Wisconsin's SeniorCare saves $65 million from negotiating drug prices. So naturally, the feds want seniors on Part D, which doesn't negotiate drug prices. They say they're concerned that the program may not be "cost-neutral."
Gov. Jim Doyle's administration is reviewing how best to maintain prescription drug services to the elderly after the federal government rejected the state's request to extend the popular SeniorCare program, the governor said Wednesday.
Regardless, Doyle said at a news conference that the decision likely kills the program, forcing the 104,000 people on SeniorCare to use the Medicare Part D drug plan.[..]
In an April 3 letter to Doyle, Leslie Norwalk, acting administrator for the Centers for Medicare and Medicaid Services, said the federal government wavier allowing Wisconsin to operate SeniorCare would expire June 30 because state officials had not proven the program was cost-neutral. She said the state's waiver request didn't include information about the assets of program participants, which would help determine if SeniorCare saved taxpayers money.[..]
Darlene Finch, 70, of Oregon, was upset by the Bush administration decision.[..]
A retired switchboard operator, Finch said one of her rheumatoid arthritis drugs costs $1,400 a month. She said under Medicare Part D, the government would pay for the first $2,500, then she would have to pay the next $3,000 before the plan would cover additional costs. That's money she said she can't afford. With SeniorCare, she gets the same drug for about $15 per month, she said.Doyle said Wednesday that the savings for people like Finch comes after the state negotiates big price discounts with drug companies.
This year, SeniorCare will cost the state $57.6 million and the federal government $53.6 million. The program saves $62.2 million through drug company discounts, the state said.
