2. State Policy Changes Pharmacy Benefit Changes Impacting State Administered Programs (Medicaid, SAGA, ConnPACE) Pharmacy Benefit Changes Impacting Medicare Part D

3. Medicaid Fee-for-Service (Adults) Provides medical assistance to needy adults who meet “financial” and “categorical” eligibility requirements – Financial: income and assets must be within certain limits – Categorical: adults must be 65 +, or between 18-65 and “totally and permanently” disabled or legally blind 50% state funded with 50% federal match (Therefore, states must follow federal rules for the program.) Also known as “Title XIX “ or “Title 19”

4. Medicaid vs. Medicare Medicaid is NOT the same thing as Medicare! – Eligibility for Medicare is based on work history / work quarters (regardless of income or assets). It is administered by the federal government. – Eligibility for Medicaid is based on income and assets. It is administered by the state government (DSS) People who have both Medicare and Medicaid are called “Dually Eligible”

5. ConnPACE About 34 states have State Pharmacy Assistance Programs (SPAPs) Connecticut’s SPAP is called “ConnPACE” ConnPACE is administered by the Connecticut Department of Social Services (DSS) thru a contractor called “EDS” 100% state funded (no federal money)

6. ConnPACE Helps seniors and people with disabilities to pay for outpatient prescription drugs, insulin and insulin syringes Annual registration fee. Co-pays capped at $16.25 per script ConnPACE is secondary if member has Part D

7. ConnPACE Age 65, or over 18 and disabled Must meet Social Security disability criteria to be considered disabled Must live in CT at least 6 mo. prior to application Cannot have available prescription drug insurance (other than Part D) Must have a Part D plan if on Medicare Part A or B. Must apply for Part D Low Income Subsidy (LIS) if income and assets are within LIS limits.

8. SAGA State Administered General Assistance (adults without children) Individuals who are not eligible for any other federal or state health care programs and: Earn an annual income between $6,074 and $7,327 Own up to $1,000 in total assets, excluding home and car Services are provided through a managed care program based in the FQHC and hospitals

9. Summary of Legislative Changes Impacting State Programs Mental Health Related Drugs Subjected to the State’s PDL (state has two preferred drug lists – Medicaid and ConnPACE/SAGA) Previously exempt Prior Authorization becomes a barrier for many people in obtaining their medications and can often lead to medication disruptions – main goal person leaves the pharmacy with meds

10. Mental Health Related Drugs and State Preferred Drug List (PDL) 12 month protection intended to prevent disruptions for people who are currently stable on psychotropic medications May not capture those not in the DSS or Pharmacy data systems No protection for new prescriptions (14 day temporary supply – DSS process for notifying prescribers)

11. Mental Health Related Drugs on State PDL Most FDA approved drugs that are not listed are available, with prior authorization by calling EDS toll-free at 1-866-409-8386 or local at (860)269- 2030. (EDS = Electronic Data Systems Corporation) The P&T Committee not expected to review and finalize list for 4-5 mos. (anticipated start date April 1, 2010)

12. Medicaid Definition of Medical Necessity DSS directed to change the definition of “medically necessary” DSS will seek the SAGA definition – more restrictive, eliminates the standard of “maintaining an optimal level of health” Allows DSS and Medicaid HMOs to deny services in favor of cheaper ones that are considered “similarly effective” – including medications

13. Additional Changes to State Pharmacy Policies Reduction of Temporary Supply - one time temporary supply reduced from 30 to 14 days DSS will reportedly implement a process for notifying prescribers New policy already in effect Preserves coverage for over the counter drugs but subjects them to the state’s PDL and prior authorization

14. Additional Changes to State Pharmacy Policies ConnPACE annual application fee increasing from $30 to $45. Effective 1/1/2010 ConnPACE will have an “open enrollment” period identical to Part D (11/15 – 12/31). Enrollment will be closed the rest of the year, except to people newly granted Medicare (31 days).

15. Additional Changes to State Pharmacy Policies Medicare Savings Programs (MSP) - MSP income limits increased effective 10/1/09 (income limits raised to ConnPACE levels) Asset limits eliminated for all MSP programs effective 10/1/09 MSP estate recovery eliminated effective 1/1/2010

16. Summary of Legislative Changes Impacting Part D No coverage of non-formulary drugs at all effective 1/1/2010 Dually eligible and ConnPACE members enrolled in non-benchmark plans must pay excess premium over benchmark threshold. Effective 1/1/2010 Dually eligible will have to pay the first $15.00 in pharmacy co-pays each month. Effective date not announced.

17. Summary of Legislative Changes Impacting Part D Part D Co-pays for those on LIS (Low- Income Subsidy) will be $2.40/$6. in 2009 and $2.50/$6.30 in 2010. ConnPACE and Medicaid will still cover most drugs that are “excluded” from Part D coverage, e.g., barbiturates (e.g., Lorazepam) and benzodiazepines (e.g., Xanax and Valium).

18. Summary of Legislative Changes Impacting Part D Everyone on MSP is automatically eligible for the Part D Low Income “LIS” Subsidy LIS pays or contributes to Part D premium payment With LIS: – generic co-pays = $2.40 (2009) / $2.50 (2010) – brand name co-pays = $6. (2009) / $6.30 (2010) – No Part D deductible – No Part D “donut hole” (gap in coverage)

19. Part D Transition Process Part D transition process - requires plans to provide a one-time temporary 30-day fill of a non-formulary drug within the person’s first 90 days in their new plan Plans may apply PA and step-therapy limits during the transition process, BUT only if they are resolved at point of sale. The beneficiary always should leave the pharmacy with a sufficient quantity to last the allowable days supply (30 days or less if the script is for fewer days).

20. Part D Transition Process If the plan approves the drug for transition purposes only, but not permanently, the plan must notify the beneficiary (to begin exception/appeal process if necessary). The notice must be sent via first class mail within 3 days of the temporary fill.

21. Potential Responses to Non- formulary Drug Issues Change to a formulary drug Request an Exception Appeals Switch Plans – option for those on Low –Income Subsidy (LIS)

22. Exception Requests Exceptions – ask your drug plan for an exception if you/your prescriber believe: you need a drug not on your plan’s formulary that a PA or Step Therapy should be waived You should pay less for a higher tiered drug b/c you can’t take the lower tiered drug for the same condition

23. Exception Requests Exceptions – you/prescriber must contact your plan to ask for a coverage determination/exception If pharmacy can’t fill the script as written – must provide you a notice explaining how to contact your plan to make your request

24. More on Exception Requests Exceptions – Your prescriber must provide a statement explaining the medical reason why similar drugs covered by your plan wont work and may be harmful (form available) Plan must make coverage determination/exception request decisions within 72 hrs from the time they receive the supporting info from your doctor

25. And more… Doctor can request “expedited consideration” stating that waiting 72 hrs will endanger your life/health/jeopardize ability to regain maximum function Plan must grant request and make decision in 24 hrs or less

26. Part D Appeals Appeals – you have 60 days to appeal a denial – can consult with the Center for Medicare Advocacy (CMA) to help you decide this (860- 456-7790) Independent Review Entity (Maximus)

27. Appeals Continued Administrative Law Judge Hearing Medicare Appeals Council Review Federal Court Review

28. Center for Medicare Advocacy, Inc. (860) 456- 7790, (800) 262-4414 or www.medicareadvocacy.org www.medicareadvocacy.org Formulary Finder – http://formularyfinder.medicare.gov http://formularyfinder.medicare.gov Medicare and You 2009 Online Manual http://www.medicare.gov/Publications/Pubs/ pdf/10050.pdf

29. THANK YOU! Alicia Woodsby, NAMI-CT publicpolicy@namict.org 800-215-3021