State gears up for drug plan for low-income seniors

Friday, Sept. 1, 2000 | 10:07 a.m.

CARSON CITY -- The Guinn administration is moving forward to start a prescription drug program for low-income senior citizens, but it still doesn't have the money to pay for it.

The state Human Resources Department received five bids this week from companies that want to operate the program. Department Director Charlotte Crawford said she hopes to select the winning firm and sign a contract by Sept. 15.

But Assemblywoman Barbara Buckley, D-Las Vegas, co-chairwoman of a health care committee, said Thursday the committee won't free up the money until it has a chance to evaluate the winning bid to see if it adequately covers the elderly.

"After the administration conducts its review, we will set a hearing at the earliest opportunity," Buckley said.

She said she intends to have experts in health care and senior citizens issues examine the winning bid and provide testimony.

"We (the committee) made it loud and clear we had to see details of the plan before we would release the money. It's too important for senior citizens to get it wrong," Buckley said.

A team of five in Crawford's department started its study of the bids, and one of the firms is to be selected by next Friday.

Crawford wants seniors to start signing up during the remaining part of this year. Benefits are expected to be available in January or February.

Gov. Kenny Guinn gained approval from the 1999 Legislature to use part of the money from the national settlement with the tobacco industry to provide up to $40 a month to low-income senior citizens to buy their prescription drugs. Those who are 62 and older and have an income of less than $21,000 will be eligible.

An estimated 12,000 to 14,000 seniors are expected to qualify.

Buckley said her committee will examine such things as the premiums a senior may have to pay in addition to the subsidy, the amount of the co-payment required with the purchase of each drug and what drugs may be excluded from the insurance policy.

In addition, Buckley said the state must be cautious if the insurance company is allowed to refuse to pay for a drug if it believes the doctor is over prescribing the medicine.

Companies under consideration are PRAM/Pharmaceutical Care Network/Fidelity Security Life Insurance of Kansas City, Mo.; MatureRX Plus of Nevada of Las Vegas; INTEQ/Fidelity Security Life Insurance of Phoenix; Health Plan of Nevada/Sierra Health Services of Las Vegas and Merck-Medco/Medco Containment Life Insurance, a national company.

Buckley and the Guinn administration have been at odds in the past over the drug program. The health care committee, whose other co-chairwoman is Assemblywoman Vivian Freeman, D-Reno, has questioned whether the $40 a month will finance an effective program. Some committee members have suggested it be scrapped so that the 2001 Legislature could rewrite the law.