Chairman Smith - Medicare Drug Plan Must Become More Efficient

CHAIRMAN SMITH - MEDICARE DRUG PLAN MUST BECOME MORE EFFICIENT

Problems with the system must be fixed swiftly, permanently

U.S. Senator Gordon Smith (R-OR), chairman of the Senate Special Committee on Aging, today held a hearing to examine problems with implementation of the Medicare prescription drug benefit and the steps being taken to ensure American seniors are not denied access to medication. The prescription drug benefit became effective January 1.

"Our poorest citizens are the ones most affected by these problems," said Smith. "We need to remedy this situation quickly and take steps to prevent them in the future. I'm going to continue using my committee's oversight powers to ensure the interests of American seniors are protected."

The Aging Committee heard from a broad range of witnesses including Dr. Mark McClellan, Administrator of the Centers for Medicare Services (CMS) and Timothy Murphy, Massachusetts Secretary of Health and Human Services. In addition, the committee heard testimony from representatives of drug plans, pharmacies, and individual beneficiaries regarding their experiences with the Medicare prescription drug benefit since the plan took effect.

Many of the problems experienced during the program's first month occurred due to miscommunication between CMS, the drug plans and pharmacies regarding the status of dual eligible beneficiaries, those who qualify for Medicare and full Medicaid benefits. This resulted in dual eligibles being charged incorrect prices and in some cases being forced to go without critical medication.

"While we are still in the early stages of implementation of the Medicare prescription drug program, all parties must work better together to resolve these issues in a timely manner," said Smith. "The time for finger-pointing is over, American seniors are expecting results."

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