Senate Committee Passes Rhoades Bill to Protect PACE Recipients

HARRISBURG – The Senate Aging and Youth Committee approved legislation today that would prevent PACE and PACENET enrollees from losing prescription benefits due to cost of living adjustments.

Senate Bill 4, sponsored by Sen. James J. Rhoades (R-29), would allow any individual enrolled in PACE or PACENET to remain eligible for their program if they exceed the maximum income limit due solely to a Social Security cost of living adjustment (COLA). The exemption would be in effect until December 31, 2010.

"Seniors should not be faced with the prospect of paying exorbitant new costs for prescription drugs due to a minimal increase in Social Security income," Rhoades said. "PACE and PACENET are two of the most valuable programs for seniors, and my bill will ensure that all seniors who are eligible for the program today will have continued access to prescription drug coverage in the future."

The Senate approved a similar exemption in 2006 as part of legislation to integrate the PACE and PACENET program with the federal prescription benefit offered through Medicare. The exemption expired on December 31, 2007.

Under Senate Bill 4, the exemption for PACENET would be retroactive to December 31, 2007, while the exemption would begin for PACE recipients on December 31, 2008.