Organized Labor

Legislature and Governor Come Together to Assist Seniors and the Disabled Receive Medications During Coverage Changes

The California State Assembly today approved legislation to allocate $150 million to cover prescription drug costs for low-income and elderly Californians who have improperly been denied coverage under the federal government’s new Medicare Part D drug program.

This comes after the January 1 deadline where more than one million California seniors and disabled citizens whose prescription drugs were previously paid by Medi-Cal had their drug coverage transferred to Medicare. Problems with the new program have left many of these beneficiaries with significant out-of-pocket costs, or in some cases, unable to even obtain their prescription medications.

“In California alone, over 200,000 people have been unable to get their medicine without lengthy delays or being forced to pay exorbitant co-payments,” said Speaker pro Tem Leland Yee. “As a result of a flawed federal drug plan, our seniors have had to make the choice between buying their medications and putting food on the table. “

“Fortunately, we were able to come together in a bipartisan fashion to guarantee our seniors the prescription drugs they need,” Assemblyman Yee. “It is imperative that the federal government immediately reimburse the State for correcting their errors.”

Specifically, AB 132 would require the state Department of Health Services (DHS) to provide drug benefits to people enrolled in Medicare, who are also enrolled in Medi-Cal and receiving prescription drug benefits, and who are not able to obtain drug benefits from their prescription drug plan under the Medicare program. The bill appropriates $150 million from the General Fund to provide drug benefits for up to one month.

“While the Federal government gets its act together, we will make sure that the most vulnerable low-income Californians – the elderly and the disabled – can get the medications that keep them alive,” said Speaker Fabian Núñez. “In the meantime, the Republicans who control all branches of our Federal government in Washington D.C. need to reimburse the 20 states that are taking action on this issue.” 

AB 132, which is an urgency measure, will now be sent to the Governor for his signature.

Press Release
Assembly Speaker Pro Tem Leland Yee’s Office
Sacramento, January 19, 2006