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News Release

HHS APPROVES EXPANDING PHARMACY BENEFITS TO INDIANA ELDERLY

HHS Secretary Tommy G. Thompson today announced the approval of an Indiana program that will provide access to Medicaid prescription drug benefits for low-income seniors. Indiana officials estimate that eventually more than 44,000 low-income seniors across the state will be aided under the HoosierRx program -- roughly triple the number now being served under the state's existing pharmacy program.

"With this waiver, HoosierRx will provide access to prescription drug coverage to tens of thousands more Indiana seniors who really need the help," Secretary Thompson said. "Drug costs are skyrocketing, and many low-income seniors simply can't pay for them. As we work with Congress to modernize the Medicare program to give seniors more choices and better benefits, we will continue to work with states to offer these kinds of Medicaid programs to help seniors right away."

With today's approval, Indiana will receive federal matching funds to extend Medicaid prescription drug coverage to seniors. Indiana's program will serve persons with incomes up to 135 percent of the federal poverty level (FPL). The co-payment system will be on a sliding scale based on the person's income with annual benefit caps ranging between $500 and $1,000.

The waiver was approved under HHS' Pharmacy Plus program, which allows states to provide prescription drugs through Medicaid to Medicare beneficiaries and other individuals with family incomes up to 200 percent of the FPL. The FPL for 2003 is $8,980 for an individual.

To date, HHS has approved Pharmacy Plus programs in six states -- Florida, Illinois, Indiana, Maryland, South Carolina and Wisconsin -- that are expected to provide drug benefits to more than half a million Medicare beneficiaries. Other states have proposed similar programs in an effort to provide relief to low-income individuals in the face of increasing prescription drug costs.

"President Bush has affirmed his commitment to strengthen Medicare with prescription drug coverage and to provide relief to seniors as quickly as possible, " said Tom Scully, administrator of the Centers for Medicare & Medicaid Services, which is the federal agency that manages the two health-care programs. "Seniors should not have to wait any longer."

By law, Medicare does not cover most outpatient prescription drugs, leaving many seniors without access to affordable prescription drugs. The new HoosierRx program is a demonstration project under Medicaid, a partnership between state and federal governments that provides health benefits to more than 40 million low-income Americans, including those with disabilities and older Americans living in nursing facilities. Medicare, Medicaid's sister program, is a federal program that covers about 40 million senior citizens.

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Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.

Last Revised: April 10, 2003