Prescription plan: Gov. Frank Murkowski greets Gene Dau, 71, Wednesday morning at the Juneau Senior Center before announcing a new proposal to help seniors pay for their medical prescriptions. MICHAEL PENN/THE JUNEAU EMPIRE

Under the proposed SeniorCare program, seniors 65 and older at 135 percent of the federal poverty level who are not receiving comprehensive Medicaid prescription drug coverage can choose between a drug subsidy of $1,600 a year and the $120 monthly checks provided through the Senior Assistance Program.

Individual seniors earning up to $15,134 a year, and couples earning up to $20,439 will be eligible for the program.

The Senior Assistance Program was established earlier this year after Gov. Frank Murkowski cut the Longevity Bonus Program, a program that provided about 18,000 seniors monthly checks of up to $250.

When combined with the $600 Medicare subsidy for seniors that is scheduled to begin this spring, those opting for the SeniorCare drug subsidy would receive a total subsidy of $2,200 a year.

The SeniorCare program proposal must be approved by the Legislature, which begins its session on Jan. 12.

"SeniorCare will provide a bridge for those seniors most in need of assistance until the full Medicare prescription drug benefit begins in January 2006," Murkowski said in a prepared statement. "I will ask legislators to pass this legislation in January so that this benefit can begin in April 2004."

Alaska Department of Health and Social Services Commissioner Joel Gilbertson said the program also will establish a new information office to assist seniors in getting prescription drugs.

"SeniorCare will help low-income seniors who do not otherwise qualify for public assistance - the people with the greatest needs," Gilbertson said. "However, we will provide a broader program that will help all seniors."

The Senior Information Office, to be run by the Division of Senior and Disability Services, will provide a toll-free number and Web site for seniors to access directories of local physicians who accept Medicare and Medicaid clients and information on prescription drugs.

If the SeniorCare program is approved by state lawmakers this year, it will cost about $22 to $23 million. The program will cost about $15 million in 2005, with the federal government paying about $12 million and the state covering the rest.

"We're estimating that the program will increase in cost between 5 and 6 percent a year," Gilbertson said.

Ann Secrest, a communications officer for the seniors advocacy group AARP Alaska, said the group has not yet reviewed the SeniorCare proposal, but noted that Alaska experienced the largest hike in prescription drug costs in the country in 2002.

"It was a 25 percent increase in one year alone," Secrest said.

Pat Luby, AARP Alaska advocacy director, said the cost increase for the rest of the nation that year was just 17 percent.

"It's crazy that we can buy prescription drugs that are made in the United State but that are sold cheaper in Canada," he said.

About 7,000 seniors receive care through the state right now in the form of prescription drugs, medical care, hospitalization and other services at an annual cost of about $119.6 million, according to the Divisions of Public Assistance and Senior Disabilities Services.

• Timothy Inklebarger can be reached at timothyi@juneauempire.com.