AARP supports Rx card for moderate income

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By NANCY HICKS / Lincoln Journal Star

Both the state and low- to moderate-income Nebraskans without health insurance could save money under a bill dealing with prescription costs, supporters said at a news conference and public hearing on Thursday.

The bill, LB699, would require the state to create a preferred drug list and negotiate lower drug prices by joining a multi-state purchasing pool, saving the state money on Medicaid. The state would then create a state prescription drug card that would pass on the drug cost savings to low- and moderate-income Nebraskans who have no health insurance.

“This seems like the most common-sense measure that the state will be reviewing this year,” Omaha Sen. Steve Lathrop said during the news conference.

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“The Rx card would be used by the Nebraskans who today are paying the highest rate (for prescriptions) because nobody is negotiating for them,” Lathrop said.

Using a preferred list and negotiating better prices could save an estimated $2 million a year, said Lathrop, who sponsored the bill on behalf of AARP Nebraska.

Nebraskans without health insurance coverage who earn below 300 percent of the federal poverty guideline would qualify for the card. Now, a person with an annual income of $29,400 or less and a family of four with an income of $60,000 or less would qualify.

Some seniors who reach what is called the donut hole — where they have no co-pay on prescriptions  — — would benefit from the prescription drug card, said Connie Benjamin, AARP Nebraska state director.

The state Health and Human Services System opposed the bill during the public hearing Thursday,  saying the agency is not convinced the preferred drug list and becoming part of a pool will save money.

The state should use existing programs before beginning a prescription drug card program, Gary Cheloha, an HHSS administrator, told the Legislature's Health and Human Services Committee.

“Creation of the card program should not be supported because of the expected expense of implementation and operation at a time when the state is looking to control spending and because there are other sources of help with prescription drug costs that are available in the private sector,”  he said.   

Reach Nancy Hicks at 473-7250 or nhicks@journalstar.com.