SEATTLE – The state of Washington will get a $14 million Medicare credit from the federal government because the cost of prescription drugs has dropped, Health and Human Services Secretary Mike Leavitt announced during a weekend visit to the state.
After Leavitt met with Gov. Chris Gregoire, she announced that the state would allocate the $14 million to cover co-pays for the state’s poorest residents under the new Medicare prescription drug plan.
Under the new Medicare Part D that began Jan. 1, Medicare beneficiaries – the elderly and the disabled – must enroll in private plans that pay part of the cost of their prescription drugs.
In Washington, about 96,000 Medicare recipients whose prescriptions were previously paid in full by Medicaid face co-payments of $1 to $5 per prescription refill for the first time. Many of these people say they have been denied coverage or were overcharged when there is confusion over eligibility.
“No rational person would expect a transition this significant or this large to go without some unexpected problems,” Leavitt said, adding that the computer problems and other glitches have been resolved and most Medicare beneficiaries are getting their prescriptions filled on time.
At the Washington State Community, Trade and Economic Development Office in downtown Seattle on Saturday, Gregoire said the state will use the $14 million to cover those co-pays for the “96,000 of our most vulnerable citizens” who need prescription drugs.
Many of them have serious mental and physical problems that may require up to 15 prescriptions a month, Gregoire said.
“A dollar to $5 may not sound like a lot to some. But these folks are living on $579 or less per month. In Washington state, the average number of prescriptions a dual eligible takes is seven, and many take 15 or more,” Gregoire said.
The co-pay exemption covers this year only, and the governor acknowledged this will be a continuing problem unless more funds are available.
The state will start covering the co-pays within two weeks, according to the governor’s staff. Those who already have paid some co-pays will not be reimbursed.
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