1.1                          A bill for an act 
  1.2             relating to human services; expanding eligibility for 
  1.3             the senior citizen drug program; appropriating money; 
  1.4             amending Minnesota Statutes 1998, section 256.955, 
  1.5             subdivisions 2, 7, and 8; Laws 1997, chapter 225, 
  1.6             article 4, section 4; repealing Minnesota Statutes 
  1.7             1998, section 256.955, subdivision 9. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1998, section 256.955, 
  1.10  subdivision 2, is amended to read: 
  1.11     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
  1.12  the following definitions apply. 
  1.13     (b) "Health plan" has the meaning provided in section 
  1.14  62Q.01, subdivision 3. 
  1.15     (c) "Health plan company" has the meaning provided in 
  1.16  section 62Q.01, subdivision 4. 
  1.17     (d) "Qualified senior citizen" means a Medicare enrollee, 
  1.18  or an individual age 65 or older who is not a Medicare enrollee, 
  1.19  who: 
  1.20     (1) is eligible as a qualified Medicare beneficiary 
  1.21  according to section 256B.057, subdivision 3 or 3a, or is 
  1.22  eligible under section 256B.057, subdivision 3 or 3a, and is 
  1.23  also eligible for medical assistance or general assistance 
  1.24  medical care with a spenddown as defined in section 256B.056, 
  1.25  subdivision 5.  Persons who are determined eligible for medical 
  1.26  assistance according to section 256B.0575, who are eligible for 
  2.1   medical assistance or general assistance medical care without a 
  2.2   spenddown, or who are enrolled in MinnesotaCare, are not 
  2.3   eligible for this program has a household income that does not 
  2.4   exceed 300 percent of the federal poverty guidelines for family 
  2.5   size, using the income methodologies specified for aged, blind, 
  2.6   or disabled persons in section 256B.056, subdivision 1a; 
  2.7      (2) is not enrolled in prescription drug coverage under a 
  2.8   health plan; 
  2.9      (3) is not enrolled in prescription drug coverage under a 
  2.10  Medicare supplement plan, as defined in sections 62A.31 to 
  2.11  62A.44, or policies, contracts, or certificates that supplement 
  2.12  Medicare issued by health maintenance organizations or those 
  2.13  policies, contracts, or certificates governed by section 1833 or 
  2.14  1876 of the federal Social Security Act, United States Code, 
  2.15  title 42, section 1395, et seq., as amended; 
  2.16     (4) has not had coverage described in clauses (2) and (3) 
  2.17  for at least four months prior to application for the 
  2.18  program; and 
  2.19     (5) is a permanent resident of Minnesota as defined in 
  2.20  section 256L.09; and 
  2.21     (6) is not eligible for medical assistance or general 
  2.22  assistance medical care without a spenddown. 
  2.23     Sec. 2.  Minnesota Statutes 1998, section 256.955, 
  2.24  subdivision 7, is amended to read: 
  2.25     Subd. 7.  [COST SHARING.] (a) Enrollees shall pay an annual 
  2.26  premium of $120. enrollment fee based on the following sliding 
  2.27  scale.  
  2.28    Household income as percentage                Annual
  2.29    of the federal poverty guidelines         Enrollment fee
  2.30    120 percent or less                            $  0 
  2.31    121 percent to 150 percent                     $120 
  2.32    151 percent to 200 percent                     $360 
  2.33    201 percent to 250 percent                     $600 
  2.34    251 percent to 300 percent        full average per person 
  2.35                                      cost of coverage minus 
  2.36                                      the $420 annual deductible  
  2.37  Enrollees whose household incomes increase above 300 percent of 
  3.1   the federal poverty guidelines after initial program enrollment 
  3.2   may remain enrolled if they maintain continuous enrollment and 
  3.3   pay an annual enrollment fee equal to the full average per 
  3.4   person cost of coverage minus the $420 annual deductible. 
  3.5      (b) Program enrollees must satisfy a $300 $420 annual 
  3.6   deductible, based upon expenditures for prescription drugs, to 
  3.7   be paid as follows: 
  3.8      (1) $25 monthly deductible for persons with a monthly 
  3.9   spenddown; or 
  3.10     (2) $150 biannual deductible for persons with a six-month 
  3.11  spenddown in $35 monthly increments. 
  3.12     Sec. 3.  Minnesota Statutes 1998, section 256.955, 
  3.13  subdivision 8, is amended to read: 
  3.14     Subd. 8.  [REPORT.] The commissioner shall annually report 
  3.15  to the legislature on the senior citizen drug program.  The 
  3.16  report must include demographic information on enrollees, 
  3.17  per-prescription expenditures, total program expenditures, 
  3.18  hospital and nursing home costs avoided by enrollees, any 
  3.19  savings to medical assistance and Medicare resulting from the 
  3.20  provision of prescription drug coverage under Medicare by health 
  3.21  maintenance organizations, other public and private options for 
  3.22  drug assistance to the senior population, any hardships caused 
  3.23  by the annual premium enrollment fee and deductible, and any 
  3.24  recommendations for changes in the senior drug program. 
  3.25     Sec. 4.  Laws 1997, chapter 225, article 4, section 4, is 
  3.26  amended to read: 
  3.27     Sec. 4.  [SENIOR DRUG PROGRAM.] 
  3.28     The commissioner shall administer the senior drug program 
  3.29  so that the costs to the state total no more than $4,000,000 
  3.30  plus the amount of the rebate.  The commissioner is authorized 
  3.31  to discontinue enrollment in order to meet this level of funding.
  3.32     The commissioner shall report to the legislature the 
  3.33  estimated costs of the senior drug program without funding 
  3.34  caps.  The report shall be included as part of the November and 
  3.35  February forecasts. 
  3.36     The commissioner of finance shall annually reimburse the 
  4.1   general fund with health care access funds for the estimated 
  4.2   increased costs in the QMB/SLMB program directly associated with 
  4.3   the senior drug program.  This reimbursement shall sunset June 
  4.4   30, 2001. 
  4.5      Sec. 5.  [APPROPRIATION.] 
  4.6      $....... is appropriated from the general fund to the 
  4.7   commissioner of human services for the biennium ending June 30, 
  4.8   2001, to fund the senior citizen drug program. 
  4.9      Sec. 6.  [REPEALER.] 
  4.10     Minnesota Statutes 1998, section 256.955, subdivision 9, is 
  4.11  repealed.