Assigned to HEA & APPROP                                                                                                              FOR COMMITTEE

 


 

ARIZONA STATE SENATE

Phoenix, Arizona

 

FACT SHEET FOR S.B. 1144

 

tobacco tax allocation; organ transplants

 

Purpose

 

Restores the annual allocation of medically needy account monies to the Department of Health Services (DHS) for the nonrenal organ transplant medications program to $200,000 from $70,000.

 

Background

 

            Laws 1998, Chapter 256, established the nonrenal organ transplant medications program by appropriating $200,000 annually from the medically needy account to DHS to provide medications for patients who receive nonrenal organ transplants such as heart, heart-lung, single lung, double lung and liver.  Pursuant to statute, DHS contracts with the University Medical Center (UMC) to administer this statewide program.

 

Last year, the Legislature reduced the annual allocation of monies from the medically needy account to DHS for nonrenal organ transplant medications from $200,000 to $70,000.  This reduction was based on available expenditure data from 1998 through 2000.  Information was not available at the time for FY 2000-2001.

 

According to UMC, a number of factors, including shrinking health care coverage of medications, increasing pharmaceutical costs, a growing number of eligible recipients and exhaustion of health care benefits, have resulted in an increased demand for assistance from the nonrenal organ transplant medications program.  For FY 2001-2002, the program served 27 people for a total cost of $147,100; up from 13 people at a cost of $42,050 in FY 2000-2001.

 

To address the FY 2001-2002 shortfall, the Governor issued an Executive Order in January 2002 allocating up to $80,000 from the health crisis fund to DHS for continuation of the program.  S.B. 1144 restores the annual allocation of monies from the medically needy account to DHS for this program to the original appropriation of $200,000.

 

Provisions

 

1.      Increases, from $70,000 to $200,000, the annual transfer of monies from the medically needy account to DHS for the nonrenal organ transplant medications program.

 

2.      Makes a technical change.

 

3.      Provides for a general effective date.

 

Prepared by Senate Staff

February 1, 2002