATE, JOINTLY, THAT THE SENIOR LEGISLATURE OF THE STATE OF CALIFORNIA AT ITS 2002 REGULAR SESSION, A MAJORITY OF THE MEMBERS VOTING THEREFOR, HEREBY PROPOSES THAT THE GOVERNOR AND STATE LEGISLATURE MEMORIALIZE THE PRESIDENT AND CONGRESS OF THE UNITED STATES TO ENACT LEGISLATION THAT WOULD REQUIRE THAT ALL HOLDERS OF VALID MEDICARE CARDS RECEIVE A STANDARD 20 PERCENT REDUCTION, TO BE ADJUSTED ON AN ANNUAL BASIS FOR INFLATION, IN THE COST OF THEIR PHARMACEUTICAL DRUG PRESCRIPTIONS; AND BE IT FURTHER

RESOLVED, THAT A COPY OF THIS MEASURE BE TRANSMITTED TO THE SPEAKER OF THE ASSEMBLY, THE PRESIDENT PRO TEMPORE OF THE SENATE, AND THE GOVERNOR OF THE STATE OF CALIFORNIA.

PU RN0214690

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