State to help pay Medicare drug premiums for low-income seniors

Wednesday, Nov. 16, 2005 | 7:05 a.m.

CARSON CITY -- About 9,000 low-income elderly Nevadans are going to get some help paying their monthly premiums in the Medicare prescription drug program.

Earlier this month the Legislative Interim Finance Committee agreed to pay up to $23 a month to Medicare for people enrolled in the state-operated Senior Rx program who are 62 years old or older and have limited incomes.

Laurie Olson, senior manager of Senior Rx, said seven of the more than 40 plans offered by private companies in the Medicare drug program offer the best protection for the low-income elderly in Nevada.

The state now provides a prescription drug plan for those individuals who have lived in Nevada for more than one year and who earn less than $23,175 a year or a couple whose joint income is less than $30,168.

Those who qualify for the state program don't have to pay a monthly premium, but have a co-payment of $10 for generic drugs or $25 for preferred drugs or any other drug deemed medically necessary. The maximum benefit allowed each year for a senior is $5,000.

However, now they will have to sign up with the prescription drug program under Medicare that starts Jan. 1. The federal program has companies that offer a variety of options with premiums up to $60 a month.

There is also a $250 deductible in the federal program that is not in the state's prescription drug program started by Gov. Kenny Guinn.

Even with the individual paying the $250 before federal coverage kicks in, Olson said, the typical person in Senior Rx will be paying less out of pocket every year for their prescription drugs.

Senior Rx also steps in to covers the gap in the Medicare plan that calls for the insured to pay all of the prescription costs between $2,250 to $5,100 a year.

Olson said those in Senior Rx can call 866-323-5953. A computer program will suggest the best insurance plan with a private company to sign up with.

Mary Liveratti, deputy director of the state Health and Human Services Department, said people are confused about the new federal program. She cautions those with other drug programs to consult the company before signing up with Medicare.

Olson said the basic plans being offered for $23 or less a month are Blue MedicareRx, First Health Premier, Humana PDP Standard S5884-087, PacifiCare Save Plan, SierraRx, Medicare RX rewards and WellCare Signature.

Olson said seniors have the choice of the plans being offered and are not restricted to the seven that received high ratings. The state will pay only $23 of the Medicare monthly premium.

Liveratti also said she is concerned that not many elderly low-income Nevadans have signed up for a federal subsidy to help them pay the new Medicare drug program. There are an estimated 140,000 residents who qualify, but so far only 21,000 have applied for the subsidy.

About 30 percent of the Senior Rx members are now enrolled in Medicare Advantage plans, and they are likely to receive prescription drug coverage at no additional costs.

Cy Ryan can be reached at (775) 687-5032 or at cy@lasvegassun.com.