Assigned to HEALTH & APPROP                                                                                                         AS ENACTED

ARIZONA STATE SENATE

Forty-seventh Legislature, Second Regular Session

FINAL AMENDED

FACT SHEET FOR S.B. 1335

kidney programs; appropriations

Purpose

            An emergency measure that appropriates $50,000 in FY 2005-2006 and $300,000 in FY 2006-2007 from the state General Fund to the Department of Health Services (DHS) for its nonrenal and renal disease management programs and specifies how much each program will receive.

Background

            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 will cover a percentage of these drug costs; however, the Kidney Foundation does not have an estimate of how much it will cover. 

            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.

            In 2005-2006 the Legislature appropriated $468,000 from the state General Fund to DHS for its renal and nonrenal disease programs (programs).  S.B. 1335 appropriates an additional $50,000 in FY 2005-2006 from the state General Fund for an anticipated shortfall in the programs.  The bill also appropriates $300,000 in  FY 2006-2007 from the state General Fund for the programs. 

Provisions

1. Appropriates $50,000 in FY 2005-2006 and $100,000 in FY 2006-2007 to DHS for the Non-Renal Disease Management Program.

2. Appropriates $200,000 in FY 2006-2007 to DHS for the Renal Disease Management Program.

3. Exempts the FY 2005-2006 appropriation from lapsing until July 1, 2007.  Exempts the FY 2006-2007 appropriation from lapsing until July 1, 2008.

4. Becomes effective on signature of the Governor, if the emergency clause is enacted.

Amendments Adopted by Appropriations Committee and Health Committee

· Outlines how much of the appropriated money is for the Renal Disease Management Program and how much is for the Non-Renal Disease Management Program.

Amendments Adopted by House of Representatives

· Requires the FY 2005-2006 appropriation to lapse on July 1, 2007, and the FY 2006-2007 appropriation to lapse on July 1, 2008.

Senate Action House Action

HEALTH        2/6/06       DPA     6-0-1-0                  HEALTH        3/15/06     DP     6-1-0-2

APPROP         2/21/06     DPA     10-1-0-0                APPROP (B)  3/28/06               9-0-0-6

3^rd Read           3/8/06                    26-4-0-0                3^rd Read           6/20/06               47-10-3-0

Final Read       6/20/06                  24-5-1-0

Signed by the Governor 6/21/06

Chapter 366

Prepared by Senate Research

June 28, 2006

BKL/jas