SB1335

House of Representatives

kidney programs; appropriations

Sponsors: Senator Hellon, Representative Burton Cahill

DP	Committee on Health
DP	Committee on Appropriations (B)
X	Caucus and COW
	As Engrossed and As Passed the House	This bill as introduced contains *Appropriation and Emergency clauses.*

SB1135 appropriates $50,000 to Department of Health Services (DHS) in FY 2005-2006 and $100,000 in FY 2006-2007 for the department’s nonrenal disease management program, and $200,000 in FY 2006-2007 for the department’s renal disease management program.

History

Renal disease is the failure of the kidneys to function properly. Medication and dialysis are common treatments, and transplants are necessary for the most severe stage, or End Stage Renal Disease (ESRD). Nonrenal organ failure deals with the failure of other organs such as the heart, lungs, and liver that result in necessary transplants.

Statute allows DHS to contract with organizations to provide prescription medications for kidney transplant patients. This Renal Disease Management Program is operated by the Arizona Kidney Foundation and had a total of 567 patients in 2005. ESRD is the only disease that automatically qualifies a person for Medicare. Currently, Medicare B covers 80 percent of costs for immunosuppressant medications for kidney transplant patients. Patients are required to pay the remaining 20 percent. The Renal Disease Management Program covers these costs for its patients. In addition to immunosuppressant medication, renal disease patients are prescribed additional medication. The new Medicare prescription drug benefit (Part D) will cover a percentage of these drug costs, however the amount of coverage is unknown at this time.

In 1998, the Legislature created the Non-Renal Disease Management Program. The program, operated by the University Medical Center in Tucson is designed to make post-surgical, transplant-related medication available to eligible patients and to assist in the long-term survival of nonrenal transplant recipients. Eligible patients are those who are enrolled in Medicare with no prescription medication benefits or with immunosuppressant medication coverage only, primary and/or secondary insurance enrollees with exhausted or insufficient prescription medication benefits, and individuals without insurance who are ineligible for Arizona Health Care Cost Containment System (AHCCCS) coverage. According to the Arizona Hospital and Healthcare Association (AzHHA), a total of 37 patients participated in the Non-Renal Disease Management Program in 2005. Again, the new Medicare prescription drug benefit may cover some of these costs, but it is unclear how much it will cover.

Provisions

· Appropriates $50,000 to DHS in FY 2005-2006 for the department’s nonrenal disease management program.

· Appropriates $100,000 to DHS in FY 2006-2007 for the department’s nonrenal disease management program.

· Appropriates $200,000 to DHS in FY 2006-2007 for the department’s renal disease management program.

· Contains an emergency clause.

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Forty-seventh Legislature