SB114: Bill Text

The bill increases the tax on cigarettes by five cents per pack, directs that the revenue generated from the tax increase be deposited in the general purpose revenue appropriation for Senior Care, and increases the amounts in the appropriation schedule for the general purpose revenue appropriation for Senior Care.

Finally, the bill directs the department to negotiate with drug manufacturers to obtain supplemental rebates on prescription drugs purchased under MA, Badger Care, Senior Care, and the disease aids programs. For purposes of the bill, a rebate is supplemental if it is greater than the amount required under federal law for drugs purchased under MA. Any supplemental rebates obtained under the bill are appropriated for the purchase of prescription drugs under Senior Care.

For further information see the state fiscal estimate, which will be printed as an appendix to this bill.

The people of the state of Wisconsin, represented in senate and assembly, do enact as follows:

SB114, s. 1 Section 1. 20.435 (4) (j) of the statutes is amended to read:

SB114,3,6 20.435 (4) (j) Prescription drug assistance for elderly; manufacturer rebates. All moneys received from rebate payments by manufacturers under s. 49.688 (6) and all moneys received from supplemental rebate payments by manufacturers under s. 49.69, to be used for payment to pharmacies and pharmacists under s. 49.688 (7) for prescription drug assistance for elderly persons.

SB114, s. 2 Section 2. 49.688 (2) (a) 2. of the statutes is amended to read:

SB114,3,10 49.688 (2) (a) 2. The person is at least 65 years of age or is eligible for Medicare under 42 USC 1395c to 1395f because he or she is disabled and receiving Social Security Disability Insurance benefits under 42 USC 423.

SB114, s. 3 Section 3. 49.69 of the statutes is created to read:

SB114,3,12 49.69 Supplemental prescription drug rebates. (1) In this section:

SB114,3,13 (a) "Prescription drug" has the meaning given in s. 450.01 (20).

SB114,3,16 (b) "Supplemental rebate" means a rebate for a prescription drug that is in addition to the rebate amount paid by a manufacturer of the prescription drug and received by the state under 42 USC 1396r-8.

SB114,3,23 (2) The department, or an entity with which the department contracts, shall negotiate with manufacturers of prescription drugs to obtain supplemental rebates for prescription drugs purchased under the Medical Assistance program and under ss. 49.665, 49.68, 49.683, 49.685, and 49.688. Any supplemental rebate paid by a manufacturer for a prescription drug purchased under the Medical Assistance program or under s. 49.665, 49.68, 49.683, 49.685, or 49.688 shall be deposited in the appropriation account under s. 20.435 (4) (j).

SB114, s. 4 Section 4. 139.31 (1) (a) of the statutes is amended to read:

SB114,4,2 139.31 (1) (a) On cigarettes weighing not more than 3 pounds per thousand, 38.5 41 mills on each cigarette.

SB114, s. 5 Section 5. 139.31 (1) (b) of the statutes is amended to read:

SB114,4,5 139.31 (1) (b) On cigarettes weighing more than 3 pounds per thousand, 77 82 mills on each cigarette.

SB114, s. 6 Section 6. 139.326 of the statutes is created to read:

SB114,4,10 139.326 Revenue distribution. From the taxes collected under this subchapter, the department shall deposit in s. 20.435 (4) (bv) an amount equal to 2.5 mills on each cigarette weighing not more than 3 pounds per thousand and 5 mills on each cigarette weighing more than 3 pounds per thousand.

SB114, s. 7 Section 7. Nonstatutory provisions.

SB114,4,16 (1) Issuance of prescription drug cards. By the first day of the 3rd month beginning after publication, the department of health and family services shall begin issuing prescription drug cards under section 49.688 (4) of the statutes to persons who are under 65 years of age and are eligible for prescription drug assistance under section 49.688 (2) of the statutes, as affected by this act.

SB114,4,22 (2) Waiver. By the first day of the 4th month beginning after publication, the department of health and family services shall request that the federal secretary of health and human services extend the federal Medicaid waiver under section 49.688 (11) of the statutes to cover persons who are under 65 years of age and are eligible for prescription drug assistance under section 49.688 (2) of the statutes, as affected by this act.

SB114,5,3 (3) Manufacturer rebates. By the first day of the 4th month beginning after publication, the department of health and family services, or an entity with which the department of health and family services contracts, shall solicit rebates from manufacturers of prescription drugs as provided under section 49.688 (6) of the statutes for prescription drugs that are purchased under section 49.688 of the statutes, as affected by this act, by persons who are under 65 years of age.

SB114, s. 8 Section 8. Appropriation changes.

SB114,5,10 (1) In the schedule under section 20.005 (3) of the statutes for the appropriation to the department of health and family services under section 20.435 (4) (bv) of the statutes, as affected by the acts of 2003, the dollar amount is increased by $6,900,000 for fiscal year 2003-04 and the dollar amount is increased by $20,900,000 for fiscal year 2004-05 to fund prescription drug assistance under section 49.688 of the statutes, as affected by this act, for persons who are under 65 years of age.

SB114, s. 9 Section 9. Effective date. This act takes effect on the day after publication, except as follows:

SB114,5,14 (1) The treatment of sections 139.31 (1) (a) and (b) and 139.326 of the statutes takes effect on the first day of the 2nd month beginning after publication.

SB114,5,16 (2) The treatment of section 49.688 (2) (a) 2. of the statutes takes effect on the first day of the 4th month beginning after publication.

SB114,5,17 (End)