Congressman Dennis Cardoza
18th Congressional District of California

WASHINGTON – Rep. Dennis Cardoza today applauded an announcement by the Centers for Medicare & Medicaid Services (CMS) to allow certain Medicare beneficiaries to enroll in the Medicare Part D prescription drug plan without a penalty through December 31, 2006, and renewed his call for the elimination of late-enrollment penalties for all beneficiaries.   Cardoza has strongly supported efforts to extend the penalty-free enrollment deadline for all eligible beneficiaries, citing the difficulties many seniors have experienced with the complicated and often confusing plan.

“I am pleased by today’s announcement by CMS to allow low-income Medicare beneficiaries to enroll in Part D penalty-free through the end of the year,” said Cardoza. “But I stand behind my previous calls for eliminating this unfair penalty for everyone.  The Part D program has proven to be extremely complicated for seniors and many people did not sign up by the May 15 deadline simply because they could not figure out what plan was the best for them.  It is outrageous that anyone should have to pay a significant penalty for late-enrollment given all of the problems we have seen.”

Today’s announcement impacts seniors and people with disabilities who qualify for extra help for their Medicare prescription drug coverage, or who live in an area affected by Hurricane Katrina.  Individuals who apply and are approved for the low-income subsidy are eligible for comprehensive drug coverage at low or no cost.   With this change in status, they may enroll in a prescription drug plan anytime throughout 2006 without the penalty assigned to regular beneficiaries.

Prior to today’s announcement, all beneficiaries who did not sign up for the Medicare Part D program by May 15, 2006 were to be assessed a penalty of 1% of their monthly premium each month until they enrolled.  This penalty is assessed throughout the lifetime of enrollment in the benefit.