Health and Community Services
December 6, 2006

Applications Being Accepted for New Low Income Drug Program

Starting today, the new provincial drug program office in Stephenville will begin accepting applications from individuals for the new Low Income Drug Program, targeted to launch on January 31, 2007. The new program will provide drug coverage on a co-pay basis to individuals and families with incomes that fall within certain thresholds. Applications are now available on the Department of Health and Community Services web site and will be mailed to all households in the coming weeks.

"As of today, many residents in our province without any drug coverage are one step closer to the financial relief they need," said the Honourable Tom Osborne, Minister of Health and Community Services. "The new program is an important component of our Provincial Poverty Reduction Strategy an initiative of which we are extremely proud. The program will provide drug coverage to an additional 97,000 individuals, bringing the total covered under the provincial drug program to almost 40 per cent of the population."

Government committed to an investment of $8.3 million in Budget 2006, and an additional $32.8 million annually, to expand the eligibility of the current Newfoundland and Labrador Prescription Drug Program (NLPDP) to include more low income families and individuals. The eligibility threshold for the program includes families with children with annual net household incomes up to $30,000; couples earning up to $21,000; and, singles earning up to $19,000 a year who are not currently covered by the Newfoundland and Labrador Prescription Drug Program (the chart below provides examples of the various income levels that fall within these thresholds).

"This new program will support working individuals and families in our province who currently struggle to afford basic necessities," said the Honourable Paul Shelley, Minister of Human Resources, Labour and Employment. "It also removes a major barrier for income support clients to go to work. Such improvements are the core focus of government�s Poverty Reduction Strategy and addressing the basic needs of all Newfoundlanders and Labradorians."

Applications and information sheets for the new program can be printed from the Department of Health and Community Services we site at www.gov.nl.ca/health/nlpdp/lidp.htm. In addition, an information sheet and application form will be sent to all households in the province over the coming weeks. Questions pertaining to eligibility and program information can be directed to the NLPDP Stephenville office at 1-888-859-3535 or via e-mail at LIDPinfo@gov.nl.ca

"Due to the large volume of applications expected in the coming months we wanted to open the office early so as many applications as possible could be processed by the date of the program launch � targeted for January 31, 2007," said Minister Osborne. "It is expected that cards will be issued in the latter part of January for those deemed eligible, however, we ask for the public�s patience as we process the large volume of forms."

New drug cards have been designed, to reflect an expansion of the NLPDP with this new initiative. This card will be issued to all new beneficiaries when deemed eligible. The new card format will also be issued to current NLPDP beneficiaries upon expiry of their current cards.

The new office in Stephenville will be responsible for the assessment and processing of applications for the new low income drug program, and addressing inquiries with respect to program eligibility. In keeping with government�s commitment to creating meaningful employment in rural areas of the province, in May of this year government announced plans to open the new office in Stephenville to respond to the increased demand for service with the expansion of the NLPDP, providing an additional 15 new jobs in the region.

"This is an extremely important initiative that will provide financial relief to thousands of residents across our province," said the Honourable Joan Burke, MHA for St. George's-Stephenville East. "I am extremely pleased that this service is being handled from Stephenville and I know the staff of the new Provincial Drug Program office are excited and well-equipped to begin this piece of work."

The new low income drug program is a component of government�s Poverty Reduction Strategy, which aims to reduce, alleviate and prevent poverty in Newfoundland and Labrador.

View Ministerial Statement

- 30 -

Media contact:
Tansy Mundon
Director of Communications
Department of Health and Community Services
709-729-1377, 685-1741
tansymundon@gov.nl.ca

BACKGROUNDER

The following chart outlines examples of the income levels that fall under the eligibility thresholds of the new Low Income Drug Program:

Singles

Families � with No Children

Families - with Children

Net Family Income

Amount ($)

Co-Pay Amount

Net Family Income

Amount ($)

Co-Pay Amount

Net Family Income

Amount ($)

Co-Pay Amount

Under 13,000

20.0%

Under 15,000

20.0%

Under 21,000

20.0%

14,000

28.3%

16,000

28.3%

22,000

25.6%

15,000

36.7%

17,000

36.7%

23,000

31.1%

16,000

45.0%

18,000

45.0%

24,000

36.7%

17,000

53.3%

19,000

53.3%

25,000

42.2%

18,000

61.7%

20,000

61.7%

26,000

47.8%

19,000

70.0%

21,000

70.0%

27,000

53.3%

       

28,000

58.9%

       

29,000

64.4%

       

30,000

70.0%

2006 12 06                                                    2:45 p.m.


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