Pennsylvania Governor Announces Plan to Expand Prescription Drug Assistance Programs for the Elderly
Pennsylvania Gov. Ed Rendell (D) on May 29 announced a $320 million five-year proposal to reform the state's prescription drug assistance programs for seniors -- called Pharmacy Assistance Contract for the Elderly, or PACE, and PACENET programs -- to cover an additional 100,000 people, the AP/Philadelphia Inquirer reports (Scolforo, AP/Philadelpia Inquirer, 5/30). The governor's proposal would boost enrollment in the programs from 221,000 people currently to 332,000 residents (Stark, Philadelphia Inquirer, 5/28). The plan would:
- Increase the income eligibility in PACE from $14,000 to $14,500 for an individual and from $17,200 to $17,700 for a couple;
- Increase the maximum income eligibility in PACENET from $17,000 to $22,500 for an individual and from $20,200 to $30,500 for a couple;
- Increase copayments under PACE from $6 to $8 per prescription;
- Require physicians to prescribe the cheapest therapeutically equivalent medications among certain classes of drugs;
- Limit the amount physicians charge for generic drugs to the maximum prices allowed in federal health programs (AP/Philadelpia Inquirer, 5/30);
- Decrease deductibles under PACENET from $500 to $480 annually payable in $40 monthly installments, as opposed to a lump sum currently required; and
- Require drug companies to provide discounts of 22% to the programs, up from the current 17% rate.
The plan "appears to have bipartisan support," according to the Philadelphia Inquirer (Philadelphia Inquirer, 5/28). PACE Director Tom Snedden estimates the plan would channel an extra $85 million a year into the program through funds from larger drug maker rebates, increased copayments and drug requirements for physicians and pharmacists. Rendell also would finance the plan through surpluses from the state lottery, which grossed $1.9 billion last year and is expected to gross $2.6 billion within two years (Snowbeck, Pittsburgh Post-Gazette, 5/30). State Rep. Pat Vance (R), sponsor of a similar bill (HB 888), said she supports expanding eligibility but added that she is concerned about the cost of such a proposal. Kate Philips, spokesperson for Rendell, said the governor "thinks it's a realistic plan" (Philadelphia Inquirer, 5/28).
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