Colorado Lawmakers Propose Drug Discount Program For Uninsured Residents

Main Category: Health Insurance / Medical Insurance
Article Date: 27 Mar 2006 - 8:00 PDT

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Colorado House lawmakers on Tuesday proposed legislation (HB 1252) that would allow uninsured state residents to qualify for discounted prescription drugs, the Denver Post reports. Under the proposal, state residents ages 60 and older and uninsured residents with incomes lower than 250% of the federal poverty level -- $50,000 for a family of four -- could apply for a "Colorado Cares Rx" card, which would allow them to buy drugs at the same prices as those negotiated for state employees and retirees. According to the Post, those prices are discounted about 30% on average (Frates, Denver Post, 3/22). Card holders would pay the discounted price of the drugs plus $1 per prescription to cover the program's administrative costs and $2.50 to pharmacists (Brand, Denver Rocky Mountain News, 3/22). The proposal also would allow the state to hire a benefit manager to negotiate better discounts for the program (Slevin, AP/Colorado Springs Gazette, 3/21). The program could affect an estimated 500,000 uninsured state residents, as well as 561,000 residents ages 60 and older. Pharmaceutical companies agreed to offer the medications through the program at the discounted price. Kurt Malmgren, senior vice president of the Pharmaceutical Research and Manufacturers of America, said, "In reality a lot of people aren't taking drugs. If nothing else, it just means increased sales." Supporters of the bill have said the discount card could help Medicare beneficiaries in the "doughnut hole" of the Medicare Part D benefit -- the area between $2,250 and $5,100 in drug costs where seniors pay the entire costs of drugs (Denver Rocky Mountain News, 3/22). Rep. Jerry Frangas (D), who sponsored the bill, said, "This takes care of working people. It helps people close to retirement at 60 who may not have insurance, and it takes care of working families." Senate President Joan Fitz-Gerald said the proposal will "not cost the taxpayers a dime" (Denver Post, 3/22).

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