Congressman Sandy Levin

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For Immediate Release
May 10, 2006
 
 
LEVIN: TAKE THE LOCK OFF MAY 15th
Extending the Deadline Allows an Additional 1 million Seniors to Enroll in Drug Coverage and Ensures that Seniors are Not Locked into Drug Plans
 

(Washington D.C.)- As Secretary Michael O. Leavitt of Health and Human Services attends a Medicare Prescription Drug event in Detroit touting the Bush Administration's new drug plan, U.S. Rep. Sander Levin (D-Royal Oak), a senior member of the House Ways and Means Committee, today sent a clear message to Secretary Leavitt to deliver to President Bush: Extend the May 15th deadline so seniors who are not enrolled yet can make an informed choice, and seniors who are already enrolled can make sure they're enrolled in the right plan. The Administration has refused to consider extending the May 15th deadline, or giving seniors more time to switch plans despite the fact that millions of uncovered seniors have not yet signed up, and the majority of seniors who have signed up are enrolled in plans that have a gap in coverage, known as the "doughnut hole."

"The Bush Administration must take the lock off the May 15th deadline so seniors can still enroll in drug coverage and are not locked into drug plans that do not meet their needs," warned U.S. Rep. Levin. "Seniors should not be penalized with a lifetime of higher premiums because they have had difficulty deciphering a poorly designed benefit or because they couldn't get complete and accurate information about the options. As more seniors approach the gap in coverage and have to pay the full cost of their medications, it will become even more urgent that we repeal the ban on Medicare negotiating lower drug prices for all seniors."

Under the current rules, seniors who miss the May 15th deadline will be blocked from drug coverage until January of 2007 and will pay a lifetime of higher premiums when they do sign up. Seniors who have already signed up for a plan will be "locked in" to that plan as of May 15th, and will not be able to change plans until next year.  The combination of poor information and a May 15th lock in date is significant because most plans seniors have signed up for have a gap in coverage known as the "doughnut hole." Under the new law, in a "standard plan," seniors receive coverage for the first $2,100 worth of medications, but then must continue paying premiums while they get no coverage at all, until they have spent $3,600 of his or her own money to buy medicine.

"I have always supported having Medicare cover prescription drugs just like it covers doctor visits," concluded Levin. 

The Detroit News reported last week that 156,000 eligible seniors in metro Detroit still have not enrolled in a drug plan, and nearly 450,000 Michiganders statewide have not yet signed-up for a plan. The Bush Administration has refused to extend the May 15th deadline despite the fact millions of Americans are still deciding whether to enroll in a drug plan, and government investigators found that many seniors had received misleading, incomplete, or incorrect information about drug plans when they called the Medicare hotline. The non-partisan Congressional Budget Office estimated last week that the deadline will prevent about 1 million beneficiaries from enrolling this year. 

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