- Perfected -

SS#2/SB 695 - This act modifies various provisions relating to medical services and eligibility.

Section 208.015 authorizes that General Relief cash payments be subject to appropriation.

Current law provides that Medicaid eligibility for the elderly and disabled be raised to 90% of the federal poverty level by July 1, 2003, and 100% of the federal poverty level by July 1, 2004. The act stipulates that the mandatory increase of Medicaid eligibility for the elderly and disabled shall be subject to appropriation.

Section 208.152 includes and clarifies prescription drug coverage. Coverage for nonprescription drugs is included when they are cost effective and prescribed by a health care professional. The drugs must be FDA-approved for safety and effectiveness.

Section 208.152 also provides that optional Medicaid services shall be subject to appropriation.

Section 208.154 clarifies current statutory language by updating references of the "Department" to "Division". New language provides that the amount of payments may be reduced on a pro rata basis.

Section 208.162 allows the continuation of medical assistance for the General Relief population despite the elimination of cash assistance.

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.

LORIE TOWE