DeLauro Calls for Immediate Relief for Medicare Beneficiaries

Date: Jan. 26, 2006
Location: Washington, DC
Issues: Drugs


DeLauro Calls for Immediate Relief for Medicare Beneficiaries

- Calls on President to Provide Debit Cards, Congress to Pass Legislation for State Reimbursement -

WASHINGTON, D.C. - Congresswoman Rosa L. DeLauro (Conn.-3) today called for immediate relief to help low-income seniors and persons with disabilities struggling to receive medication through Medicare. In a letter to President Bush, DeLauro said his administration should provide $1,000 debit cards to low-income seniors and those living with disabilities that receive Medicare benefits, but are also eligible for Medicaid (known as dual eligibles.) Congressman Rahm Emanuel (IL-05) made a similar proposal earlier this week. In a separate letter to Speaker Hastert, DeLauro and her colleagues called on the House to take up legislation providing reimbursement to states immediately.

"The Medicare prescription drug benefit is fundamentally flawed and low-income seniors and those living with disabilities are paying the ultimate price by leaving drug stores without the medication they so desperately need," said DeLauro. "Medicare has always been a health security net for our nation's seniors and disabled. It was only when the program was changed to benefit private insurance companies that beneficiaries encountered these problems."

In an effort to resolve this crisis, 26 states including Connecticut, have stepped in, providing emergency funding to ensure that dual eligibles get their prescription drugs. Yesterday, the Centers and Medicare and Medicaid Services announced they would begin reimbursing states for their efforts. DeLauro and her colleagues, however, have questioned the plan's implementation, and that the reimbursement ends on February 15.

"Although we are encouraged by CMS's announcement yesterday, shortfalls remain," said DeLauro. "The President should issue debit cards to the people who need them the most. As our country moved to ensure those devastated by Hurricane Katrina were taken care of and had access to their medications, so should we for Medicare beneficiaries."

The full text of both letters follow.

January 26, 2006

President George W. Bush

The White House

1600 Pennsylvania Ave.

Washington, D.C. 20500

Dear Mr. President:

I write to you with concern regarding the implementation of the new Medicare Prescription Drug Part D program. Over the course of the past several weeks, it has become increasingly clear that the program is failing too many seniors, with beneficiaries having extreme difficulty obtaining necessary prescriptions and in determining which plans they are enrolled in. My state of Connecticut is but one of the 26 states that have resorted to stopgap measures to ensure their neediest citizens can pay for the drugs they require. In my view, this is wholly unacceptable and an untenable situation. As such, while I support recent actions to address some of these concerns, your Administration has an obligation to make sure the Medicare Part D program can function without financial assistance from the states.

Indeed, I have heard from dozens of confused elderly constituents, many of whom have income-levels that qualify them for Medicare and Medicaid assistance. Many of these so-called "dual eligible" seniors have been automatically enrolled in a plan but have not received any information detailing where they are enrolled or what costs and benefits they have. Many also tell me that when they go to purchase their drugs, pharmacists are unable to locate their information in the system. Although some of these cases are reported to be resolved within a few days, our most vulnerable seniors should not be put in the position of going without necessary medications for any length of time.

I am particularly concerned that some of the remedies your Administration is proposing fail to address the scope and breadth of the problems. For instance, over the past several weeks, Centers for Medicare and Medicaid Services (CMS) has urged insurance companies to increase phone lines and staff, expedite cost-sharing approvals, and reminded them that they are required to provide a 30-day emergency supply of a drug that is not on the plan's formulary to beneficiaries. However, CMS has no authority to enforce such requests and they come too late, again leaving our seniors at risk. And while CMS has at last begun a process for repaying the 26 states who have reimbursed pharmacists for helping needy beneficiaries, it is clear this measure does not address the underlying and immediate problems.

That is why I would urge you to follow the approach that was used with some success in the aftermath of Hurricane Katrina and distribute $1,000 debit cards to dual eligible beneficiaries to pay for their prescription drugs while your Administration addresses the larger problems plaguing the program. In my view, the Federal government must take full responsibility for the Medicare Part D program that it has implemented by not only repaying all states that have stepped in to provide drugs to their citizens, but also by developing a means by which all beneficiaries can quickly, easily and reliably obtain their prescription drugs.

I look forward to your prompt response.

Sincerely,

January 26, 2006

The Honorable J. Dennis Hastert

Speaker

U.S. House of Representatives

H-232 Capitol

Washington, DC 20515

Dear Speaker Hastert:

The implementation of the new Medicare prescription drug program (Part D) has become a public health crisis. As you know, there has been a great deal of confusion and difficulty surrounding its implementation. Many beneficiaries have left the pharmacy empty-handed after being told that their drugs were not covered or their enrollment could not be confirmed. Others have been forced to pay unaffordable amounts to obtain necessary medication.

While many important steps should be taken to address problems in the program, we are writing to request that the House immediately consider legislation explicitly directing the federal government to protect beneficiaries and reimburse states that have taken emergency measures to ensure Medicare beneficiaries get their prescriptions.

To date, 26 states have enacted emergency measures to ensure that no low-income senior citizen or person with a disability leaves a drugstore without their medication. We are encouraged by HHS Secretary Mike Leavitt and CMS Administrator Mark McClellan's recent announcement that the agency will work under an existing demonstration authority to reimburse the states for these costs. However, we have been unable to learn the details of their proposal and remain concerned about several components. Specifically, the (1) arbitrary expiration of the proposed assistance to states on February 15th; (2) requirement for states to "pay and chase" rather than having CMS pay states directly and reconcile with plans; and (3) administration through a waiver process that may not be available to all states.

The problems beneficiaries are facing are unlikely to be resolved over the next few weeks. Indeed, transition issues are not temporary, as each month brings new Medicare beneficiaries, including some who will be coming on or off Medicaid, depending on their situations. As such, it would be wise for Congress to provide guidance and assurances with respect to the future.

When the House reconvenes, a number of members intend to promptly introduce legislation that would direct HHS to fully reimburse states that have emergency assistance programs. We urge you to schedule a vote on one of these bills if the process outlined by the Administration does not provide timely and full assistance to the states.

Thank you for your immediate attention to this matter. We look forward to your response.

Sincerely,

http://www.house.gov/delauro/press/2006/January/medicare_cards_1_26_06.html

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