COLUMN

FOR IMMEDIATE RELEASE

State Rep. Joseph Brennan
D-Lehigh/Northampton
www.pahouse.com/Brennan

 

 

PACE, PACENET news from the state House

by state Rep. Joe Brennan

 

With the poor state of our current national economy and the continued rising costs of prescription drugs, we owe it to our senior citizens to make certain that prescription assistance is available to all those in need.

 

Earlier this summer, the Pennsylvania House of Representatives approved a bill, H.B. 1480, that would exempt economic stimulus payments from PACE and PACENET eligibility calculations. 

 

This bill is urgently needed because the federal economic stimulus initiative provides for a one-time $250 stipend to many Social Security recipients, which may be just enough to push some seniors over the income limits for these important prescription-drug assistance programs.

 

PACE and PACENET help income-eligible residents who are 65 or older purchase low-cost prescription medication. The income limits for PACE are $14,500 or less for a single person and $17,700 or less for a married couple. The income limits for PACENET are $14,500 to $23,500 for a single person and $17,700 to $31,500 for a married couple.

 

House Bill 1480 is now before the state Senate for consideration. 

 

Additionally, I have introduced a bill that would expand PACE and PACENET eligibility. Currently, senior citizens and others applying for the state's Property Tax/Rent Rebate Program can exclude half of their Social Security or federal railroad retirement Tier 1 benefits from their income calculation. However, seniors applying for prescription assistance under PACE or PACENET must count all of their income. Both programs are funded by the state lottery.

 

House Bill 968 would allow seniors applying for PACE and PACENET to exclude a portion of their Social Security or federal railroad retirement income, just as with the Property Tax/Rent Rebate Program.

 

The Social Security and federal railroad retirement exclusion in the Property Tax/Rent Rebate Program makes about 180,000 seniors eligible for the program who otherwise would not be. We need to do the same for seniors applying for PACE and PACENET.

 

In addition, my bill would allow federal retirees who are ineligible to receive Social Security benefits to exclude half of their federal retirement benefits when applying for PACE and PACENET, beginning with the 2009 income year. Legislation has already been introduced in the House to allow this same exclusion for federal retirees applying for the Property Tax/Rent Rebate Program if they are ineligible for Social Security benefits.