HCS HB 824 -- PRESCRIPTION DRUGS FOR SENIORS

SPONSOR:  Barry (Abel)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Children,
Families and Health by a vote of 11 to 3.

This substitute establishes the Pharmaceutical Investment
Program for Missouri Seniors in the Department of Social
Services and lists guidelines for participation in the program.
The substitute lists 4 categories of eligibility based on
specified Missouri adjusted gross income levels and estimated
annual prescription costs for applicants.  Individuals who
receive Medicaid benefits are excluded from the program as are
individuals who are eligible for prescription drug coverage
under an employer-sponsored or retirement health insurance plan
and individuals who have income sufficient to purchase insurance
to cover prescription drug costs.

The substitute allows qualified applicants to participate in the
program by meeting a cost-sharing obligation through payment of
a monthly deductible that is based on the applicant's adjusted
gross income.  Enrollees are required to pay certain co-payments
for generic and name-brand drugs.  Enrollees are also required
to pay an annual $25 co-payment to offset the administrative
costs of the program.

Individuals must apply annually for participation in the program
and be assessed for Medicaid eligibility.  The substitute does
not require acceptance of Medicaid benefits in lieu of
participation in the program.  It also requires interagency
collaboration for education and outreach programs to inform
consumers about the program.  The Department of Social Services
must submit quarterly reports containing specified program data
to the Governor, Speaker of the House of Representatives,
President Pro Tem of the Senate, Senate Appropriations
Committee, and House Budget Committee.

The program is not an entitlement program and is the payer of
last resort.  The department is required to develop rules to
implement the provisions of the substitute.

The substitute also repeals the $200 income tax credit for
senior citizens to offset prescription drug costs.

The substitute contains an effective date of July 1, 2002.

FISCAL NOTE:  Estimated Net Effect on General Revenue Fund of $0
in FY 2002, a savings of $55,621,041 in FY 2003, and a cost of
$17,709,568 in FY 2004.  Does not include costs for persons
above income limits with expenses greater than 10% of their
income.

PROPONENTS:  Supporters say that the bill will attempt to
provide a prescription drug program that is within the fiscal
confines of the state budget and will provide reasonable
assistance to eligible and participating Missouri seniors who
purchase costly prescription medications.  The bill contains a
provision concerning outreach activities and enrollment
assistance, thus attempting to reach a greater number of
potentially eligible Missouri seniors.  This program is a
positive step in providing eligible and participating Missouri
seniors reasonable assistance when they purchase costly
prescription medications.

Testifying for the bill were Representative Abel; Governor's
Office; and AARP.

OPPONENTS:  There was no opposition voiced to the committee.

Joseph Deering, Legislative Analyst

Missouri House of Representatives
Last Updated November 26, 2001 at 11:46 am