Wisconsin Gov. Doyle Unveils Prescription Drug Program To Replace SeniorCare

Wisconsin Gov. Jim Doyle (D) on Wednesday announced a new prescription drug program that would replace SeniorCare, which provides drug coverage to about 102,000 low-income seniors in the state, the Milwaukee Journal Sentinel reports. Federal officials last month announced that SeniorCare would end and that its beneficiaries will need to enroll in a Medicare prescription drug benefit plan.

Doyle said the new program, called WisconsinCare, would provide equal or better coverage than SeniorCare and allow the state to cover more people. An estimated 120,000 residents would qualify for WisconsinCare, including some residents with disabilities who meet income requirements (Forster/Walters, Milwaukee Journal Sentinel, 5/9). Medicare beneficiaries older than age 65 who have annual incomes less than $24,504 and do not receive Medicaid would be eligible for WisconsinCare. The income threshold for Medicare beneficiaries younger than age 65 would be $16,335 annually. All SeniorCare beneficiaries with annual incomes less than $24,504 would be enrolled in the program automatically, and those with higher incomes could complete a one-page application to enroll (Bauer, AP/St. Paul Pioneer Press, 5/9).

Doyle said that more than 86,000 seniors and people with disabilities with annual incomes less than $16,000 would not pay premiums, deductibles or drug costs once they reach the so-called "doughnut hole" of the Medicare drug benefit. About 33,000 higher-income beneficiaries would receive premium assistance of $22 or $53 per month, based on their incomes, which would allow them to buy in to a Medicare drug plan that has comparable coverage to SeniorCare, Doyle said. Beneficiaries would be required to pay a $2 copayment for generic drugs and $5 for brand-name drugs.

According to Doyle, the program would generate about an additional $120 million in federal funding, and WisconsinCare would not require additional funding because there is $128 million budgeted for SeniorCare through mid-2009 (Forster/Walters, Milwaukee Journal Sentinel, 5/9). The program has been endorsed by AARP, the Coalition of Wisconsin Aging Groups and Disability Rights Wisconsin. State Assembly Speaker Mike Huebsch (R) said he expects the new program to receive legislative approval. Doyle said he expects the plan to receive federal approval because of how closely the state and federal government worked on the new plan (AP/St. Paul Pioneer Press, 5/9).

Health Care Proposals
In related news, a panel organized by the Public Policy Forum on Wednesday discussed the state's three key health care proposals. All are designed to expand and improve the efficiency of health insurance coverage, but two of the proposals -- the Wisconsin Health Care Partnership Plan and the Wisconsin Health Plan -- would overhaul the state's health care system.

The Wisconsin Health Care Partnership Plan -- developed by the state AFL-CIO, employers and other groups -- "most closely resembles a so-called single-payer system found in most developed countries," according to the Milwaukee Journal Sentinel. Under the plan, employers would pay a flat tax of about $340 per month per employee to fund the health coverage expansion. The Wisconsin Health Plan also would impose a tax on employers, but the plan would keep much of the current system.

The third plan, by Doyle, would create BadgerCare Plus to provide coverage to 98% of state residents by allowing families to purchase lower-cost health insurance through the state. The cost of insurance would be subsidized based on a sliding income scale. According to the Journal Sentinel, "The proposals have yet to win broad political support" but have "broadened the debate on health care reform" (Boulton, Milwaukee Journal Sentinel, 5/9).