South Carolina General Assembly
116th Session, 2005-2006

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Bill 3221


Indicates Matter Stricken
Indicates New Matter


(Text matches printed bills. Document has been reformatted to meet World Wide Web specifications.)

A BILL

TO AMEND ARTICLE 5, CHAPTER 6, TITLE 44, OF THE CODE OF LAWS OF SOUTH CAROLINA, 1976, RELATING TO THE SOUTH CAROLINA RETIREES AND INDIVIDUALS POOLING TOGETHER FOR SAVINGS ACT (SCRIPTS), SO AS TO CHANGE THE NAME OF THIS ACT TO THE SOUTH CAROLINA RETIREES AND INDIVIDUALS POOLING TOGETHER FOR SAVINGS-SILVERXCARD ACT AND TO PROVIDE THAT THE SCRIPTS-SILVERXCARD PROGRAM MUST COORDINATE WITH MEDICARE PART D TO PROVIDE TO LOW INCOME SENIOR RESIDENTS ASSISTANCE WITH THE COST OF PRESCRIPTION DRUGS, TO REQUIRE THAT A PARTICIPANT BE ENROLLED IN A MEDICARE PART D DRUG PLAN, TO CLARIFY OTHER ELIGIBILITY CRITERIA, TO SPECIFY THAT AN ENROLLEE IS ENTITLED TO BENEFITS WHEN THE ENROLLEE'S ANNUAL OUT-OF-POCKET DRUG EXPENSES REACH THE POINT THAT STANDARD MEDICARE PART D BENEFITS ARE NO LONGER AVAILABLE AND THAT BENEFITS TERMINATE WHEN THE PARTICIPANT'S ANNUAL OUT-OF-POCKET EXPENSES REACH THE POINT THAT CATASTROPHIC MEDICARE PART D BENEFITS ARE AVAILABLE, AND TO PROVIDE THAT IF REVENUE IS GENERATED FOR THE PROGRAM FROM OTHER SOURCES, THIS ADDITIONAL REVENUE MUST BE USED TO FUND PROGRAM BENEFITS AND MAKE PAYMENTS, AS MAY BE REQUIRED, UNDER THE FEDERAL MEDICARE PRESCRIPTION DRUG, IMPROVEMENT AND MODERNIZATION ACT OF 2003; AND TO REPEAL CHAPTER 130, TITLE 44, RELATING TO THE SOUTH CAROLINA SENIORS' PRESCRIPTION DRUG PROGRAM ACT.

Be it enacted by the General Assembly of the State of South Carolina:

SECTION    1.    Article 5, Chapter 6, Title 44 of the 1976 Code is amended to read:

"Article 5

South Carolina Retirees and Individuals

Pooling Together for Savings-SILVERxCARD Act

Section 44-6-610.    This article may be cited as the "South Carolina Retirees and Individuals Pooling Together for Savings-SILVERxCARD Act".

Section 44-6-620.    For purposes of this article:

(1)    'Department' means the Department of Health and Human Services.

(2)    'Prescription drugs' means outpatient prescription drugs, that have been approved as safe and effective by the United States Food and Drug Administration including insulin syringes, insulin needles, and insulin. 'Prescription drugs' do not include experimental drugs and over- the-counter pharmaceutical products.

(3)    'Program' means the South Carolina Retirees and Individuals Pooling Together for Savings-SILVERxCARD (SCRIPTS-SILVERxCARD) program created pursuant to this article.

Section 44-6-630.    (A)    There is created within the Department of Health and Human Services the South Carolina Retirees and Individuals Pooling Together for Savings-SILVERxCARD (SCRIPTS-SILVERxCARD) program. The program must combine the purchasing power of all South Carolina citizens sixty-five years of age and older who enroll in the program to reduce their prescription drug costs. Where possible, without violation of federal law, the department shall combine negotiating power for the program with negotiating power for pharmaceutical pricing and rebates which may exist now or in the future. The purpose of this program is to coordinate, beginning January 1, 2006, with Medicare Part D to provide to low-income seniors in this State assistance with costs for prescription drugs.

(B)    The program must provide assistance with prescription drugs that:

(1)    have been approved by the United States Food and Drug Administration;

(2)    are included in the enrollee's selected Medicare Part D Plan formulary; and

(3)    are rebated to the department by the manufacturer at an amount equal to or greater than the rebate amount received by the department for the same drug when reimbursed through the Medicaid program.

Section 44-6-640.    (A)    This program must be administered by the Department of Health and Human Services. The department may designate, or enter into contracts with, other entities including, but not limited to, other states, other governmental purchasing pools, and nonprofit organizations to assist in the administration of this program.

(B)    By December 30, 2003, the department must submit a program implementation and administration plan for review by the State Budget and Control Board. The plan must include:

(1)    procedures for program enrollment;

(2)    requirements for program participation; and

(3)    annual program enrollment fees that must be calculated to pay all additional costs incurred by the department in the administration of the program.

(C)    Upon review of the State Budget and Control Board, the program may be implemented as soon as practicable The department shall establish an annual enrollment fee that must be used to fund the administration of this program.

(DC)    When requested by the department, other state agencies shall provide assistance or information necessary for the administration of this program.

Section 44-6-650.    (A)    A person To be eligible to participate enroll in this program a person must:

(1)    have attained the age of sixty-five years;

(2)    have resided in South Carolina at least six consecutive months before enrolling in the program; and be a resident of this State;

(3)    not be eligible for Medicaid prescription benefits be enrolled in a Medicare Part D Drug Plan;

(4)    satisfy annual income, resources, and other criteria established by the department;

(5)    pay the annual enrollment fee established by the department.

(B)    An enrollee is entitled to benefits under this program when the enrollee's annual out-of-pocket prescription drug expenses have reached the point that standard Medicare Part D benefits are no longer available and that program benefits terminate when the enrollee's annual out-of-pocket prescription drug expenses have reached the point that catastrophic Medicare Part D benefits are available.

Section 44-6-660.    (A)    The department shall maintain data to allow evaluation of the cost effectiveness of the program.

(B)    Beginning with the 2005 regular session of the General Assembly, no later than thirty days before the convening of each regular session, the department shall submit an annual report to the Governor, the chairman of the House Ways and Means Committee, and the Chairman of the Senate Finance Committee summarizing enrollment, financial information, and any other information needed to evaluate the costs and benefits of the program fiscal year 2006-2007, the department shall include in its annual report a report on the SCRIPTS-SILVERxCARD program.

Section 44-6-670.    (A)    The department may seek waivers of any federal laws, regulations, or rules necessary to implement this program The department may pursue additional revenue from any source. If the department generates additional revenue, this revenue must be used to fund program benefits and make any payment required by the federal government pursuant to the Medicare Prescription Drug, Improvement and Modernization Act of 2003.

(B)    The department may promulgate regulations necessary for the administration of this program In order to expend additional revenue in accordance with subsection (A), the department, upon securing these additional funds, may enter into contracts and modify program eligibility criteria and benefit levels.

Section 44-6-680.    The program must be funded entirely from annual enrollment fees collected from program participants."

SECTION    2.    Chapter 130, Title 44 of the 1976 Code is repealed.

SECTION    3.    This act takes effect upon approval by the Governor.

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