COMMITTEE ON LEGISLATIVE RESEARCH

OVERSIGHT DIVISION

FISCAL NOTE

L.R. No.:         3027-06

Bill No.:          SCS for HCS for HB 1332

Subject:           Health Care; Health Care Professionals; Pharmacy

Type:              Original

Date:               May 14, 2008

Bill Summary:            This legislation establishes guidelines for an entity auditing a pharmacy.

FISCAL SUMMARY

Numbers within parentheses: ( ) indicate costs or losses.

This fiscal note contains 4 pages.

☐ 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).

FISCAL ANALYSIS

ASSUMPTION

Officials from the Department of Health and Senior Services, Office of the State Auditor, Department of Conservation, Department of Highways and Transportation, Department of Insurance, Financial Institutions & Professional Registration and the Office of the State Courts Administrator each assume the proposal would have no fiscal impact on their respective agencies.

In response to a previous version, officials from the Office of the State Public Defender and the Missouri Consolidated Health Care Plan 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 main difference in the SCS is that the provisions of this bill are not applicable to audits conducted as part of any inspection or investigation conducted by the Board of Pharmacy.

The MO HealthNet Division (MHD) reviewed FN 3027-01N and stated there would be no fiscal impact to MHD. Since MHD is not a listed agency, the enumerated rights would not apply.

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 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 substitute 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

Department of Conservation

Department of Highways and Transportation

Missouri Consolidated Health Care Plan

                                                                                                Mickey Wilson, CPA

                                                                                                Director

                                                                                                May 14, 2008