SeniorCare |
Program Basics
SeniorCare is a prescription drug assistance program for Wisconsin residents over age 65 who need help paying for their prescriptions. The program was designed so that low-income seniors do not have to choose between paying for prescription drugs and paying for other life essentials like food and housing. All program participants pay a $30 annual enrollment fee and have deductibles and co-payments that vary depending on their annual income. According to the Department of Health Services, there are currently 85,000 Wisconsin residents over 65 who depend on SeniorCare for their prescriptions drugs.
Previous SeniorCare Budgets
Governor Walker proposed significant changes to SeniorCare in his 2011-2013 budget. The proposal would have required seniors to first enroll in the Medicare Part D prescription drug program--which is the federal prescription drug subsidy for Medicare beneficiaries--before enrolling in SeniorCare. This proposal was removed by the Joint Finance Committee after significant concerns were raised by those who rely on the program and organizations that advocate on behalf of older adults because Medicare Part D has higher costs for beneficiaries than SeniorCare. Over 15,000 people signed petitions in opposition to the proposal.
Governor Walker's Proposed 2015-2017 Budget
The Governor’s proposed 2015-2017 budget would resurrect the significant changes to SeniorCare that were contained in the 2011-2013 budget by cutting $15 million (about 40%) from the program’s budget and requiring seniors to first enroll in the Medicare Part D prescription drug program. Current program participants would not have to comply with this requirement until January 1, 2016. According to advocates for older adults, the proposed requirement to first enroll in Medicare Part D would increase the average annual out-of-pocket costs by approximately $700 for SeniorCare enrollees, along with increasing the administrative complexity of signing up for prescription drug coverage. Furthermore, SeniorCare is more cost efficient than Medicare Part D as Wisconsin can negotiate with pharmaceutical companies for cheaper drug prices than individuals can often get with Medicare Part D.
Governor Walker's Proposed Budget As Amended by the Joint Committee on Finance
The Joint Committee on Finance rejected the Governor’s proposed program changes and budget cuts to SeniorCare. The Legislative Fiscal Bureau (LFB) estimated that many low-income seniors who fall into a relatively likely scenario would pay about $188 a year more for their prescription drugs if the Governor’s proposed changes were approved.
Final 2015-2017 SeniorCare Budget
The SeniorCare program will remain unchanged for seniors who rely on it for prescription drugs due to the Joint Committee on Finance's rejection of the Governor's proposed changes to the program. Due to increased program costs and growing enrollment, the the state will have to expend an additional $39 million on the program over the biennium. This revenue will come from a combination of state funds, federal medicaid funds, and program revenue from rebate
payments DHS collects from drug manufacturers.
Impact on Wisconsin Women and Girls
The Governor's proposed changes to SeniorCare would have greatly stressed the budgets of many Wisconsin seniors due to the increased costs of purchasing insurance through Medicare Part D on their limited budgets. Women make up 56% of all older Medicare beneficiaries and two-thirds of beneficiaries ages 85 or older. The proposed SeniorCare changes would have disproportionately affected elderly women, as women live longer than men, on average, and experience a greater share of health and functional problems in their old age. Additionally, older women often have less income and receive lower Social Security and pension benefits than older men, because of the gender pay gap and less time spent in the workforce during their working years. The JFC's rejection of the Governor's proposed changes to SeniorCare is a great relief to the thousands of Wisconsin women who rely on the program.
For more analysis on the impact of these changes, check out our blog: SeniorCare Program Proposed Changes Would Increase Prescription Drug Costs for Low-Income Seniors; Joint Committee on Finance Approves Governor’s Recommended Changes to BadgerCare for Childless Adults, Rejects Federal Medicaid Expansion Money, and Rejects Governor’s Proposed Changes to SeniorCare.
For more analysis on the impact of these changes, check out our blog: SeniorCare Program Proposed Changes Would Increase Prescription Drug Costs for Low-Income Seniors; Joint Committee on Finance Approves Governor’s Recommended Changes to BadgerCare for Childless Adults, Rejects Federal Medicaid Expansion Money, and Rejects Governor’s Proposed Changes to SeniorCare.