Senior Rx touted to Congress

Wednesday, April 17, 2002 | 10:56 a.m.

WASHINGTON -- Nevada's Senior Rx program, which helps low-income elderly pay for prescription drugs, today was offered as a model for Congress to build on as it considers ways to make drug costs more affordable nationwide.

"While we all face the same budget realities, it is our hope that our country can at least begin to offer low-income seniors some assistance with their prescription bills," Michael Hillerby, Gov. Kenny Guinn's deputy chief of staff, said in testimony prepared for the House Energy and Commerce subcommittee on health. "This is not a battle states can win on our own, and this population desperately needs our assistance."

Senior Rx is offered to people age 62 or older with annual income of $21,500 or less. It offers up to $5,000 a year. Plan users no longer pay premiums but pay $10 co-pays for generic drugs or $25 for name-brand medications.

After a slow start, nearly 7,500 seniors are enrolled in the state program. Nevada dedicated about $6 million of its tobacco settlement money to pay for the program this year.

In his testimony, Hillerby explained to lawmakers that the program hit a few glitches as it was launched in 1999. Insurance companies were initially reluctant to administer the plan because of its novelty and the risk that people would not choose to participate in the voluntary program, Hillerby said.

The program also was slow to draw interest, in part because people had to pay a premium when the plan was originally offered. The premium requirement was eliminated by state lawmakers last year. The program also initially offered two plan levels with different premiums, co-pays and benefits, which lawmakers simplified into one level to avoid confusion.

Since the changes, plan enrollments have jumped sharply from June 2001, when only about 250 people were signed up.