HCS SS SS SCS SB 1371 -- MISSOURI SENIOR PRESCRIPTION DRUG PLAN

SPONSOR:  Kinder (Threlkeld)

COMMITTEE ACTION:  Voted "do pass" by the Committee on Senior
Security by a vote of 16 to 0.

This substitute establishes the Missouri Senior Prescription Drug
Plan.  The substitute closes the standard drug benefit coverage
gap created by the Medicare Prescription Drug, Improvement and
Modernization Act of 2003.

Beginning January 1, 2006, the state will pay 75% of the standard
drug benefit coverage gap for eligible seniors.  To be eligible
for the program, a person must be at least 65 and have an income
level within 150% to 200% of the federal poverty level.  Coverage
will only be provided for drugs covered in the federal
prescription drug plan formulary.

The substitute creates the Missouri Senior Prescription Drug Plan
Commission.  The commission is authorized to contract with
prescription drug plan sponsors, adjust fee payments, set and
adjust co-insurance amounts, apply for federal waivers and
grants, and promulgate rules.

The substitute also creates within the commission the Missouri
Senior Prescription Drug Plan Clearinghouse.  The clearinghouse
will assist and educate citizens in accessing prescription drug
programs and provide information on eligibility, enrollment, and
benefits of the plan.

The substitute terminates the Missouri Senior Rx Program after
the Medicare Prescription Drug, Improvement and Modernization Act
of 2003 has been fully implemented.

FISCAL NOTE:  No impact on General Revenue Fund in FY 2005, FY
2006, and FY 2007.  Estimated Income on Other State Funds of $0
in FY 2005, $7,294,423 in FY 2006, and $5,199,362 in FY 2007.

PROPONENTS:  Supporters say that when the Medicare Prescription
Drug, Improvement and Modernization Act of 2003 was passed it
created a large gap in coverage for persons enrolled in the
Missouri Senior RX Program.  The bill will fill that gap and take
this financial burden off low-income seniors.  The bill also
establishes a clearinghouse, which was not available under the
Missouri Senior RX Program, to assist participants in the
prescription drug programs.

Testifying for the bill were Senators Kinder and Jacob;
Representative Page; Office of the Lieutenant Governor;
American Association of Retired Persons; Silver-Haired
Legislature; and Missouri Coalition for Alzheimer Disease.

OPPONENTS:  There was no opposition voiced to the committee.

Bob Dominique, Legislative Analyst

Missouri House of Representatives
92nd General Assembly, 2nd Regular Session
Last Updated September 23, 2004 at 11:17 am