SB 78

Under current law, the Department of Health Services (DHS) administers the

Senior Care program, which provides assistance to the elderly in the purchase of

prescription drugs. The program is operated under a waiver of federal Medicaid

laws, but DHS is required to implement the program regardless of whether the

waiver is received from the federal Department of Health and Human Services.

Some of the moneys to administer the Senior Care program derive from the federal

government and other moneys come from the state's general purpose revenue (GPR)

or from program revenue (PR). Moneys from GPR are used to pay pharmacies and

pharmacists under the Senior Care program. Program revenue from rebate

payments by manufacturers is used to pay pharmacies and pharmacists and PR from

payment of enrollment fees is used for administration of Senior Care. This bill

requires DHS to obtain any waiver of federal Medicaid laws necessary to continue

administration of Senior Care and to implement any waiver received for the

administration of Senior Care. The bill also requires that any GPR moneys

remaining after paying pharmacies and pharmacists and any PR moneys remaining

after paying pharmacies and pharmacists and paying for program administration be

used by DHS for the following purposes: to reduce enrollment costs for seniors

participating in Senior Care, to reduce the prices paid by Senior Care enrollees for

prescription drugs, and to enlarge the number of prescription drugs available

through the Senior Care program.