Insurance firm is selected for senior drug plan

Thursday, Sept. 21, 2000 | 11:16 a.m.

CARSON CITY -- An insurance company from Kansas City, Mo., has been selected to run Gov. Kenny Guinn's senior citizen prescription drug program, which could cover up to 10,000 people with incomes of less than $21,000 a year.

Guinn announced today that Fidelity Security Life Insurance/Professional Risk and Asset Management Insurance Services (PRAM) will provide the coverage for the individuals who sign up. The company was selected from five that submitted bids last month.

As part of the contract, Pharmaceutical Care Network will provide pharmacy benefit management for the program, the governor said.

The program provides a subsidy to eligible senior citizens of up to $40 a month, depending on income. Guinn said he will announce in the next several weeks the details, such as the amount of co-payment for each drug, what drugs will be covered, senior costs for the plan and the limit on payments.

The startup of the program was delayed after a first invitation for bids drew only one plan, from a company not licensed in the state.

A health-care committee then refused to release several million dollars for the plan until it has a chance to evaluate the policy of the winning bidder. Assemblywoman Barbara Buckley, D-Las Vegas, co-chairwoman of the committee, said she has not seen the proposed insurance policy of Fidelity Security.

"We're anxious to take a look at it," she said, adding she was pleased the state received bids.

Buckley intends to hold a hearing to allow seniors and health experts to comment on the proposed insurance policy.

Guinn said PRAM was a "solid firm with a distinguished record." He said he hopes to start signing up senior citizens for the coverage in early January.

"This is an important step in the implementation of SenioRx, which will help low-income Nevada seniors afford the prescription medicine many of them cannot live without," he said.

Other companies that submitted bids were 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 Co., a national company.

State Human Resources Director Charlotte Crawford had planned to have a firm selected by Sept. 8 and the contract signed by Sept. 15. But the evaluations took longer than expected.