1.1                          A bill for an act 
  1.2             relating to human services; expanding eligibility for 
  1.3             the senior drug program by eliminating the age and 
  1.4             asset limits; requiring a simplified application form; 
  1.5             appropriating money; amending Minnesota Statutes 1998, 
  1.6             section 256.955, subdivisions 1 and 2; Minnesota 
  1.7             Statutes 1999 Supplement, section 256.955, 
  1.8             subdivisions 4, 8, and 9. 
  1.9   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.10     Section 1.  Minnesota Statutes 1998, section 256.955, 
  1.11  subdivision 1, is amended to read: 
  1.12     Subdivision 1.  [ESTABLISHMENT.] The commissioner of human 
  1.13  services shall establish and administer a senior citizen 
  1.14  prescription drug program.  Qualified senior citizens 
  1.15  individuals shall be eligible for prescription drug coverage 
  1.16  under the program beginning no later than January 1, 1999. 
  1.17     Sec. 2.  Minnesota Statutes 1998, section 256.955, 
  1.18  subdivision 2, is amended to read: 
  1.19     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
  1.20  the following definitions apply. 
  1.21     (b) "Health plan" has the meaning provided in section 
  1.22  62Q.01, subdivision 3. 
  1.23     (c) "Health plan company" has the meaning provided in 
  1.24  section 62Q.01, subdivision 4. 
  1.25     (d) "Qualified senior citizen individual" means an 
  1.26  individual age 65 or older a Medicare enrollee who: 
  1.27     (1) is eligible as a qualified Medicare beneficiary 
  2.1   according to section 256B.057, subdivision 3 or 3a, or is 
  2.2   eligible under section 256B.057, subdivision 3 or 3a, and is 
  2.3   also eligible for medical assistance or general assistance 
  2.4   medical care with a spenddown as defined in section 256B.056, 
  2.5   subdivision 5. has a household income that does not exceed 120 
  2.6   percent of the federal poverty guidelines for family size, using 
  2.7   the income methodologies specified for aged, blind, or disabled 
  2.8   persons in section 256B.056, subdivision 1a.  Persons who are 
  2.9   determined eligible for medical assistance according to section 
  2.10  256B.0575, who are eligible for medical assistance or general 
  2.11  assistance medical care without a spenddown, or who are enrolled 
  2.12  in MinnesotaCare, are not eligible for this program; 
  2.13     (2) is not enrolled in prescription drug coverage under a 
  2.14  health plan; 
  2.15     (3) is not enrolled in prescription drug coverage under a 
  2.16  Medicare supplement plan, as defined in sections 62A.31 to 
  2.17  62A.44, or policies, contracts, or certificates that supplement 
  2.18  Medicare issued by health maintenance organizations or those 
  2.19  policies, contracts, or certificates governed by section 1833 or 
  2.20  1876 of the federal Social Security Act, United States Code, 
  2.21  title 42, section 1395, et seq., as amended; 
  2.22     (4) has not had coverage described in clauses (2) and (3) 
  2.23  for at least four months prior to application for the program; 
  2.24  and 
  2.25     (5) is a permanent resident of Minnesota as defined in 
  2.26  section 256L.09. 
  2.27     Sec. 3.  Minnesota Statutes 1999 Supplement, section 
  2.28  256.955, subdivision 4, is amended to read: 
  2.29     Subd. 4.  [APPLICATION PROCEDURES AND COORDINATION WITH 
  2.30  MEDICAL ASSISTANCE.] (a) Applications and information on the 
  2.31  program must be made available at county social service 
  2.32  agencies, health care provider offices, and agencies and 
  2.33  organizations serving senior citizens and persons with 
  2.34  disabilities.  Senior citizens Individuals shall submit 
  2.35  applications and any information specified by the commissioner 
  2.36  as being necessary to verify eligibility directly to the county 
  3.1   social service agencies:  
  3.2      (1) beginning January 1, 1999, the county social service 
  3.3   agency shall determine medical assistance spenddown eligibility 
  3.4   of individuals who qualify for the senior citizen prescription 
  3.5   drug program of individuals; and 
  3.6      (2) program payments will be used to reduce the spenddown 
  3.7   obligations of individuals who are determined to be eligible for 
  3.8   medical assistance with a spenddown as defined in section 
  3.9   256B.056, subdivision 5. 
  3.10  Seniors Qualified individuals who are eligible for medical 
  3.11  assistance with a spenddown shall be financially responsible for 
  3.12  the deductible amount up to the satisfaction of the spenddown.  
  3.13  No deductible applies once the spenddown has been met.  Payments 
  3.14  to providers for prescription drugs for persons eligible under 
  3.15  this subdivision shall be reduced by the deductible.  
  3.16     County social service agencies shall determine an 
  3.17  applicant's eligibility for the program within 30 days from the 
  3.18  date the application is received.  Eligibility begins the month 
  3.19  after approval. 
  3.20     (b) The commissioner shall develop an application form for 
  3.21  the prescription drug program that does not exceed one page in 
  3.22  length, and which: (1) allows the use of information from an 
  3.23  applicant's state income tax form to determine eligibility; and 
  3.24  (2) requests information on monthly medical expenses to 
  3.25  determine potential eligibility for medical assistance or 
  3.26  general assistance medical care.  The commissioner shall make 
  3.27  this form available to applicants by January 1, 2001. 
  3.28     Sec. 4.  Minnesota Statutes 1999 Supplement, section 
  3.29  256.955, subdivision 8, is amended to read: 
  3.30     Subd. 8.  [REPORT.] The commissioner shall annually report 
  3.31  to the legislature on the senior citizen prescription drug 
  3.32  program.  The report must include demographic information on 
  3.33  enrollees, per-prescription expenditures, total program 
  3.34  expenditures, hospital and nursing home costs avoided by 
  3.35  enrollees, any savings to medical assistance and Medicare 
  3.36  resulting from the provision of prescription drug coverage under 
  4.1   Medicare by health maintenance organizations, other public and 
  4.2   private options for drug assistance to the senior covered 
  4.3   population, any hardships caused by the annual deductible, and 
  4.4   any recommendations for changes in the senior prescription drug 
  4.5   program. 
  4.6      Sec. 5.  Minnesota Statutes 1999 Supplement, section 
  4.7   256.955, subdivision 9, is amended to read: 
  4.8      Subd. 9.  [PROGRAM LIMITATION.] The commissioner shall 
  4.9   administer the senior prescription drug program so that the 
  4.10  costs total no more than funds appropriated plus the drug rebate 
  4.11  proceeds.  Senior Prescription drug program rebate revenues are 
  4.12  appropriated to the commissioner and shall be expended to 
  4.13  augment funding of the senior prescription drug program.  New 
  4.14  enrollment shall cease if the commissioner determines that, 
  4.15  given current enrollment, costs of the program will exceed 
  4.16  appropriated funds and rebate proceeds.  This section shall be 
  4.17  repealed upon federal approval of the waiver to allow the 
  4.18  commissioner to provide prescription drug coverage for qualified 
  4.19  Medicare beneficiaries whose income is less than 150 percent of 
  4.20  the federal poverty guidelines. 
  4.21     Sec. 6.  [INSTRUCTION TO REVISOR.] 
  4.22     The revisor of statutes shall change the phrase "senior 
  4.23  citizen drug program" wherever it appears in the next edition of 
  4.24  Minnesota Statutes and Minnesota Rules to "prescription drug 
  4.25  program." 
  4.26     Sec. 7.  [APPROPRIATION.] 
  4.27     $....... is appropriated from the general fund to the 
  4.28  commissioner of human services for the fiscal year ending June 
  4.29  30, 2001, to implement sections 1 to 5.