SB 0022 Creates the Pharmaceutical Assistance Program to allow the elderly to purchase pharmaceutical insurance
LR Number:0202S.16P Fiscal Note:0202-16
Committee:Public Health and Welfare
Last Action:05/18/01 - H Inf Calendar S Bills for Third Reading Journal page:
Title:SS#2 SCS SBs 22 & 106
Effective Date:August 28, 2001
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Current Bill Summary

SS#2/SCS/SBs 22 & 106 - This act creates the Missouri Pharmaceutical Assistance Program (MoPAP) and Task Force within the Department of Social Services to allow the elderly to purchase pharmaceutical insurance from the state.

The current pharmaceutical tax credit for seniors will sunset on December 31, 2001. The credit will apply for either one-twelfth of the 2002 tax year or all of it, depending on the legislature's action on MoPAP in January, 2002. (Section 135.095).

The MoPAP Task Force is created consisting of fourteen members. The task force will conduct public hearings, promote and improve public health, and evaluate the health needs of senior citizens. The task force must seek matching funds from other sources and may also provide grants to certain organizations. The task force must submit a report to the Governor and the legislature by December 15, 2001, containing requests for proposals from private insurance companies for participation in MoPAP. If the General Assembly rejects the report within forty-five days, then sections 660.700 through 660.729 are repealed. (Sections 660.700 - 660.703).

The Department may enter into contracts with private health insurers in order to provide insurance policies to senior citizens for the up to $6,000 in coverage for prescription drugs and pharmaceutical services. Seniors sixty-five and older may purchase the policy and receive a grant from the state to pay a portion of the insurance cost. The senior must be a resident of the state for at least one year and his or her household income may not be above $11,600 for an individual or $15,700 for a couple. A crowd-out provision is added to prevent seniors from benefitting from MoPAP if they have Medicaid or pharmaceutical benefits through another insurance policy, or if they receive the tax credit under Section 135.095. The applicant must have been without pharmaceutical coverage for six months before application to MoPAP. The subsidy cannot exceed the total cost of the insurance or $850 per year, whichever is less. (Section 660.706).

In order to receive a subsidy, the senior citizen must apply to the Department and provide necessary proof. Within forty-five days, the Department may review the application and deny or grant the subsidy and, if granted, determine the amount awarded. Any amounts will be paid directly to the insurer. If a subsidy is erroneously granted, the senior must refund any amounts received. The Department may deny grants if filed with fraudulent intent. The applicant has appeal rights. (Sections 660.709 - 660.724).

The Department may contract with pharmacy benefit management programs and drug utilization review programs in order to manage and review MoPAP. (Section 660.724).

The "Missouri Pharmaceutical Assistance Fund" is created for any proceeds which should be used to fund MoPAP. All funds appropriated for the pharmaceutical tax credit program within the Department of Revenue shall be reassigned to the Department of Social Services to the credit of the Fund for the purpose of funding MoPAP. Such appropriations will continue until other funds such as grants, gifts, or other appropriations become available. (Section 660.729).

This act contains an emergency clause for Sections 660.700 through 660.729, RSMo and a termination date for Section 135.095, RSMo.