ASSEMBLY, No. 988

STATE OF NEW JERSEY

Introduced Pending Technical Review by Legislative Counsel

PRE-FILED FOR INTRODUCTION IN THE 1996 SESSION

By Assemblymen MORAN and CONNORS

An Act concerning eligibility for "Pharmaceutical Assistance to the Aged and Disabled," amending and supplementing P.L.1975, c.194 and amending P.L.1978, c.171 and P.L.1979, c.27.

    Be It Enacted by the Senate and General Assembly of the State of New Jersey:

    1. (New section) A single or married resident whose income exceeds the income eligibility requirements in section 2 of P.L.1975, c.194 (C.30:4D-21) but who is otherwise eligible for Pharmaceutical Assistance to the Aged and Disabled, is eligible for assistance under P.L.1975, c.194 (C.30:4D-20 et seq.) for a period of a year when his prescription drug expenses incurred in that year and for which there was no third party reimbursement exceed the difference between his income for that year and the applicable income eligibility requirement.

    2. Section 1 of P.L.1975, c.194 (C.30:4D-20) is amended to read as follows:

    1. The commissioner shall establish a program which shall be known as "Pharmaceutical Assistance to the Aged and Disabled."

(cf: P.L.1975, c.194, s.1)

    3. Section 9 of P.L.1978, c.171 (C.30:4D-32) is amended to read as follows:

    9. The commissioner shall issue an annual report to the Governor and the Legislature by October 1 of each year. Such report shall include a summary of "Pharmaceutical Assistance to the Aged and Disabled" program activities for the preceding fiscal year and any recommendations or suggestions for legislative consideration.

(cf: P.L.1978, c.171, s.9)

    4. Section 1 of P.L.1979, c.27 (C.30:4D-34) is amended to read as follows:

    1. Any eligible person under the program of Pharmaceutical Assistance to the Aged and Disabled shall, upon the submission of such application and proof of expenditure as the department may prescribe, be reimbursed for the cost of all prescription drugs purchased by such person, minus a $2.00 copayment per prescription, during the period commencing 30 days after such person's properly completed application was received by the department and ending on the date on which such person received his proof of eligibility from the department; provided, however, that no reimbursement under this act shall be made for any prescription drug purchased prior to the effective date of this act.

(cf: P.L.1975, c.194, s.1)

    5. This act shall take effect immediately.

STATEMENT

    This bill provides an alternative means of eligibility for the "Phamaceutical Assistance to the Aged and Disabled (PAAD) program for a person having high drug bills but whose annual income exceeds the program's eligibility limits.

    Under the provisions of the bill, if an otherwise eligible person's annual income exceeds the program's current limits of $13,650 for a single person and $16,750 for a married person, but that person spends the amount of the difference between his income and the eligibility standard on drug purchases, the person would then qualify for the program and future drug costs would be covered by the program for one year.

Establishes spend down eligibility category for PAAD.