New York StateWide Senior Action call for restoration of EPIC drug program

March 21, 2011-- The New York StateWide Senior Action Council, representing organizations and their members across the state today praised the State Assembly for restoring all the Governor's cuts to the Elderly Pharmaceutical Insurance Coverage (EPIC) program in the budget passed recently.

"We are disappointed the State Senate failed to restore the EPIC cuts in the final budget and we urge them to join the Assembly in stopping this ‘sick tax’ in the final budget deal." said StateWide Executive Director Maria Alvarez.

The Governor's budget eliminates all subsidies for seniors on EPIC except those in the so called Medicare "donut hole" or coverage gap which begins after seniors spend $2860 annually. The Governor's plan would take away subsidy coverage for premiums and deductibles and co-pays for lower income seniors in the program” Alvarez explained.

"The State Health Commissioner acknowledged in his budget testimony that the Governor's changes would cost seniors on EPIC about $100 more per month.

"And, yet the Governor says he doesn't want any new taxes or fees. This is a sick tax on seniors," There are about 300,000 New York seniors enrolled in EPIC.

"It is estimated that 200,000 of those would have no support from EPIC if the Governor's budget is passed since they don't reach the Medicare donut hole.

The program was first passed in 1986 and signed into law by Governor Mario Cuomo. "We should be celebrating EPIC's 25th anniversary as a key part of the safety net in New York State not planning for its demise," Alvarez noted.

When Medicare Part D began in 1986, EPIC became a supplemental to that program. Since EPIC was a better benefit, the state continued to provide subsidies for low income seniors so that the Medicare plan would not end up costing them a lot more.

The Governor's budget ends that commitment. Since Medicare Part D began, the state has saved hundreds of millions of dollars on EPIC every year and the Governor's plan would begin to phase out EPIC as the federal government eventually subsidizes the entire donut hole.