HS HCS HB 824 -- PRESCRIPTION DRUG COSTS FOR SENIORS (Abel)

Effective January 1, 2002, this substitute repeals the $200
income tax credit for senior citizens to offset prescription
drug costs and establishes the Pharmaceutical Investment Program
for Missouri seniors in the Department of Social Services.  The
substitute lists 4 categories of eligibility based on an
applicant's household income and estimated annual prescription
drug costs.  Individuals who receive Medicaid benefits are
excluded from the program.  Applicants who are eligible for
prescription drug coverage under an employer-sponsored or
retirement health insurance plan will receive coverage for
eligible costs as long as the applicant has met the program's
deductible.

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 household
income.  Enrollees are required to pay certain co-payments for
generic and name-brand drugs and to pay an annual $25 co-payment
to offset the administrative costs of the program.

Individuals must apply annually for participation in the
program.  The substitute does not require acceptance of Medicaid
benefits in lieu of participation in the program.  It 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 department is required to apply to the U. S. Department of
Health and Human Services for a Medicaid waiver amendment to
Section 1115 of the Social Security Act for a demonstration
waiver or any other Medicaid waivers which are necessary to
establish the program.

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 contains an effective date of July 1, 2002.

FISCAL NOTE:  Estimated Net Cost to General Revenue Fund of $0
in FY 2002, $22,837,003 to Unknown in FY 2003, and $37,693,669
to Unknown in FY 2004.  Unknown does not include costs for
persons above income limits with expenses greater than 10% of
their income.

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