MEDICARE TAKES STEPS TO HELP PEOPLE WITH LIMITED INCOMES AND RESOURCES TAKE ADVANTAGE OF COMPREHENSIVE MEDICARE DRUG COVERAGE
Everyone in Medicare now has access to prescription drug coverage,regardless of their income or how they get their Medicare. For thosewith limited incomes, there is extra help providing comprehensivecoverage with no or low premiums and low or no deductible.
To ensure that beneficiaries receive the benefit of the extra help,CMS is facilitating the enrollment of certain beneficiaries intoprescription drug plans. This week, CMS will begin mailing letters toapproximately 1.2 million people with Medicare who have applied for andbeen approved for the extra help and those who are enrolled in otherfederal assistance programs such as Supplemental Security Income (SSI)and Medicare Savings Programs.
The letters let the beneficiary know in which Medicare prescriptiondrug plan they will be enrolled if they take no action before April 30.Unless they enroll on their own during March, these beneficiaries willhave their prescription drug coverage begin on May 1. CMS is enrollingthese beneficiaries earlier to make sure that they receive the benefitof the extra help immediately, and without having to pay a penalty. These beneficiaries can still decline the enrollment before it becomeseffective, and would not be charged a premium.
A copy of the letter will be available online at www.cms.hhs.gov. The letter will be printed on green paper so that it can be readilyidentified by beneficiaries, their family members, and otherorganizations that counsel beneficiaries about their Medicare Choices.
Many of these individuals will not be charged a premium for thisdrug coverage. However, some of these individuals qualify forsliding-scale premium assistance. But if those beneficiaries don’tenroll in a plan by May 15, 2006, and don’t have prescription drugcoverage that is as good as Medicare’s, they will have to pay more forthis coverage if they want to enroll later.
Beneficiaries whose employer or union plan sponsor is claiming theretiree drug subsidy on their behalf will not be included in thisfacilitated enrollment process. However, it is possible that abeneficiary with other drug coverage that is as good as or better thanMedicare prescription drug coverage will still be enrolled by CMSbecause he or she qualifies for extra help. These beneficiaries maywant to keep their current coverage and decline enrollment fromMedicare.