CHAPTER 154 HOUSE BILL No. 2814* An Act establishing the senior pharmacy assistance program; providing for administration
of the program by the secretary of aging. Be it enacted by the Legislature of the State of Kansas:

      Section  1. (a) Within the limits of appropriations therefor, the sec-
retary of aging shall establish a senior pharmacy assistance program in
accordance with the provisions of this section. The senior pharmacy as-
sistance program shall provide financial assistance to eligible individuals
for the purchase of prescription drugs.

      (b) The secretary of aging shall adopt rules and regulations establish-
ing eligibility for the senior pharmacy assistance program subject to the
following criteria:

      (1) An individual to be eligible for the program must be 67 years of
age or older,

      (2) unless modified as provided in section 2 and amendments thereto,
an eligible individual's income must not exceed 150% of the federal pov-
erty guidelines for a one person family unit and the individual's household
income must not exceed 150% of the federal poverty guidelines for a two
person family unit,

      (3) an eligible individual must not qualify for funding from any other
local, state or federal prescription drug program,

      (4) an eligible individual must not be covered under any private pre-
scription reimbursement plan,

      (5) an eligible individual must not have voluntarily canceled a local,
state or federal prescription drug program or a private prescription re-
imbursement plan within six months prior to application for enrollment
in the senior pharmacy assistance program,

      (6) unless modified as provided in section 2 and amendments thereto,
prescription drugs eligible for reimbursement shall be limited to main-
tenance drugs for specified disease states,

      (7) a copayment of 30% of the cost of each prescription shall be
established,

      (8) unless modified as provided in section 2 and amendments thereto,
a maximum annual drug benefit of $1,200 shall be established for each
eligible individual, and

      (9) the pharmacy cost reimbursement and dispensing fee shall be
established by the secretary of aging.

      (c) The secretary of aging shall adopt rules and regulations as nec-
essary to implement the provisions of the senior pharmacy assistance pro-
gram. Enrollment in the program shall be in accordance with applications
and procedures established by the secretary.

      (d) Appropriations for the senior pharmacy assistance program shall
be from the interest or earnings from the senior services trust fund and
shall be made in accordance with appropriation acts.

      (e) As used in this section:

      (1) ``Income'' means income from whatever source derived; and

      (2) ``federal poverty guidelines'' means the most recent poverty
guidelines as published annually in the federal register by the United
States department of health and human services.

      Sec.  2. (a) To implement the provisions of this act, the secretary of
aging is hereby authorized to negotiate and enter into contracts for the
performance of the powers, duties and functions established under this
act, receive grants, gifts or donations from the United States government,
or its agencies, or private non-governmental sources. Any moneys so re-
ceived shall be deposited in the state treasury and credited to the senior
services trust fund.

      (b) In the event that the secretary determines that the funds appro-
priated may not meet projected expenditures for the fiscal year, the sec-
retary may take one or more of the following actions:

      (1) Adjust the maximum benefit set forth in subsection (b) of section
1 and amendments thereto;

      (2) adjust the income eligibility levels set forth in subsection (b) of
section 1 and amendments thereto;

      (3) adjust the copayment level as set forth in subsection (b) of section
1 and amendments thereto; or

      (4) establish a period of open enrollment which shall be not less than
30 days and which shall include an enrollment period for those who be-
come age eligible during the year. Any such changes will be effective 30
days after notice of the same is published in the Kansas register.

      (c) The secretary of social and rehabilitation services shall serve as
fiscal agent for the senior pharmacy assistance program pursuant to agree-
ments entered into with the secretary of aging.

      (d) The provisions of this act are hereby suspended on the day upon
which payments commence under any federal law enacted on or after the
effective date of this act which provides financial assistance for the pur-
chase of prescription drugs to those individuals eligible for financial as-
sistance for the purchase of prescription drugs under this act.

 Sec.  3. This act shall take effect and be in force from and after July
1, 2001 and its publication in the statute book.

Approved May 15, 2000.
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