Rising Costs, Budget Deficits Mean Cutbacks to Senior Drug Subsidy Programs in Several States

Prescription drug subsidy programs for the elderly are being threatened in several states as budget pressures are forcing cutbacks, the Wall Street Journal reports. In Minnesota, lawmakers are considering "cutting or eliminating" a $3.8 million drug-assistance program because the state is facing a $1.9 billion budget shortfall. "[H]igher-than-expected expenses" are forcing Minnesota officials to close the program to 2,000 disabled residents and seniors scheduled to be enrolled. Meanwhile, Oregon is "considering not funding one portion" of its drug assistance program, and other states, such as Pennsylvania, are "trying to better control costs." Pennsylvania's drug program faces a $70 million annual shortfall, prompting a commission last month to recommend that the state seek larger discounts from drug makers and pharmacies. Over the past four years, the average cost per program participant increased by almost 85%, while state lottery proceeds -- which fund the drug program -- have remained "flat" (Caffrey, Wall Street Journal, 1/9).