HB 1450 -- PHARMACEUTICAL ASSISTANCE FOR SENIOR CITIZENS

SPONSOR:  Froelker

COMMITTEE ACTION:  Voted "do pass" by the Committee on Social
Services, Medicaid and the Elderly by a vote of 14 to 1.

This bill establishes a senior citizen pharmaceutical assistance
program within the Division of Aging for individuals age 65 or
older who have an annual household income of $36,000 or less.
Eligible seniors may apply to the division for assistance after
their actual prescription expenditures exceed $500 for the
year.  Within the amount appropriated for this program, the
division is to reimburse eligible seniors for 75% of the amount
of their pharmaceutical expenditures, not to exceed $1,000 per
year.  Pharmacies may submit a claim on behalf of an eligible
senior, and may add 2% to the total charged to cover their
administrative costs.  The division is to prepare appropriate
forms and is authorized to promulgate rules to implement this
program.  Persons who violate the provisions of this bill or who
permit or encourage such violations are guilty of a class C
felony if the amount involved is $750 or more, and guilty of a
class D felony if the amount involved is less than $750 but more
than $500.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of
$3,919,578 in FY 2001, $22,298,909 in FY 2002, and $32,717,411
in FY 2003.

PROPONENTS:  Supporters say that without the financial
assistance available through this bill, a significant proportion
of seniors are unable to afford the costs of prescription
medications.

Testifying for the bill were Representative Froelker; and AARP.

OPPONENTS:  There was no opposition voiced to the committee.

Debra Cheshier, Senior Legislative Analyst

HB 1450 -- Pharmaceutical Assistance for Senior Citizens

Sponsor:  Froelker

This bill establishes a senior citizen pharmaceutical assistance
program within the Division of Aging for individuals age 65 or
older who have an annual household income of $36,000 or less.
Eligible seniors may apply to the division for assistance after
their actual prescription expenditures exceed $500 for the
year.  Within the amount appropriated for this program, the
division is to reimburse eligible seniors for 75% of the amount
of their pharmaceutical expenditures, not to exceed $1,000 per
year.  Pharmacies may submit a claim on behalf of an eligible
senior, and may add 2% to the total charged to cover their
administrative costs.  The division is to prepare appropriate
forms and is authorized to promulgate rules to implement this
program.  Persons who violate the provisions of this bill or who
permit or encourage such violations are guilty of a class C
felony if the amount involved is $750 or more, and guilty of a
class D felony if the amount involved is less than $750 but more
than $500.