State puts new drug card on hold

Monday, April 26, 2004 | 10:56 a.m.

CARSON CITY -- The Guinn administration is holding off on a state program that could give 15 percent discounts on prescription drugs to all senior citizens in Nevada.

State Human Resources Director Mike Willden said that after the 2003 Legislature authorized the program, Congress and President Bush approved the new Medicare Prescription Drug Act.

"Because there is already much confusion about the new Medicare benefits, establishing a state prescription drug card would create additional confusion among consumers and would duplicate effort," Willden said.

The 2003 Legislature set aside $300,000 for the human resources department to hire a contractor to get a reduction on prescription drugs for people over 55 years old. The state Purchasing Department put out bids and five companies responded.

Catalyst Rx was chosen to negotiate with drug companies for the discounts. It suggested it could start up the program for $144,000 with no costs to senior citizens. It estimated the discount would be 15 percent off the average wholesale price and their pharmacy network would serve the whole state.

Willden said Friday Catalyst Rx would be able to get discounts by buying in bulk from manufacturers. But he told lawmakers his department does not recommend going forward with the senior prescription discount program until the "impact of the new Medicare benefit is determined."

The state already runs a program for reduced prescription drug costs for low-income seniors with about 9,000 people enrolled. It has enough money to accommodate 12,000 people.

In that program, a senior citizen who earns less than $21,500 or a couple that has an income of less than $28,600 qualifies for the policy.

The federal law established a drug discount card for all Medicare beneficiaries starting this spring and ending by 2006. The drug card will cost up to $30 per year. Low-income seniors who earn less than $12,600 will receive the cards for free and will receive a credit worth $600 to be used for the purchase of drugs.

Willden said that Catalyst Rx is also one of the companies involved in the federal Medicare drug program.

Some states are canceling their senior discount drug program with the advent of the Medicare benefit, Willden said. No such decision has been made in Nevada, he said.

Senior Rx in Nevada is supported by money from the tobacco settlement funds. The Legislature chipped in $5 million in state money in 2003 to expand the program to cover more seniors.

The $300,000 will be held in reserve by the state.