As Enrollment Period Set to Begin, Senate Democrats Say Medicare Drug Plans Too Confusing

AS ENROLLMENT PERIOD SET TO BEGIN, SENATE DEMOCRATS SAY MEDICARE DRUG PLANS TOO CONFUSING

U.S. Senator Dick Durbin (D-IL) today urged Congress to give seniors more time to navigate through the hundreds of confusing Medicare benefit drug plans so they can make an informed decision about their health care needs. Durbin joined Senators Bill Nelson (D-FL) and Patty Murray (D-WA) to unveil the Medicare Informed Choice Act of 2005 which would extend the enrollment period until the end of 2006 so beneficiaries can learn more about the new drug benefit, obtain independent counseling, and make the right choice. The bill will also eliminate the late enrollment fee penalty for the first year.

"Seniors are faced with a mountain of prescription drug bills and a growing stack of glitzy brochures from insurance companies looking for new customers. Our seniors deserve a less confusing, less expensive prescription drug plan, but until we succeed in changing that reality, the least we can do is give them adequate time to understand their options and make the best choice," Durbin said.

Under the Medicare prescription drug plan signed into law in 2003, beneficiaries are eligible to purchase the new Medicare Part D drug benefit through a private drug plan or enroll in a Medicare managed care plan that offers a drug benefit. The enrollment period begins November 15, 2005 and ends on May 15, 2006. Beneficiaries will be charged a late enrollment penalty if they choose to enroll at a later date.

In addition to expanding the existing six-month open enrollment period to the entire year of 2006, the Medicare Informed Choice Act will give every beneficiary the opportunity to make a one-time change in plan enrollment at any point in 2006. Additionally, the legislation will protect employees from being dropped by their former employer's plan during the first year of the implementation of the drug plan. Without these changes, beneficiaries will face a late-enrollment penalty if they enroll in a plan after May 15, 2006, could lose employer-provided retiree health benefits if they enroll in some Part D plans, and could be prohibited from switching plans until 2007.

Durbin said that in his home state of Illinois there are 17 insurance companies offering 84 different Medicare HMO or PPO plans, and 16 prescription drug organizations offering 52 different prescription drug benefits.

Durbin called the 136 different drug plans in Illinois a "prescription for confusion." He added, "With more than 130 choices, you need a year of planning just to pick the best plan. While drug companies and HMOs are guaranteed hundreds of millions of dollars from the federal government, seniors are guaranteed a headache if they sign up for the wrong plan."

The new prescription drug program also represents an opportunity for individuals to prey on seniors and persons with disabilities, Durbin warned. He said that beneficiaries can protect themselves against fraud by never sharing their personal information with anyone calling or visiting their home unannounced. Beneficiaries can also check to see whether a plan marketer is legitimate by calling 1-800-699-9043. Durbin encouraged Illinoisans to contact the Consumer Fraud Hotline at 1-800-243-0618 to report any fraud. The hotline was set up by Attorney General Lisa Madigan.

http://durbin.senate.gov/record.cfm?id=247472