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                                                      PRINTER'S NO. 1456

THE GENERAL ASSEMBLY OF PENNSYLVANIA


SENATE BILL

No. 1180 Session of 1989


        INTRODUCED BY SALVATORE, HELFRICK, REIBMAN, LEMMOND, BELAN,
           LYNCH AND O'PAKE, JULY 11, 1989

        REFERRED TO AGING AND YOUTH, JULY 11, 1989

                                     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 providing for the definition of
     8     "maximum annual income" and for participant copayment.

     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:
    20     * * *


     1     "Maximum annual income."  Annual income as determined by the
     2  department. [Such amount] There shall be two levels of maximum
     3  annual income. Level one income shall not exceed $12,000 in the
     4  case of single persons nor $15,000 in the case of the combined
     5  annual income of married persons. Level two income shall not
     6  exceed $15,000 in the case of single persons nor $20,000 in the
     7  case of the combined annual income of married persons.
     8  Notwithstanding section 4(d), the costs of the program relating
     9  to level two income participants shall be appropriated from the
    10  General Fund.
    11     * * *
    12     Section 2.  Section 4(e)(5) of the act, amended June 30, 1987
    13  (P.L.169, No.17), is amended to read:
    14  Section 4.  Responsibilities of Department of Aging.
    15     * * *
    16     (e)  Program criteria.--The program shall include the
    17  following criteria:
    18         * * *
    19         (5)  The system established shall include a participant
    20     copayment schedule of $4 for level one and $6 for level two
    21     participants for each prescription [for the first year of the
    22     contract]. The [copayment] copayments shall increase or
    23     decrease on the annual basis by the average percent change of
    24     ingredient costs for all prescription drugs plus a
    25     differential to raise the copayment to the next highest 25¢
    26     increment. In addition, the department may approve a request
    27     for increase or decrease in the level of copayment based upon
    28     the financial experience and projections of the program and
    29     after consultation with the Pharmaceutical Assistance Review
    30     Board. The department is prohibited from approving
    19890S1180B1456                  - 2 -

     1     adjustments to the copayment on more than a semiannual basis.
     2         * * *
     3     Section 3.  This act shall take effect in 60 days.


















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