Senior RX closes in on capacity

Wednesday, March 6, 2002 | 9:25 a.m.

CARSON CITY -- Gov. Kenny Guinn's prescription drug program for low-income senior citizens will reach a crucial point later this month when it tops out at 7,500 enrollees.

Already 6,900 persons have signed up, Jane Smedes, who manages the Senior RX program in the state Human Resources Department, said Tuesday. She said she expected the number to reach 7,500 in a few weeks.

She told the Task Force for the Fund for a Healthy Nevada the state will start a waiting list after the 7,500th person enrolls. When people die, move out of the state or leave the program, the next in line will fill the vacant spots.

It was only last month that Guinn announced he was expanding the program from 6,000 to 7,500 persons because the state had negotiated a favorable new contract at lower rates.

Senior RX is financed by money from Nevada's share of a nationwide tobacco settlement. Those 62 and older with an annual income of less than $21,500 are eligible to sign up. There are no premiums, but the individual must pay $10 for a generic drug and a $25 co-pay for a brand name drug.

Guinn started the program in 1999, originally requiring seniors to pay a monthly premium. Enrollment in the first two years of the program lagged, partly because of the premium requirement. But Assembly Majority Leader Barbara Buckley, D-Las Vegas, and the governor worked out a deal that eliminated the premium.

Enrollment has shot up from last June when only about 250 seniors were signed up.

Sen. Ray Rawson, R-Las Vegas, chairman of the task force, said some skeptics believed the program would never reach its first enrollment goal of 3,500.

Assemblywoman Kathy McClain, D-Las Vegas, said some seniors have told her the program is not convenient. But Smedes and Mike Hillerby, assistant chief of staff for Guinn, told McClain they have received very few complaints.

Hillerby said the governor must not enroll more people than the state can pay for.

The tobacco companies will make their regular periodic payment next month. State officials are waiting to see if it is higher than expected, which might allow more people to be enrolled. The payment is based on the amount of cigarettes sold.

The state recently negotiated a new contract with Professional Risk and Asset Management Insurance Service of Brea, Calif., which administers Senior RX, and with Fidelity Security Life Insurance Company of Kansas City, Mo., which provides reinsurance. The state now pays $85 a month per senior compared to a $106 premium over the last two years.