Issue Position: Medicare Part D

Issue Position

In January 2006 the Prescription Drug Benefit became effective. All Medicare beneficiaries are eligible to enroll in the new program, hoever, those who do so after the May 15 deadline will see a 1% increase, per month, in their monthly premium. The next enrollment period is November 15 but this will mean individuals will automatically be subject to a 7% minimum penalty for the rest of their lives.

There are 43 million Medicare beneficiaries. The U.S. Department of Health and Human Services reports that 38 million people with Medicare have prescription drug coverage. However, the data includes low income and disabled individuals who are covered by Medicaid and were automatically enrolled into a prescription drug plan, along with people who have prescription drug coverage from military's TRICARE program or other federal employee healthcare benefits. There are also reports of individuals being counted twice when they switch to a new plan, which is allowed once per year.

It is estimated there are about 7.2 million to 10 million Medicare beneficiaries without prescription drug coverage. Enrollment in Medicare Part D could have impact on overall stability of the program.
Congressman Blumenauer has cosponsored the following legislation:

H.R. 3861, the "Medicare Informed Choice Act of 2005." This bill would extend the enrollment deadline for the new drug program from May 15 to December 31, giving beneficiaries more time to make informed choices.

H.R. 752, the "Medicare Prescription Drug Savings and Choice Act of 2005." This bill would allow Medicare to administer one or more prescription drug plans that contain negotiated prices in addition to the private plans.

H.R. 376, "Medicare's Equitable Drugs for Seniors Act of 2005." This bill would allow Medicare authority to negotiate lowest possible drug prices similar to what is granted to the Veterans Administration and Defense.

H.R. 5433, "Medicare Prescription Drug Ombudsman." Congressman Blumenauer is an original cosponsor of Congresswoman Darlene Hooley's bill that would provide for a Medicare Prescription Drug Ombudsman. The Ombudsman would handle complaints, grievances and help resolve disputes between Centers for Medicare and Medicaid and sponsors of prescription drug plans. This will hold the Department of Health and Human Services more accountable to constituents.

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