05.11.06

As Monday Deadline Looms, Cantwell Calls for Emergency Extension of Medicare Drug Plan Enrollment Period

Bipartisan coalition pushes to move May 15 deadline to end of year, eliminate late enrollment penalty

WASHINGTON, DC – With the Monday deadline for seniors to enroll in the new Medicare prescription drug program just four days away, U.S. Senator Maria Cantwell (D-WA) joined a bipartisan coalition of senators calling for an extension of the program’s enrollment deadline. Currently, seniors who sign up for the program after May 15, 2006 will be charged penalties for as long as they are enrolled in the Medicare prescription drug program, and will be locked out of the program until January 2007.

“Seniors need time to understand this program and make the choice that’s right for them without the threat of penalty fees hanging over their head,” said Cantwell. “This complex program has overwhelmed pharmacies, Washington state’s insurance assistance program, and, most importantly, the seniors it was designed to help. As of last month, 62 percent of eligible Washington seniors were not enrolled. Nationwide, more than half the seniors still deciding whether or not they want to enroll don’t know even about the late penalties. We need more time and resources to help seniors make this important decision.”

Enrollment in Washington state lags behind the national enrollment rate of 58 percent. Two-hundred and fifty-thousand Washington seniors will be punished if they do not enroll by the deadline. In a letter sent Thursday to President Bush, Cantwell joined a bipartisan group of other senators to call for an immediate extension of the deadline to give seniors more time to make the decision that fits them best.

“Across the country, over 40 million Medicare beneficiaries have been presented with a choice of signing up for the Medicare prescription drug program,” the senators wrote. “Unfortunately, many seniors and individuals with disabilities are understandably concerned and confused about the benefit …Yet, beneficiaries who do not act by the May 15, 2006, deadline and enroll at a later date will face a financial penalty … We are writing to request that you direct [Health and Human Services] Secretary Leavitt to extend the enrollment deadline through the end of the year, and eliminate the financial penalty during this period.”

Nationwide, there are 53 Medicare prescription drug plans that vary according to medications covered, pharmacies used, and costs. The new program, triggered by the Medicare Modernization Act and signed into law on December 3, 2003, is so confusing that calls from seniors to programs that help them navigate insurance options have skyrocketed to unprecedented levels. Late last year, the Washington State Health Insurance Assistance Program was reporting over 5,000 requests for assistance each month. The administration relied initially on the internet and a 100-page booklet to help seniors through the enrollment process. Both of these tools proved insufficient. Most of the seniors signed up for the plan to date were automatically enrolled and did not choose a plan for themselves.

After meeting with pharmacists across Washington state this winter, Cantwell championed the Medicare Informed Choice Act, which would extend the enrollment period through the end of 2006 and allow Medicare beneficiaries the opportunity to make a one-time change in their prescription drug plan. In Thursday’s letter, Cantwell and a bipartisan coalition of her colleagues called on the president to support an immediate extension of the deadline.

Cantwell has also advocated changes that would eliminate gaps in prescription drug coverage and provide life-saving medications to low-income and disabled seniors left behind by the new Medicare program. Seniors eligible for both Medicare and Medicaid often have chronic illnesses and the lowest incomes. These “dual eligibles” were automatically assigned to drug plans based on zip code, with no regard for which plan would actually fit them best. Dual eligibles who decide to switch plans are not covered by the new plan until the first day of the following month, leaving many without access to medications for up to 30 days. The REPAIR act, cosponsored by Cantwell, would address this gap by guaranteeing seniors access to a 30-day transitional supply of prescription drugs.

To help understand their options under the Medicare program, seniors can call the State Health Insurance Assistance Program at 1-800-562-6900.

[The text of the senators’ letter to President Bush follows below]

May 11, 2006

The President
The White House Office
1600 Pennsylvania Avenue, N.W.
Washington, D.C. 20500


Dear Mr. President:

Across the country, over 40 million Medicare beneficiaries have been presented with the choice of signing up for the Medicare prescription drug program. Unfortunately, many seniors and individuals with disabilities are understandably concerned and confused about the new benefit.

Beneficiaries face a number of prescription drug plan options, and choosing the right plan can be a challenge. Each of the options differs in terms of premiums, cost-sharing requirements, drugs covered and pharmacy access. Sorting through these plans has proven to be difficult and time consuming for many beneficiaries. Further complicating matters, the Medicare drug program has experienced a variety of implementation problems that have disproportionately affected the most vulnerable beneficiaries.

Yet, beneficiaries who do not act by the May 15, 2006, deadline and who enroll at a later date will face a financial penalty. Seniors who choose a plan after May 15, 2006, will be penalized by a one percent increase in their premium for each month they delay their choice.

We are writing to request that you direct Secretary Leavitt to extend the enrollment deadline through the end of the year, and eliminate the financial penalty during this period.

The Congressional Budget Office (CBO) has estimated that an additional 1.1 million beneficiaries would sign up for the Medicare prescription drug program during this year if the May 15th deadline was extended. In addition, they calculate that eliminating the penalty for this year would ultimately lower premiums for 7.5 million beneficiaries.

Since Congress has not yet passed legislation expanding the existing six-month open enrollment period, we urge you to take action. The stakes here are too high to deny seniors the time and resources they need to make an informed decision.

As you know, Secretary Leavitt has already extended the enrollment deadline for some low-income beneficiaries and hurricane Katrina evacuees. We believe the Secretary has the legal authority to provide the same benefit to all Medicare beneficiaries. We all share the goal of ensuring that Medicare beneficiaries have sufficient time and assistance to make a wise decision regarding prescription drug coverage. We respectfully urge you to announce your intention to delay both the enrollment deadline and penalty as soon as possible.

Thank you for your attention to this important matter.

Sincerely,

Bill Nelson
Michael DeWine
Susan Collins
Frank Lautenberg
Debbie Stabenow
Mary Landrieu
Bob Menendez
Carl Levin
John Kerry
Barbara Mikulski
Harry Reid
Hillary Clinton
Maria Cantwell
Evan Bayh
Mark Dayton
Chuck Schumer
Ken Salazar
Richard Durbin
Paul Sarbanes
Jeff Bingaman
Mark Pryor
Daniel Inouye
Edward Kennedy
Joe Biden
Patty Murray
Barbara Boxer
Daniel Akaka
Barack Obama
Tom Harkin
Robert Byrd
Joe Lieberman
Ron Wyden
Jack Reed
Byron Dorgan
Russ Feingold
Patrick Leahy
Herb Kohl
Ben Nelson
Tim Johnson
Blanche Lincoln

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