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Friday, July 07, 2006  
Prescription plan may shut down

Gov. Jon Corzine warned Wednesday that $5 million in weekly
prescription drug assistance for 190,000 seniors and the disabled
could be cut off due to the state budget showdown.

According to the Treasury Department, the state issued the final $4
million and $5 million in reimbursement payouts to pharmacies on
Wednesday. That leaves retailers in the position of essentially
accepting IOUs in exchange for providing subsidized pharmaceuticals.

"It is not that we will cut it off. Without an appropriations act
passed by the Legislature the state of New Jersey cannot spend money,"
said Anthony Coley, Corzine's spokesman. "The government is forced to
shut down because the Legislature has failed to pass a budget bill."

The development comes as a 5-day-old state shutdown widened on
Wednesday to include Atlantic City casinos, state parks and most state
offices.

Corzine shuttered all nonessential state services Saturday, when the
Legislature passed the constitutional deadline to approve his $31
billion budget.

In the Garden State, senior drug assistance comes in two main programs:

( The Pharmaceutical Assistance for the Aged and Disabled, or PAAD,
which covers those over 65 or disabled who meet federal guidelines.
The PAAD program has an income threshold of $21,850 for single seniors
and $26,791 for married couples;

( The second is the less generous Senior Gold program.

Both programs require enrollees to pay $5 co-pays. Drug providers then
seek reimbursement with the state.

Last year, the PAAD program cost the state $304 million; this year
Corzine budgeted $270 million.

"The program, of course, is very important. We have worked hard to
make sure these benefits are maintained from year to year. We have
every expectation there will be no disruption to the PAAD or Senior
Gold programs," said Jane Margesson, spokeswoman for the 1
million-member New Jersey chapter of the American Association of
Retired Persons.

"We don't expect any immediate impact."

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