Money for drug plan not released
By Zenaida Serrano Espanol
Advertiser Staff Writer
Advocates for senior citizens and low-income families yesterday expressed frustrations that a law adopted last year to provide discounts on prescription drugs has not yet taken effect.
The Healthy Hawai'i Prescription Drug Program is pending federal approval, although Gov. Linda Lingle's administration has indicated approval isn't likely. Therefore, the administration isn't releasing money appropriated to implement the program.
Dozens attended a Senate informational hearing at the State Capitol in support of Act 75, which would use the Medicaid program to provide discounts on prescription drugs to more than 150,000 Hawai'i residents whose incomes are within 300 percent of the federal poverty level and who either lack or have inadequate drug coverage.
Senate Commerce, Consumer Protection and Housing Committee Chairman Ron Menor, D-17th (Mililani, Waipi'o), said for implementation to occur, the state would have to obtain a Medicaid waiver from the U.S. Department of Health and Human Services' Center for Medicaid & Medicare Services.
The waiver is needed "because the Healthy Hawai'i Program is considered to be a Medicaid Demonstration Project under Section 1115 of the Social Security Act ... so what we're talking about is an expansion to the Medicaid program to people who cannot afford the medications that they need," Menor said.
The state Department of Human Services submitted a Medicaid waiver application in January to the center, but has not yet received a decision from federal officials.
"Clearly we need a response before we can move to the next step, so we are kind of at a holding pattern and that's been very difficult," said Patricia Murakami, acting deputy director for the Department of Human Services.
AARP Hawai'i state director Greg Marchildon was among the representatives from several organizations — including the Kokua Council, ILWU Local 142 and the Coalition for Affordable Long Term Care — who testified in support of the program.
"We all must speak up and tell Governor Lingle that she needs to lobby her friends in the Bush administration and encourage them to approve the waiver," Marchildon said.
Once the federal government approves the application, state money would be needed to initiate the program, Menor said. Although the Legislature approved $1.5 million to accomplish that, Menor said Lingle isn't releasing the money.
Randy Roth, the governor's senior policy adviser, said the reason is the application would likely be disapproved.
"It's my understanding that (the reasons are) multifaceted, but it includes the fact that Act 75 is based on 300 percent of poverty. ... It would be very difficult, if not impossible, to get a waiver for a program that would have that generous of a definition of the qualifying group," Roth said.
Lingle is working on forming a committee made up of representatives from the House and Senate, along with state Health Department director Chiyome Fukino and state Human Services Department director Lillian Koller, Roth said.
The committee's goal is "to try to put together a new variation of what might be called 'Healthy Hawai'i,' and to try very hard to have a program that will help the people of Hawai'i and qualify for a Medicaid waiver," he said.
Reach Zenaida Serrano Espanol at zespanol@honoluluadvertiser.com or 535-8174.
