LEGISLATIVE SERVICES AGENCY
OFFICE OF FISCAL AND MANAGEMENT ANALYSIS
200 W. Washington St., Suite 301
Indianapolis, IN 46204
(317) 233-0696
iga.in.gov
FISCAL IMPACT STATEMENT
LS 6625 NOTE PREPARED: Dec 15, 2020
BILL NUMBER: HB 1239 BILL AMENDED:
SUBJECT: Prescription Price.
FIRST AUTHOR: Rep. Baird BILL STATUS: As Introduced
FIRST SPONSOR:
FUNDS AFFECTED: X GENERAL IMPACT: State & Local
X DEDICATED
FEDERAL
Summary of Legislation: This bill requires a retail pharmacy, before dispensing a prescription, to inform
an insured patient of the cost of the drug or device without insurance or an applicable discount, if the cost
of the drug or device is less than the copayment cost to the patient using the insurance or an applicable
discount.
Effective Date: July 1, 2021.
Explanation of State Expenditures: Summary - A pharmacy in violation of the bill’s requirements could
be subject to disciplinary action by the Board of Pharmacy which may result in a minor increase in workload
for the Board and the Professional Licensing Agency. Any additional workload is expected to be
accomplished within existing staffing and resource levels. Additionally, this bill could cause a minor
reduction in prescription drug claims within the state employee health care plans if more plan members pay
for prescriptions outside of their plans. Plan reimbursement for other services could be reduced if fewer plan
members reach their deductibles as a result of paying for prescriptions outside of their plans. Any reduction
in General Fund or dedicated fund spending for employee benefits is expected to be minimal.
Additional Information - Board of Pharmacy: A professional board may take the following disciplinary
action against a licensed individual:
(1) Permanently revoke a practitioner's license.
(2) Suspend a practitioner's license.
(3) Censure a practitioner.
(4) Issue a letter of reprimand.
(5) Place a practitioner on probation status with certain requirements.
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 (6) Assess a fine against the practitioner.
State Employee Health Plans: Costs for the state health plans are shared between the state and state
employees covered by the plan as determined in the plans’ designs, including premiums, coinsurance,
copayments, and deductibles. An changes in premiums cost may be mitigated with adjustments to other
benefits or to employee compensation packages, or through the division of premium costs between the state
and state employees.
Explanation of State Revenues: Board of Pharmacy - The Board of Pharmacy may assess a fine on a
pharmacy that violates the requirements proposed by this bill. The maximum civil penalty that a professional
board can assess a licensed practitioner for a violation is $1,000. Health profession fines are placed in the
state General Fund, unless otherwise designated by law. If the Board suspends or revokes a pharmacist’s
license, revenue from biannual license fees deposited in the General Fund would decrease. Pharmacist license
renewal fees are currently $160 biennially. Any additional or foregone revenue as a result of this bill is likely
to be minimal.
Explanation of Local Expenditures: The bill potentially impacts local units of government that offer health
insurance coverage for employees. Changes in local health coverage costs may be mitigated with adjustments
to other benefits or to the total employee compensation packages, or through the division of costs between
the local unit and employees.
Explanation of Local Revenues:
State Agencies Affected: Professional Licensing Agency, Board of Pharmacy; State Personnel Department.
Local Agencies Affected: Local units of government that offer employee health insurance plans.
Information Sources: IC 25-1-9-9; Legislative Services Agency, Indiana Handbook of Taxes, Revenues,
and Appropriations, FY 2020.
Fiscal Analyst: Adam White, 317-234-1360.
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