Holden- Plan by state can cover gap in effort by feds

JEFFERSON CITY, Mo. -- With some legislative changes, Missouri's existing prescription drug program for the elderly can be used to a fill coverage gap in the newly passed federal benefit, the state's top two elected officials said Wednesday.

Once the federal plan takes effect in 2006, participating senior citizens will pay the first $250 of their pharmaceutical costs, with Medicare covering 75 percent of expenses up to $2,250. However, there is no coverage after that amount until a person's drug bill hits $5,100, after which Medicare pays 95 percent of drug expenses.

During a news conference at a senior citizens center, Gov. Bob Holden and Lt. Gov. Joe Maxwell, both Democrats, said that in the coming weeks they would be drafting legislation that would mesh the state program with the Medicare benefit.

Essentially, their plan is to let Medicare cover the prescription costs on the front and back ends, while Senior Rx would take care of the middle. Holden said the proposal would be cost neutral as it would leave in place the state's $5,000 per senior citizen benefit cap.

"It does not cost us in our budget any more," Holden said.

The state budget for the current fiscal year includes $22 million for drug benefits. That figure doesn't include administrative costs.

The state program would continue to cover eligible Missourians age 65 and older who do not qualify for the federal benefit.

"There are seniors today with Senior Rx coverage that would not be receiving coverage under the federal bill," Maxwell said.

Senate President Pro Tem Peter Kinder, R-Cape Girardeau, said the outline of the Holden-Maxwell plan sounds promising, especially if it wouldn't increase costs to the state. He expects the Republican-led legislature to seriously address the issue when it reconvenes in January.

House Majority Floor Leader Jason Crowell, R-Cape Girardeau, said there is ample opportunity to develop meaningful, bipartisan legislation given that the Medicare benefit doesn't kick in for two years.

While the federal plan is expected to save the state money in the long-term, Holden said it will cost Missouri an estimated $30 million in start-up costs over the next few years.

Another component of the governor's proposal will be to waive the Senior Rx enrollment fee for those in the federal program.

"The legislation as proposed will not have a double enrollment fee," Maxwell said. "We are certain of that."

Approximately 18,800 elderly Missourians are enrolled in the Senior Rx program. The next enrollment period is from Jan. 1 through Feb. 28. Holden and Maxwell are encouraging qualified senior citizens who are not yet taking advantage of the plan to do so.

mpowers@semissourian.com

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