BAUCUS BILL WOULD WAIVE RX DRUG ENROLLMENT PENALTY

Following Weds Deadline, Senator Pushes To Nix Late-Fee So More Seniors Can Sign-Up

May 16, 2006

(Washington, D.C.) – Following the Monday deadline for seniors to sign up for prescription drug coverage, Montana Senator Max Baucus today introduced legislation to waive a late fee seniors would have to pay if they still want to sign up for the new Medicare Part D program.

At a press conference on Capitol Hill, Baucus, the highest-ranking Democrat on the Senate Finance Committee, teamed up with Sen. Charles Grassley (R-Iowa), the panel’s chairman, to introduce the legislation.

Baucus was a co-author of Medicare Prescription Drug, Improvement and Modernization Act of 2003, which created the new prescription drug benefit. He has since been critical of the Centers for Medicare and Medicaid Services (CMS), saying the agency that runs Medicare ignored warnings that approving too many plans would be confusing to seniors. Montana seniors have more than 40 plans to choose from.

The deadline for seniors to enroll in the new Medicare prescription drug program was Monday, May 15. Under the 2003 law, seniors who hadn’t enrolled as of Monday will be charged a 7-percent penalty, or about $2.00, on their drug premiums per month, for as long as they stay in the program.

Baucus noted that while some seniors enrolled, many were confused by the process and didn’t sign up. The next opportunity to sign up for the program will be later this year – starting on November 15.

“The Medicare prescription drug benefit is way too complicated and Montana seniors deserve some breathing room while trying to make heads and tails of their options,” Baucus said. “Our seniors deserve access to quality, affordable prescription drugs and should not be penalized for the mistakes made by CMS in implementing the new drug program. This common sense legislation will enable seniors to take their time in finding the right prescription drug program that fits them – without being penalized.”

Baucus’ bill would also provide an additional $18 million for counseling to help seniors sign up for the prescription drug program, such as Senior Health Insurance Information Programs and Area Agencies on Aging.

“The additional dollars will really help seniors in rural areas like Montana,” Baucus said. “One of my top priorities to provide Montana seniors with the prescription drugs they need at a price they deserve. I’m confident that by working together with my Senate colleagues we can make that happen.”

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