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Understanding the New Income Limits for PACE & PACENET

Written By:  Jerome Petro, Geriatric Planning Specialist, Marshall & Associates, Wilkes-Barre Office  

Updated January 2005

PACE and PACENET are Pennsylvania 's pharmaceutical assistance programs for seniors.  These programs offer prescription coverage for older Pennsylvanians who have low or moderate incomes.  The programs cover most medications that require prescriptions, including insulin, syringes and insulin needles.  Over-the-counter drugs are not covered.  There are no premiums or monthly fees for seniors who qualify.  The programs are administered by the Pennsylvania Department of Aging.


As a result of legislation enacted last year, the PACE and PACENET programs were revised so that additional seniors will be able to qualify in 2004.  (For more information on this legislation, see the December 18, 2003 Elder Care Law Alert at http://www.paelderlaw.com/drugdiscount.html). 

Here are the new eligibility rules for PACE/PACENET for 2004.

Who is Eligible to Apply?

  • Residents of Pennsylvania who are 65 years of age and older.  You are not eligible for benefits if you are under the age of 65 and disabled.
  • Must have been a resident of Pennsylvania for at least 90 days prior to application.
  • You are not eligible for pharmaceutical benefits through the Medical Assistance program.

You can apply for PACE/PACENET even if you have health insurance or limited prescription benefits through another insurance.

PACE or PACENET? Which Program is Best for You?

PACE is the more generous program, which means that seniors will save more on their prescriptions if they can qualify for PACE rather than PACENET.  Here are the current (2004) income and co-payment requirements for the two programs.

PACE

If you are single and your total previous calendar year's income was less than $14,500, or   

If you are married and your combined total previous calendar year's income was less than $17,700 you may be eligible for PACE.  

PACE has a GENERIC CO-PAY of $6 for each covered prescription, and a SINGLE- SOURCE CO-PAY of $9 for each covered prescription.                                               

                                                                                            

PACENET

If you are single and your total previous calendar year's income was between $14,500 and $23,500, or

If you are married and your combined previous calendar year's income was between $17,700 and $31, 500, you may be eligible for PACE.

PACENET has a monthly $40 cumulative deductible for each cardholder. Once that deductible has been met, PACENET has a GENERIC CO-PAY of $8 and a SINGLE-SOURCE CO-PAY of $15 for each covered prescription.  They track your out-of-pocket costs for you.

How is Income Defined?

Income includes, but is not limited to sources like.

                        -Gross Social Security                                     

                        -Railroad Retirement & SSI                             

                        -Salaries/Wages/Commissions                         

                        -Self-Employed or partnership income 

                        -Alimony and Support money                          

                        -Taxable amount of annuities and IRA's           

                        -Gifts and inheritance of cash or property         

                             over $300                                                  

                        -Veteran's disability payments

                        -Pensions

What Documents are needed to file an Application?

1. Proof of Age

2. Proof of Residence (Document must be at least 90 days old)

3. Proof of Income (Last Years Income)

How Do You Apply?

1. You can contact your local Area Agency on Aging for more information

2. Or you can call Pennsylvania Department of Aging at 1-800-225-7223

3. Or you can e-mail the Department of Aging at PACECares@fhsc.com 

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