Davis Introduces Legislation to Extend the Medicare Part D Prescription Drug Plan Enrollment Deadline

Davis Introduces Legislation to Extend the Medicare Part D Prescription Drug Plan Enrollment Deadline

Local lawmaker cites need for seniors to have more time in making important decision on complex program; measure will also allow price negotiation

Citing the need to provide seniors more time to review and familiarize them selves with the new Medicare Part D Prescription Drug benefit, Congresswoman Jo Ann Davis has introduced legislation that would extend the May 15th deadline one year for enrolling in a prescription drug plan without paying a penalty. The legislation also would allow the Secretary of Health and Human Services to negotiate fair prices for Medicare prescription drugs.

"The Medicare Prescription Drug plan is a needed benefit for those on Medicare, and although not a perfect plan, seniors are receiving a benefit that they did not have prior to this legislation being enacted into law," said Congresswoman Jo Ann Davis. "However, this plan has two shortcomings that my legislation would rectify - it would allow seniors more time to sign up for a plan without being penalized, and it would allow the Department of Health to negotiate prices with the drug companies to lower overall costs. Making important health care decisions is not something that should be rushed, and I believe seniors need more time in making these decisions. Folks should not enroll in a rush and under fear of being penalized if they go past this May 15th deadline," said Davis.

Specifically, the Davis bill would extend the enrollment period for one year, so that seniors have until May 2007 to enroll without penalty. While Part D enrollment efforts have been successful, with 29 million seniors signed up by April 2006, there is still a significant amount of confusion, misinformation, and inaccessibility surrounding the new benefit. Providing seniors an additional year for initial enrollment will ensure that Medicare beneficiaries have the adequate time to find the plan that best meets their needs, without being subject to a significant late enrollment penalty fee.

The legislation would also authorize the Secretary of Health and Human Services to negotiate fair prices for Medicare prescription drugs. Allowing the Secretary to be involved in the price negotiations for Part D plans would lead to overall cost savings- for both Medicare and its beneficiaries. It is already known that price negotiation has yielded significant savings for the Department of Veterans Affairs (VA). While the VA is a markedly different system than Medicare, the benefits of having a single negotiator could still be achieved for Part D plans.

"Price negotiation would also make sure that prescription drug plans were more consistent. Seniors would not have to worry if their medication might be less expensive under a different plan, or be forced into a plan because it is the only one that carries their medication," said Davis. "Consequently, Medicare beneficiaries would be less confused by the plethora of choices in drug plans, and more confident that their plan will provide them access to affordable prescription drugs," added Davis.

The bill has been referred to the Ways and Means and Energy and Commerce committees.

http://joanndavis.house.gov/HoR/VA01/News/Press+Releases/2005/Davis+Introduces+Legislation+to+Extend+the+Medicare+Part+D+Prescription+Drug+Plan+Enrollment+Deadlin.htm