Christie announces 'budget fix' to cancel a proposed $310 deductible, increased co-pays for prescription drugs
Gov. Chris Christie speaks to seniors about rolling back cuts in health care at the Gregorio Towers in Linden today.
LINDEN — Gov. Chris Christie this morning said he would reverse course on a contested plan to raise prices on prescription drugs for seniors in state health care programs, canceling a proposed $310 deductible and increased co-pays.
At an event in front of more than 100 seniors, Christie said he would send the Legislature a $55.5 million “budget fix” to restore the cuts to the Pharmaceutical Assistance for the Aged and Disabled and other senior programs in his proposed $29.3 billion budget for the fiscal year that begins in July.
The Republican governor’s move is an attempt, in part, to short-circuit a Democratic bill up for approval Thursday that would also restore the cuts to drug programs.
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"We will not change PAAD, and we will not change Senior Gold one bit," Christie said, referring to the state prescription drug programs. "It will go back the way it was before."
Democrats have made restoring cuts to seniors a top budget priority, pushing for a tax increase on income over $1 million to pay for the prescription drug benefits and property tax rebates for seniors - a much more expensive item.
Instead, Christie said the change was made possible by changes to Medicare Part D included under President Obama's health care overhaul, as well as by higher rebates from drug manufacturers to the state and increased use of generic drugs by seniors. He said those factors "allow us to restore the program in its entirety."
Christie made the announcement the day before Democrats, who control the Legislature, are scheduled to approve the income tax increase and restoration of the cuts to senior drug and rebate programs. Without mentioning the millionaires tax, Christie highlighted the contrast in his announcement.
"That's great news for seniors," he said. "Your prescription drugs won't cost you any more than they cost you right now. We were able to do it without increasing anybody's taxes."
Nearly 164,000 seniors in New Jersey are enrolled in the programs, the governor’s office said.
Christie had proposed collecting $39.7 million from a $310 deductible and $15.8 million from co-pay changes - including charging $15 instead of $7 for brand-name drugs, the governor’s office said. The budget will still include a plan to lower co-pays for generic drugs to $5.
To pay for the changes, the governor said the state will see $10.4 million in savings when people use more generic drugs instead of brand-name, $13 million in rebates from manufacturers, $22.8 million in Medicare costs picked up by the federal government, and $9.3 million in savings from a closed loophole in Medicare coverage starting in January.
A spokesman for Senate President Stephen Sweeney (D-Gloucester) declined immediate comment.
Lisa Fleisher and Josh Margolin contributed to this report.
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