NJ Challenge To Drug Subsidy Cuts

A New Jersey Assembly committee has decided that the governor and the state administration overstepped their authority with proposals to cut costs in the drug subsidy program for seniors and the disabled.

The vote will not block the rule changes (which will cut fees to pharmacists who take part in the program, increase the amount of generics dispensed and encourage seniors to buy their prescriptions through the mail) but will send a message to Governor Whitman and the state Department of Human Services to listen to legislators and their older constituents. The proposals are intended to save $22.5 million, with most savings coming from cutting back fees paid to druggists from about $4 to about $3.25 per prescription.