State GOP plans for senior drug benefits

INDIANAPOLIS -- Republicans vying for control of the Indiana House pledged efforts Tuesday to make more seniors eligible for state prescription drug benefits, and help people save more for retirement.\nTheir proposals would expand the number of low-income seniors eligible under the HoosierRx program from an estimated 30,000 to 100,000. The program allows some residents age 65 and older to shave 50 percent off their medication costs up to yearly limits of $500, $750 or $1,000.\n"We think they have paid a lot into the state of Indiana over their lives, not only in taxes but in building this state, and the least we can do is make sure they have prescription drugs they need at an affordable price," said Rep. Mike Murphy, R-Indianapolis.\nDemocrats, who control the House 53-47, said the GOP proposals would cost more than $100 million at a time when the state still faces a budget deficit.\n"Even in good times this would be tough to do," said House Ways and Means Chairman B. Patrick Bauer, D-South Bend. "In tough times, they are really airing something that gives false hope to people."\nAlthough Democrats hold a slim majority now, all 100 seats are on the November ballot and control of the chamber is in contention. The party that wins will wield tremendous power over legislation and state spending over the next two years.\nRepublicans said they could pay for their plans by controlling overall state spending and rooting out inefficiencies in state government.\nTheir proposal would extend prescription drug benefits to seniors with incomes at 200 percent of the federal poverty level ($1,476 for a single person, $1,990 for a couple) who are not covered under other government or private plans.\nThe current limit is 133 percent of the poverty level, which is $997 a month for a single person and $1,344 for a married couple.\nHouse Republicans also want to cap out-of-pocket prescription drug costs for low-income seniors who face so-called "catastrophic" illness expenses. Murphy said he hoped the cap could be lower than $4,000 a year.\nThe GOP also proposed what it called a "Nest Egg Protection Act." Among other things, it would exempt dividend and interest income up to $1,000 from state taxes.\nRep. Jeff Espich, R-Uniondale, said the tax exemptions would cost the state about $30 million a year. Because of the state's budget crunch, it could be limited initially to senior citizens at a cost between $10 million to $15 million, he said.