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The Honolulu Advertiser

Posted on: Thursday, July 1, 2004

Prescription drug plan in effect today

By Lynda Arakawa
Advertiser Capitol Bureau

Hawai'i residents enrolled in the state's new prescription drug discount program will be able to pay reduced prices on their medicine beginning today.

New laws

Among the new laws that take effect today:

• A prescription drug discount program for residents who are uninsured or underinsured. Enrolled individuals can get immediate discounts from participating pharmacies.

• Most cell phone users will be charged an extra 66 cents a month to pay for an enhanced 911 system.

• Cigarette taxes will increase 10 cents for a 20-cigarette pack.

• Motorists who speed faster than 90 mph can have their drivers licenses revoked for up to five years.

• State department directors and deputies will get pay raises.

• • •

Hawai'i Rx Plus

To qualify, you must:

• Be a Hawai'i resident

• Lack prescription drug coverage or have exceeded your drug coverage

• Earn no more than:

  • $37,464 for a household of 1
  • $50,268 for a household of 2
  • $63,084 for a household of 3
  • $75,888 for a household of 4
  • $88,704 for a household of 5
  • $101,508 for a household of 6
  • $114,324 for a household of 7
  • $127,128 for a household of 8

For more information or for an application, visit the program's Web site or call the Aloha United Way's 211 hotline. AARP Hawai'i also has the application and information on its Web site.

The state Department of Human Services will hold enrollment drives today at: Hale Nani Rehabilitation and Nursing Center at 1677 Pensacola St., from 9:30 to 11 a.m.; Safeway on Beretania Street, from 11:30 a.m. to 1 p.m.; state Capitol Atrium, from 2 to 3:30 p.m.; Safeway on Pali Highway, from 4:15 to 5:45 p.m.

The program, Hawai'i Rx Plus, is aimed at making prescription drugs more affordable for residents who are uninsured or underinsured. The state Department of Human Services has enrolled more than 100 residents so far and embarked on a campaign to sign up thousands more.

The law establishing the program is among dozens that will go into effect today. Today also marks the beginning of the new fiscal year, when state agencies can begin spending money appropriated to them in the budget.

Not all the money can be spent, however, because Gov. Linda Lingle has ordered spending restrictions on state departments, citing future cost increases such as public worker pay raises, debt service, the state retirement system and employee healthcare.

The Hawai'i Rx Plus program is intended to reduce prescription drug costs in two phases. During the first, which begins today, participating pharmacies will give those enrolled in the program the Medicaid price on drugs. That is estimated to save consumers between 9 percent and 20 percent, depending on the drug. People enrolled will be mailed a Hawai'i Rx Plus card to show pharmacies.

The first phase is meant to draw people into the program and build up a purchasing pool for the second phase, which begins July 2005. At that point the state will use the number of participants in the pool as leverage to negotiate supplemental rebates with drug manufacturers. Lawmakers and advocates expect the rebates will give consumers additional savings of 15 percent to 60 percent.

Of the 161 pharmacies in Hawai'i, 88 have agreed to participate, said human services department director Lillian Koller, who expects 90 percent participation eventually.

Koller said drug insurance is generally better than a discount program, but that enrolling in the program would help people whose insurance doesn't cover all of their medicine.

Also beginning today, most cell phone users will be charged an extra 66 cents a month to pay for an enhanced 911 system that would help public safety officials find callers. Government-issued cell phones and those with prepaid connections would be exempt from the charge.

Supporters say such locator-service technology, which would be set up by wireless providers and county public safety agencies, could help find lost hikers and boaters, as well as crime victims or someone who needs other help and can't speak.

The cigarette tax will also increase from 6 1/2 cents to 7 cents per cigarette. It is the third and final scheduled cigarette tax increase mandated by a 2002 law.

Another law in effect today allows the revocation of licenses of people who drive faster than 90 mph. Licenses can be revoked for up to five years.

There also will be increased fines for repeatedly letting a car alarm sound longer than 5 minutes. Currently the registered owner of the motor vehicle faces fines of not more than $100, but the new law sets fines that can reach $500.

Raises for department directors and their deputies also take effect today — the first pay hike since 1990.

Salaries for department heads — who all make $85,302 annually — will be broken into four pay tiers as recommended by the Executive Salary Commission. The increases range from 6 percent to 23 percent, with the state Attorney General getting the highest pay increase at $105,000 annually.

Reach Lynda Arakawa at larakawa@honoluluadvertiser.com or at 525-8070.