Holden signs prescription drug legislation into law

LAKE OZARK, Mo. -- Gov. Bob Holden signed legislation Friday creating a new prescription drug benefit for lower-income senior citizens.

The new insurance-like program replaces a state income tax credit that has provided up to $200 annually to seniors to help offset their medicine bills but cost the state $85 million last year -- more four times what was expected.

Projections put the new program at nearly the same cost to the state within a couple of years. But the program will provide a greater benefit -- up to $5,000 annually -- for the fewer number of Missourians who qualify.

Holden said the Missouri Senior Rx Program targets "our most vulnerable seniors with the highest drug costs."

He said seniors, particularly those from the World War II era, deserved the benefit due to their service to the country. Last month's terrorist attacks only highlighted the fact, he said.

"The events of recent weeks have served as a reminder to us of how much we owe those who are referred to as our greatest generation -- those Americans who have protected and defended our democratic principles at tremendous personal cost and sacrifice," Holden said while signing the bill at an annual meeting of the Missouri Press Association.

Eligibility for the tax credit will end Dec. 31. Seniors can enroll in the new program beginning in April and benefits are to start next July.

The prescription drug plan was the centerpiece of a special legislative session last month and passed with overwhelming support.

Governor's victory

Holden's signing ceremony marks a long-awaited political victory for the first-term Democratic governor, who had campaigned on a senior prescription drug plan last year.

When lawmakers failed to agree on a prescription plan during their regular session that ended in May. Holden immediately announced that he would call them back for a special session in September.

He then appointed a bipartisan task force, the recommendations of which served as the blueprint for the bill passed by the Legislature.

Under the new program, the state will pay up to 60 percent of the prescription costs for Missourians age 65 and older. To qualify, individuals can earn no more than $17,000 annually and couples $23,000.

Setting fees

A two-tiered structure sets a $25 enrollment fee and $250 deductible for individuals earning less than $12,000 annually and couples less than $17,000.

Those earning more pay a $35 enrollment fee and a $500 deductible.

A special commission could change the income eligibility limits, fees and deductibles if necessary to control costs -- potentially resulting in higher bills for seniors or preventing some people from entering the program.

The prescription drug program is intended only for people who aren't already covered under private prescription insurance or by the state's Medicaid program for the poor, blind and disabled.

The legislation also expands Medicaid over the next three years by raising the amount of money people can earn and still remain eligible.