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1996 SESSION


SENATE JOINT RESOLUTION NO. 62
Directing the Joint Commission on Health Care to study the effects of the Department of Medical Assistance Services' pilot managed care programs on durable medical equipment companies and pharmacy services to Medicaid recipients.

Agreed to by the Senate, February 29, 1996
Agreed to by the House of Delegates, February 27, 1996

WHEREAS, the health and safety of citizens of the Commonwealth is a paramount concern of public policy; and

WHEREAS, the Medicaid program in Virginia costs the Commonwealth nearly one billion dollars per year and continues to grow in cost yearly; and

WHEREAS, for this reason, Virginia Medicaid has begun the process of examining and piloting managed care programs known as Medallion and Options, with a view towards providing needed services while containing costs; and

WHEREAS, treatment with prescription drugs has proven to be among the most important and cost-effective means of treating human ailments; and

WHEREAS, however, the pharmaceutical program has been, in recent years, one of the fastest growing costs of the Medicaid program; and

WHEREAS, the Department of Medical Assistance Services, on January 1, 1996, initiated a pilot program for the provision of services, including durable medical equipment services and pharmacy services to Medicaid recipients in the Tidewater area through managed care organizations; and

WHEREAS, significant concerns have been voiced concerning the impact of the managed care program on the quality of and access to services for patients and competition among providers; and

WHEREAS, it is important to determine the efficacy of expanding such services throughout the state; and

WHEREAS, although small companies want to participate in these programs, many of them believe they are being shut out and may face economic hard times or even bankruptcy; and

WHEREAS, small companies frequently pride themselves on delivering personal and sensitive care to their customers and some of the affected individuals fear that their patients will not receive the concerned care that their companies aver they deliver; now, therefore, be it

RESOLVED by the Senate, the House of Delegates concurring, That the Joint Commission on Health Care be directed to study the effects of the Department of Medical Assistance Services' pilot managed care programs on durable medical equipment companies and pharmacy services to Medicaid recipients. The Commission is requested to evaluate the results of the Tidewater pilot program and assess the expansion of the managed care programs to provide such managed care services to Medicaid recipients across the state.

The Joint Commission on Health Care shall provide staff support for the study. All agencies of the Commonwealth shall provide assistance to the Commission, upon request.

The Commission shall complete its work in time to submit its findings and recommendations to the Governor and the 1997 Session of the General Assembly as provided in the procedures of the Division of Legislative Automated Systems for the processing of legislative documents.