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Senators Push for Vote to Extend Medicare Drug Program Deadline

House sponsor fears a vote because House may repeal the program

April 20, 2006 – While Senators are pushing hard for a vote on a bill to extend the Medicare drug program enrollment deadline past May 15, Rep. Pete Stark (D-Calif.) is not pushing hard on his bill in the House. He says the Bush administration should extend the deadline without legislative action because, he says, the House may repeal the whole program. In other news, insurance companies are mailing letters to senior citizens threatening to cut off prescription drug service for non-payment, while many of the seniors say they have paid, according to a report by KaiserNet.org.

Click here to the Daily Health Policy Report - KaiserNetwork.orgSenators Call for Vote on Extending Medicare Prescription Drug Benefit Deadline

Forty-eight senators on Wednesday sent a letter to Senate Majority Leader Bill Frist (R-Tenn.) asking him to address legislation that would extend the current May 15 deadline for enrollment in the Medicare prescription drug benefit, the Boston Globe reports.

 

Related Stories

 
 

Medicare Says 30 Million Senior Citizens Now Have Drug Coverage

Over 93 million prescriptions filled in March; stand-alones jump 1.7 million

April 20, 2006 – With the deadline for enrollment only days away (May 15), Medicare announced today that more than 30 million Medicare beneficiaries are receiving prescription drug coverage, including more than 8 million beneficiaries who have gotten new, individual prescription drug coverage since the program began. More than 93 million prescriptions were filled for  beneficiaries during March - averaging 3 million prescriptions filled per day. Read more...

Medicare Drug Plan Deadline Extension Not Legal, Says CMS

April 18, 2006 – With the May 15 deadline for enrolling in the Medicare Drug Program less than a month away, the voices begging for an extensions are growing louder, but the deputy administrator at the Centers for Medicare and Medicaid services says there is no legal way to extend the deadline. The media, too, seems to have increased its interest in the program, including the announcement that rates are going up about seven percent in 2007, according to a round-up of Medicare news by KaiserNet.org. Read more...

Choose Carefully as Medicare Drug Benefit Deadline Nears on May 15

Kaiser Family Foundation finds wide variations across plans

April 14, 2006 - Medicare’s new private stand-alone drug plans vary significantly – in terms of covered drugs, out-of-pocket costs for specific medications, and restrictions placed on the use of certain drugs - according to a new analysis released today by the Kaiser Family Foundation. Read more...

Final Medicare Enrollment Effort Begins Monday Across the U.S.

Hundreds of events planned for 'Medicare Rx Get Enrolled Week'

April 12, 2006 – With the deadline for enrollment for the Medicare drug program looming – May 15 – and new polls showing satisfaction with the program, a week-long grassroots effort is being held April 17-23 in all 50 states and Washington D.C. to help senior citizens get enrolled. Medicare Today, a national partnership of more than 400 organizations, today announced "Medicare Rx Get Enrolled Week." Medicare experts and volunteers will provide seniors with the information they need to make decisions about enrollment in Medicare's prescription drug benefit. Read more...

Read more on Medicare Drug Program

 

The letter, which was written by Sens. Bill Nelson (D-Fla.) and Olympia Snowe (R-Maine), urges Frist to bring to a vote one of the recently introduced bills to extend the deadline (Krasner, Boston Globe, 4/20).

Nelson has introduced a bill (S 1841) that would extend the enrollment deadline and is co-sponsoring similar legislation (S 2168) with Snowe. Last month, the Senate voted 49-49 to reject a budget resolution amendment introduced by Nelson that would have extended the deadline to December 31 (Schuler, CQ Today, 4/19).

In the letter, Nelson and Snowe said, "By extending the enrollment deadline and delaying late enrollment penalties, we can make sure that our constituents are not forced to make hasty decisions about their health care" (St. Petersburg Times, 4/20). The letter adds, "Sorting through these plans has proven to be difficult and time consuming ... the Medicare drug program is experiencing a variety of implementation problems that have disproportionately affected the most vulnerable beneficiaries."

Comments
Sen. Debbie Stabenow (D-Mich.), who signed the letter, said, "From every angle, [the drug benefit] has been a disaster, and it needs to get fixed," adding, "In the short-run, we need at least to give folks more time to be able to figure this out" (Kleffman, Contra Costa Times, 4/20).

Sen. Edward Kennedy (D-Mass.) said in a statement, "Our seniors deserve to be given every opportunity in choosing a drug plan that best fits their needs and not held to unrealistic deadlines. It's clear that America's seniors have experienced immense difficulty with the administration's prescription drug program ..." (Boston Globe, 4/20).

Meanwhile, Rep. Pete Stark (D-Calif.) said that 187 House members have signed a discharge petition on his own deadline extension bill (HR 3861), which has more than 160 co-sponsors (CQ Today, 4/19). However, he said the administration should act to extend the deadline without legislation because if an extension bill reaches a vote in the House, lawmakers might decide to repeal the entire program (Contra Costa Times, 4/20).

 CMS has said it will allow some low-income beneficiaries to enroll in the drug benefit after the deadline without financial penalty (Boston Globe, 4/20). However, Bush administration officials last week said that CMS lacks the legal authority to extend the deadline for all beneficiaries (St. Petersburg Times, 4/20).

CMS spokesperson Peter Ashkenaz on Wednesday said, "The administration doesn't support an extension," adding, "Enrollment is surpassing our goals, satisfaction is high, and we see no reason to extend a deadline that's working. We don't' want Medicare beneficiaries to put off savings" (Boston Globe, 4/20).

Disenrollment Letters
In related news, insurers sponsoring Medicare drug plans have mailed "tens of thousands" of letters to beneficiaries saying they will be disenrolled from the drug benefit because they have not paid their premiums, USA Today reports.

The letters say that if missed payments are not made by May 31, "we will have to disenroll you." However, "many who received the letters in the past few days insist they have already paid," USA Today reports.

Some beneficiaries said they have signed up for automatic deductions from their Social Security checks to pay for premiums, while others who received the letters qualify for a low-income subsidy that covers the cost of premiums, according to officials with beneficiary counseling programs in Arkansas, California, New York and Pennsylvania.

Jackie Kosecoff, an executive at UnitedHealth, which has 4.5 million beneficiaries enrolled in Medicare drug plans, said the insurer mailed letters to beneficiaries who are one to four months behind in payments. UnitedHealth spokesperson Dominick Washington said the letters inform beneficiaries of payment options and assure them they will not be disenrolled because of late payments.

CMS officials said a one- to two-month delay in processing enrollment in Social Security's automatic deduction program might be partly to blame for the problems. CMS Administrator Mark McClellan added that officials are "seeing only a low rate" of questions related to such billing issues (Appleby, USA Today, 4/20).

Language Agreement
Meanwhile, organizations representing the insurance industry, chain drug stores and community pharmacists have agreed on uniform language for informing pharmacists of coverage policies for different drug plans, CQ HealthBeat reports.

 

Center for Medicare Advocacy Wants Deadline Extension

Judith Stein, one of the nation's leading experts on Medicare and the executive director of the Center for Medicare Advocacy, is calling for our government to extend the deadline to sign up for Medicare Part D (prescription drug coverage).  Seniors and disabled people who don't sign up for Medicare Part D by May 15 will face penalties if they sign up later.  The Center for Medicare Advocacy understands that the government has been asked to extend the deadline and has declined - they think this is a bad decision because:

1. Part D is brand new, and even the President agrees, complex. The first few months of the program's implementation was widely acknowledged to be a mess.  People need time to get over that rocky start and to have enough confidence in what they are choosing to enroll.

2. It is difficult to obtain complete information about the actual cost of needed drugs. The prices of drugs vary dramatically from plan to plan, and plans have changed prices and their lists of covered drugs. Seniors should get enrollment packages in writing from the plans they are interested in so that they can study them, and this takes time.

3. People can't switch plans, so it is not fair to force them to enroll before they are comfortable with their decision.

The Center for Medicare Advocacy is working to increase access to comprehensive Medicare coverage and health care for elders and people with disabilities.  I'm happy to set up an interview with Judith Stein, if you'd like.  For more information about her and the Center for Medicare Advocacy, please see http://www.fairmedicare.org/.

 

The standardized language will indicate to pharmacists whether a particular drug is covered, whether prior authorization is required for a drug, whether coverage limits have been exceeded and whether a pharmacy is part of a plan's network. Pharmacists and insurance industry representatives said the agreement will help reduce wait times and confusion among beneficiaries filling prescriptions.

Bruce Roberts, executive vice president and CEO of the National Community Pharmacists Association, said the agreement "will make a tremendous difference to pharmacists delivering drugs in a timely fashion." McClellan also said the agreement would reduce the "time and effort of pharmacists" filling prescriptions. "We expect the entire industry to implement these practices as soon as possible," he said (Carey, CQ HealthBeat, 4/19).

MedPAC
The Medicare Payment Advisory Commission on Wednesday considered data from a MedPAC survey of Medicare beneficiaries' experiences with the drug benefit. According to CQ HealthBeat, MedPAC is in the process of "wading into Part D issues by reviewing the quality of information" that beneficiaries have available when making decisions about the program.

According to MedPAC staffer Joan Sokolovsky, the data show that half of beneficiaries surveyed spent at least eight hours making a decision about the drug benefit. About two-thirds of beneficiaries said they made a decision by themselves, while a few said they sought help only from doctors, pharmacists or counselors. Only 11% used the Medicare Web site, while 22% called the Medicare phone line for help on selecting a plan, the survey shows.

MedPAC Commissioner David Smith, who participated in MedPAC-sponsored focus groups with beneficiaries, said there was a "lot of anger" among beneficiaries who thought the enrollment process was "too confusing" and "too hard." However, he added that once beneficiaries successfully filled a prescription, they expressed "a surprising amount of satisfaction" (Reichard, CQ HealthBeat, 4/19).

Broadcast Coverage
APM's "Marketplace" on Wednesday reported on the advisory opinion that pharmaceutical companies' patient-assistance programs for low-income Medicare beneficiaries are lawful under the prescription drug benefit.

The segment includes comments from Robert Hayes, president of the Medicare Rights Center; Ian Spatz, vice president for public policy at Merck; former Rep. Billy Tauzin (R-La.), president of the Pharmaceutical Research and Manufacturers of America; and a low-income Medicare beneficiary who participated in a patient-assistance program (Palmer, "Marketplace," APM, 4/19).

The complete segment is available online in RealPlayer.

"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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