FOR IMMEDIATE RELEASE
October 30, 2003
Contact:  Erin K. Kelly
(717) 846-2828
ekelly@pasen.gov
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Senate Passes Legislation to Expand Prescription Drug Benefits to More Seniors

HARRISBURG - The State Senate unanimously approved legislation Tuesday that would expand prescription drug benefits to an additional 125,000 senior citizens, according to Sen. Mike Waugh (R-York), who strongly supported the measure.

"Opening the PACE and PACENET programs to more seniors will provide the resources our older citizens need in order to obtain necessary medications to live healthy lives," said Waugh. "And it will ensure those already receiving the benefits will continue to do so."

The Senate amended House Bill 888 to cover approximately 25,000 more seniors than would have been covered by the House version of the bill, which increases income eligibility limits for the state's Pharmaceutical Assistance Contract for the Elderly programs, commonly known as PACE and PACENET.

The bill would raise the current income limits for PACE from $14,000 to $14,500 for single individuals and from $17,200 to $17,700 for married couples.

Income limits would also increase for PACENET, a related program for seniors with higher incomes. They would change from $17,000 to $23,500 for individuals and from $20,200 to $31,500 for couples.

Waugh noted that PACE participation reached nearly 500,000 in the late 1980s, but has fallen to roughly 220,000 this year. He said that over the years, seniors who experienced slight increases in income lost their eligibility.

Co-payment amounts that PACE recipients must pay would increase from $6 per prescription to $9 per prescription for name-brand drugs. PACENET participants have a higher co-payment, which would not change.

"Affordable prescription drug coverage is crucial for senior citizens living on a fixed income," Waugh said. "Over the last eight years, drug costs have rapidly escalated, and unfortunately, when budgeting for bills and other payments, seniors often put their medication last on their priority list."

The measure also includes several cost control provisions to improve the financial stability of the programs. Under one, the pricing discount the state receives from drug companies would increase from 17% to 22%. Another provision would guarantee the state receives more accurate billing for drugs being dispensed.

The PACE program was signed into law by Gov. Thornburgh in 1983. PACENET was added in 1996 by Gov. Ridge.

HB 888 now returns to the House for concurrence on the Senate Amendments.