Governor’s prescription plan on hold

Monday, June 5, 2000 | 11:34 a.m.

CARSON CITY -- A state program to help low-income seniors pay for prescription drugs has been delayed and may be in jeopardy because of a lack of funds.

Gov. Kenny Guinn's much-touted program, which was supposed to kick off in October, has been delayed at least until January.

In addition, some members of a state task force have recommended the program be scrapped, the money saved and the 2001 Legislature be asked to change the law to provide meaningful relief on drug purchases.

As approved by the 1999 Legislature, up to $40 a month would be provided to seniors to help pay their escalating drug bills. The money would come from part of Nevada's tobacco settlement.

At least 800 insurance companies were contacted to present a policy that would cover prescription drugs within the money available. But only one company responded, and that firm was judged ineligible, State Human Resources Director Charlotte Crawford said.

But members of the Task Force for the Fund for a Healthy Nevada told Crawford on Friday the maximum $40 a month wouldn't buy any insurance policy.

Member Ron Mestre of Las Vegas called the program "an exercise in futility." "You're not going to get anything for $40 a month premium," he said.

Those eligible for the plan must be 62 years or older with an income of $21,500 or less. Mestre said prescription costs for many of these people range from $100 to $200 a month.

"I see a disaster coming if we don't get a hold of this program," Sen. Ray Rawson, R-Las Vegas, said. "I perceive there will be a lot of unhappiness over this because of the economics.

"We can use this to buy free aspirin and tender support for all seniors in the state," he added. "That's about all it will get." Rawson suggested the program be more focused, like providing drugs for diabetics or for those with heart conditions.

"Forty dollars will satisfy no one," he said.

Ed Fend, a representative of AARP on the task force, said there was confusion over the program. "It's not beneficial to enough people. We're better off to wait."

Outside the meeting, Fend said he would like to save the money and ask the 2001 Legislature for a different program that would help people.

"I never agreed with the program," Fend said. "We're better off not to fund it."

Crawford stressed several times she was limited to following the law, which sets the limits. In addition, she said, Guinn wants to start the program as soon as possible.

Crawford has been meeting with insurance representatives to get suggestions on how the program could be restructured to entice additional companies to bid.

She conceded it would be a "challenge" to find an insurance policy that would provide comprehensive coverage for prescriptions. But she said companies could provide multiple benefit packages with the senior citizen picking up some of the cost or paying a higher deductible or scaling down the amount of drugs allowed each month.

Crawford asked the task force to set aside a maximum 30 percent of the tobacco fund under its jurisdiction for the senior drug program. Members refused and delayed a decision until their next meeting. The 30 percent would have meant $4.6 million this year and $6 million the following year.

Rawson and others suggested there be public hearings to get additional ideas on how the program should be drafted.

Rawson questioned whether the money could go to help pay for a prescription add-on for those with Medigap policies. But Crawford said the money is targeted for low-income people who don't have insurance.

She said Medicaid estimates people in the targeted age group need $100 to $120 a month to pay for pharmaceuticals.

Insurance companies won't write a policy for $40 a month, then pay out more in bills. "The insurance business has to charge close to the cost of pharmaceuticals," she said.

Task force member Dr. John Ellerton of Las Vegas said the price of drugs was "outrageous" and "people need relief." But he added "This method will not get us where we want to go."