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FOR IMMEDIATE RELEASE
Wednesday, July 31, 2002
Contact: CMS Public Affairs
(202) 690-6145

HHS APPROVES EXPANDING PHARMACY BENEFITS TO FLORIDA ELDERLY
Program To Provide Access to Coverage for More than 58,000 Florida Residents


HHS Secretary Tommy G. Thompson today approved a Florida program that will provide access to Medicaid prescription drug benefits for low-income seniors. State officials estimate that as many as 58,472 Florida residents may be aided by the new program, known as Silver Saver, when it begins in August 2002.

"I congratulate Governor Bush in helping to provide access to prescription drug coverage to those seniors most in need," Secretary Thompson said. "Whether it is welfare reform, school vouchers, or covering the uninsured, Florida has been a leader in creating innovative programs designed to help its citizens, and it continues to be a leader with the Silver Saver program."

Florida is one of the first states in the nation to receive federal funding to extend Medicaid prescription drug coverage to seniors under the new Pharmacy Plus initiative. Under Pharmacy Plus, states may expand Medicaid coverage for prescription drugs to Medicare beneficiaries and other individuals with family incomes up to 200 percent of the federal poverty level (FPL). The FPL for 2002 is $8,860 for an individual. Similar programs are being proposed by other states, in an effort to provide relief to low-income individuals in the face of increasing prescription drug costs.

Florida's new program will serve persons with incomes between 88 percent and 120 percent of the FPL. There will be no enrollment fee or assets test and beneficiaries will pay a copayment of $2 for generic drugs, $5 for drugs on Florida's Medicaid preferred drug list and $15 for other brand-name drugs. The benefit could reach as high as $160 per month for each beneficiary.

"While we anticipate the implementation of similar programs nationwide, we do not view them as a substitute for a new prescription drug benefit in the Medicare program," Secretary Thompson said. "President Bush has affirmed his commitment to enact legislation this year to strengthen Medicare with prescription drug coverage, and to provide relief to seniors as quickly as possible. The U.S. House of Representatives recently approved a strong, effective bill that would provide seniors with a Medicare drug benefit program that will result in needed savings on their prescription drugs. Seniors should not have to wait any longer."

By law, Medicare does not cover most outpatient prescription drugs, leaving many seniors without access to affordable prescription drugs. The new Silver Saver program and Pharmacy Plus initiative are authorized through an expansion of Medicaid, a state and federal partnership that provides health benefits, including prescription drugs, to more than 40 million low-income Americans. Medicare is a federal program that covers about 40 million senior citizens and disabled Americans.

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Last revised: July 31, 2002