Changes expected to entice growth of drug program

Friday, March 16, 2001 | 9:48 a.m.

CARSON CITY -- The Senate has unanimously approved Gov. Kenny's Guinn's plan to sweeten his senior citizens drug program, which has fewer than 200 fully enrolled participants after nearly three months.

The bill increases the subsidy given to low-income seniors who sign up, and it suggests the state have more than one policy for coverage of those older than 62 with incomes of less than $21,500.

Sen. Ray Rawson, R-Las Vegas, said this was more of a "free ride" for many elderly people who can't afford to pay the premiums now. But Senate Minority Leader Dina Titus, D-Las Vegas, said the biggest complaint from seniors is the co-payment they must make with each prescription.

Senate Bill 239, which passed unanimously and was transferred to the Assembly, provides the state will pay the full $74.76 per month premium for senior citizens who earn $12,700 or less. Rawson said these people don't have the money to purchase this insurance. At present the state pays $40 of the monthly premium.

The program began enrolling people last year and kicked off Jan. 1. But Rawson said only 194 are now covered. There are 1,900 applications being processed, and he predicted the increased subsidy would "double or triple" the number of persons who want to join.

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

After Senate passage, Guinn said another bill is being proposed, in which the co-payments will also be reduced.

The basic plan now has a $100 deductible per year per member. The maximum benefit is $5,000 a year.

The program is financed by proceeds from the state's tobacco settlement money. Rawson said there is $4.8 million left and more money is coming in. "There is plenty of money to absorb more people coming into the program."

There are an estimated 12,000 people eligible for the subsidized program.

At present, monthly subsidies range from $10 to $40 based on income. These go to reduce the $74 a month premium.

Under the bill, those who earn $19,100 to $21,500 would receive a subsidy of 25 percent for their premium; $17,000 to $19,100, 50 percent; $14,800 to $17,000, 80 percent; and $12,700 to $14,800, 90 percent.