The San Francisco AIDS Foundation (SFAF) today strongly praised Governor Schwarzenegger for including $34.1 million in additional funding for the State's AIDS Drug Assistance Program (ADAP) in the final budget he signed for the State's 2005-06 Fiscal Year. The Foundation also thanked the Governor for approving an additional $5.6 million for HIV prevention programs and for allowing ADAP to provide financial support to people with HIV/AIDS impacted by the upcoming Medicare Prescription Drug Benefit.

"Governor Schwarzenegger has done what many of the nation's Governor's have not by assuring that low-income Californians have access to life-saving medications," said Dana Van Gorder, Director of State and Local Affairs. "The fact that survival rates for Californians living with HIV and AIDS are so high is due to the enlightened and compassionate approach the Governor and Legislature have taken to funding of ADAP. We are especially grateful for this support at a time when the state continues to face significant fiscal challenges."

ADAP provides a range of HIV-medications to approximately 30,000 low-income Californians, most of whom are severely economically disadvantaged. Without ADAP, HIV medications--which can cost between $10,000 and $20,000 per year--would be out of reach for thousands of low-income Californians. The total cost of California's ADAP program in FY 2005-06 will be $268.3 million. "In addition to being medically necessary, the Governor's support for ADAP is pragmatic," explains Van Gorder. "Money spent on medications to keep people with HIV and AIDS healthy ultimately saves the State enormous sums in acute health care costs."

The Foundation also applauded the Governor's decision to approve an increase of $5.6 million for HIV/AIDS education and prevention programs. "Assemblyman John Laird is to be commended for advocating for these funds, which were cut in the FY 2002-03 budget, to assure that the State is in a position to address new challenges in the prevention of HIV transmission," said Van Gorder. "It was wise for the Governor to approve this spending as a means of preventing the much larger cost of HIV/AIDS care that would otherwise result from new cases of HIV infection."

The new Medicare Prescription Drug Benefit, Medicare Part D, goes into effect on January 1, 2006 and will have significant impact on low-income individuals with HIV/AIDS. As a result of the new Federal program, Part D beneficiaries face out-of-pocket expenses for prescription drugs that they did not have before. In signing the State Budget, Governor Schwarzenegger agreed to support advocates' request that ADAP be able to pay deductibles and co-payments required of thousands of Californians with HIV and AIDS in order to receive Part D coverage. "The Governor's agreement to cover these expenses is extremely important," said Van Gorder. "It will literally make the difference between whether or not Californians with HIV and AIDS can afford to continue taking their HIV medications. We are very grateful to the Governor for this action."

The Foundation's analysis of the new Medicare Part D Prescription Drug benefit is available at http://www.sfaf.org/policy/medicare/.