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Meeting Our Responsibility to Medicare Beneficiaries
Lower Drug Prices for Seniors. Democrats want to lower drug prices by eliminating the prohibition on allowing Medicare to use the power of its 41 million beneficiaries to negotiate lower drug prices. Medicare negotiation would mean lower drug prices, just like it does for the VA and other bulk purchasers. Lower Part B Premiums For Seniors By Eliminating the HMO Slush Fund. The bill eliminates the $10 billion HMO slush fund Republicans put in the Medicare law. In addition, it stops the Bush Administration from assuring that HMOs are paid more than traditional Medicare by redistributing overpayments back to private plans. The bill requires HHS to adjust the payments in a way that saves that money for Medicare beneficiaries and uses the savings to reduce Medicare Part B premiums for seniors who are coping with the largest premium increase in history this year.
Protect Retirees From Losing Drug Coverage. The Republican drug bill will cause 3.8 million retirees to lose the good drug coverage they already have. This bill requires HHS to develop incentives for employers to maintain coverage and ensures that current incentives function properly. Ensure Seniors Are Not Forced Into HMOs. In some communities, the Medicare drug bill could force seniors into HMOs because there may not be enough competing plans. This bill ensures that a guaranteed Medicare fallback is triggered whenever there are not two stand-alone drug plans available in an area so that seniors are not forced to join HMOs.
Protect 6 Million Low-Income Beneficiaries During The Transition. The new law prohibits states from getting federal Medicaid matching funds for covering drugs for beneficiaries who are eligible for the new drug benefit from day one. This bill allows Medicaid to continue to cover drugs during the transition, protecting 6 million of our most vulnerable beneficiaries from falling through the cracks and having no coverage for the drugs they need.
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The Medicare Prescription Drug Bill created a number of problems for our seniors. The Republicans used every chance they could get to help their special interest HMO and drug company friends. Democrats believe that seniors and people with disabilities should come first and this bill takes the first steps to improving the Medicare program to reflect those priorities. The Meeting Our Responsibility to Medicare Beneficiaries Act will lower the cost of prescription drugs and Medicare premiums, eliminate the HMO slush fund and protect the interests of our seniors.
Protect Seniors From Gaps In Coverage. The drug benefit contains a huge gap in coverage during which seniors continue to pay premiums but get no drug coverage at all. This coverage gap only gets bigger over time – from $2,850 in 2006 to $5,066 in 2013. This bill would phase out the gap in coverage.
Eliminate Late Penalties. The new law creates considerable confusion and new sets of choices for seniors. Seniors will be forced to sign up for a plan without fully understanding what benefits are offered, whether the drugs they take are on the plan’s preferred list, or how much they will actually pay. This bill waives the late enrollment penalty for the first two years to give seniors time to understand the benefit and decide if they want to join, without subjecting them to a 12 percent per year late enrollment penalty. This provision makes the legislation truly voluntary.
