NOTE: As provided in LFC policy, this report is intended for use by the standing finance committees of the legislature.  The Legislative Finance Committee does not assume responsibility for the accuracy of the information in this report when used in any other situation.

Only the most recent FIR version, excluding attachments, is available on the Intranet. Previously issued FIRs and attachments may be obtained from the LFC office in Suite 101 of the State Capitol Building North.

(Parenthesis ( ) Indicate Expenditure Decreases)

SOURCES OF INFORMATION

Agency on Aging (AOA)

Veterans' Services Commission (VSC)

SUMMARY

     Synopsis of Bill

SB 470 appropriates $215,000 to the State Agency on Aging to be used to implement a statewide Outreach Program to assist eligible individuals to enroll or access to the Prescription Drug Patient Assistance Program and the Veterans' Administration Health Care Program.

     Significant Issues

The Medicare program provides health insurance for seniors and people with disabilities. Presently this program offers no drug benefit, forcing beneficiaries to purchase high cost medications or supplemental insurance to meet these costs. SB 470 will provide an avenue for seniors and persons with disabilities to access other programs for assistance. Although Medicare HMO Plans may become available once again, these plans are primarily available in limited urban parts of the state. SB 470 will assist seniors and persons with disabilities who do not live in the urban centers or who can not afford many costly medications.

FISCAL IMPLICATIONS

SB 470 appropriates $215.0 from the general fund for FY02 to the AOA. Any unexpended or unencumbered balance remaining at the end of FY02 shall revert to the general fund.

ADMINISTRATIVE IMPLICATIONS

The AOA is requesting one FTE in order to comply with the requirements of SB 470.

RELATIONSHIP

Relates to:

HB 297, NM Prescription Drug Discount Act

HB 298, Native American Prescription Drug Program

HB 300 Special Prescription Drug Program for Seniors

HB 301, Prescription Drug Fair Pricing Act

HB 302, Prescription Drug Benefit for Seniors

HB 519, Prescription Drugs from Canada or Mexico

HB 537, Prescription Drug ID Cards

SB 65, Program for Veterans in Rural Areas

SB 140, Native American Prescription Drug Program

SB 141, Prescription Drug Fair Pricing Act

SB 142, NM Prescription Drug Discount Act

SB 143, Medicaid Prescription Drug Plan for Seniors

SB 144, Prescription Drug Bulk Purchasing Act

HJM 21, Affordable Drug Program Options for Seniors

HJM 22 Study Rising Costs of Prescription Drugs

OTHER SUBSTANTIVE ISSUES

Low-income seniors and persons with disabilities will continue to be at a disadvantage and many will not be able to purchase medicine or do so at a reasonable cost. According to the AOA, there is significant under-utilization of both the Prescription Drug Program and Veterans' Health Care Program. The AOA has demonstrated that, through outreach initiatives such as SB 470 mandates, they have been successful in helping individuals apply and enroll in other entitlement programs or access social and health care services.

DW/njw