Health Policy Report Rounds Up Prescription Drug News in Three States
The following summarizes the latest action on prescription drug legislation in Massachusetts, Montana and Pennsylvania:
- Massachusetts: About 14,000 people have signed up for what state officials say is the first program in the nation to offer drug coverage to every senior and disabled resident. The Prescription Advantage program, which took effect April 1, provides prescription drug coverage for the state's low-income individuals, people over age 65 and people under age 65 with certain disabilities. Program premiums, deductibles and copays vary based on the participant's income, with monthly premiums raging from $0 to $82. Gov. Paul Cellucci (D) has earmarked $110 million from the state's tobacco settlement to fund the program, which is expected to enroll between 90,000 and 100,000 by the end of the year (AP/Worcester Telegram and Gazette, 4/3).
- Montana: The state House on March 26 rejected a measure (HB 534) 57-43 to give seniors who do not qualify for Medicaid up to a $200 annual income tax credit to help defray prescription drug costs, the Billings Gazette reports. The measure would have cost up to $10.4 million per year, depending on how many seniors applied for the credit (McLaughlin, Billings Gazette, 3/27).
- Pennsylvania: The state Senate Aging and Youth Committee on March 28 approved a measure (SB 300) to "consolidate the myriad state-subsidized prescription drug plans under a newly created state pharmacy benefits manager" who would negotiate drug discounts with pharmaceutical companies, the Pittsburgh Post-Gazette reports. The bill, called FAIRx, was sponsored by a Democrat, but approved by a Republican-dominated committee "irritated ... with high prescription drug prices" and "stonewalling" by the pharmaceutical industry. The bill is expected to save the state an estimated $123 million, "which would be used to expand the number of senior citizens eligible for reduced drug prices under the state's Pharmaceutical Assistance Contract for the Elderly (PACE) program." The measure would also allow all state residents age 65 and older to purchase prescription drugs "at the same price the state pays for medications" through PACE. Following the unanimous vote, the committee scheduled hearings across the state starting in April to discuss the legislation (Bull, Pittsburgh Post-Gazette, 3/29).
