COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION


FISCAL NOTE

 

L.R. No.:         3027-01

Bill No.:          HB 1332

Subject:           Health Care; Health Care Professionals; Pharmacy

Type:              Original

Date:               January 18, 2008





 

Bill Summary:            This legislation establishes the Pharmacy Audit Bill of Rights Act of 2008.



FISCAL SUMMARY


ESTIMATED NET EFFECT ON GENERAL REVENUE FUND

FUND AFFECTED

FY 2009

FY 2010

FY 2011

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on

General Revenue

Fund

$0

$0

$0


ESTIMATED NET EFFECT ON OTHER STATE FUNDS

FUND AFFECTED

FY 2009

FY 2010

FY 2011

State Board of Pharmacy Fund

($25,650)

($25,650)

($25,650)

 

 

 

 

Total Estimated

Net Effect on Other

State Funds

($25,650)

($25,650)

($25,650)


Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 5 pages.




ESTIMATED NET EFFECT ON FEDERAL FUNDS

FUND AFFECTED

FY 2009

FY 2010

FY 2011

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on All

Federal Funds

$0

$0

$0



ESTIMATED NET EFFECT ON FULL TIME EQUIVALENT (FTE)

FUND AFFECTED

FY 2009

FY 2010

FY 2011

 

 

 

 

 

 

 

 

Total Estimated

Net Effect on

FTE

0

0

0


Estimated Total Net Effect on All funds expected to exceed $100,000 savings or (cost).


Estimated Net Effect on General Revenue Fund expected to exceed $100,000 (cost).


ESTIMATED NET EFFECT ON LOCAL FUNDS

FUND AFFECTED

FY 2009

FY 2010

FY 2011

Local Government

$0

$0

$0



 






FISCAL ANALYSIS


ASSUMPTION


Officials from the Department of Health and Senior Services, Office of the State Public Defender, Office of the State Auditor and the Office of the State Courts Administrator each assume the proposal would have no fiscal impact on their respective agencies.


Officials from the Office of the Attorney General assume any potential costs arising from this proposal can be absorbed with existing resources.


Officials from the Department of Mental Health (DMH) state although the DMH operates pharmacies it is not an entity that performs audits as described in this proposal. Therefore, this proposal would have no fiscal impact upon the Department.


Officials from the Department of Social Services states the language in 338.600. 2. limits to whom the bill of rights would impact. The only state agencies listed are the Department of Insurance and the Board of Pharmacy. Since MO HealthNet Division (MHD) is not a listed agency, the enumerated rights would not apply even though they do speak to the state of Missouri in a broader context.


Officials from the Department of Insurance, Financial Institutions & Professional Registration (DIFP) assume this proposal authorizes the Board of Pharmacy and other entities to conduct scheduled audits of licensed pharmacy records and establishes requirements of the auditor. DIFP assume there will be 171 cases requiring a scheduled audit each year with a cost of $150. The total cost to the Board of Pharmacy is $25,650 (171 X $150).















FISCAL IMPACT - State Government

FY 2009

(10 Mo.)

FY 2010

FY 2011

 

 

 

 

STATE BOARD OF PHARMACY FUND

 

 

 

 

 

 

 

Costs - Department of Insurance, Financial Institutions & Professional Registration

 

 

 

     Audit Costs

($25,650)

($25,650)

($25,650)

 

 

 

 

ESTIMATED NET EFFECT ON STATE BOARD OF PHARMACY FUND



($25,650)



($25,650)



($25,650)

 

 

 

 

 

 

 

 



FISCAL IMPACT - Local Government

FY 2009

(10 Mo.)

FY 2010

FY 2011

 

 

 

 

 

$0

$0

$0


FISCAL IMPACT - Small Business


No direct fiscal impact to small businesses would be expected as a result of this proposal.



FISCAL DESCRIPTION


The proposed legislation establishes the Pharmacy Audit Bill of Rights Act of 2008 and the guidelines that any entity auditing a pharmacy must follow. Any entity conducting an audit must develop an appeals process under which a pharmacy can appeal an unfavorable audit report. The bill of rights does not apply to any investigative audits involving fraud, willful misrepresentation, or abuse.


This legislation is not federally mandated, would not duplicate any other program and would not require additional capital improvements or rental space.

 



SOURCES OF INFORMATION


Office of the Attorney General

Office of the State Courts Administrator

Department of Insurance, Financial Institutions & Professional Registration

Department of Mental Health

Department of Health and Senior Services

Department of Social Services

Office of the State Auditor

Office of the State Public Defender






                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                January 18, 2008