SS/SCS/HB 286 - This act modifies provisions relating to the federal reimbursement allowance program, the Senior Rx program, and the pharmacy provider tax.

Section 208.477 provides that if the criteria for determining Medicaid eligibility is more restrictive than those in place for the 2003 fiscal year, then the Division of Medical Services shall reduce the federal reimbursement allowance assessment in any given fiscal year and increase the cost of uninsured payments.

Beginning on or after July 1, 2003, the amount that is appropriated to fund Medicaid graduate medical education shall not be less than the amount appropriated for the 2002 fiscal year (Section 208.478).

The act extends the federal reimbursement allowance program for hospitals to September 30, 2005 (Section 208.480).

The act modifies the rebate amount for prescription drugs in the Missouri Senior Rx Program. For all transactions that occur prior to July 1, 2003, the rebate amount shall be fifteen percent of the average manufacturers' price. For all transactions that occur on or after July 1, 2003, the rebate amount shall be fifteen percent for brand name prescription drugs and eleven percent for generic prescription drugs (Section 208.565).

The Department of Social Services may adjust the pharmacy provider tax rate quarterly on a prospective basis. The Department may adjust the rate more frequently for individual providers if there is a substantial and statistically significant change in their pharmacy sales. The pharmacy provider tax imposed pursuant to Sections 338.500 to 338.550 shall be effective by July 1, 2003.

The pharmacy provider tax shall expire 90 days after:

- The aggregate dispensing fee paid to pharmacists per prescription is less than dispensing fees reimbursement amount for the 2003 fiscal year; or

- The formula is changed which results in lower reimbursement in the aggregate than provided in fiscal year 2003; or

- June 30, 2005.

Sections 338.500 to 338.550 will expire on June 30, 2005.

The act contains an emergency clause.
LORIE TOWE