Pennsylvania starts the Pace Plus Medicare program

Pennsylvania on Friday began the Pace Plus Medicare program, under which the Medicare prescription drug benefit will provide primary coverage for low-income residents and the state PACE and PACENET programs will fill any gaps in coverage, the AP/Philadelphia Inquirer reports (Levy, AP/Philadelphia Inquirer, 9/1).

The new program, proposed by Gov. Ed Rendell (D) in February, will fill the "doughnut hole" coverage gap in the Medicare prescription drug benefit and cover some medications not covered under Medicare (Kaiser Daily Health Policy Report, 2/2).

According to Tom Snedden -- director of PACE and PACENET, which together cover 312,000 beneficiaries -- the new program will reduce costs under the Medicare prescription drug benefit by an average of $1,200 annually.

No PACE and PACENET beneficiaries will pay more under the new program, state officials said. Under the new program, PACE beneficiaries will pay a monthly premium to one of six Medicare prescription drug plans selected by the state.

In addition, the $40 monthly deductible for PACENET beneficiaries, who have higher incomes, will decrease to no more than $32.59.

The new program also will benefit the 87,000 PACE and PACENET beneficiaries enrolled in Medicare Advantage plans. PACE and PACENET beneficiaries who have retirement plans that provide prescription drug coverage and those who did not purchase any medications in the past year will not enroll in the new program (AP/Philadelphia Inquirer, 9/1).