Progress Pond

Different Deadlines and Medicare D(isaster)

Ambulances parked in front of the U.S. Capitol Building in Washington DC.

ABC:
Forty-eight Senators signed a letter urging that the deadline for choosing a Medicare D(isaster) policies should be extended.  The letter, to Bill Frist read:

“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.”

Sens. Bill Nelson, D-Fla., and Olympia Snowe R-Maine circulated the letter.  Three Republicans, Mike DeWine of Ohio, Lincoln Chafee of Rhode Island and Arlen Specter of Pennsylvania signed.

continued
Boston Globe:

Congress and the Bush administration crafted the plan so private insurance companies, not Medicare, would provide medications. That created an avalanche of companies offering coverage. In Massachusetts alone, there are 43 different types of coverage available. Choosing a plan is further complicated by the design of the benefit, which leaves seniors responsible for a big portion of drug costs because of a gap in coverage, known as the ”doughnut hole.”

As the legislation was written, seniors and people with disabilities who don’t choose a Medicare D(isaster) plan will pay higher premiums:  1% for each month enrollment is delayed, resulting in a lifetime increase for premiums.

This is supposedly an “incentive” to convince as many as possible to enroll, even those who may not need rx coverage.  If those w/high rx costs are the only ones who sign up, it would be difficult for the insurance companies offering the policies to provide adequate coverage and show a profit.  According to Senator Kennedy,

”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 and that problems within the system need to be worked out before seniors are penalized or experience delayed enrollment.”

The Guardian:
Michael Leavitt and Mark McClellan are participating in some 5,500 events scheduled between now and May 15 to encourage people to sign up for Medicare D(isaster) policies.  Both downplayed incidents of insurers warning seniors that they could lose their coverage because of failure to pay premiums.

 McClellan indicated that is because that it usually takes the Social Security Administration two months to begin automatic withdrawals for payments. His office is talking to the insurance companies and advising seniors receiving letters about non-payments to contact their insurance plans and the Medicare office.  

SOME JUSTIFICATIONS FOR LEGISLATION THAT WOULD EXTEND THE ENROLLMENT PERIOD TO THE END OF THE YEAR AND WAIVE PENALTIES

Specifically, thirty million were auto-enrolled, 8.1 million have voluntarily enrolled in a Medicare D(isaster) plan.  In addition, 15 million people who are eligible have not enrolled. There are about 43 million eligible for Medicare.

Forbes:
The Health and Human Services Department announced that the 2 million who qualify for the low-income subsidy/extra help, would be allowed to enroll in plans after the May 15 deadline. However, it was also stated that the law creating Medicare D(isaster) would not allow the administration to extend the deadline for everyone eligible.

However, last month, Senate Republicans pushed a non-binding amendment offerred by Charles Grassely that would give the Michael Leavitt the authority to move the deadline back if people need more time to enroll. It passed 76-22.  More here.

OTHER OPINIONS

Robert Hayes, president of the Medicare Rights Center:

“For this $1.3 trillion program, the administration now reveals that less than 20 percent of people with Medicare have new drug coverage–about 8.1 million of 43 million people who are eligible.  Others have somewhat better coverage, others are worse off.”

Roger Hickey, codirector of the Campaign for America’s Future:

”This drug plan is so complex and has been plagued by so many tragic glitches that most seniors are still scratching their heads.  People should not be penalized for the maddening complexity of the Bush Administration plan.”

Ron Pollack, executive director of Families USA when predicting that an extension would soon be passed:

”Congress will ultimately do this even though the president and congressional leaders have resisted so far.  They continue that resistance at their peril.”

Mark McClellan, explaining that anextension would result in an estimated 2 million fewer enrollees.

“Deadlines can be very helpful to get people to make a decision.”

George W. Bush:

“No, and the reason why is there’s got to be a fixed time for people to sign up.”

Now, as deadlines can be helpful and a fixed time is necessary, there is one other question remaining:  HOW ABOUT SETTING A DEADLINE REGARDING A FIXED TIME TO WITHDRAW U.S. TROOPS FROM IRAQ?

May 15, 2006!!!  

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