LRB-4180/1
DAK:kjf:pg
2003 - 2004 LEGISLATURE
February 23, 2004 - Introduced by Representatives Shilling, Cullen, Hines,
Krusick, Kreibich, Zepnick, Sinicki, M. Lehman, Turner, J. Lehman,
Gronemus, Pocan, Miller, Berceau, Gunderson, Black, Plouff, Hebl,
Molepske, Musser, Staskunas, Pope-Roberts, Van Akkeren and J. Wood,
cosponsored by Senators Hansen, Breske, Robson, Lassa, Carpenter,
Erpenbach, Chvala, Coggs, Wirch, A. Lasee and Schultz. Referred to
Committee on Health.
AB896,1,4
1An Act to create 49.688 (4r) of the statutes;
relating to: treating property taxes
2as a deduction to annual household income for purposes of determining
3eligibility and deductible amounts under the prescription drug assistance
4program for the elderly.
Analysis by the Legislative Reference Bureau
Under current law, elderly persons may purchase prescription drugs at reduced
amounts under a program commonly known as "Senior Care." A person is eligible
for Senior Care if he or she is a state resident, is at least 65 years of age, is not a
medical assistance (MA) recipient or does not receive prescription drug coverage as
an MA recipient, and his or her annual household income, as determined by the
Department of Health and Family Services (DHFS), does not exceed 240 percent of
the federal poverty line. A person must pay an annual $30 fee to enroll in Senior
Care. An enrollee pays the "program payment rate" for prescription drugs (105
percent of the MA prescription drug payment rate plus a dispensing fee) until the
enrollee has met an annual deductible, if applicable, and thereafter pays only a
copayment of $5 for generic prescription drugs and a copayment of $15 for nongeneric
prescription drugs. A person whose annual household income is 160 percent or less
of the federal poverty line pays no deductible; if the person's annual household
income is more than 160 percent but not more than 200 percent of the federal poverty
line, the deductible is $500; and if the person's annual household income exceeds 200
percent of the federal poverty line, the deductible is $850. Other persons who meet
all of the requirements except the income limitation are also eligible to purchase
prescription drugs for the $5 and $15 copayment amounts for the time remaining in
a 12-month period after spending the difference between their annual household
income and 240 percent of the federal poverty line by paying for prescription drugs
at the retail price and satisfying the $850 deductible by purchasing prescription
drugs at the program payment rate.
This bill requires that in determining a person's annual household income for
purposes of Senior Care eligibility, DHFS must deduct the amount that the person
paid in property taxes on his or her primary residence in the previous 12 months.
DHFS must also use the annual household income adjusted for property taxes to
determine the appropriate deductible amount for persons who are enrolled in Senior
Care.
For further information see the state fiscal estimate, which will be printed as
an appendix to this bill.
The people of the state of Wisconsin, represented in senate and assembly, do
enact as follows:
AB896, s. 1
1Section
1. 49.688 (4r) of the statutes is created to read:
AB896,2,82
49.688
(4r) In determining a person's annual household income under sub. (2)
3(a) 4. and (b) for purposes of determining eligibility for prescription drug assistance
4and under sub. (3) (b) 1. and 2. a. for purposes of establishing the required deductible
5amount, the department shall deduct the amount of property taxes that the person
6or any member of his or her household paid on the person's primary residence in the
712-month period before the department makes an eligibility determination under
8sub. (4).
AB896,2,1210
(1)
Deductible. The treatment of section 49.688 (4r) of the statutes first applies
11to eligibility determinations made and deductible amounts paid on the effective date
12of this subsection.
AB896,3,2
1(1)
This act takes effect on the first day of the 2nd month beginning after
2publication.
