WEEKLY SENATE UPDATE

By U.S. Senator Olympia J. Snowe

For the week of January 6 through January 13, 2006

GIVING SENIORS MORE TIME

 

Two years ago, Congress enacted a Medicare prescription drug benefit that represents the first significant modernization of the program since its inception in 1965. Enrollment for this program, know as the Medicare Part D drug benefit, began last November and starting January 1st of this year, every Medicare beneficiary has access to affordable prescription drug coverage. This benefit is completely voluntary and all Medicare beneficiaries are eligible, including over 90,000 of Maine’s most vulnerable seniors who will receive additional financial assistance through the plan. 

   

            Implementing a new benefit- especially one as massive as this one- is bound to result in some errors. Many seniors are confused and angry that they do not have adequate information about the plans being offered-- and for good reason since there are more than 40 plans to choose from and finding the best one can be overwhelming. Seniors in Maine are worried they could make a poor choice in selecting a plan and that, once enrolled, the drugs offered by the plan they choose may not be the drugs they need. There have also been recent discoveries of significant problems with the Centers for Medicare and Medicaid’s (CMS) signup services.

 

We absolutely must ensure that seniors who are depending on Medicare prescription drug coverage find the plan that best meets their needs. Indeed, the federal government should be doing everything within its power to make it easier for seniors to navigate the system and correctly choose which plan would work best for them. That is why I, along with Senator Bill Nelson (D-FL) have introduced a bipartisan plan to address some of the problems that seniors have been having with the drug benefit signup. This legislation gives seniors more time to sign up for the new Medicare prescription drug benefit, provides more flexibility for beneficiaries to change plans, and adds crucial protections for those enrolled in a plan. Our bill represents an opportunity to alleviate much of this confusion and make sure the new drug benefit starts out on the right foot.                                                                                                                 

The Medicare Drug Benefit Protections Act of 2005 extends the initial six-month period for enrolling in a plan from May 15, 2006, to December 31, 2006, thus delaying late enrollment penalties until 2007 and giving beneficiaries all year to decide whether to enroll in a plan.  Once beneficiaries have enrolled in a plan, the bill guarantees them a one-time opportunity during 2006 to change to another plan without penalty, should they wish to do so.     

Under our bill, beneficiaries could change plans without penalty if they relied on misinformation from CMS to their detriment.  There are serious problems with inaccurate drug pricing information being provided by the CMS website devoted to the new Medicare Part D plans, www.medicare.gov.  In one instance, the CMS website quoted one price for a senior's drug costs for 2006 but the plan itself quoted a cost of approximately $2,000 more than the CMS website.  The bill also authorizes $25 million in funds for grants to states and nonprofit organizations to conduct additional outreach efforts during 2007 and 2008. Such outreach efforts are crucial to the success of the program given the scale of the benefit and the large number of beneficiaries.

 

            The new Medicare prescription drug benefit is an essential program for many seniors struggling to pay their medical drug bills. But seniors in Maine and across the country deserve more time to decide what kind of prescription drug coverage is right for them to make sure that they are not saddled with unnecessary monthly premiums. The legislation I have co-sponsored is a commonsense approach that fixes many of the problems that seniors are having with trying to sign up for the benefit. This drug benefit is a chance for many seniors to drastically reduce the price of their prescription drugs and so we absolutely must ensure that they are given all the information, help, and time they need to reap the benefits of this program.