Pa. House OKs expansion of drug bill for seniors

HARRISBURG (AP) -- The state House of Representatives unanimously approved Senate changes to a bill that would expand eligibility for the state's low-cost prescription drug programs to thousands more senior citizens than would qualify under a measure previously endorsed by the House.
The Senate still must sign off on a technical change to the measure to raise income eligibility limits for the Pharmaceutical Assistance Contract for the Elderly programs before it can go to Gov. Ed Rendell. A Rendell spokeswoman said Monday the governor was optimistic he would be able to sign the bill into law before Thursday. An additional 100,000 senior citizens would become eligible for the programs, commonly known as PACE and PACENET, under changes that would take effect Jan. 1 if the bill is signed into law.
Income limits for participants in PACE, which has no deductible, would increase from $14,000 to $14,500 for individuals and from $17,200 to $17,700 for married couples.
The income limits for PACENET, a related program for seniors with higher incomes, would change from $17,000 to $23,500 for individuals and from $20,200 to $31,500 for couples. Additionally the $500 annual deductible that participants must pay to receive the benefit would be changed to $40 per month.
To help pay for the increased benefits, the PACE copayment amount would increase from $6 to $9 per prescription for name-brand drugs, but the $6 copay for generic drugs would remain intact. PACENET participants have a higher copayment -- $8 and $15, respectively -- which would not change.
Currently, about 224,000 seniors are enrolled in the programs at a cost of about $400 million, which is financed by state lottery revenue.
The income limits are broader than those included in an earlier House version of the bill, but they were passed without any debate.
The bill is projected to boost the cost of PACE and PACENET by more than $300 million over five years. It would be financed by the higher copayments, increased state lottery revenue largely due to the introduction of Powerball, higher rebates from brand-name drug manufacturers and lower prices required of pharmacists.
Advocates for the elderly and Tom Snedden, the executive director of PACE and PACENET, have expressed support for the bill.
The House vote came as the U.S. Senate worked toward final passage of federal legislation to add prescription-drug benefits for senior citizens under the Medicare program.