Obama and Salazar Ask Administration to Correct Medicare Part D Misinformation, Improve Preparedness, and Outline Steps to Prevent Fraud
Thursday, December 8, 2005
Printable FormatFOR IMMEDIATE RELEASE
Obama Contact: Robert Gibbs or Tommy Vietor, (202) 228-5511 or (202) 997-3462
Salazar Contact: Cody Wertz, (202) 228-3630
Date: December 8, 2005
Obama and Salazar Ask Administration to Correct Medicare Part D Misinformation, Improve Preparedness, and Outline Steps to Prevent Fraud
WASHINGTON - On the 2nd anniversary of the enactment of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003, U.S. Senators Barack Obama (D-IL) and Ken Salazar (D-CO) sent a letter to Department of Health and Human Services (HHS) Secretary Michael O. Leavitt requesting that the Department outline the steps it has taken to correct misinformation it distributed, improve its ability to respond to and answer seniors' questions, and prevent fraud.
"Given the enormous health and financial implications, Americans have every right to expect that the benefit plan will be implemented in an efficient, comprehensible and fair manner," Obama and Salazar said. "Two years after the enactment of this bill, we are deeply troubled by recent newspaper reports and complaints we have received from constituents that highlight flaws in the implementation of the Medicare drug benefit."
In their letter, Obama and Salazar said they were troubled by reports that the 2006 Medicare & You handbook mailed to 42 million beneficiaries contained significant errors regarding the monthly premiums that plans will charge low-income enrollees. The Senators asked Secretary Leavitt to outline actions HHS has taken to correct this and other misinformation, as well as explain steps it has taken improve its ability to respond to and answer questions and protect seniors from fraud. They requested a response by January 3, 2006.
"We were not members of Congress in 2003 when the Medicare Modernization Act was enacted," Obama and Salazar said. "We therefore have no political stake in defending or criticizing the merits of the law that created the prescription drug benefit. As public servants, however, we have every interest in ensuring that seniors and people with disabilities receive reliable, accurate information; that the federal government prohibits insurers and agents from victimizing seniors in the marketing of the plans; that seniors and people with disabilities get the assistance necessary to make informed choices; and that the prescription benefit is properly implemented."
Below, please find the full text of the letter:
December 8, 2005
The Honorable Michael O. Leavitt
Secretary
Department of Health and Human Services
200 Independence Avenue, S.W.
Washington, D.C. 20201
Dear Secretary Leavitt:
As you know, during the next few weeks, millions of America's seniors and people with disabilities face the difficult task of selecting a Medicare prescription drug plan. As you also know, we were not members of Congress in 2003 when the Medicare Modernization Act (MMA) was enacted. We therefore have no political stake in defending or criticizing the merits of the law that created the prescription drug benefit. As public servants, however, we have every interest in ensuring that seniors and people with disabilities receive reliable, accurate information; that the federal government prohibits insurers and agents from victimizing seniors in the marketing of the plans; that seniors and people with disabilities get the assistance necessary to make informed choices; and that the prescription benefit is properly implemented.
Given the enormous health and financial implications, Americans have every right to expect that the benefit plan will be implemented in an efficient, comprehensible and fair manner. Two years after the enactment of the MMA, we are deeply troubled by recent newspaper reports and complaints we have received from constituents that highlight flaws in the implementation of the Medicare drug benefit.
For example, misinformation provided by your Department has caused significant confusion. The 2006 Medicare & You handbook mailed to 42 million beneficiaries contained significant errors regarding the monthly premiums that plans will charge low-income enrollees. The informational insert published in Parade magazine misrepresented the Medicare drug benefit as more generous than it really is. Moreover, when beneficiaries call 1-800-MEDICARE, the primary source for information regarding the drug benefit, they often encounter automated messages requesting that they call back. Many beneficiaries complain that when they are connected to a live person, the operators are unable to answer all but the most basic questions regarding the benefit plans. Given the lack of accurate information available to beneficiaries, it is no surprise that a recent poll conducted by the Kaiser Family Foundation found that the majority of seniors do not understand the Medicare drug benefit.
Recent newspaper reports also reveal that seniors may be at risk of being defrauded by unscrupulous insurers and agents who reportedly have visited their residences uninvited, pressured them to select particular plans, misrepresented plans, and requested personal information such as Social Security numbers and banking information. Although it is impossible to completely prevent fraudulent activities by unscrupulous persons, it does not appear that state and federal authorities have a coordinated plan of action to deter fraudulent conduct and to swiftly prosecute insurers and agents who engage in illegal activities. Implementation of the new drug benefit should not be an open invitation for scam artists to take advantage of senior citizens.
In light of these reports, we strongly urge you to take immediate action to address these concerns, and request that you provide our offices with answers to the following questions as soon as possible.
- What actions has your Department taken to correct the misinformation provided to beneficiaries? Does your Department have a way to determine whether the corrected information is reaching beneficiaries?
- Is there an adequate communications strategy for interacting with individuals with disabilities or for those without sufficient English or reading abilities?
- Are the 1-800-MEDICARE informational centers properly staffed to respond to the inquiries?
- What actions has your Department taken to ensure that operators who staff the 1-800-MEDICARE information centers are properly trained to meaningfully respond to questions concerning the benefit plans?
- Is there a coordinated plan between federal and state authorities to investigate and prosecute insurers, agents and others who engage in fraudulent and otherwise illegal conduct in marketing and selling the benefit plans? If so, what is the plan?
- What actions has the Department implemented to deter fraudulent conduct in the marketing of the plans, including monitoring the conduct of authorized plan insurers?
| _________________________ | _________________________ | |
| Barack Obama | Ken Salazar | |
| United States Senator | United States Senator |