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Pre-enrollment for prescription rebate program to begin in August Tuesday, Jul 25, 2006 Sent July 24, 2006 rmjj By Rob Moritz Arkansas News Bureau LITTLE ROCK - A new program that allows the state to negotiate rebates on some prescription drugs and then pass those rebates on as savings for elderly and low-income Arkansans is to be launched next month, lawmakers were told Monday. "This looks very promising," said Sen. Paul Bookout, D-Jonesboro, after hearing a report on the Arkansas Rx program during a meeting of the Joint Interim Committee on Health Insurance and Prescription Drugs. The Arkansas Department of Health and Human Services plans launch a special Web site for the new program Aug. 1. Advertisements are planned for newspapers and radio, and by Aug. 15 brochures detailing specifics of the rebate program will be distributed throughout the state, lawmakers were told. A preliminary enrollment into the program is expected to begin later this summer. Officials said pre-enrollment is crucial because state will begin negotiating drug prices with various drug companies based on that information. "What we're going to try to do in the course of the next four or five months is gather interest, gather names and enroll as many people preliminarily, meaning they won't have to pay at this point," said Rep. Dustin McDaniel, D-Jonesboro, sponsor of the bill that created the program in 2005. "Hopefully this time next year we'll see people who can actually go into the pharmacy, plop their Arkansas Rx program card down on the counter and get a lower cost than had they walked in without it," McDaniel. Roy Jeffus, director of Medical Services for DHHS, said the more enrollees the higher the discount on drugs. Also, based on the pre-enrollment, DHHS can determine the amount of money the program will need during the next two-year budget cycle. After Monday's meeting, Jeffus said the goal is to enroll 20,000 people and that the rebate program should officially begin between January and March of next year. Savings on drugs could range from 15 to 20 percent per drug, he said. McDaniel told committee members that the Legislature in 2005 appropriated $2 million for startup costs and that $184,000 of that has already been spent on some printing, along with the hiring of two full-time employees who will work solely on the program. DHHS spokeswoman Julie Munsell said about $400,000 has been budgeted for a public awareness campaign. Participants in the program will be required to pay a $25 annual fee and will receive special card they can use to purchase drugs at discount prices. "It's important to know this is a discount program and not an insurance program," McDaniel said. "This is a discount program similar to your Sam's Club membership card. We buy in bulk and pass on the savings to the members." Rep. Chris Thomason, D-Hope, asked how the program would be sold to potential participants. "Obviously, the bigger the pool, the bigger the discount," Thomason said, but he said people will want to know how much they will save before they sign up. Jeffus said his office would look at how 10 states with similar discount drug programs have managed to negotiate with drug manufacturers and present a report back to the committee. The Arkansas Rx program was originally slated to begin earlier this year, but lawmakers decided last fall to delay implementation because they didn't want people to get it confused with the Medicare Part D plan, which went into effect Jan. 1. ----- On the Net: www.arxarkansas.gov |
