Schumer, Lowery, Bishop Introduce Bill to Prevent 276,000 More New Yorkers from Losing EPIC Coverage

Date: Feb. 28, 2006
Issues: Drugs


SCHUMER, LOWEY, BISHOP INTRODUCE BILL TO PREVENT 276,000 MORE NEW YORKERS FROM LOSING EPIC COVERAGE

360,000 New Yorkers on EPIC, and 574,000 Dual Medicare/Medicaid Enrollees Could Lose Benefits, Receive Inferior Drugs, Or Lose Coverage At Local Pharmacy

After New York State Transferred 91,000 EPIC Beneficiaries To Medicare Part D, Schumer, Lowey, and Bishop Introduce Bill To Protect EPIC

U.S. Senator Chuck Schumer and Representatives Nita Lowey and Tim Bishop introduced legislation that would prevent 276,000 New York additional seniors from losing EPIC coverage. The legislation come in light of Governor Pataki's 2006 budget proposal, released January 17, that would push one-quarter of EPIC enrollees or 91,000 low-income New York seniors from the EPIC program into the Medicare program. Since the implementation of Medicare Part D on January 1, 2006, New York seniors have faced confusion and gaps in coverage. Across New York, 367,000 seniors are enrolled in New York's popular Elderly Pharmaceutical Insurance Coverage (EPIC.) Schumer previously urged Center for Medicaid and Medicaid Services' Administrator Mark McClellan to offer the same safeguards to EPIC that are currently given to other private plans.

Schumer: "The Federal government has not been straight with the American people, especially seniors. Seniors who thought they were getting a Cadillac of a prescription drug program are now finding out their insurance plan is a jalopy. We all have a special duty to protect New York's seniors and turn this lemon of a program into lemonade. Our bill will make sure EPIC is protected."

Lowey: "The EPIC program has provided reliable, affordable drug coverage to our seniors. It's a program that works. That's why it doesn't make sense to pull the rug out from under seniors by dropping their coverage and forcing them into the flawed Medicare program. We need to protect seniors' access to drug coverage, not undermine it."

Bishop: "Thousands of seniors who benefit from EPIC have a simple question-- If it ain't broke, why are you trying to fix it," Bishop said. "This legislation will make sure that New York's seniors at least have the same protections and benefits they enjoy now."

Transitioning From EPIC to Medicare:
Some of the 367,000 New York seniors enrolled in EPIC will be forced to enroll in Medicare drug plans by July 1st. Governor Pataki's 2006 budget proposal, released January 17th, would push about 91,000 low-income New York seniors from the EPIC program onto the Medicare drug program. EPIC provides prescription coverage for seniors who have too high of an income to qualify for Medicaid, but still need help paying for costly prescription drugs. These 91,000 people are the members of EPIC who are eligible for a federal low-income subsidy if they enroll in a Medicare drug plan, which will make their drugs cheaper, but will also give them coverage that is inferior to EPIC.

The EPIC program is a simple, cost-sharing prescription drug plan that covers almost all medications for enrollees. Most pharmacies in New York accept EPIC, and EPIC seniors pay at most $20 for a medication. The Medicare drug plan, on the other hand, is extremely complex and difficult to navigate. With over 40 drug plan options in New York and each plan covering different drugs, many seniors have found choosing a Medicare drug plan paralyzing. Additionally, the Medicare drug plan drastically differs from EPIC in that not all pharmacies accept the wide variety of Medicare drug plans, and co-pays vary from plan to plan.

The grave nature of the impending transition of EPIC seniors onto the Medicare drug plans by July 1st is amplified because of the Medicare drug plan's remaining glitches. Many seniors still aren't receiving the drugs they need, are trapped in inappropriate plans, or are paying far too much for their medications. Since the implementation of the Medicare drug plan, New York seniors enrolled in Medicare drug plans have faced dangerous gaps in drug coverage. Knowing the abundance of problems with the Medicare drug plan, EPIC seniors shouldn't be forced from a simple plan that provides secure coverage to a complex plan that still has many glitches.

Schumer, Lowey, and Bishop's legislation, the "Existing Drug Coverage Protection Act," will:
• Prevent the remaining 276,000 EPIC enrollees from being transitioned onto Medicare in the future. The Medicare program currently pays 28% federal subsidies to employers to ensure that companies will not push their retirees from employer-sponsored plans onto Medicare. EPIC should benefit from the same federal subsidies to give the State the incentive it needs to retain current EPIC coverage for New York seniors.

http://schumer.senate.gov/SchumerWebsite/pressroom/press_releases/2006/PR82.EPIC%20Joint.022806.html

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