Senior Rx compromise reached

Tuesday, May 22, 2001 | 9:53 a.m.

CARSON CITY -- The door has been opened to allow an estimated 10,000 low-income seniors to enroll in a free prescription drug program under a compromise announced Monday by Gov. Kenny Guinn and Assembly Majority Leader Barbara Buckley.

"We've taken the best of both programs," said Buckley, who had been at odds with the governor on how to improve the failing Senior RX program, which has enrolled just 300 people during six months of operation.

"This is a giant step forward for us," Guinn said.

The two had presented different solutions and have been negotiating for the past two months.

Under the compromise, seniors 62 and older with annual incomes of less than $21,000 will not have to pay a monthly premium for the insurance coverage. The state would also pay the $100 deductible. A senior would come up with a $10 co-pay for a generic drug, $25 for a specific brand.

Buckley said the program, run by a private insurer, would be streamlined, and the list of prescriptions would be changed to include many of the drugs used by seniors.

The state will pay about $6 million next year and $7 million the following year, with funds coming from the tobacco settlement.

The governor expects to enroll 3,500 seniors by the end of 2002. If certain goals are not reached, the program would convert to a state-operated plan proposed by Buckley.

"I just want our seniors to have this opportunity," Guinn said. "If this doesn't work, we will work to provide whatever it takes."

Currently, seniors earning less than $12,700 do not have to pay a premium, and those who make as much $21,500 pay part of the premium. The maximum benefit remains at $5,000 annually.

Under the current program the state paid a subsidy of up to $40 a month, based on the senior's income. There is a $10 co-pay now for each generic prescription. For a preferred brand, the co-payment is $35 or 50 percent, whichever is greater.

Guinn's program began with two policies -- one basic and one enriched. But the basic policy will be scrapped, and the one with a premium of $98 a month will be kept. Eligible seniors would pay nothing to enter.

Buckley, D-Las Vegas, said the other improvement in the program is that it is simplified, reducing the paperwork and the confusion surrounding registration.

Assemblywoman Vivian Freeman, D-Reno, a co-chairwoman with Buckley on the Health Task Force, said there were "a lot of mistakes, all of them in good faith." But this compromise "keeps faith with our seniors."

After announcement of the compromise the Assembly Health and Human Services Committee unanimously approved the settlement and included it in Senate Bill 539.