PRINTER'S NO. 392
No. 348 Session of 1983
INTRODUCED BY PIEVSKY, MANDERINO, ZWIKL, GALLAGHER, IRVIS,
CAPPABIANCA, BLAUM, CORDISCO, MORRIS, KUKOVICH AND DeWEESE,
MARCH 14, 1983
REFERRED TO COMMITTEE ON HEALTH AND WELFARE, MARCH 14, 1983
AN ACT
1 Amending the act of March 11, 1971 (P.L.104, No.3), entitled, as
2 reenacted and amended, "An act providing property tax or rent
3 rebate and inflation dividends to certain senior citizens,
4 widows, widowers and permanently disabled persons with
5 limited incomes; establishing uniform standards and
6 qualifications for eligibility to receive rebates and
7 dividends; and imposing duties upon the Department of
8 Revenue," establishing a pharmaceutical assistance program
9 for the elderly; and providing for transportation assistance
10 grants.
11 The General Assembly of the Commonwealth of Pennsylvania
12 hereby enacts as follows:
13 Section 1. The title and section 2 of the act of March 11,
14 1971 (P.L.104, No.3), known as the Senior Citizens Rebate and
15 Assistance Act, reenacted and amended June 16, 1975 (P.L.7,
16 No.4) and amended March 10, 1982 (P.L.177, No.56), are amended
17 to read:
18 AN ACT
19 Providing property tax or rent rebate and inflation dividends to
20 certain senior citizens, widows, widowers and permanently
21 disabled persons with limited incomes; establishing uniform
1 standards and qualifications for eligibility to receive
2 rebates and dividends; providing for transportation
3 assistance grants and grants to area agencies on aging for
4 services to older persons; establishing a pharmaceutical
5 assistance program for the elderly; and imposing duties upon
6 the Department of Revenue and the Department of Aging.
7 Section 2. Declaration of Policy.--(a) In recognition of
8 the severe economic plight of certain senior citizens, widows,
9 widowers and permanently disabled persons who are real property
10 owners or renters with fixed and limited incomes who are faced
11 with rising living costs and constantly increasing tax and
12 inflation cost burdens which threaten their homesteads and self-
13 sufficiency, the General Assembly, pursuant to the mandates of
14 the Constitutional Convention of 1968, considers it to be a
15 matter of sound public policy to make special provisions for
16 property tax rebates or rent rebates in lieu of property taxes
17 and inflation dividends to that class of senior citizens,
18 widows, widowers and permanently disabled persons who are real
19 property taxpayers or renters who are without adequate means of
20 support to enable them to remain in peaceable possession of
21 their homes and relieving their economic burden and to provide
22 transportation assistance grants and to provide grants to area
23 agencies on aging for services to older persons.
24 (b) In further recognition of the severe economic plight of
25 certain senior citizens with fixed and limited incomes who are
26 faced with rising pharmaceutical costs, the General Assembly,
27 pursuant to the mandates of the Constitutional Convention of
28 1968, considers it to be a matter of sound public policy to make
29 special provisions for pharmaceutical assistance benefits to
30 that class of senior citizens who are without adequate means to
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1 pay for all or a portion of such costs.
2 Section 2. Section 3(8) of the act, amended December 21,
3 1979 (P.L.570, No.131), is amended and clauses are added to
4 read:
5 Section 3. Definitions.--As used in this act:
6 * * *
7 (8) "Department" means the Department of Revenue except in
8 the case of the Pharmaceutical Assistance Program for the
9 elderly where "department" shall mean the Department of Aging.
10 * * *
11 (10) "Pharmaceutical assistance claimant" means any resident
12 of the Commonwealth sixty-five years of age and over, whose
13 annual income is less than the maximum annual income, and who is
14 not otherwise qualified for public assistance under the act of
15 June 13, 1967 (P.L.31, No.21), known as the "Public Welfare
16 Code."
17 (11) "Maximum annual income" means annual income as
18 determined by the Department of Aging. Such amount shall not
19 exceed seven thousand five hundred dollars ($7,500) in the case
20 of single persons nor nine thousand dollars ($9,000) in the case
21 of the combined annual income of married persons.
22 (12) "Pharmacy" means any pharmacy licensed by the
23 Commonwealth.
24 (13) "Program" means the program of pharmaceutical
25 assistance for the aging as established by this act.
26 (14) "Prescription drugs" means all legend drugs, insulin,
27 insulin syringes and insulin needles.
28 (15) "Reasonable cost" means the average wholesale price of
29 the drug product plus a dispensing fee which shall be two
30 dollars fifty cents ($2.50).
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1 (16) "Prescription drug expense" means the reasonable cost
2 incurred for prescription drugs for the personal use of the
3 pharmaceutical assistance claimant.
4 Section 3. The act is amended by adding a section to read:
5 Section 6.1. Pharmaceutical Assistance Program.--There is
6 hereby created a pharmaceutical assistance program for the
7 elderly to be administered by the Department of Aging and funded
8 from the Lottery Fund.
9 (a) The program shall consist of payments to pharmacies on
10 behalf of pharmaceutical assistance claimants for the reasonable
11 cost of a prescription which exceeds three dollars ($3)
12 copayment per prescription paid by each pharmaceutical
13 assistance claimant. For the purpose of this act, the
14 pharmaceutical assistance claimant shall be liable to pay the
15 difference between the brand name drug and the generically
16 equivalent drug as approved under the provisions of the act of
17 November 24, 1976 (P.L.1163, No.259), referred to as the Generic
18 Equivalent Drug Law. The program shall be administered by the
19 Department of Aging, which shall promulgate rules and
20 regulations necessary for administration of the program.
21 (b) Any otherwise eligible pharmaceutical assistance
22 claimant whose prescription drug expenses are covered in part by
23 any other plan of assistance or insurance may be required to
24 receive reduced assistance under the provisions of this act at
25 the discretion of the Department of Aging.
26 (c) The Department of Aging shall establish a system for
27 determining eligibility including provisions for submission of
28 proof of actual and anticipated income, and evidence of complete
29 or partial coverage of prescription drug expenses by any other
30 assistance or insurance plans and a system of payments to
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1 eligible pharmacies. The Department of Aging may contract for
2 the establishment of such a system, if such a contract would be
3 economically advantageous to the Commonwealth. It is the intent
4 of the General Assembly that any existing methods and
5 applications used to determine eligibility for similar existing
6 programs be utilized to the extent possible in operationalizing
7 this system.
8 (d) The Department of Aging shall adopt regulations relating
9 to the determination of eligibility of prospective
10 pharmaceutical assistance claimants and the determination and
11 elimination of program abuse. The Department of Aging shall have
12 the power to declare ineligible any pharmaceutical assistance
13 claimant who abuses or misuses the established pharmaceutical
14 assistance program.
15 (e) No person eligible for prescription benefits under any
16 other private, State or Federal program of medical insurance or
17 assistance which duplicates the benefits available under this
18 act shall be eligible hereunder, to the extent of such
19 duplication.
20 (f) Any person who submits a false or fraudulent claim under
21 this act, or who aids or abets another in the submission of a
22 false or fraudulent claim, or who is eligible under a private,
23 State or Federal program for prescription assistance and who
24 claims or receives duplicative benefits hereunder or who
25 otherwise violates any provision of this act, shall be guilty of
26 a misdemeanor of the third degree.
27 Section 4. This act shall take effect July 1, 1983.
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