Minnesota Will Not Proceed with Planned Expansion of Prescription Drug Assistance Program Because of Costs

Minnesota Human Services Commissioner Michael O'Keefe announced on Dec. 10 that Minnesota's Prescription Drug Program will not expand coverage to a group of about 3,000 people, including low-income individuals with disabilities and low-income seniors, the Minneapolis Star Tribune reports. About 4,500 seniors with annual incomes at or below 120% of the federal poverty level are enrolled in the program, which was created to help seniors pay for medicines not covered under their Medicare plans. Earlier this year, state lawmakers had approved expansions of the program's eligibility limits. Under the planned expansion, seniors with annual incomes up to 135% of the federal poverty level would have been eligible in January. In addition, the program in July would have been open to "younger people" who have disabilities and annual incomes up to 120% of the poverty level. Officials had estimated that with the expanded eligibility, the program's enrollment would reach 7,750 people by June 2003. However, the approved expansion also included a provision stating that enrollment must be stopped if state officials believe the program's costs will exceed its budget. A November budget forecast said that if the program is expanded as planned, it would face a $1.2 million deficit. Thus, about 400 low-income seniors who had preregistered to join the program in January will no longer be eligible to join. Further, about 2,500 people with disabilities will not be permitted to enroll. O'Keefe said, "Obviously, I wish we didn't have to do this. ... I'm sure this will be an issue before the Legislature in the coming session." Mary Kennedy, assistant health services commissioner, said the department is unlikely to ask for more funds from the state Legislature when the body assembles in February, adding that the planned expansion "probably will not occur soon." She added, "Given the state's severe budget problems, additional funding for much of anything is pretty difficult to envision right now" (Wolfe, Minneapolis Star Tribune, 12/11).