Wisconsin's $62 million windfall for Big Pharma

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Wisconsin's Gov. Jim Doyle's administration is reviewing how best to maintain prescription drug services to the elderly after the federal government rejected the state's request to extend the popular SeniorCare program.

Regardless, Doyle said at a news conference that the decision likely kills the program, forcing the 104,000 people on SeniorCare to use the Medicare Part D drug plan.

"It's pretty hard to say it can be salvaged," Doyle said of SeniorCare.

Losing SeniorCare would cost taxpayers money and increase the price Wisconsin's elderly pay for medications, he said.

He said he will ask lawyers to review the federal decision.

In an April 3 letter to Doyle, Leslie Norwalk, acting administrator for the Centers for Medicare and Medicaid Services, said the federal government wavier allowing Wisconsin to operate SeniorCare would expire June 30 because state officials had not proven the program was cost-neutral. She said the state's waiver request didn't include information about the assets of program participants, which would help determine if SeniorCare saved taxpayers money.

The agency would consider allowing the program to continue through the end of this year if the state abandoned SeniorCare and created a program to supplement the federal Medicare Part D prescription drug plan, she said.

Kevin Hayden, secretary of the Department for Health and Family Services, said Wednesday he has asked that the waiver be extended through 2007 so the state has time to create a new program. He said he expects it will be granted.

Doyle said one option under consideration by the administration would be the creation of a supplemental program. He said there are other options he wouldn't disclose.

Darlene Finch, 70, of Oregon, was upset by the Bush administration decision.

"It's devastating that they're canceling out SeniorCare," Finch said. "I can't understand. SeniorCare is a very good program. Why are they are so determined to cancel it?"

A retired switchboard operator, Finch said one of her rheumatoid arthritis drugs costs $1,400 a month. She said under Medicare Part D, the government would pay for the first $2,500, then she would have to pay the next $3,000 before the plan would cover additional costs. That's money she said she can't afford. With SeniorCare, she gets the same drug for about $15 per month, she said.

Doyle said Wednesday that the savings for people like Finch comes after the state negotiates big price discounts with drug companies.

This year, SeniorCare will cost the state $57.6 million and the federal government $53.6 million.

The program saves $62.2 million through drug company discounts, the state said.
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