Editorial: Benefits befuddle officials

Wednesday, June 7, 2000 | 9:33 a.m.

The 1999 Legislature, in response to the skyrocketing drug costs that the elderly must pay, passed with fanfare Gov. Kenny Guinn's proposal to provide a limited reimbursement for seniors needing prescription drugs. But as the Sun's Cy Ryan reported Monday, Guinn's program, which would use millions of dollars annually from the state's 1998 settlement with tobacco companies, has yet to get off the ground. The earliest it is expected to begin is January 2001, which would be a few months behind schedule. The plan also is coming under increased opposition from state legislators, seniors and others as being so limited that it should be scrapped until the 2001 Legislature meets.

The Guinn administration believes state government should contract with insurers, and these companies in turn would offer prescription drug policies for low-income seniors. Those eligible would have to be 62 or older and an income of $21,500 or less. Under Guinn's outline, eligible seniors would pay a monthly premium to an insurer, which would then offer up to $40 a month in paid drug benefits.

So far, though, just one company responded out of 800 contacted, and even the company that did show an interest was deemed ineligible by the state Human Resources Department. And while some members of the Task Force for the Fund for a Healthy Nevada scoff at the $40 monthly benefit as not offering much, that amount does add up to $480 a year, a sum that a low-income senior never sees now. (The Nevada Human Resources Department estimates that people in this age group need, on average, between $100 and $120 a month to pay for prescription drugs.)

Despite the hurdles, Guinn shouldn't give up. Creating a prescription drug benefit for the elderly is no easy task. Don't forget that Congress has been stymied for years in finding a solution -- although much of this is due to partisan politics, rather than the issue's complexity. It is critical that Medicare recipients receive coverage for the costs of these increasingly high-priced drugs. The key, however, is getting this done right. A half-hearted, disjointed program by the state of Nevada doesn't make sense. Guinn should start over and present a new plan in January to the 2001 Legislature, a proposal that not only is feasible, but one that also will offer a meaningful prescription drug benefit for seniors.