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Medicare Part D & Safety Net Providers

 

What You Need To Know & Do

You Need to Know
 
  • If you are a provider of prescription drugs, or contract with a provider of prescription drugs, you will need to make a decision about participating in one or more of the Part D Prescription Drug Plans (PDPs). Beginning January 1, 2006, you will receive reimbursement only for those Medicare patients (and particularly those patients covered by both Medicaid and Medicare, known as “dual eligibles”) enrolled in PDPs that your organization has contracts with. The law states that a PDP must negotiate a contract with any willing pharmacy that accepts the PDP's standard terms and conditions. Please study those terms and conditions and consider the costs and benefits of becoming a participating pharmacy in one or more of these PDPs.
  • Medicaid beneficiaries not eligible for Medicare will continue to receive drug coverage through the Medicaid program.
  • All Medicare beneficiaries will have the opportunity to participate in the new voluntary prescription drug benefit (also referred to as "Part D").
  • About 6 million low-income Medicare beneficiaries who also are enrolled in Medicaid (dual eligibles) will be enrolled automatically into one of the Medicare Part D Prescription Drug Plans. Beneficiaries who fail to choose a plan on their own prior to December 31, 2005, will be enrolled in a plan in order to ensure that they do not lose drug coverage as they transition from Medicaid to Medicare for drug coverage. They will have the option to select a different plan if it better addresses their needs.
  • Limited income beneficiaries will receive a prescription drug benefit with low or no premiums and deductibles and co-payments of a few dollars per prescription through the Part D plan. However, as of January 1, 2006, the Medicaid program will no longer provide reimbursement for the vast majority of prescription drugs for dual eligible beneficiaries. The Centers for Medicare and Medicaid Services (CMS) is working to ensure the enrollment process for dual eligible beneficiaries will be as seamless and efficient as possible.
  • PDPs have already submitted notices of intent to CMS to become a Medicare Part D PDP; bids are due to CMS in June. In September, CMS will announce the list of approved PDPs. Staff in the CMS Regional Offices are available to assist you with questions that may arise as the PDP applicants assemble their networks of participating providers. CMS Regional Pharmacist contacts can answer some of your questions.
  • CMS prescription drug benefit questions & answers will help you understand implementation of Part D benefits. HRSA has received questions from HRSA grantees and is working with CMS to develop answers that will be added. Please use the CMS Web site, contact CMS staff and attend educational and information sessions offered by the organizations you typically work with (e.g., Primary Care Association, Area Agency on Aging). If you still have questions, contact your HRSA Project Officer, who can refer your questions to appropriate HRSA and CMS staff.

 

What You Need to Do
 
  1. Consider the costs and benefits of becoming a participating pharmacy in one or more of the Prescription Drug Plans (PDPs). By law, a PDP must negotiate a contract with any willing pharmacy that accepts the PDP's standard terms and conditions. Study each PDP's terms and conditions and consider the costs and benefits of becoming a participating pharmacy in one or more PDPs.
  2. Enter into contracts with PDPs. Contracting with Safety Net Pharmacy Providers.
  3. Get reimbursed. Beginning January 1, 2006, you will receive Medicare reimbursement only for those Medicare patients (and particularly those dual eligible patients) enrolled in PDPs with whom your organization has contracts.
  4. Make your pharmacy known to the PDPs. CMS is not providing a public list of all those entities applying to become PDPs. However, CMS has offered to post on its Web site the names of pharmacies that are interested in contracting with PDP applicants so that the PDPs will know of their interest. Sign up to make your contact information available to Medicare PDPs.

Centers for Medicare &
Medicaid Services Links

 

Medicare Prescription Drug Coverage General Information

Medicare Prescription Drug Benefits FAQs

Medicare.gov - the Official U.S. Government site for People with Medicare


Letters from HRSA
 

December 8, 2006 Letter to Grantees

October 17, 2005 Letter to Grantees

June 14, 2005 Letter to Grantees