State of Illinois
92nd General Assembly
Legislation

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[ Introduced ][ Engrossed ][ House Amendment 002 ]


92_HB0005ham001

 










                                           LRB9201217SMdvam04

 1                      AMENDMENT TO HOUSE BILL 5

 2        AMENDMENT NO.     .  Amend House Bill 5 by replacing  the
 3    title with the following:
 4        "AN ACT concerning property tax relief and pharmaceutical
 5    assistance."; and

 6    by  replacing  everything  after the enacting clause with the
 7    following:

 8        "Section 5.  The Senior  Citizens  and  Disabled  Persons
 9    Property  Tax  Relief  and  Pharmaceutical  Assistance Act is
10    amended by changing the title and Sections 1, 2, 3.15, 4, and
11    9 as follows:

12        (320 ILCS 25/Act title)
13        An Act in relation to the payment  of  grants  to  enable
14    Illinois residents the elderly and the disabled to acquire or
15    retain private housing and to acquire prescription drugs.

16        (320 ILCS 25/1) (from Ch. 67 1/2, par. 401)
17        Sec. 1.  Short title. This Article shall be known and may
18    be  cited  as  the  "Senior  Citizens,  and Disabled Persons,
19    Property Tax Relief and Working Families Circuit Breaker  and
20    Pharmaceutical  Assistance  Act".  As  used  in this Article,
 
                            -2-            LRB9201217SMdvam04
 1    "this Act" means this Article.
 2    (Source: P.A. 83-1531.)

 3        (320 ILCS 25/2) (from Ch. 67 1/2, par. 402)
 4        Sec. 2. Purpose. The purpose of this Act  is  to  provide
 5    incentives  to  citizens  the  senior  citizens  and disabled
 6    persons of this State to acquire and retain  private  housing
 7    of  their  choice  and  at  the  same  time  to relieve those
 8    citizens from the burdens  of  extraordinary  property  taxes
 9    against  their  increasingly  restricted  earning  power, and
10    thereby to reduce the requirements for public housing in this
11    State.
12    (Source: P.A. 77-2059.)

13        (320 ILCS 25/3.15) (from Ch. 67 1/2, par. 403.15)
14        Sec.  3.15.   "Covered  prescription  drug"   means   any
15    product,  except  those  products  covered  by  the  Illinois
16    Controlled  Substances  Act,  that  by  federal law cannot be
17    dispensed  unless  ordered  by  a  physician,   dentist,   or
18    podiatrist.   The  pharmacy  formulary used by the Department
19    shall be adopted by rule and shall  be  no  more  restrictive
20    than  the  pharmacy  formulary  adopted  by the Department of
21    Public Aid in its administration of Article V of the Illinois
22    Public Aid Code. (1) any cardiovascular agent  or  drug;  (2)
23    any  insulin or other prescription drug used in the treatment
24    of diabetes, including syringe and needles used to administer
25    the insulin; (3) any prescription drug used in the  treatment
26    of   arthritis,   (4)  beginning  on  January  1,  2001,  any
27    prescription drug  used  in  the  treatment  of  cancer,  (5)
28    beginning  on  January 1, 2001, any prescription drug used in
29    the  treatment  of  Alzheimer's  disease,  (6)  beginning  on
30    January 1, 2001, any prescription drug used in the  treatment
31    of Parkinson's disease, (7) beginning on January 1, 2001, any
32    prescription  drug used in the treatment of glaucoma, and (8)
 
                            -3-            LRB9201217SMdvam04
 1    beginning on January 1, 2001, any prescription drug  used  in
 2    the  treatment of lung disease and smoking related illnesses.
 3    The specific agents or products to  be  included  under  such
 4    categories  shall be listed in a handbook to be prepared  and
 5    distributed by the Department.  The general types of  covered
 6    prescription drugs shall be indicated by rule. The Department
 7    of   Public   Health  shall  promulgate  a  list  of  covered
 8    prescription  drugs  under  this  program   that   meet   the
 9    definition of a narrow therapeutic index drug as described in
10    subsection (f) of Section 4.
11    (Source: P.A. 91-699, eff. 1-1-01.)

12        (320 ILCS 25/4) (from Ch. 67 1/2, par. 404)
13        Sec. 4.  Amount of Grant.
14        (a)  In  general. Any individual 65 years or older or any
15    individual who will become 65 years old during  the  calendar
16    year  in  which a claim is filed, and any surviving spouse of
17    such a claimant, who at the time of  death  received  or  was
18    entitled  to  receive a grant pursuant to this Section, which
19    surviving spouse will become 65 years of age  within  the  24
20    months  immediately  following the death of such claimant and
21    which surviving spouse but for his or her  age  is  otherwise
22    qualified  to  receive  a grant pursuant to this Section, and
23    any disabled person whose annual  household  income  is  less
24    than $14,000 for grant years before the 1998 grant year, less
25    than $16,000 for the 1998 and 1999 grant years, and less than
26    (i)  $21,218  for  a  household  containing  one person, (ii)
27    $28,480 for  a  household  containing  2  persons,  or  (iii)
28    $35,740  for a household containing 3 or more persons for the
29    2000 grant year, and less than (i)  28,000  for  a  household
30    containing   one   person,   (ii)  $35,000  for  a  household
31    containing 2  persons,  or  (iii)  $42,000  for  a  household
32    containing  3  or  more  persons  for the 2001 grant year and
33    thereafter and whose  household  is  liable  for  payment  of
 
                            -4-            LRB9201217SMdvam04
 1    property taxes accrued or has paid rent constituting property
 2    taxes  accrued  and is domiciled in this State at the time he
 3    or she  files his or her claim is entitled to claim  a  grant
 4    under  this Act.  With respect to claims filed by individuals
 5    who will become 65 years old  during  the  calendar  year  in
 6    which a claim is filed, the amount of any grant to which that
 7    household is entitled shall be an amount equal to 1/12 of the
 8    amount  to  which the claimant would otherwise be entitled as
 9    provided in this Section, multiplied by the number of  months
10    in  which  the  claimant was 65 in the calendar year in which
11    the claim is filed.
12        (b)  Limitation.   Except  as   otherwise   provided   in
13    subsections  (a)  and (f) of this Section, the maximum amount
14    of grant which a claimant is entitled to claim is the  amount
15    by  which  the  property  taxes  accrued  which  were paid or
16    payable  during  the  last  preceding  tax   year   or   rent
17    constituting  property  taxes  accrued  upon  the  claimant's
18    residence  for the last preceding taxable year exceeds 3 1/2%
19    of the claimant's household income for that year  but  in  no
20    event  is the grant to exceed (i) $700 less 4.5% of household
21    income for that year for those with  a  household  income  of
22    $14,000 or less or (ii) $70 if household income for that year
23    is more than $14,000.
24        (c)  Public  aid  recipients.  If household income in one
25    or more months during a  year  includes  cash  assistance  in
26    excess  of $55 per month from the Department of Public Aid or
27    the Department of Human Services (acting as successor to  the
28    Department  of  Public  Aid  under  the  Department  of Human
29    Services Act)  which was determined under regulations of that
30    Department on a measure of need that  included  an  allowance
31    for  actual  rent  or property taxes paid by the recipient of
32    that assistance, the amount of grant to which that  household
33    is  entitled, except as otherwise provided in subsection (a),
34    shall be the product of (1) the maximum  amount  computed  as
 
                            -5-            LRB9201217SMdvam04
 1    specified in subsection (b) of this Section and (2) the ratio
 2    of  the  number  of  months in which household income did not
 3    include such cash assistance over $55 to the  number  twelve.
 4    If household income did not include such cash assistance over
 5    $55  for  any months during the year, the amount of the grant
 6    to which the household  is  entitled  shall  be  the  maximum
 7    amount  computed  as  specified  in  subsection  (b)  of this
 8    Section.   For  purposes  of  this   paragraph   (c),   "cash
 9    assistance"  does  not  include any amount received under the
10    federal Supplemental Security Income (SSI) program.
11        (d)  Joint ownership.  If title to the residence is  held
12    jointly  by the claimant with a person who is not a member of
13    his household, the amount of property taxes accrued  used  in
14    computing  the  amount of grant to which he is entitled shall
15    be the same percentage of property taxes accrued  as  is  the
16    percentage   of   ownership  held  by  the  claimant  in  the
17    residence.
18        (e)  More than one residence.  If a claimant has occupied
19    more than one residence in the taxable  year,  he  may  claim
20    only  one  residence for any part of a month.  In the case of
21    property taxes accrued, he shall pro rate 1/12 of  the  total
22    property taxes accrued on his residence to each month that he
23    owned  and  occupied that residence; and, in the case of rent
24    constituting property taxes  accrued,  shall  pro  rate  each
25    month's  rent  payments  to  the  residence actually occupied
26    during that month.
27        (f)  There   is   hereby   established   a   program   of
28    pharmaceutical assistance to  the  aged  and  disabled  which
29    shall  be  administered  by the Department in accordance with
30    this Act, to consist of payments to authorized pharmacies, on
31    behalf of beneficiaries of the program,  for  the  reasonable
32    costs  of  covered  prescription drugs.  Each beneficiary who
33    pays $5 for an identification card shall  pay  no  additional
34    prescription  costs.    Each  beneficiary who pays $25 for an
 
                            -6-            LRB9201217SMdvam04
 1    identification  card  shall  pay  $3  per  prescription.   In
 2    addition, after a beneficiary  receives  $2,000  in  benefits
 3    during  a State fiscal year through December 31, 2001 and, on
 4    and after January  1,  2002,  after  a  beneficiary  receives
 5    $2,000  in  benefits during a calendar year, that beneficiary
 6    shall also be charged 20% of the cost  of  each  prescription
 7    for  which  payments  are  made  by  the  program  during the
 8    remainder of the fiscal year through December 31,  2001  and,
 9    on  and  after  January  1, 2002, during the remainder of the
10    calendar year.  To become a beneficiary under this program  a
11    person  must  be:  (1)  be (i) 65 years or older, or (ii) the
12    surviving spouse of such a claimant, who at the time of death
13    received or was entitled to receive benefits pursuant to this
14    subsection, which surviving spouse will become  65  years  of
15    age  within  the 24 months immediately following the death of
16    such claimant and which surviving spouse but for his  or  her
17    age  is  otherwise  qualified to receive benefits pursuant to
18    this subsection, or (iii) disabled, and (2) is  domiciled  in
19    this  State at the time he or she files his or her claim, and
20    (2) have (3) has a maximum  household  income  of  less  than
21    $14,000 for grant years before the 1998 grant year, less than
22    $16,000  for the 1998 and 1999 grant years, and less than (i)
23    $21,218 for a household containing one person,  (ii)  $28,480
24    for  a household containing 2 persons, or (iii) $35,740 for a
25    household containing 3 more persons for the 2000 grant  year,
26    and  less  than  (i)  28,000  for  a household containing one
27    person, (ii) $35,000 for a household containing 2 persons, or
28    (iii) $42,000 for a household containing 3  or  more  persons
29    for  the  2001  grant  year and thereafter. In addition, each
30    eligible person must (1) obtain an identification  card  from
31    the  Department, (2) at the time the card is obtained, sign a
32    statement assigning to the State of Illinois  benefits  which
33    may  be  otherwise claimed under any private insurance plans,
34    (3)  present  the  identification  card  to  the   dispensing
 
                            -7-            LRB9201217SMdvam04
 1    pharmacist.
 2        Whenever  a generic equivalent for a covered prescription
 3    drug is available, the Department shall  reimburse  only  for
 4    the  reasonable  costs  of  the  generic equivalent, less the
 5    co-pay established in this Section, unless  (i)  the  covered
 6    prescription drug contains one or more ingredients defined as
 7    a  narrow  therapeutic  index drug at 21 CFR 320.33, (ii) the
 8    prescriber indicates on the face of the  prescription  "brand
 9    medically necessary", and (iii) the prescriber specifies that
10    a  substitution  is  not  permitted.   When  issuing  an oral
11    prescription for covered prescription medication described in
12    item (i) of this paragraph, the  prescriber  shall  stipulate
13    "brand  medically  necessary"  and that a substitution is not
14    permitted.   If  the  covered  prescription  drug   and   its
15    authorizing  prescription  do  not  meet  the criteria listed
16    above,  the  beneficiary   may   purchase   the   non-generic
17    equivalent  of  the  covered  prescription drug by paying the
18    difference between the generic cost and the non-generic  cost
19    plus the beneficiary co-pay.
20        Any   person   otherwise   eligible   for  pharmaceutical
21    assistance under this Act whose covered drugs are covered  by
22    any  public  program for assistance in purchasing any covered
23    prescription drugs shall be ineligible for  assistance  under
24    this  Act  to the extent such costs are covered by such other
25    plan.
26        The  fee  to  be  charged  by  the  Department  for   the
27    identification  card  shall  be equal to $5 per coverage year
28    for persons below the official poverty line as defined by the
29    United States Department of Health and Human Services and $25
30    per coverage year  for  all  other  persons.  On  and  before
31    December   31,   2001,  coverage  under  this  pharmaceutical
32    assistance program shall begin on  the  date  of  application
33    approval and be in effect for 12 months. On and after January
34    1,   2002,  coverage  under  this  pharmaceutical  assistance
 
                            -8-            LRB9201217SMdvam04
 1    program shall be in effect on a calendar year basis.
 2        In the event that 2 or more persons are eligible for  any
 3    benefit   under  this  Act,  and  are  members  of  the  same
 4    household,  (1)  each  such  person  shall  be  entitled   to
 5    participate   in   the   pharmaceutical  assistance  program,
 6    provided that he or she meets all other requirements  imposed
 7    by  this  subsection  and  (2)  each  participating household
 8    member contributes the fee required for that  person  by  the
 9    preceding   paragraph   for   the  purpose  of  obtaining  an
10    identification card.
11    (Source: P.A. 90-650, eff.  7-27-98;  91-357,  eff.  7-29-99;
12    91-699, eff. 1-1-01.)

13        (320 ILCS 25/9) (from Ch. 67 1/2, par. 409)
14        Sec.  9.   Any  person who files a fraudulent claim for a
15    grant under this Act, or  who  for  compensation  prepares  a
16    claim for a grant and knowingly enters false information on a
17    claim   form   for  any  claimant  under  this  Act,  or  who
18    fraudulently files multiple claim forms, or who  fraudulently
19    states   that  a  nondisabled  person  is  disabled,  or  who
20    fraudulently    procures    a    pharmaceutical    assistance
21    identification card, or who fraudulently uses  such  card  to
22    procure  covered  prescription drugs, or who, on behalf of an
23    authorized pharmacy, files a fraudulent claim for payment, is
24    guilty of a Class 4 felony  for  the  first  offense  and  is
25    guilty  of  a Class 3 felony for each subsequent offense. The
26    Department  shall  immediately  suspend  the   use   of   the
27    pharmaceutical  assistance  identification card of any person
28    suspected of fraudulent procurement or fraudulent use of such
29    card, and shall revoke such card upon a conviction.  A person
30    convicted of such fraud shall be permanently barred from  the
31    program  of  pharmaceutical assistance established under this
32    Act. The Department may recover from a claimant, including an
33    authorized pharmacy,  any  amount  paid  under  this  Act  on
 
                            -9-            LRB9201217SMdvam04
 1    account of an erroneous or fraudulent claim, together with 6%
 2    interest  per  year.  A  prosecution  for a violation of this
 3    Section may be commenced at any time within 3  years  of  the
 4    commission of that violation.
 5    (Source: P.A. 85-299.)

 6        (320 ILCS 25/3.14 rep.)
 7        Section  10.   The  Senior  citizens and Disabled Persons
 8    Property Tax Relief  and  Pharmaceutical  Assistance  Act  is
 9    amended by repealing Section 3.14.

10        Section  99.   Effective  date.  This Act takes effect on
11    January 1, 2002.".

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