[Congressional Record Volume 151, Number 120 (Thursday, September 22, 2005)]
[Extensions of Remarks]
[Page E1932]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




PROTECTING MEDICARE BENEFICIARIES DURING IMPLEMENTATION OF THE MEDICARE 
                          PART D DRUG PROGRAM

                                 ______
                                 

                        HON. FORTNEY PETE STARK

                             of california

                    in the house of representatives

                      Thursday, September 22, 2005

  Mr. STARK. Mr. Speaker, I rise with my colleague Representative Jan 
Schakowsky (D-IL) to introduce the Medicare Informed Choice Act. This 
bill provides needed extra protections for beneficiaries during the 
first year of implementation of the new Medicare prescription drug 
program.
  The Centers for Medicare and Medicaid Services (CMS) has announced 
that participation rates by private drug plans and new Medicare 
Advantage plans in the new Part D drug program will be much higher than 
originally predicted. There will be an average of 40-50 plans per 
region in the country. Babette S. Edgar, finance and operations 
division director in CMS's Medicare Drug Benefit Group, was recently 
quoted saying, ``There's going to be a lot of choice out there . . . 
It's going to be very, very confusing for [beneficiaries].''
  We agree with Ms. Edgar. That's why we're introducing the Medicare 
Informed Choice Act. It is a simple bill with three important 
protections:
  (1) Delays late enrollment penalties: Beneficiaries need adequate 
time to make an informed choice. The bill expands the existing six-
month open enrollment period to the entire year of 2006. This will give 
people added time to do the research and make the best decisions for 
themselves. Six months is not adequate time to reach and counsel 42 
million beneficiaries on this complex new program.
  (2) Protections against bad choices: This provision gives every 
Medicare beneficiary the opportunity to make a one-time change in plan 
enrollment at any point in 2006. Marketing is sure to be very 
aggressive and people may make a bad choice. Given the importance of 
the decision they make, it is appropriate to give beneficiaries a one-
time chance to correct an initial mistake made during the first year of 
implementation.
  (3) Protections for employer-provided retiree benefits: Some retirees 
might not understand that purchasing Part D coverage could cost them 
their retiree health benefits. This provision would protect retirees 
from being dropped by their former employer's plan during the first 
year of implementation, so that beneficiaries have time to correct 
enrollment mistakes.
  Medicare beneficiaries are going to soon begin getting bombarded by 
information on the new drug benefit. Some information will come 
directly from the government in the form of the 2006 Medicare & You 
Handbook, a government insert in an upcoming edition of Parade 
Magazine, government-prepared television advertisements, and mailings 
from Health and Human Services and the Social Security Administration, 
communications from their Members of Congress and Senators, and more. 
On top of all of these messages, they'll be recipients of direct 
marketing from untold numbers of private plans urging them to join 
their drug plan. They'll also likely hear from advocacy organizations 
like the Medicare Rx Access Network, State Health Insurance Programs 
around the country, and senior organizations. If they currently have 
retiree health benefits, they'll hear from their former employers as 
well.
  Medicare beneficiaries are being told that there will be counselors 
available to assist them at 1-800-Medicare and at local State Health 
Insurance Programs around the country. We know from experience that 
these phone lines and support services will be overburdened. 
Beneficiaries should not pay the price for a support system that may 
not operate effectively. To avert that, we must inject some flexibility 
into the implementation period.
  The Administration's own actuaries are concerned that participation 
rates will be far lower than they'd initially anticipated--they've 
announced figures as low as 9 million out of Medicare's more than 40 
million beneficiaries. Again, CMS is right to be concerned. We 
appreciate their recognition of the pending chaos for seniors and 
people with disabilities.
  By delaying late enrollment penalties, giving every beneficiary a 
chance to change plans during the first year, and protecting those with 
employer-provided retiree health benefits, we can make sure our 
constituents are not forced into making quick--and wrong--decisions 
during the first year of this new program. By providing this 
flexibility, it is our hope that people will feel more confident in 
their ability to make an informed choice.
  We are pleased that Representatives Dingell, Rangel, Miller, Waxman, 
Brown, and Pallone--Congressional leaders on health care policy--have 
all joined us in introducing this legislation today. The bill has also 
been endorsed by leading senior citizen advocacy groups including: the 
Alliance for Retired Americans, the American Federation of Teachers, 
the Center for Medicare Advocacy, Consumers Union, Families USA, the 
Medicare Rights Center, and the National Committee to Preserve Social 
Security and Medicare.
  We urge CMS Administrator McClellan, HHS Secretary Leavitt, President 
Bush and Republicans in Congress to join with us to help mitigate the 
weight of the difficult choices that beneficiaries will have to make by 
endorsing the Medicare Informed Choice Act and working for its swift 
passage.
  Let's work together to make sure that initial choices don't 
negatively impact Medicare beneficiaries who may have acted without all 
the information needed to make the best choice. Protecting Medicare 
beneficiaries should not be a partisan endeavor. We look forward to 
working with Members on both sides of the aisle to enact this important 
legislation.

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