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Medicare Drug Program News

Medicare Stops Automatic Drug Plan Enrollment for Some Dual Eligibles

Advocates worry they will fall through the cracks and lose coverage

Click here to the Daily Health Policy Report - KaiserNetwork.orgOctober 19, 2006 - About 632,000 Medicare beneficiaries who were automatically enrolled by the government in the Medicare prescription drug benefit for 2006 will not be automatically re-enrolled in 2007 and will have to sign up for Medicare drug plans on their own, the AP/San Francisco Chronicle reports.

 

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October 13, 2006 – Medicare today officially launched the improvements and additions for 2007 in the Medicare Prescription Drug Plan Finder Web tool. The news release says the changes will make it easier for beneficiaries to get personalized information about their coverage options and costs for next year. The 2007 Medicare & You handbooks are also being mailed this month to all senior citizens. Read more...

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When the drug benefit began, drug coverage for dual eligibles -- beneficiaries eligible for both Medicare and Medicaid -- was transferred from state Medicaid programs to Medicare, and the federal government automatically enrolled dual eligibles in private Medicare drug plans.

Some of those beneficiaries are no longer enrolled in state Medicaid programs and therefore will not be automatically enrolled into Medicare drug plans for 2007, according to CMS. Affected beneficiaries who wish to remain enrolled in the Medicare drug benefit must shop for a plan and enroll on their own during the upcoming open enrollment period, which begins Nov. 15.

Kathleen Harrington, CMS director of external affairs, said the agency will allow the affected beneficiaries to enroll in plans for an additional three months after the regular open enrollment period ends on Dec. 31. Harrington said CMS last month sent a letter to those beneficiaries instructing them that they also should apply for the low-income subsidy that allows access to plans with low or no premiums.

Concerns
Some advocates are concerned that many of the 632,000 beneficiaries will "fall through the cracks" and not realize that their drug coverage has lapsed until they try to fill prescriptions in January, the AP/Chronicle reports.

James Firman, president and CEO of the National Council on Aging, said, "We believe many, if not most of the people, simply won't respond to a letter. Many won't read the letter, they won't understand the letter, they won't know how to fill out the application form."

Firman said that NCOA has found that about 20% of low-income seniors generally respond to letters, adding, "We're talking about a population that's sick, may have low literacy. There are a lot of challenges. What they need is one-on-one assistance from trusted intermediaries."

According to the AP/Chronicle, some of the beneficiaries "who lost their Medicaid coverage may have lost eligibility because they're making more money and no longer qualify for the extra help."

However, Firman said it is "more likely that some states tightened eligibility requirements, or the individual did not complete all the paperwork needed to be recertified for Medicaid." Harrington said CMS has informed insurers who market Medicare drug plans of which former dual eligibles will need to enroll on their own, adding, "It's very much in the interest of the plans to keep them in coverage" (Freking, AP/San Francisco Chronicle, 10/19).

 

"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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