New York's Senator
CHARLES E. SCHUMER

FOR IMMEDIATE RELEASE December 3, 2000

SCHUMER: HIP TO CONTINUE MEDICARE + CHOICE COVERAGE FOR SUFFOLK COUNTY SENIORS

Agreement, Negotiated by Schumer, HFCA and HIP, Helps Avert Total Loss of Coverage for Thousands of Suffolk County Seniors

US Senator Charles E. Schumer today announced that HIP would continue covering Suffolk County seniors enrolled in Medicare + Choice. In July, HIP and four other HMOs announced they would discontinue coverage as of January 1, 2001, leaving 35,000 of Suffolk County's 47,000 Medicare + Choice enrollees scrambling to find health coverage, and facing the prospect of having to return to the traditional fee-for-service Medicare program which costs more and does not cover prescription drugs.

After lobbying HIP for months to continue covering Suffolk County seniors and after asking HCFA - the Health Care Financing Agency, the federal agency that administers Medicare - to expedite the process that would allow HIP to continue its Suffolk County coverage, Schumer brought HIP and HCFA together to negotiate an agreement.

"Ideally, all five HMOs would continue covering Suffolk County Medicare + Choice participants, but this is a good start. We'll keep fighting until every Suffolk County senior is covered," said Senator Schumer.

Once HIP expressed interest in continuing its Suffolk County coverage, Schumer asked HFCA to expedite approval process and convinced Empire Blue Cross/ Blue Shield - at the time the only remaining HMO provider in Suffolk County - to agree to HIP's return (since HMOs bid for government contracts, all approved HMOs normally must submit bids at the same time; since HIP chose to remain in Suffolk County after the deadline had passed, HFCA required Empire Blue Cross/ Blue Shield's consent before approving HIP).

HIP will begin sending information about the plan and an election slip to Suffolk County Medicare + Choice participants next week. HIP will offer continuous enrollment, allowing seniors to enter the plan at any time. Benefits should remain similar to those currently offered.

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