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Senators Demand Special Session to Cut Drug Prices

Wed, 09/06/2000 - 12:00am — Karen Stevenson
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State Senators Chris Cummiskey (D-Phoenix) and Tom Freestone (R-Mesa) asked Governor Jane Hull to call the Legislature into special session to address the crisis of skyrocketing prescription drug prices faced by many of Arizona's seniors. This crisis is expected to worsen on January 1, 2001 when four more HMOs leave the Medicare HMO market in rural Arizona, taking much needed prescription drug coverage with them. It is estimated that upwards of 200,000 Arizona seniors will be left without coverage by the end of the year.

Cummiskey and Freestone have proposed a two-stage plan to make prescription drugs more accessible for Arizona?s seniors. The first stage involves creating prescription purchasing coalitions that will benefit all seniors, regardless of income. The free market styled purchasing coalitions will take advantage of group purchasing to negotiate bulk rates using the same benefit management companies that negotiate lower rates for HMOs.

The second stage provides direct support to the neediest seniors through direct subsidies. Seniors with incomes below the federal poverty level, about $8,300 for an unmarried senior, would receive a 100% subsidy for the price of their prescriptions. Additional relief will be provided for seniors with incomes up to 250% of the federal poverty level, almost $20,900 for an unmarried senior, through subsidies ranging from 25% to 75% of the cost of prescription medication depending on the person?s income.

Both parts of the plan have won wide support from such groups as the American Association of Retired Persons (AARP) and the Arizona Silver Haired Legislature.

State Senators Chris Cummiskey (D-Phoenix) and Tom Freestone (R-Mesa) asked Governor Jane Hull to call the Legislature into special session to address the crisis of skyrocketing prescription drug prices faced by many of Arizona's seniors. This crisis is expected to worsen on January 1, 2001 when four more HMOs leave the Medicare HMO market in rural Arizona, taking much needed prescription drug coverage with them. It is estimated that upwards of 200,000 Arizona seniors will be left without coverage by the end of the year.

Cummiskey and Freestone have proposed a two-stage plan to make prescription drugs more accessible for Arizona?s seniors. The first stage involves creating prescription purchasing coalitions that will benefit all seniors, regardless of income. The free market styled purchasing coalitions will take advantage of group purchasing to negotiate bulk rates using the same benefit management companies that negotiate lower rates for HMOs.

The second stage provides direct support to the neediest seniors through direct subsidies. Seniors with incomes below the federal poverty level, about $8,300 for an unmarried senior, would receive a 100% subsidy for the price of their prescriptions. Additional relief will be provided for seniors with incomes up to 250% of the federal poverty level, almost $20,900 for an unmarried senior, through subsidies ranging from 25% to 75% of the cost of prescription medication depending on the person?s income.

Both parts of the plan have won wide support from such groups as the American Association of Retired Persons (AARP) and the Arizona Silver Haired Legislature.