Lincoln Seeks Immediate Waiver of Medicare Rx Drug Enrollment Penalty

Lincoln Seeks Immediate Waiver of Medicare Rx Drug Enrollment Penalty

May 18, 2006

Washington - U.S. Senator Blanche Lincoln (D-Ark.) introduced bipartisan legislation this week to ensure that seniors who failed to sign up for the nation's Medicare prescription drug plan by Monday's deadline won't be penalized by costly enrollment fees.

"Seniors should not be penalized because of the Bush Administration's failures to implement our nation's new Medicare Prescription drug law," Lincoln said. "While there may be initial problems in any new government program, especially one of this magnitude, no one should have to make hasty decisions about their health care. If we want this program to be a success we should help our seniors and offer them assistance so that they can make informed decisions and properly enroll in this program."

Lincoln's proposal, the Medicare Late Enrollment Assistance Act of 2006, would allow Medicare beneficiaries to sign up for Medicare Part D, the nation's new, voluntary prescription drug program during the next open enrollment period beginning November 15th without having to incur a penalty. Such a penalty is estimated to be, at a minimum, a seven percent increase in a beneficiary's monthly drug benefit premium.

Lincoln's proposal would also provide an additional $13 million for enrollment assistance counseling to State Health Insurance programs and $5 million for Area Agencies on Aging. Costs associated with Lincoln's bill are completely offset.

Lincoln has advocated for months that the Medicare prescription drug program's initial six-month sign-up period ending Monday, May 15th, be extended due to implementation failures by the Bush Administration. She believes that the nation's 43 million people eligible for the new program, including 480,000 Arkansans, should be given more opportunities to enroll in the new program.

Earlier this month the Bush Administration acknowledged the numerous problems that have occurred during the implementation of the new program, and waived through the end of the year the late enrollment penalty for low-income beneficiaries. Lincoln's bill would waive enrollment penalties for all beneficiaries through the end of the year.

http://lincoln.senate.gov/press_show.cfm?id=255802