WASHINGTON – Noting that Medicare’s new drug benefit is off to a rocky start in some states, a few Republican lawmakers are joining scores of Democrats in pushing for an extension of a May 15 sign-up deadline.
Sens. John Kyl, R-Ariz., and Olympia Snowe, R-Maine, both raised the issue in a closed meeting with Health and Human Services Department officials and other senators Wednesday.
“I do think we’re going to have to look at extending the deadline and recalibrating the penalties because I don’t want a situation where, because of this confusion, people decline to sign up, then face a large penalty,” Kyl said.
The immediate concern is making sure low-income senior citizens get their medicine, lawmakers say.
Under the new benefit, about 42 million people are eligible to enroll in private plans that provide prescription drug coverage subsidized by the federal government. Senior citizens and the disabled who miss the May 15 deadline could be hit with higher monthly premiums when they do enroll.
The penalty would increase monthly premiums by 1 percent for every month beneficiaries wait to enroll.
The deadline is designed to encourage people to enroll, particularly healthier senior citizens and the disabled who use few prescriptions.
More than 140 lawmakers, mostly Democrats, have already signed on to various bills, introduced before the program began, that would extend the enrollment deadline. They argue that it’s wrong to pressure senior citizens and the disabled to join the program before it’s running smoothly.
A spokeswoman for Health and Human Services Secretary Mike Leavitt said he would not support an extension.
“There is a lot of time for seniors to consider their options and sign up for a plan,” said Christina Pearson.
Legislation to extend the deadline would have to go through the Senate Finance Committee, chaired by Charles Grassley, R-Iowa, who opposes such a move.
Grassley said an extension could lead to higher premiums. “Rather than delay help for seniors, we need to fix the problems,” he said.
A House bill that would extend the deadline to June 30, 2007, has 10 co-sponsors, divided about evenly between Republicans and Democrats. The lead author is Rep. Tom Price, R-Ga. A second bill would make the deadline Dec. 31, 2006, and allow beneficiaries to change plans once during the year. The bill has 131 co-sponsors, almost all Democrats.
Rep. Walter Jones, R-N.C., supports both bills. He said he’s never seen such “frustration, stress, disappointment and anger” from constituents about a single issue.
The Medicare drug plan has the potential to become an issue in the November elections, he said. “Hopefully, it won’t be because we’ll do what’s right and that is to extend the deadline,” Jones said.
Rep. Pete Stark, D-Calif., said Republicans are concerned that a deadline extension could result in wholesale changes to the program itself.
Snowe and Sen. Bill Nelson, D-Fla, introduced a bill last month that would give beneficiaries until the end of the year to enroll in a plan.
“Given all the problems, people might get a plan that doesn’t meet their expectations,” Snowe said. “Recognizing that, we should be flexible.”
AARP’s health care lobbyist, Kirsten Sloan, said there is still plenty of time to work out problems with the program before the May 15 deadline.
“What we’re hearing right now is that everybody is saying there is a need to focus on the consumer education piece,” Sloan said. “As we get closer to the deadline, I think everybody will want to re-examine it at that point.”
Some health care analysts say that they wouldn’t be surprised if an extension is ultimately approved.
“From a psychological perspective, you have to create a sense of urgency to get seniors to kind of focus. So, having the fixed deadline is important,” said Alex Vachon, a health policy analyst for several Wall Street firms. “But, at the end of the day, will Congress extend it? I think that’s better than even money it will.”
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