Guinn extols drug plan, despite its rocky start

Wednesday, Jan. 24, 2001 | 11:10 a.m.

CARSON CITY -- Gov. Kenny Guinn is again touting his program for low-income senior citizens that will allow them to buy prescription drugs at a reduced cost.

In his State of the State message Monday, Guinn said he was "proud to say" that 1,400 applications have been received. What he didn't mention is that only 23 people are actually signed up for the insurance policies after 2 1/2 months of open enrollment.

"That's abysmal results," said Assembly Majority Leader Barbara Buckley, D-Las Vegas, who is co-chairwoman of the Task Force for Health Nevada. "There are so many in desperate need of prescription drugs, and only 23 being enrolled is disappointing."

The program was authorized two years ago by the Legislature at the request of Guinn. Initially, it is being financed by money from the tobacco settlement coming to the state. But Guinn has proposed $1 million in general taxpayer revenue to expand the program and to advertise it to draw more participants.

The state plan was touted by Republicans as a possible model for a national insurance policy, but Guinn's program quickly drew congressional political fire, which contributed to its delay.

There are an estimated 12,000 people with incomes less than $21,500 who are eligible.

At a task force meeting Friday, the state's Human Resources Department reported 744 received applications in December. Of that total, 693 were found eligible.

Charlotte Crawford, director of human resources, said Monday there are many applications in the pipeline.

Of the 23 people who have signed up, three were present at Guinn's address Monday including Virginia Houston of Reno, who said that she has just received her insurance card and that her coverage starts next month.

She estimates she will save half of the $150 to $200 she averages a month on drugs. "This sounds like a good program," said Houston, who has insurance that doesn't provide for prescription drugs.

Buckley said she hopes the Legislature can "significantly improve" the program. One shortcoming is the high co-payment a person must make to get a drug, she said.

The majority leader said she was relieved the state has not pushed the program since it would not help many senior citizens.

While this is a start, Buckley said, "It's not the best we can do."

When Guinn first unveiled the program during the 1999 session, Rep. Shelley Berkley, a Democrat, was urging defeat of the GOP program in Washington. She sent a letter to her colleagues saying Guinn's program "crashes and burns in Nevada test flight."

Guinn's plan was quickly defended by Republican Rep. Jim Gibbons, who told his colleagues that Berkley was spreading false and misleading information about the plan.

Amid the political wrangling, the start of Guinn's program was delayed. It was supposed to start in October, but it didn't get off the ground until January. The state asked for insurance companies to bid the policy.

Only one company bid the first time, and it was declared ineligible. After the second bid, the state signed a $5 million contract with Fidelity Security Life Insurance Co. of Kansas City, Mo. The state will pay a subsidy of up to $40 a month for a senior citizen, based on income. Those who earn $13,000 or less will be eligible for the full amount. Others who earn $21,500 or less will receive lesser sums.

SeniorRX, as the program is called, offers two options -- basic pharmacy coverage and enhanced benefit coverage. There are several hundred drugs included. Both the basic and the enhanced plans have a $100 deductible per year per member. Each plan has a maximum benefit of $5,000 a year. The basic plan calls for a monthly rate of $74.76 from which the person's subsidy is deducted.

So an individual who gets a $40 a month maximum subsidy would pay $34.76 a month for the coverage.

There is a $10 co-payment for each prescription of a generic drug under the basic plan. For a preferred brand, the co-payment is $35 or 50 percent whichever is greater.

There is a mail-order system. The individuals, under the basic plan, make a $20 co-payment for a 90-day supply of generic drugs and $70 or 50 percent for the preferred brand.