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Drug Bills Doesn't Cover All

September 10, 2001
By: Steve Ahern
State Capital Bureau

JEFFERSON CITY - The same optimism enjoyed at the signing of the 1999 prescription drug legislation surrounds the revised prescription drug plan being reviewed during the special legislative session that began Sept. 5.

But if the plan passes in the House and Senate, even the most ardent supporters agree that it will be far from the final or complete solution to what both Republicans and Democrats have agreed is a major problem facing lower income elderly.

Under the original task force proposal, individuals and couples whose incomes exceed $12,000 and $17,000 respectively would receive nothing to help pay for drug costs.

While senior citizen groups have been largely supportive of the proposed drug plan, they realize that there are many seniors who will still need help.

"There's not a win-win either way you go, said Dorothy Knowles, Executive director of the Soutwestern Missouri Office on the aging.

"There are always going to be those seniors who are in between."

Knowles voices concerns that senior citizens who qualify for the proposed plan will not be able to meet the $250 deductible.

"I would like to have seen a $20 monthly deductible dispersed over 12 months rather than the $250 upfront deductible. It would have been much more attainable," Knowles said.

In addition, Knowles indicated that it will be difficult for many seniors to meet the 40 percent co-pay recommended by the task force.

"40 percent is high for someone on a $1,000 a month budget. What we see with seniors is that they take five to six drugs and to pay for them they need to do without other things," Knowles said.

"I do not like to see the deductible because it appears insurmountable," Knowles said.

Sponsors of the bill were clear about the limitations of the proposed bill.

"This bill isn't going to help everyone," said Rep. Mike Naeger, R-Perryville. "Only the most needy of our seniors will benefit."

"Every program has to have eligibility guidelines," Rep. Mark Abel, D-Festus, said. "We need to live within the budget that was set. Right now we are concerned with lower-income seniors."

Representative Barry D-St.Louis, echoed Abel's views.

"To be fiscally sound, we need to remain within our means", Barry said.

The precaution stems in part from the significant underestimate of the financial impact of the current pharmaceutic tax credit which entitles senior citizens who earn less than $15,000 to a $200 tax credit. The fiscal impact of the pharmaceutical tax credit was estimated to be approximately $20 million but ended up costing $83 million according to a report submitted by the state auditor's office. Approximately 261,000 Missouri residents were entitled to the credit, but 458,000 utilized the tax credit in 1999.

Based on the misallocation of the tax credit, several senior citizens whose incomes exceed $17,000 stand to lose something should the final bill be passed.

"There will be opposition from some seniors if the credit is repealed," Knowles said.

The current legislation entitles senior citizens earning no more than $15,000 to the $200 tax credit.