State officials confident of Guinn’s plan to help seniors pay for drugs

Friday, July 28, 2000 | 10:42 a.m.

CARSON CITY -- Despite a small response, state officials are confident that Gov. Kenny Guinn's program to help low-income seniors pay for their drugs will go forward.

Representatives from only four companies showed up Thursday at a bidders conference to ask questions and get more information about the program in which the state will pay up to $480 a year per participant to an insurance company for a drug program for those 62 and older.

At least 800 insurance companies were contacted to present a policy that could cover prescription drugs. In the first go-around only one company submitted a bid, and it was disqualified because it was not licensed in Nevada.

State Human Resources Director Charlotte Crawford said she was confident this time there will be a winning bidder. And others said they expect several bids from insurance companies. They said other companies, besides the four, have expressed interest in submitting proposals, which are due Aug. 29.

Some members of a state health care task force have suggested the program be scrapped and the 2001 Legislature be given a chance to rewrite it. And the task force refused to release tobacco funds to pay for the program until it sees the bids.

One of the four attending the bidders conference was Michael Howard, vice president of MatureRx Plus, the only company to bid the first time. Howard said the company has received its certificate, is qualified and intends to submit a proposal again.

Howard said there was a low turnout because other companies might be apprehensive about entering this new program and worry if there is enough financial support to take the risk. But he said the second bids that were rewritten cleared up a lot of questions.

He said the $480 a year subsidy is "very low" and probably won't cover the requirements of seniors who purchase drugs several times a month. But Guinn envisioned the senior would pay part of the premium above the $480.

In addition, there could be co-payments required. For instance, a subscriber might have to pay a small amount for every prescription.

MatureRX Plus has set up shop in Las Vegas. Other representatives came from Ovations in Minnesota, Action RX from Arizona and Inteq of Texas.

The Guinn administration expects to enroll 10,000 seniors the first year and 12,000 the second year.