Kaiser Daily Health Policy Report Examines Recent Developments in State Prescription Drug Programs

The following summarizes recent prescription drug news in Alabama, Idaho, Missouri and West Virginia:

• Alabama: The state House on March 21 voted unanimously in favor of a bill that would provide certain prescription drugs for free to seniors with annual incomes up to $12,000 for individuals and $20,000 for couples. Seniors would have to be ineligible for Medicaid to receive the benefit. The program would be funded with $1.5 million from the Seniors Trust Fund, which is financed with a portion of the state's share of the national tobacco settlement. State Rep. Angelo Mancuso (D), who sponsored the bill, said, "Obviously, this won't pay for things like cough drops, but it encompasses a lot of different things like heart medicine and prescriptions for diabetes, blood pressure and cholesterol" (Huntsville Times, 3/22).
• Idaho: Beginning April 1, pharmacists and doctors in Idaho will be required to seek prior authorization from the state to prescribe Medicaid beneficiaries more than four prescriptions at a time. The plan, approved earlier this month, is an attempt to reduce the chances of drug duplications and interactions, as well as to "dramatically cut" Medicaid costs. State officials say the requirement will save $7.5 million from April 1 to July 1. Next fiscal year, officials hope to save $26.8 million. Pharmacists prescribing more than four medications to Medicaid beneficiaries will be required to call or fax in their requests, and some are "skeptical" the authorizations will be handled in a timely fashion. Pharmacists will be permitted to dispense 72-hour supplies to patients while the full prescription is being authorized (Drumheller, Spokane Spokesman-Review, 3/27).
• Missouri: Enrollment in the Missouri SenioRx Program, which provides low-income seniors with financial assistance to purchase prescription drugs, begins April 1. To qualify for coverage, individuals must have annual incomes no higher than $17,000 and couples must earn no more than $23,000 annually. Medicaid beneficiaries are not eligible for the program. The program covers 60% of seniors' generic drug costs; seniors are responsible for the remaining cost, a $25-$35 enrollment fee and deductibles ranging from $250 to $500, based on income. The open enrollment period closes May 31 (St. Louis Post-Dispatch, 3/25).
• West Virginia: West Virginia has agreed to participate in a multistate drug purchasing pool run by St. Louis-based Express Scripts to reduce medication costs in its Public Employees Insurance Agency and CHIP program. West Virginia, Louisiana, Maryland, Mississippi, Missouri, New Mexico and South Carolina last spring began negotiations to create the purchasing pool (Wallace, Charleston Daily Mail, 3/26). West Virginia is the first state to sign on with Express Scripts (AP/Charleston Gazette, 3/26). Through its participation in the pool, West Virginia expects to save $25 million over the next three years (Charleston Daily Mail, 3/26). Under the agreement, Express Scripts will process claims, create and maintain drug formularies and collect and report data, for which the company will receive a flat fee per claim. Any rebates from drug manufacturers will be returned to the state. Starting in October, West Virginia, Express Scripts and any other states that join the purchasing pool will begin negotiations with drug companies to receive further discounts (AP/Charleston Gazette, 3/26).