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Medicare Conflicts Continue to Arise Between Bush and Congress

Senate pushing drug plan actions opposed by Administration

March 16, 2006 – The Senate yesterday authorized President Bush to extend the deadline for enrollment in the Medicare drug program, a move Bush says he opposes. The Senate also passed an amendment to allow Medicare to negotiate prescription drug prices, another action opposed by the Administration. KaiserNet.org also reports doctors and pharmacist are concerned about Medicare beneficiaries getting the drugs they need as the "transition period" ends that required plans to provide the drugs seniors were taking before the drug program.

Medicare - Senate Approves Amendment That Would Allow HHS Secretary Authority to Move Medicare Drug Benefit Enrollment Deadline; President Bush Rejects Idea

Click here to the Daily Health Policy Report - KaiserNetwork.orgThe Senate on Wednesday voted 76-22 to approve an amendment to the fiscal year 2007 budget resolution that would authorize HHS Secretary Mike Leavitt to extend the May 15 deadline for enrolling in the Medicare prescription drug benefit, CQ Today reports.

 

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Officials Confirm Medicare Will Have Fewer Drug Plans in 2007

CMS Administrator opposes extending May 15 enrollment deadline

March 8, 2006 – Earlier reports that the Medicare Drug Program will include fewer plans next year was confirmed yesterday by Health and Human Services Secretary Mike Leavitt, who told insurance executives that market forces have helped lower drug prices and will enable a reduction in the number of plans next year. KaiserNet.org also reports that Centers for Medicare and Medicaid Services Administrator Mark McClellan says he is opposed to extending the May 15 deadline for enrollment in Medicare Part D. Read more...

Read more on Medicare Drug Program

 

The amendment, which was offered by Senate Finance Committee Chair Chuck Grassley (R-Iowa), would give Leavitt the authority to extend the deadline but would not require him to do so.

The Grassley amendment also would allow beneficiaries to switch plans once during 2006 without penalty.

The Senate on Wednesday also voted 49-49 to reject an amendment by Sen. Bill Nelson (D-Fla.) that would have mandated an extension of the deadline to Dec. 31 and allowed beneficiaries to change plans once without penalty during 2006 (Angle, CQ Today, 3/15).

Grassley said, "Personally, I think that it's premature to change the date. So I offer this amendment as a compromise" (Riechmann, AP/San Francisco Chronicle, 3/15). Sen. Kay Bailey Hutchison (R-Texas) -- whose switch to a "no" vote led to the tie on the Nelson amendment -- said, "I really am concerned about this deadline, but I think the Grassley amendment covered it." Five Republicans -- Sens. Olympia Snowe (R-Maine), Lincoln Chaffe (R-R.I.), Mike DeWine (R-Ohio) and Arlen Specter (R-Penn.) -- voted for the Nelson amendment (CQ Today, 3/15).

Bush Comments About Deadline
In a speech a few hours before the Senate vote, President Bush said he does not support extension of the deadline (Bloomberg/Boston Globe, 3/16). Speaking at an event in Silver Spring, Md., to promote the drug benefit, Bush said, "There's got to be a fixed time for people to sign up." He added, "We want people to realize there is -- now is the time. ... Rolling back deadlines is not going to help" (Havemann/Wallsten, Los Angeles Times, 3/16).

He said the drug benefit "can be confusing to people, but if you work through the options ... in the end it is a really good deal" (AP/San Francisco Chronicle, 3/15).

Price Negotiations
In other Senate action related to Medicare, the chamber voted 54-44 in a roll call vote to approve a budget amendment, sponsored by Snowe and Sen. Ron Wyden (D-Ore.), that would authorize the HHS Secretary to negotiate prescription drug prices, the Los Angeles Times reports (Los Angeles Times, 3/16).

The amendment would require any savings negotiated by the government to go toward improving the drug benefit or reducing the federal budget deficit (CQ Today, 3/15). Wyden's office said inclusion of the amendment in the budget resolution would make it easier to pass legislation in the future to require Medicare to negotiate drug prices.

Fifty-one votes are necessary to approve such legislation if the amendment is included in the final version of the budget resolution, and 60 votes are needed if it does not make it into the final version, the Times reports.

The amendment provides guidance for future legislation rather than carrying the force of law, according to the Times (Los Angeles Times, 3/16). The amendment first must "survive a conference with the House, which has opposed such proposals," CQ Today reports (CQ Today, 3/15).

Transition Period Ending
In related news, the 90-day period under which Medicare drug plans are required to provide beneficiaries with medications they were taking prior to the drug benefit will end on April 1, and the deadline is prompting concerns from physicians, pharmacists and state officials that beneficiaries will "face more coverage disruptions," USA Today reports.

After the transition period ends, drug plans are no longer required to provide coverage for drugs that are not on their formularies.

In addition, "most of the ... states that stepped in on an emergency basis to help low-income beneficiaries also will stop paying" on April 1, USA Today reports.

Some beneficiaries "could have to change drugs, file appeals or pay out of pocket" once the transition period ends, according to USA Today.

CMS spokesperson Peter Ashkenaz said drug plans need to educate beneficiaries about the upcoming change. "We have a short time to be working with the plans to make sure the beneficiaries get the information," Ashkenaz said, adding, "Some plans are already doing it." However, "dozens of state health insurance counselors" said in a conference call on Wednesday that they are unaware of any efforts by drug plans to education beneficiaries about the upcoming change (Wolf/Benedetto, USA Today, 3/16).

"Reprinted with permission from kaisernetwork.org You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation. All rights reserved.”

 

 

 

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