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Medicare Drug Program
Key Republicans Oppose Late Enrollment Penalty for
Medicare Drug Program
Today is last day
to enroll without future enrollment penalty
May 15, 2006 – With still about 5.7 million senior
citizens not signed up for a Medicare drug plan, Democrats and, now,
some Republicans are asking that the penalty for late enrollment be
waived. The Centers for Medicare and Medicaid Services announced last
week that it will not penalize low-income seniors who miss the deadline
but continues to oppose the waiver for all seniors. About half of those
not enrolled could qualify for the low-income exemption, according to
a report by KaiserNet.org.
 Some Republicans Support Eliminating
Late-Enrollment Penalty for Medicare Rx Benefit
Some Republican congressional leaders -- including
Senate Finance Committee Chair Chuck Grassley (R-Iowa),
House Ways and Means Health Subcommittee Chair Nancy Johnson (R-Conn.)
and others -- are considering legislation that would waive financial
penalties for Medicare beneficiaries who sign up for the Medicare
prescription drug benefit after Monday's enrollment deadline, the
Washington Post reports.
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Medicare Says 37 Million in Drug Program Approaching
May 15 Deadline
May 12, 2006 – With just four days left to enroll
in a Medicare drug plan before the first year deadline of May 15,
Medicare says over a million more people have enrolled in prescription
drug coverage between late April and May 6, bringing the total of
beneficiaries with prescription drug coverage to 37 million. But, it
seems certain that millions will not join by the deadline and will face
a stiff penalty for joining in future periods.
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Massive Last Week Push to Enroll Seniors in Medicare
Drug Program
Missing May 15 deadline means paying at least 7%
more for program in future
May 8, 2006 – With only a week left for senior
citizens to enroll in the Medicare drug program without a penalty for
enrolling in future years, Medicare has launched a massive effort to get
seniors enrolled by the May 15 deadline. Those who do not make it will
have to wait until November to enroll and will pay 7 percent higher
premiums – for as long as they are enrolled. The daily Medicare report
by KaiserNet.org also reports Democrats are saying they want to change
the law to allow Medicare to negotiate with pharmaceutical companies for
better prices on Medicare drugs.
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Poor Communications on Medicare Drug Plan May Be
Reason Enrollment Lags
GAO tells CMS to improve hotline and Website
May 4, 2006 – With the deadline (May 15) for
enrolling in the first year of the Medicare drug program rapidly
approaching, the Government Accountability Office may have found the
not-very-surprising reason many senior citizens have not enrolled – the
communications about the program have not been very good. The Centers for
Medicare and Medicaid Services said it is taking action to make the
suggested improvements, although the agency said the findings were not a
complete and accurate picture.
Read
more...
Read more
on
Medicare Drug Program |
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Under the current rules, beneficiaries who are
eligible to enroll in the drug benefit who do not sign up before May 15
will have to pay a penalty of a 1% premium increase for each month of
delayed enrollment. Because the next enrollment period begins Nov. 15,
beneficiaries would pay a minimum late-enrollment penalty of 7%
(Goldstein/Murray, Washington Post, 5/13).
Beneficiaries who qualify for
a low-income subsidy under the drug benefit and beneficiaries with
disabilities are exempt from the penalty (Kaiser
Daily Health Policy Report, 5/10).
Hurricane Katrina evacuees also
will be allowed to enroll without a late-enrollment penalty for 63 days
after May 15 but will have to pay a 2% penalty beginning the 64th day (Kaiser
Daily Health Policy Report, 5/12).
One plan that is "gaining
momentum" would maintain the Monday sign up deadline but waive the
late-enrollment penalty, the New York Times reports (Pear, New York
Times, 5/15). Johnson said she plans to introduce such a proposal and
has received promises of support from enough lawmakers that the bill
should pass in the fall (Freking,
AP/San Francisco Chronicle, 5/14).
Other Options
Grassley said lawmakers are considering several other options, including
a proposal to keep penalties only for beneficiaries who have higher
annual incomes (Washington Post, 5/13). However, he added that he will
not consider legislative changes to the drug benefit until after he sees
final enrollment numbers.
Meanwhile, on Thursday, 46 senators --
including Republican Sens. Arlen Specter (R-Penn.), Mike DeWine (R-Ohio)
and Susan Collins (R-Maine) -- wrote a letter to
HHS Secretary Mike Leavitt asking that the deadline be extended
until the end of the year and the penalty be eliminated (AP/San
Francisco Chronicle, 5/14).
Sen. Olympia Snowe (R-Maine) on Friday also
expressed support for the extension (Wolf,
USA Today, 5/15). Reps. Jeb Bradley (R-N.H.) and Tom Price (R-Ga.)
have introduced bills to waive the penalty for this year (New York
Times, 5/15).
According to the Post, the shift among some congressional
leaders "marks the first time Republicans have broken with the White
House over the program." Still, "GOP lawmakers are reluctant to talk
openly of their plans" before the deadline passes "for fear of
counteracting a cheerleading blitz that President Bush and his top
health advisers have undertaken to spur a last-minute surge in
enrollment" (Washington Post, 5/13).
Comments
Johnson said, "The bottom line is this is a democracy, and the Congress
responds to the people and shapes the program so it's good for them"
(AP/San Francisco Chronicle, 5/14). Price said, "We should not penalize
those who still need time to make this very personal and important
choice" (Pear,
New York Times, 5/15).
Rep. Charles Rangel (D-N.Y.) said, "To put a
penalty for the rest of their lives on our oldest citizens, I think, is
just an improper and wrong thing to do" (AP/San Francisco Chronicle,
5/14). Rep. Clay Shaw (R-Fla.), said, "Democrats have scared seniors
away from the program by bad-mouthing it" (New York Times, 5/15).
CMS Administrator Mark McClellan did not respond to Republicans'
comments on the late-enrollment penalty, saying, "We have not been
focused on [the penalty]. We've really been focused on getting to May
15" (Washington Post, 5/13). He added that the administration "will
revisit the issue after May 15" (New York Times, 5/15).
AARP CEO Bill Novelli said, "It is critical that people enroll by
midnight tonight, but there is always some confusion with any new
benefit," adding, "It makes sense to waive any penalty." Ron Pollack,
executive director of
Families USA, said, "Politically, eliminating that penalty is a
smart thing to do and will no doubt get serious consideration" (USA
Today, 5/15).
Continuing Problems, Asset Test
In related news, Medicare officials last week reported continuing
problems with low-income beneficiaries trying to obtain medications.
According to a memorandum sent recently by the Bush administration,
officials have "received numerous complaints" that dual eligibles are
"being charged incorrect copayments at the pharmacy."
In addition, some
beneficiaries are finding that they have been assigned to drug plans
different from the one they chose, CMS officials said. Meanwhile,
Beatrice Disman, chair of the Medicare Planning and Implementation Task
Force at
Social Security, said more than 1.7 million beneficiaries of the
eight million beneficiaries eligible have been approved for a low-income
subsidy that provides assistance with premiums and copays under the drug
benefit.
The subsidy is available to beneficiaries with assets of less
than $11,500, not including homes and cars. Disman said many of those
who were disqualified failed the asset test. Some advocacy groups and
insurers have called for elimination of the test.
Jacqueline Kosecoff of
UnitedHealth Group said, "We support elimination of the asset test."
Novelli said some beneficiaries were intimidated by the subsidy
application form because it warns that applicants "may be sent to
prison" if they do not disclose the value of certain assets. McClellan
said, "We are not supporting legislation to change the asset test at
this time. Our efforts are focused on getting help to people who need it
most" (New York Times, 5/15).
Additional Coverage
Several other newspapers featured articles on the Medicare prescription
drug benefit. Headlines appear below.
● "The
ABCs of Medicare Part D" (Lamb, Christian Science Monitor, 5/15).
</LI
● "Kinks
Remain as Drug-Plan Deadline Nears" (Goldstein, Philadelphia
Inquirer, 5/13).
● "Deadline
Near for Medicare Drug Plan" (Schaefer, Philadelphia Inquirer,
5/14).
● "Healthy
Seniors Weigh Skipping Out on Part D" (Snowbeck, Pittsburgh
Post-Gazette, 5/14).
● "Local
Medicare Enrollee Got Help -- and Saved Big" (Booker, Richmond
Times-Dispatch, 5/14).
● "Medicare
Advocates Fear for the Poor" (Mussenden, Richmond Times-Dispatch,
5/14).
● "Debate
on Drug Benefit Persists" (Fagan, Washington Times, 5/15).
● "Senate
Hopefuls Slam Medicare Plan for Seniors" (Miller, Washington Times,
5/14).
Broadcast Coverage
Several broadcast programs reported on the enrollment deadline for the
Medicare prescription drug benefit:
● APM's "Marketplace
Morning Report": The segment reports on how Canadian pharmacies are
offering an automated program to compare U.S. residents' prescription
drug costs through Medicare Part D and reimportation from Canada. The
segment includes comments from David McKay with
CanadaWayDrugs.com (McNalley, "Marketplace Morning Report," APM,
5/12). The complete segment is available
online in RealPlayer.
● C-SPAN's "Washington
Journal": Guests on the program are scheduled to include Mary Grealy,
president of the
Healthcare Leadership Council; Leslie Norwalk, deputy administrator
for CMS; Pollack; and Susan Winckler, vice president for policy and
communications at the
American Pharmacists Association ("Washington Journal," C-SPAN,
5/15). The complete segment will be available
online in RealPlayer and Windows Media after the broadcast.
● KCRW's "To
The Point": The program is scheduled to include a discussion on the
reasons for the enrollment deadline (Olney, "To The Point," KCRW, 5/15).
The complete segment will be available
online in RealPlayer after the broadcast.
● NPR's "All
Things Considered": Julie Rovner, health policy correspondent for
NPR, discusses the deadline (Elliott, "All Things Considered," NPR,
5/14). The complete segment is available
online in RealPlayer.
● NPR's "Day
to Day": The segment includes comments from George Kelemen, campaign
manager for Medicare prescription drug outreach for AARP (Adams, "Day to
Day," NPR, 5/12). The complete segment is available
online in RealPlayer.
● NPR's "News
& Notes with Ed Gordon": The segment includes comments from a
Medicare beneficiary in Illinois who still has questions about selecting
a Medicare prescription drug plan (Gordon, "News & Notes with Ed
Gordon," NPR, 5/12). The complete segment is available
online in RealPlayer.
● NPR's "News & Notes with Ed Gordon": The
segment includes comments from John Agwunobi, assistant secretary of
health at HHS, about efforts to reach black Medicare beneficiaries who
might be reluctant to enroll in the benefit (Chideya, "News & Notes with
Ed Gordon," NPR, 5/12). The complete segment is available
online in RealPlayer.
CQ's Schuler Discusses
Medicare, Association Health Plan Legislation, Embryonic Stem Cell
Legislation
Congressional Quarterly reporter Kate Schuler
discusses the May 15 deadline for Medicare beneficiaries to enroll in
the drug benefit without incurring a financial penalty, association
health plan legislation and embryonic stem cell legislation in this
week's "Health
on the Hill from kaisernetwork.org and CQ."
"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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