The original fiscal year 2010 budget, passed by the General Court and signed by the Governor in June, 2009, included $40 million to fund Prescription Advantage. However, because state revenues fell substantially short of estimates in the early part of FY 2010, the Governor was required to reduce the FY 2009 appropriations for many state programs by a total of over $260 million. As a part of this action, Prescription Advantage's FY 2010 appropriation was reduced by $5.6 million, to $30.4 million.

Because state law requires the Executive Office of Elder Affairs to operate Prescription Advantage within its appropriation for the current fiscal year; this budget reduction made it necessary to implement cost-reduction measures for FY 2010. Effective January 1, 2010, Prescription Advantage will no longer provide assistance with Medicare Part D plan premiums for members in categories S1, S2, and S3. Beginning with the month of January, 2010, these members will be responsible for paying the full amount of the monthly premium invoice sent by their Medicare Part D plan in order to retain their Medicare Part D coverage. Co-payment assistance from Prescription Advantage is only available to members enrolled in a Medicare Part D drug plan or creditable coverage plan.