Brief ⁽¹⁾

HB 2814 creates statutory authority for the operation of a state-funded senior pharmacy assistance program, sets out the eligibility criteria for such program, and establishes and sets out general policies to be followed in operating the program.

As amended by House Committee, the new legislation created by HB 2814 directs the Secretary of Aging to establish a senior pharmacy assistance program to provide financial assistance to eligible individuals for the purchase of prescription drugs. In order to be eligible to participate in the senior pharmacy assistance program, an individual:

• �must be 67 years of age or older;



• �have an income not in excess of $14,000 individual income and a household income of no more than $16,000;



• �must not qualify for any other local, state, or federal prescription drug program;



• �must not be covered under any private prescription reimbursement plan; and



• �must not have voluntarily canceled a local, state, or federal prescription drug program or a private prescription reimbursement plan within six months prior to applying for enrollment in the senior drug assistance program.

The age at which an individual may be eligible would decrease to 65 or older commencing with fiscal year 2003.

HB 2814 as amended requires the senior prescription drug assistance program to cover all prescription drugs covered by the Kansas Medicaid program; requires a copayment of not more than 30 percent of the cost of each prescription; and establishes an annual maximum individual benefit of $1,500. Further, the bill provides that cost reimbursement for pharmacies is to be the average wholesale price, minus 10 percent or the usual and customary cost, whichever is lower, and the pharmacy dispensing fee is set at $3.00 for each prescription.

The Secretary of Aging is given authority in the amended bill to modify the income eligibility levels, maximum benefit level, and copayment level, if it is found the appropriated funds may not meet projected expenditures for the fiscal year and to limit the benefits to maintenance drugs or establish a period of open enrollment of not less than 30 days which includes an enrollment period for those who become eligible during the year. Additionally the Secretary is authorized to receive grants, gifts, or donations; negotiate and enter into contracts; and adopt any rules and regulations necessary to implement the senior pharmacy assistance program.

The Secretary of Social and Rehabilitation Services is to be the fiscal agent for the senior pharmacy assistance program.

Appropriations for the new program are to be made from interest or earnings from the Senior Services Trust Fund.

Background

Over 16 states now have some type of state-funded program that assists eligible seniors with the cost of prescription drugs. In some instances, other low-income populations are also covered. Such programs are primarily directed toward providing assistance with the purchase of high-cost prescription drugs for those whose primary health care payer is Medicare which does not include coverage for drugs in its benefits.

There is no fiscal note available for the amended version of HB 2814.

1. *Supplemental notes are prepared by the Legislative Research Department and do not express legislative intent. The supplemental note and fiscal note for this bill may be accessed on the Internet at http://www.ink.org/public/legislative/bill_search.html