BILL ANALYSIS Ó SENATE COMMITTEE ON APPROPRIATIONS Senator Ricardo Lara, Chair 2015 - 2016 Regular Session AB 339 (Gordon) - Health care coverage: outpatient prescription drugs ----------------------------------------------------------------- | | | | | | ----------------------------------------------------------------- |--------------------------------+--------------------------------| | | | |Version: July 16, 2015 |Policy Vote: HEALTH 7 - 2 | | | | |--------------------------------+--------------------------------| | | | |Urgency: No |Mandate: Yes | | | | |--------------------------------+--------------------------------| | | | |Hearing Date: August 27, 2015 |Consultant: Brendan McCarthy | | | | ----------------------------------------------------------------- *********** ANALYSIS ADDENDUM - SUSPENSE FILE *********** The following information is revised to reflect amendments adopted by the committee on August 27, 2015 Bill Summary: AB 339 would make several changes to existing law regarding prescription drug coverage and cost sharing for patients. Fiscal Impact: One-time costs of about $750,000 and ongoing costs of about $400,000 per year for the Department of Insurance to adopt policies and regulations, review plan filings, and enforce the requirements of the bill (Insurance Fund). One-time costs in the low millions and ongoing costs of about $500,000 per year for the Department of Managed Health Care to adopt policies and regulations, review plan filings, and enforce the requirements of the bill (Managed Care Fund). AB 339 (Gordon) Page 1 of ? No significant impact to the Medi-Cal program is anticipated. The provisions of the bill dealing with cost sharing do not apply to Medi-Cal managed care plans. The other provisions of the bill are not expected to significantly increase costs to Medi-Cal managed care plans. Author Amendments: Make changes to the cost-sharing requirements, delete the requirement that health plans and insurers place drugs on specified formulary tiers, and make clarifying changes. Committee Amendments: Clarify that the cost-sharing requirements for prescription drugs do not apply to Medi-Cal managed care plans. -- END --