Maryland’s State Legislative Session Ends with Drug Plan Passage

On the last day of its 90-day session, the Maryland General Assembly approved a "burst of important legislation," including a plan (HB 6) to help 100,000 seniors pay for prescription drugs, the Washington Post reports. Under the plan, passed as part of an overall budget bill (HB 150), seniors earning less than 300% of the federal poverty level, or about $35,000 for a couple, would be eligible for a state-subsidized insurance plan that would cover $1,000 in medications per year. Beneficiaries would pay a $10 monthly premium and copayments of $10 to $35 per prescription. The bill also expands the state's Medbank system, which helps seniors get free medications through drug companies, and asks federal officials to allow the sale of medications to Medicare beneficiaries at discounted prices currently available only to Medicaid beneficiaries. The state would provide an additional subsidy that would reduce drug costs for seniors earning less than 175% of the poverty level. The bill would be funded "primarily" through a penalty on three large insurers "that have done an inadequate job of providing comprehensive and affordable health care to the poor," the Post reports. Those insurers currently receive a 4% discount on the price of hospital admissions, but in the future, insurers would receive a 2% discount, allowing the state to save nearly $22 million per year. Another $6.5 million would come from the state's general fund. Del. Michael Busch (D), the bill's "key architect," said, "Every senior in the state has a chance to get coverage under this bill."

More Action
The General Assembly approved Gov. Parris Glendening's (D) budget "with few substantial trims," the Post reports. During the budget debate, some legislative leaders "complained" that Glendening "was building expensive monuments to his legacy at the expense of state health care programs, which are showing signs of financial neglect." Glendening's "priorities" for this session included spending for public schools, higher education, anti-sprawl programs and improving bus and subway service. But in the end, the governor agreed to "small cuts" in his programs in order to provide more money for health care. Among other health care actions, a new tax amnesty program will go toward reducing $30 million of a $42 million deficit in state mental health programs. The Post also reports that the Legislature did not act on a bill (HB 433) that would have allowed nursing home residents to install video cameras (LeDuc/Montgomery, Washington Post, 4/10).