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                                                      PRINTER'S NO. 3228

THE GENERAL ASSEMBLY OF PENNSYLVANIA


HOUSE BILL

No. 2371 Session of 1990


        INTRODUCED BY DeLUCA, KASUNIC, PESCI, PETRONE, McNALLY, STISH,
           TRELLO, PRESSMANN, RYBAK, GODSHALL, S. H. SMITH, DISTLER,
           TRICH, CARLSON, DOMBROWSKI, D. R. WRIGHT, GIGLIOTTI,
           JADLOWIEC, DEMPSEY, J. L. WRIGHT, CORRIGAN, JACKSON, NAHILL,
           KENNEY, McCALL, ANGSTADT, BUNT, MORRIS, D. W. SNYDER, RUDY,
           HARPER, JAROLIN, BLAUM, RAYMOND, FREEMAN, HASAY, MELIO,
           BELARDI, KONDRICH, CESSAR, FOX, JOSEPHS, LEH, TELEK,
           VAN HORNE, CIVERA, HERMAN, HOWLETT, HALUSKA, BUSH, OLASZ,
           BURD, PISTELLA, JOHNSON, CORNELL, WOGAN, VEON, COLAIZZO,
           WILLIAMS, FLICK, MAYERNIK, RITTER, LAUGHLIN, GEIST, DALEY,
           SCRIMENTI, ADOLPH, BILLOW, J. H. CLARK, J. TAYLOR, B. SMITH,
           COLE AND STABACK, MARCH 21, 1990

        REFERRED TO COMMITTEE ON YOUTH AND AGING, MARCH 21, 1990

                                     AN ACT

     1  Amending the act of November 4, 1983 (P.L.217, No.63), entitled
     2     "An act establishing a program of limited pharmaceutical
     3     assistance for the elderly; granting powers to and imposing
     4     duties on the Department of Aging; establishing a payment
     5     system; making provisions for funding; providing for reports;
     6     and fixing penalties for violations of the pharmaceutical
     7     assistance program," further providing for the definition of
     8     "maximum annual income" and for participant copayment.

     9     The General Assembly of the Commonwealth of Pennsylvania
    10  hereby enacts as follows:
    11     Section 1.  The definition of "maximum annual income" in
    12  section 3 of the act of November 4, 1983 (P.L.217, No.63), known
    13  as the Pharmaceutical Assistance Contract for the Elderly Act,
    14  amended December 17, 1984 (P.L.1002, No.202), is amended to
    15  read:
    16  Section 3.  Definitions.

     1     The following words and phrases when used in this act shall
     2  have the meanings given to them in this section unless the
     3  context clearly indicates otherwise:
     4     * * *
     5     "Maximum annual income."  Annual income as determined by the
     6  department. [Such amount] There shall be two levels of maximum
     7  annual income. Level one income shall not exceed $12,000 in the
     8  case of single persons nor $15,000 in the case of the combined
     9  annual income of married persons. Level two income shall not
    10  exceed $15,000 in the case of single persons nor $18,000 in the
    11  case of the combined annual income of married persons.
    12  Notwithstanding section 4(d), the costs of the program relating
    13  to level two income participants shall be appropriated from the
    14  General Fund.
    15     * * *
    16     Section 2.  Section 4(e)(5) of the act, amended June 30, 1987
    17  (P.L.169, No.17), is amended to read:
    18  Section 4.  Responsibilities of Department of Aging.
    19     * * *
    20     (e)  Program criteria.--The program shall include the
    21  following criteria:
    22         * * *
    23         (5)  The system established shall include a participant
    24     copayment schedule of $4 for level one and $7 for level two
    25     participants for each prescription [for the first year of the
    26     contract]. The [copayment] copayments shall increase or
    27     decrease on the annual basis by the average percent change of
    28     ingredient costs for all prescription drugs plus a
    29     differential to raise the copayment to the next highest 25¢
    30     increment. In addition, the department may approve a request
    19900H2371B3228                  - 2 -

     1     for increase or decrease in the level of copayment based upon
     2     the financial experience and projections of the program and
     3     after consultation with the Pharmaceutical Assistance Review
     4     Board. The department is prohibited from approving
     5     adjustments to the copayment on more than a semiannual basis.
     6         * * *
     7     Section 3.  This act shall take effect in 60 days.
















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