Governor Schwarzenegger Continues Emergency Prescription Drug Relief for Low-Income Seniors and Persons with Disabilities
Governor Schwarzenegger Continues Emergency Prescription Drug Relief for Low-Income Seniors and Persons with Disabilities
Governor Arnold Schwarzenegger signed bipartisan legislation, AB 813 by Assembly Speaker Fabian Nuñez (D-Los Angeles), to continue the state emergency program that allows vulnerable Californians to receive prescription drugs regardless of ongoing problems with the federal Medicare prescription drug program benefit. The legislation also establishes controls to ensure the state is only a payer of last resort and will phase out the program by January 31, 2007.
"Beneficiaries are still facing problems when filling prescriptions for lifesaving medications," said Governor Schwarzenegger. "This legislation ensures vulnerable Californians do not suffer when the federal Medicare prescription drug program fails. In addition, this new law contains safeguards to ensure the state only pays when there is no other option."
Beginning May 17, 2006, pharmacists can use this program when there is an uncorrectable error in the Medicare drug program. Pharmacists seeking reimbursement under the state emergency drug program will need prior approval from Medi-Cal.
The phase-out program established by AB 813 will maintain a state safety net through Jan. 31, 2007, offering ample time for the federal government, physicians and pharmacists to address problems with the federal program.
On January 1, 2006, under the Medicare Modernization Act, the federal government took responsibility for prescription drug coverage for the nearly one million Californians dually eligible for Medi-Cal and Medicare. The transition of these individuals to federal Medicare plans in just one day resulted in an error rate of 20 percent.
On January 12, 2006, the Governor took action to protect vulnerable populations by using emergency authority to create a program making the state the payer of last resort. The Governor also signed legislation that extended this emergency program in 30-day increments through May 16, 2006. The federal government has committed to reimbursing California for all costs through March 31, 2006, and most administrative costs of the program.
As of midnight, May 15, 2006, the state has filled more than one million prescriptions, serving more than 252,000 Californians, at a cost of nearly $68 million. AB 813 caps program costs at $120 million. This funding was appropriated when the emergency program began in January 2006.
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