September 21, 2024
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Senators: States will get drug claim funds

PORTLAND – Maine’s senators said Friday they have received assurances that Maine and other states will be reimbursed for millions of dollars they have paid up front to avert disruption of benefits to senior citizens enrolled in the new Medicare drug program.

Sens. Olympia Snowe and Susan Collins said the assurance came from Secretary of Health and Human Services Michael Leavitt, who told them that private drug plans that provide coverage to Medicare beneficiaries have committed to repaying states for the cost of the prescriptions.

“He assured me that the various prescription drug plans will repay the states, and that he has the legal authority to make sure those companies follow through,” Snowe said. “The bottom line is that Maine must be compensated for the $5 million it has spent to ensure that our most vulnerable citizens receive the lifesaving medicine they need.”

The federal government took on the responsibility Jan. 1 of subsidizing prescription drug costs for low-income seniors and the disabled. But when computer errors and other startup problems hindered efforts by pharmacies to confirm if their customers were enrolled in the program, the state stepped in to cover the cost of those prescriptions.

Snowe said 25 states have moved to pick up the cost of prescriptions. Maine has been spending about $300,000 a day, she said.

As a backup plan, Snowe and Sen. Frank Lautenberg, D-N.J., co-sponsored a bill that would force the federal government to reimburse states.


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