John McHugh

Medicare Presciption Drug Benefit

MEDICARE PRESCRIPTION DRUG BENEFIT

Two years ago, Congress passed landmark legislation to overhaul Medicare, creating for the first time ever a voluntary prescription drug benefit to help seniors save money each month on brand name and generic medicines. This coverage essentially provides insurance to help pay for the prescription drugs Medicare beneficiaries purchase.

I am well aware that the implementation of this new benefit has not gone without its share of problems, and the Center for Medicare and Medicaid Services (CMS) has taken responsibility for such difficulties and has been actively resolving issues as they arise. Most recently, I have been heartened to hear from many constituents who, after initial difficulties, have experienced vast improvements in the program.

Nonetheless, because seniors faced very important decisions when choosing a plan, and given the inherent complexities of launching a new benefit on such a large scale, I believe beneficiaries should not be penalized for taking more time to enroll. H.R. 5399, The Medicare Drug Benefit Enrollment Fairness Act of 2006 would excuse the one percent-per-month premium penalty for those who missed the May 15 deadline. I have cosponsored this legislation and am hopeful the House will soon take action on it.

It is also worth noting the resounding successes of the program. More than 38 million seniors now have prescription drug coverage under Medicare Part D. This represents more than 90 percent of beneficiaries. I am also pleased to report that the federal government will spend an estimated 20 percent less overall on the Medicare prescription drug benefit than projected last July. And the average premiums seniors pay for their prescription drug benefits are a third less than expected – just $25 per month instead of the earlier estimate of $37 per month.

With this new benefit, seniors are saving an average of about fifty percent on their total drug costs, even including the monthly premium and co-pay. Low-income seniors are saving even more – up to 96 percent off their drugs costs. And those who qualify for the low-income subsidy can still sign up after the May 15th deadline.

I believe this Medicare prescription drug benefit will continue to be helpful to those seniors who do not have prescription drug coverage and who fall victim daily to ever-escalating drug costs. I am confident Medicare Part D will improve the quality, accessibility, and availability of health care in rural regions such as ours.

If you are a senior on Medicare and think you may qualify for the low-income subsidy, New York has a special hotline to help you, 1-800-333-4114. Other assistance is available by calling 1-800-MEDICARE (1-800-633-4227) or visiting www.medicare.gov.

For those who have EPIC, please note that EPIC will not be going away. Please contact your local Office of the Aging to find out if EPIC or one of the new Medicare prescription drug plans will be best for you. The federal government and New York State are working very closely to ensure that there is seamless coverage and little to no interruption of benefits for those who currently enjoy the generous benefits provided by the EPIC program.