FISCAL NOTE
Date Requested: January 15, 2015
Time Requested: 07:00 PM |
| Agency: |
Pharmacy, West Virginia Board of |
|---|
| CBD Number: |
Version: |
Bill Number: |
Resolution Number: |
| 1479 |
Introduced |
SB16 |
|
|---|
| CBD Subject: |
Health |
|---|
|
FUND(S):
8537
Sources of Revenue:
Special Fund,Other Fund Chap 30 Licensing Board
Legislation creates:
A New Program
Fiscal Note Summary
Effect this measure will have on costs and revenues of state government.
It will not have any impact on revenue. It is not yet known what costs it will have, and the below are early estimates. The Board has not been in the arena of creating or evaluating formularies of drugs or subsets of drugs such as this. Although the bill would require the board to consult with the three schools of pharmacy in this state, drug formularies are generally set by multidisciplinary pharmacy and therapeutics committees using proprietary databases of the drugs available on the market from the various manufacturers to obtain drug information and evaluate them for inclusion on a given formulary. The Board would need to determine the proper drug information system/database subscription to obtain to focus on specialty drugs and subscribe to such a service (e.g. "Facts & Comparisons"). In addition, the Board may need to pay costs for meetings, including travel expenses, and such, for meetings with representatives of the schools of pharmacy to obtain recomendations for creation and maintenance of the formularies.
Since the Bill requires the formulary to be set bi-annually, the board's meeting costs would be for a minimum of two meetings per year, but likely four or more. There would likely need to be several meetings before the initial formulary is established, however, which would increase the costs in the first year somewhat.
Fiscal Note Detail
| Effect of Proposal |
Fiscal Year |
2015
Increase/Decrease
(use"-") |
2016
Increase/Decrease
(use"-") |
Fiscal Year
(Upon Full
Implementation) |
| 1. Estmated Total Cost |
10,250 |
10,250 |
10,250 |
| Personal Services |
8,250 |
8,250 |
8,250 |
| Current Expenses |
1,000 |
1,000 |
1,000 |
| Repairs and Alterations |
0 |
0 |
0 |
| Assets |
1,000 |
1,000 |
1,000 |
| Other |
0 |
0 |
0 |
| 2. Estimated Total Revenues |
0 |
0 |
0 |
Explanation of above estimates (including long-range effect):
I assumed the Board would assign a board member and a pharmacist inspector, or two board members to this workgroup to work with representatives of the schools of pharmacy. The Board members get paid a per diem for each day worked equal to the Legislature's per diem for its Senators and Delegates. Currently, the Board's inspectors also work at per diem rates of $350.00 per full day worked. Perdiems for these meetings, then, would be $500.00 per each day in meetings, and I assume the meetings would be held across two days for each scheduled meeting, costing $1,000.00 in per diems for each two-day session. Assuming a round trip average of 120 miles each for these two representatives, and one night overnight stay, it would cost an additional $250.00 +/- for mileage, hotel, and meals expenses. Thus, the total costs for each 2-day meeting session for personal services and expenses would be $1,250.00.
Assuming four meeting sessions (8 meeting days spread across time) in the 2015 fiscal yeear to establish the initial formulary, it would cost $4,000 in per diems, and $1,000.00 in travel expenses for the meetings. Assuming also that the inspector and board member will undertake assignments to research drugs between meetings, I assume 10 additional work days dedicated to researching drugs for the formularies by the inspector, and 5 additional work days by the board member (to coordinate with the inspector, review research, and do his/her own research), at an additional per diem cost per year of $3,500.00 for the inspector, and $750.00 for the board member.
Once the formulary is established, I assume two meeting sessions (four meeting days) for each biannual updating of the formulary, and the same need for an inspector to undertake research assignments in preparation for each session so that the estimates for the 2016 fiscal year and fiscal years thereafter, to remain level.
I am unable to estimate the costs to the representatives from the schools of pharmacy who may be assigned to this workgroup to estimate their personnel, travel, or other costs. It is noted that WVU and Marshall are both state institutions which impacts public funds, while UC is private.
Finally, I assume an annual cost of $1,000.00 for a subscription to Facts & Comparisons drug database information electronic version (or other comparable service), with supplemental drug information services as add-ons to the basic database pertinent to the work of setting a specialty drug formulary.
Memorandum
These are very conservative estimates as we are not directly familiar with the amount of time and effort that would be needed to establish and maintain a drug formulary such as this. We are aware, however, that there are specialty drug formularies already established and available on the internet created by insurers and others which will provide a valuable starting point, so that we will not have to re-invent the wheel.
Person submitting Fiscal Note: David E. Potters
Email Address: david.e.potters@wv.gov