SR3: noting objections to certain issues regarding "Clawback" and requesting that corrective measures be taken to limit its negative financial consequences.

SR 3 – AS INTRODUCED

2006 SESSION

06-3051

09/01

SENATE RESOLUTION 3

A RESOLUTION noting objections to certain issues regarding “Clawback” and requesting that corrective measures be taken to limit its negative financial consequences.

SPONSORS: Sen. Larsen, Dist 15; Sen. Gottesman, Dist 12; Sen. Foster, Dist 13; Sen. Hassan, Dist 23; Sen. Estabrook, Dist 21; Sen. Burling, Dist 5; Sen. D'Allesandro, Dist 20; Sen. Barnes, Dist 17; Sen. Letourneau, Dist 19; Sen. Johnson, Dist 2; Sen. Roberge, Dist 9; Sen. Martel, Dist 18; Sen. Green, Dist 6; Sen. Clegg, Dist 14; Sen. Gallus, Dist 1

COMMITTEE:

ANALYSIS

This senate resolution notes objections to certain issues regarding “Clawback” and requests that corrective measures be taken to limit its negative financial consequences.

06-3051

09/01

STATE OF NEW HAMPSHIRE

In the Year of Our Lord Two Thousand Six

A RESOLUTION noting objections to certain issues regarding “Clawback” and requesting that corrective measures be taken to limit its negative financial consequences.

Whereas, the New Hampshire senate is authorizing the release of payment of Medicare Part D premiums to the Centers for Medicare and Medicaid Services of phased-down state contribution, also known as the “clawback;” and

Whereas, the allocation of such state moneys to the federal government required as clawback payment for dual eligibles under Medicare Part D causes harm in several significant ways, both to the finances of the state of New Hampshire and its low-income, frail, and elderly population; and

Whereas, by making the base year federal fiscal year 2003, the state is being penalized for the numerous cost savings initiatives New Hampshire has engaged in to reduce our Medicaid pharmacy expenditures. Clawback payments trended forward off 2003, but the Medicaid program, through a preferred drug list, a pooling initiative, reductions in pharmacy payments and other strategies, has had a rate of growth much less than the federally anticipated trend, yet no account was made for our savings efforts; and

Whereas, the federal government, by disapproving a waiver of copayments to Medicaid long-term care patients in home and community based settings, has placed an additional financial burden on poor, frail seniors, which is a cost that they did not bear in the past; and

Whereas, other dual eligible clients, including those who receive mental health services, now need to make copayments and, if a client cannot make a copayment, the pharmacist may not dispense the medication, which could lead to public safety issues and other costs associated with potential need for placement in an institutional setting; and

Whereas, although the clawback payment is based on the total cost of drugs for dual eligible seniors, there are certain classes of medications that are not covered (for example, benzodiazepines and barbiturates), resulting in Medicaid still needing to pay to cover these items in order to continue coverage; and

Whereas, many dually eligible individuals were advised to seek 90-day prescriptions to ensure coverage through Part D implementation, yet this 90-day supply will take these prescriptions well into the Part D timeframe, for which the state expects no reimbursement of state funds used to pay for these prescriptions; now, therefore, be it

Resolved by the senate:

That the New Hampshire senate requests that our objections to such issues be duly noted, and that corrective measures be taken to limit the negative financial consequences caused to the state of New Hampshire and its people through the obligations under the Medicare Prescription Drug, Improvement and Modernization Act of 2003 (Medicare Part D); and

That the senate clerk shall send copies of this resolution to the New Hampshire congressional delegation, the President of the United States, the Secretary of the United States Department of Health and Human Services, and the Administrator of the Centers for Medicare and Medicaid Services.