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RAWLINGS, BRANCH URGE ELDERLY CITY RESIDENTS TO ENROLL IN SENIOR PRESCRIPTION DRUG PLAN

Baltimore, MD (September 13, 2001) - More than 20,400 elderly Marylanders have enrolled in the state's new Senior Short-Term Rx Plan, filling two-thirds of the maximum slots available for the 2001 General Assembly's prescription drug subsidy act. CareFirst BlueCross BlueShield, the region's largest health insurance company, administers the program.

Baltimore City Delegates Howard P. Rawlings, chairman of the Appropriations Committee, Talmadge Branch, chairman of the Maryland Legislative Black Caucus, and CareFirst officials urged Baltimore's older citizens during a rally at the Waxter Center for Senior Citizens to enroll in the program while slots are still open. Enrollment is on a first-come, first-served basis.

"I strongly urge all eligible city residents to apply for this program now, and to help us convince our national leaders that only they have the resources to truly solve this problem," Rawlings said during the rally aimed at providing seniors with information about the plan. Rawlings acknowledged that the program is limited to two years, and praised Maryland legislators and participating insurance carriers paying for the plan for taking the lead to address this need.

"Maryland's legislators, with a big assist from CareFirst, have provided tremendous leadership on the issue of senior health care," Branch said. "The Senior Short-Term Rx Plan sets a national example of what corporate and government partnership can accomplish when gaps in policy let those less fortunate fall through the cracks."

Frances P. Doherty, CareFirst vice president for government affairs, said local governments do not have the resources to adequately address the issue themselves, that only Washington can solve the problem.

"The General Assembly leadership understood that, while this program is a stop-gap measure, it nevertheless is of immense significance to needy elderly citizens, some of whom must literally choose between buying food or filling prescriptions," Doherty said.

Enrollment in the program is limited to seniors aged 65 or older and certain disabled persons who qualify for Medicare. Applicants cannot participate in any other program or insurance plan that provides prescription drug benefits.

Coverage is limited to persons earning no more than 300 percent of the federal poverty guidelines, basically determined by the adjusted gross income of a household, as reported on income tax returns. For example, the threshold for a single person household is $25,770 while that for a two-member home is $34,830.

For a low $10 monthly premium, participants can receive up to $1,000 of prescription drug benefits for each of the two years of the program. Potential applicants with questions about the program should call 1-800-972-4612. Doherty also emphasized that enrollment is on a first-come, first-served basis and urged all those eligible to submit applications as quickly as possible.

Funding for the estimated $20 million-a-year program comes primarily from money diverted from the State's Substantial, Available and Affordable Coverage (SAAC) hospital rate discounts granted to CareFirst, Aetna U.S. Healthcare and Mid-Atlantic Medical Services, Inc. in return for their agreement to provide coverage for difficult-to-insure Marylanders. Doherty said CareFirst is contributing about $13 million a year to subsidize the cost of this program.

The Maryland Department of Health and Mental Hygiene (DHMH) and the Department of Aging are also helping to market the program. The Senior Short-Term Rx Plan is one element of a multi-pronged attack on the senior prescription drug problem that quickly evolved near the end of the 2001 legislative session, with support funding provided by Gov. Parris N. Glendening.

"Governor Glendening recognized the critical situation that some of our most vulnerable citizens are faced with in paying for prescription drugs," said DHMH Secretary Georges C. Benjamin, M.D. "His allocation of additional State funds for this public-private partnership will help provide a short-term to this complex problem."

The new Senior Short-Term Rx Plan replaces the Senior Rural Pharmacy Program enacted in 2000. About 1,600 senior citizens in 17 rural counties participated in that program. Applications for the new short-term plan can be obtained by calling 1-800-972-4612, or at any of Maryland's senior citizens centers.

Delegates Rawlings, Branch and Verna L. Jones, who was also in attendance, will each be receiving 2,000 flyers which they intend to distribute to churches in Baltimore City

CareFirst BlueCross BlueShield is a not-for-profit health care company which, along with its affiliates and subsidiaries, offers a comprehensive portfolio of health insurance products, direct health care and administrative services to 3 million individuals and groups in Northern Virginia, the District of Columbia, Maryland and Delaware.

To receive this news release electronically, call 1-800-914-6397.