PRINTER'S NO. 1344

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 1180 Session of 1991


        INTRODUCED BY E. Z. TAYLOR, OLASZ, WILSON, VANCE, LEH, GERLACH,
           BILLOW, ARMSTRONG, BUNT, LAUGHLIN, BUSH, HERMAN, HECKLER,
           GEIST, KING, MERRY, COLAIZZO, O'BRIEN, NOYE, STEELMAN,
           GLADECK, REBER, RAYMOND, SAURMAN, McCALL AND MICOZZIE,
           APRIL 17, 1991

        REFERRED TO COMMITTEE ON AGING AND YOUTH, APRIL 17, 1991

                                     AN ACT

     1  Amending the act of November 4, 1983 (P.L.217, No.63), entitled
     2     "An act establishing a program of limited pharmaceutical
     3     assistance for the elderly; granting powers to and imposing
     4     duties on the Department of Aging; establishing a payment
     5     system; making provisions for funding; providing for reports;
     6     and fixing penalties for violations of the pharmaceutical
     7     assistance program," further defining "maximum annual
     8     income"; and further providing for program criteria.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  The definition of "maximum annual income" in
    12  section 3 of the act of November 4, 1983 (P.L.217, No.63), known
    13  as the Pharmaceutical Assistance Contract for the Elderly Act,
    14  amended December 17, 1984 (P.L.1002, No.202), is amended to
    15  read:
    16  Section 3.  Definitions.
    17     The following words and phrases when used in this act shall
    18  have the meanings given to them in this section unless the
    19  context clearly indicates otherwise:


     1     * * *
     2     "Maximum annual income."  Annual income as determined by the
     3  department. Such amount shall not exceed [$12,000] $13,000 in
     4  the case of single persons nor [$15,000] $16,200 in the case of
     5  the combined annual income of married persons.
     6     * * *
     7     Section 2.  Section 4(e)(5) of the act, amended June 30, 1987
     8  (P.L.169, No.17), is amended to read:
     9  Section 4.  Responsibilities of Department of Aging.
    10     * * *
    11     (e)  Program criteria.--The program shall include the
    12  following criteria:
    13         * * *
    14         (5)  The system established shall include a participant
    15     copayment schedule of $4 for each prescription [for the first
    16     year of the contract] filled with an approved generic
    17     equivalent drug and $8 for each prescription filled with an
    18     approved brand name drug. The copayment [shall] may increase
    19     or decrease [on the annual basis] by the average percent
    20     change of ingredient costs for all prescription drugs plus a
    21     differential to raise the copayment to the next highest 25¢
    22     increment. In addition, the department may approve a request
    23     for increase or decrease in the level of copayment based upon
    24     the financial experience and projections of the program [and]
    25     but only after consultation with the Pharmaceutical
    26     Assistance Review Board. The department is prohibited from
    27     approving adjustments to the copayment on more than a
    28     semiannual basis.
    29         * * *
    30     Section 3.  This act shall take effect in 90 days.
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