BILL ANALYSIS                                                                                                                                                                                                    Ó



          SENATE COMMITTEE ON APPROPRIATIONS
                             Senator Ricardo Lara, Chair
                            2015 - 2016  Regular  Session

          AB 339 (Gordon) - Health care coverage:  outpatient prescription  
          drugs
          
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          |Version: July 16, 2015          |Policy Vote: HEALTH 7 - 2       |
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          |Urgency: No                     |Mandate: Yes                    |
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          |Hearing Date: August 27, 2015   |Consultant: Brendan McCarthy    |
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          *********** 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  
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           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.


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