Date Requested:February 07, 2011
Time Requested:01:38 PM
Agency: Public Employees Insurance Agency (PEIA)
CBD Number: Version: Bill Number: Resolution Number:
2011R2343 Introduced HB2946
CBD Subject: REQUIRE A PRESCRIPTION FOR CERTAIN DRUGS
FUND(S)
2180
Sources of Revenue
Special Fund
Legislation creates:
Neither Program nor Fund

Fiscal Note Summary

Effect this measure will have on costs and revenues of state government.

    The purpose of this bill is to add language to West Virginia Code ยง60A-10-7 requiring the issuance of a lawful prescription for dispensing drug products containing as an active ingredient ephedrine, pseudoephedrine, phenylpropanolamine and other chemical precursors of methamphetamine
    .
    The Public Employees Insurance Agency (PEIA) acquired information from the WV Board of Pharmacy that shows an estimated monthly number of 30,000 pseudoephedrine sales reported for the period October 2010 through January 2011.
    
    Utilizing a 16% share of the market at the current volume of claims this equates to 57,600 units of the proposed drugs. Assuming four prescriptions per office visit this would be 14,400 office visits that would be incurred. A doctors office visit is averaging approximately $55.00. Annual cost is projected to be approximately $800,000.00 for FY-2012.
    
    A separate scenario assuming the legitimate market is half of the current market and that users would switch to other over the counter products would reduce the number of office visits to 7,200. Annual cost in this scenario is projected to be approximately $400,000.00 for FY-2012.
    
    With the information available a range of $400,000.00 to $800,000.00 for FY-2012 is our best estimate of the cost of passage of this bill. Future fiscal year cost would be trended at 10%.
    
    The additional cost to cover this legislation would either have to come from the General Revenue Fund in the form of an appropriation or by increasing premium to both employees and employers.
    

Fiscal Note Detail
Over-all effect
Effect of Proposal Fiscal Year
2011
Increase/Decrease
(use"-")
2012
Increase/Decrease
(use"-")
Fiscal Year
(Upon Full
Implementation)
1. Estmated Total Cost 0 0 0
Personal Services 0 0 0
Current Expenses 0 0 0
Repairs and Alterations 0 0 0
Assets 0 0 0
Other 0 0 0
2. Estimated Total Revenues 0 0 0
3. Explanation of above estimates (including long-range effect):
    


Memorandum
Person submitting Fiscal Note:
Chip Myers
Email Address:
clifford.m.myers@wv.gov