Top Assembly Democrat calls for drug plan overhaul

Friday, March 23, 2001 | 10:48 a.m.

CARSON CITY -- A three-bill package that would overhaul Gov. Kenny Guinn's senior citizen drug program -- including converting the private insurance system into a state-run operation -- has been introduced in the Assembly.

The bills would eliminate the premiums paid by seniors with incomes of less than $21,500 and reduce the amount they must pay for each prescription.

Assembly Majority Leader Barbara Buckley, D-Las Vegas, said Thursday she commended Guinn for starting the program two years ago with money from the state's tobacco settlement, but she suggested the state could operate the system at a cheaper cost, eliminating the need for monthly premiums and providing better benefits.

Of the estimated 10,000 to 12,000 eligible participants, fewer than 400, as of the last count, actually have entered the program and started paying premiums.

With Guinn's plan, seniors receive a subsidy of $10 to $40 a month, depending on income. But the premiums are $74 for the basic plan and $98 for the enriched plan.

Buckley said an analysis showed the premiums could be scrapped, and with the bills, which were authored by an interim task force on health care, there would be just one plan.

Co-payments for prescriptions has been a major complaint. The $10 for each generic drug will remain the same under the new, but it would cost $25 for a brand name drug, compared to the present $35, or 50 percent of the cost of the drug.

The $100 annual deductible would remain the same, as would the $5,000 in maximum benefits.

Assembly bills 543, 544 and 545 were introduced by the Assembly Committee on Health and Human Services.

AB543 creates a 13-member advisory committee to oversee the program and make recommendations for its improvement.

AB544 would boost the subsidy from the present $480 to $900 per year and should cover all necessary premiums.

AB545 sets the eligibility and the benefits.

Buckley said if the bills are passed the present contracts with private companies would be left to expire. The new system is an "affordable program" for seniors 62 and older, Buckley said.