1.1                          A bill for an act 
  1.2             relating to health; expanding the senior citizen drug 
  1.3             program; creating a senior prescription drug endowment 
  1.4             fund; appropriating money; amending Minnesota Statutes 
  1.5             1998, section 256.955, subdivisions 2 and 7; proposing 
  1.6             coding for new law in Minnesota Statutes, chapter 256. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  Minnesota Statutes 1998, section 256.955, 
  1.9   subdivision 2, is amended to read: 
  1.10     Subd. 2.  [DEFINITIONS.] (a) For purposes of this section, 
  1.11  the following definitions apply. 
  1.12     (b) "Health plan" has the meaning provided in section 
  1.13  62Q.01, subdivision 3. 
  1.14     (c) "Health plan company" has the meaning provided in 
  1.15  section 62Q.01, subdivision 4. 
  1.16     (d) "Qualified senior citizen" means an individual: 
  1.17     (1) who is age 65 or older who:; 
  1.18     (1) is eligible as a qualified Medicare beneficiary 
  1.19  according to section 256B.057, subdivision 3 or 3a, or is 
  1.20  eligible under section 256B.057, subdivision 3 or 3a, and is 
  1.21  also eligible for medical assistance or general assistance 
  1.22  medical care with a spenddown as defined in section 256B.056, 
  1.23  subdivision 5.  Persons who are determined eligible for medical 
  1.24  assistance according to section 256B.0575, who are eligible for 
  1.25  medical assistance or general assistance medical care without a 
  1.26  spenddown, or who are enrolled in MinnesotaCare, are not 
  2.1   eligible for this program (2) whose income is equal to or less 
  2.2   than 200 percent of the federal poverty guidelines for the 
  2.3   applicable family size; 
  2.4      (3) whose assets are no more than twice the asset limit 
  2.5   used to determine eligibility for the supplemental security 
  2.6   income program; 
  2.7      (2) (4) who is not enrolled in prescription drug coverage 
  2.8   under a health plan; 
  2.9      (3) (5) who is not enrolled in prescription drug coverage 
  2.10  under a Medicare supplement plan, as defined in sections 62A.31 
  2.11  to 62A.44, or policies, contracts, or certificates that 
  2.12  supplement Medicare issued by health maintenance organizations 
  2.13  or those policies, contracts, or certificates governed by 
  2.14  section 1833 or 1876 of the federal Social Security Act, United 
  2.15  States Code, title 42, section 1395, et seq., as amended; 
  2.16     (4) (6) who has not had coverage described in clauses 
  2.17  (2) (4) and (3) (5) for at least four months prior to 
  2.18  application for the program; and 
  2.19     (5) (7) who is a permanent resident of Minnesota as defined 
  2.20  in section 256L.09. 
  2.21     Persons who are determined eligible for medical assistance 
  2.22  according to section 256B.0575, who are eligible for medical 
  2.23  assistance or general assistance medical care without a 
  2.24  spenddown, or who are enrolled in the MinnesotaCare program, are 
  2.25  not eligible for this program. 
  2.26     Sec. 2.  Minnesota Statutes 1998, section 256.955, 
  2.27  subdivision 7, is amended to read: 
  2.28     Subd. 7.  [COST SHARING.] (a) Enrollees shall pay an annual 
  2.29  premium of $120.  
  2.30     (b) Program enrollees must satisfy a $300 annual 
  2.31  deductible, based upon expenditures for prescription drugs, to 
  2.32  be paid as follows: 
  2.33     (1) $25 monthly deductible for persons with a monthly 
  2.34  spenddown; or 
  2.35     (2) $150 biannual deductible for persons with a six-month 
  2.36  spenddown.  
  3.1      Sec. 3.  [256.956] [SENIOR PRESCRIPTION DRUG ENDOWMENT 
  3.2   FUND.] 
  3.3      Subdivision 1.  [CREATION.] The senior prescription drug 
  3.4   endowment fund is created as an account in the state treasury.  
  3.5   The commissioner of finance shall credit to the fund one-half of 
  3.6   each tobacco settlement payment received by the state in the 
  3.7   month of December beginning December of 1999 as a result of the 
  3.8   settlement of the lawsuit styled as State of Minnesota v. Philip 
  3.9   Morris Incorporated, No. C1-94-8565.  The state board of 
  3.10  investment shall invest the fund under section 11A.24.  All 
  3.11  earnings of the fund must be credited to the fund.  
  3.12     Subd. 2.  [EXPENDITURES.] The purpose of the fund is to 
  3.13  provide money to be used for the senior citizen drug program 
  3.14  established under section 256.955.  Beginning July 1, 2000, and 
  3.15  on July 1 of each year thereafter, a sum equal to the projected 
  3.16  net cost of the senior citizen drug program for the following 
  3.17  fiscal year is appropriated from the fund to the commissioner of 
  3.18  human services to be used for the program.  
  3.19     Sec. 4.  [APPROPRIATIONS.] 
  3.20     $....... is appropriated from the general fund to the 
  3.21  commissioner of human services to be used for the senior citizen 
  3.22  drug program established under Minnesota Statutes, section 
  3.23  256.955. 
  3.24     $....... is appropriated from the general fund to the 
  3.25  commissioner of human services for the increased medical 
  3.26  assistance cost due to the senior citizen drug program.  Of the 
  3.27  appropriation, $....... is available for fiscal year 2000 and 
  3.28  $....... is available for fiscal year 2001.