Guinn rips Berkley’s criticism of drug plan

Monday, June 19, 2000 | 11:31 a.m.

CARSON CITY -- Gov. Kenny Guinn is telling members of Congress that U.S. Rep. Shelley Berkley of Nevada is spreading "false and misleading information" about his proposed prescription drug program for low-income senior citizens.

The Republican governor distributed a letter to all members of Congress today to counter a "dear colleague" letter sent by Berkley, a Democrat, to Congress members last week. Berkley's letter urged defeat of a GOP program now pending in Congress, saying that a similar state-level program -- Guinn's program -- "crashes and burns in Nevada test flight."

Guinn proposed and the 1999 Legislature approved using part of the tobacco settlement money to finance a program to provide up to $40 a month to residents 62 and older to buy prescription drugs. It was supposed to start Oct. 1 but has been delayed until January.

Some members of a health task force appointed to work out the details said $40 a month is not enough to buy prescription drug coverage and suggested the plan be delayed further to allow the 2001 Legislature to consider revamping the program.

Guinn said he remains "fully committed to the implementation of Senior Rx in Nevada." It is "patently false" to suggest, as Berkley did, that the program is being scrapped, the governor said. And it has "not been repeatedly delayed," Guinn said.

The governor said Berkley was wrong when she said that 50 percent of the tobacco settlement money was going to the program. It is 15 percent. The Democratic congresswoman was in error when she talked about the subsidy, the governor said. The state will pay up to $480 to an insurance company a year to cover the cost of the drugs. The senior citizen would have to pay the rest of the premium.

Guinn's letter was distributed with a one-sentence letter from Nevada's Republican House member, Jim Gibbons, urging his colleagues to read Guinn's rebuttal.

The state has not yet found an insurance company that will underwrite the state program. More than 800 invitations were sent out but only one replied, and that company was ineligible at that time to do business in Nevada. The state is currently revamping its proposal.

"As Nevada's governor, I am disappointed and embarrassed that a member of our congressional delegation would circulate a letter containing false and misleading information as part of a bitter partisan attack on a program which will benefit thousands of Nevada's low-income senior citizens," Guinn wrote.

Berkley spokesman Michael O'Donovan said the governor is pointing out small details. The bigger picture, O'Donovan said, is the Guinn program can't get the program off the ground. "It's not working," O'Donovan said.

Berkley, in her letter to her colleagues, said the proposed Guinn program was a disaster and branded it a forerunner of the Republican drug relief program in Congress.

"The House GOP Prescription Drug Plan hinges on the fact that insurers can be enticed into creating drug-only policies through financial incentives," said Berkley in a letter signed by four other Democratic congressmen on the House Ways and Means Committee.

"The Nevada plan has proven this theory wrong. It is failing. We urge you to oppose the GOP Prescription Drug Proposal and support comprehensive prescription drug coverage in Medicare for our nation's seniors."

In a press release, Berkley said private insurance plans have proven to be a "flop." She added, "We simply can't afford to implement a failed model on a national level: Our seniors have waited too long already."

Others signing the Berkley letter were Charles Rangel of New York, Pete Stark of California, Tom Allen of Maine and Frank Pallone of New Jersey.