FOR IMMEDIATE RELEASE
November 25, 2003
Contact:  Erin K. Kelly
(717) 846-2828
ekelly@pasen.gov
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State Senate's Final Vote Sends Prescription Drug Coverage Expansion Bill To Governor

HARRISBURG – Senator Mike Waugh (R-York) today voted for a bill that would help more than 400,000 additional senior citizens in Pennsylvania become eligible for prescription drug assistance. House Bill 888 passed the Senate unanimously and now goes to the governor for his signature.

The measure would increase income eligibility limits for the state's Pharmaceutical Assistance Contract for the Elderly programs, commonly known as PACE and PACENET.

"Our seniors have needed this program expansion for some time now. Prescription drug costs continue to rise, which is especially difficult for older residents on fixed incomes," Waugh said. "So often, cost-of-living adjustments in Social Security benefits have pushed some senior citizens over the current PACE/PACENET income limits."

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.

The 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.

The bill also would increase the co-payment amounts that PACE recipients pay from $6 per prescription to $9 per prescription depending on whether the drugs are brand name or generic.

PACENET participants have a higher co-payment, which would not change. However, the legislation changes the PACENET deductible so that seniors would begin receiving PACENET benefits as soon as they spend $40 in any month, rather than having to reach the current $500 yearly deductible.

"A monthly deductible means seniors enrolled in PACENET will be eligible for benefits more quickly and be able to stretch their personal contributions throughout the year," Waugh said. "We can't expect them to put $500 out before we assist them. And even if they pay the deductible every month, the overall total is $480 or $20 less than what they pay now."

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.