KRS 205.5623: Department's powers in providing program benefits.

(1) In providing program benefits, the department may:

(a) Enter into a contract with one (1) or more prescription drug plans to

coordinate the prescription benefits of the program and the federal law;

(b) Preliminarily enroll beneficiaries into a preferred Me dicare Part D plan, with

an opt-out provision for individuals. Individuals who opt out of the preferred

PDP shall remain enrolled in the program unless they choose to disenroll from

the program;

(c) Prescribe the application and enrollment procedures for prospective enrollees;

(d) Select, in accordance with applicable state law, a contractor to assist in the

administration of the program or negotiate program administrative functions

with a preferred PDP plan;

(e) Determine which drugs will be covered by the plan; and

(f) Negotiate with manufacturers for rebates.

(2) Program benefits shall begin January 1, 2006.

(3) For persons meeting eligibility requirements, the program may pay all or some of

the deductibles, coinsurance payments, premiums, and copayments required under

the Medicare Part D pharmacy benefit program.