Posted At Twin Cities

BY : Jeremy Olson

Minnesota Gov. Tim Pawlenty wants to use the state's negotiating leverage to obtain cheaper prescription drugs for the uninsured and possibly for seniors enrolled in Medicare Part D.

The governor proposed Wednesday a new Minnesota Pharmacy Access Program that would extend discounts negotiated for the state's low-income Medicaid beneficiaries to roughly 26,000 people lacking insurance. The program's target group makes too much to qualify for Medicaid but too little to afford private health plans.

By Pawlenty's estimates, the state could negotiate 50 percent discounts on generic drugs but the savings for brand-name drugs would be lower.

"We will be utilizing the bulk purchasing power of state government to achieve those kinds of discounts for the uninsured population," he said.

The Legislature would need to approve the plan, which would cost $2.5 million over three years. The income limit for the program would be $38,520 for a family of two.

DFL lawmakers announced a proposal earlier this month to give all Minnesotans drug discounts similar to those that the state obtains to cover drug costs for prisoners and residents of state mental health facilities.

Pawlenty said the DFL alternative might violate federal law because the program that negotiates drug discounts for prisoners can only be applied to people for whom the state acts as caretaker. The author of the DFL proposal, Rep. Tony Sertich of Chisholm., clarified that he wasn't trying to expand the actual program, but to use it as a model for a new program.

Sertich said he was encouraged by the similarities of the two proposals, though he favored the DFL option because it proposes discounts for all Minnesotans, regardless of income or insurance status.

"It's good to see the governor looking at investing in a solution here," he said.

Some DFL leaders have criticized Pawlenty's RxConnect program, which helps Minnesotans order cheaper prescription drugs from Canada or the United Kingdom. Pawlenty said he wants RxConnect to continue even if the new plan for the uninsured is funded.

The new discount proposal isn't designed as an alternative for seniors to Medicare Part D, but Pawlenty said his administration is examining whether it can negotiate discounts for this group as well. Many Part D plans have so-called doughnut holes in which seniors are responsible for all of their drug costs until they reach a catastrophic limit.

It is possible that eligible seniors could use state discounts to lower these costs, Pawlenty said.

Pawlenty also announced a program to provide additional help and information to seniors enrolling in the new federal Part D program.

The increased assistance, at a cost of $4.5 million over the next three years, would primarily expand existing state help lines that have been overwhelmed with calls from seniors trying to enroll for Part D or having problems with benefits that took effect Jan. 1.

Roughly 700,000 people in Minnesota are eligible for Part D, but Pawlenty estimated that less than half have enrolled so far.