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May 15, 2006 marked the end of the Initial Enrollment Period (IEP) for Medicare Part D prescription drug benefits. It did not mark the end of Medicare Part D-related activity.
The Centers for Medicare and Medicaid Services (CMS) estimates that about 90 percent of the 43 million Medicare Part D eligible Americans now have drug coverage. This coverage may be through an employer/former employer, a Medicare Part D plan, a Medicare Advantage program or some other source. The next enrollment period will begin on November 15, 2006.
Those who were eligible for Medicare Part D and did not sign up are subject to a 1 percent per month late enrollment penalty if/when they do enroll. Congressional effort is afoot to eliminate this penalty for 2006. Senate Bill 2810 was introduced the day after the IEP ended. S 2810 has bi-partisan backing of 32 Senators.
In addition, Medicare Part D has its first class-action lawsuit. The National Senior Citizens Law Center and the Center for Medicare Advocacy filed a lawsuit on behalf of more than 6.4 million individuals who are “dual eligibles”. These people currently receive both Medicaid and Medicare benefits. For prescription drug coverage, dual eligibles moved from Medicaid to Medicare Part D as of January 1, 2006. The lawsuit argues that the transition was far from seamless.
Michael Leavitt, Secretary of Health and Human Services (HHS), is the defendant. The lawsuit alleges three failures: (1) improperly enrolling individuals, (2) untimely notification of rights to a low-income subsidy and (3) inadequate notification of rights to change Medicare Part D plans. The lawsuit merely requests that HHS do what the law requires it to do; it does not seek to repeal Medicare Part D or have it declared unconstitutional.
Employers should continue to be aware of their responsibilities related to Medicare Part D. These duties include creditable coverage notices to affected participants and CMS. The content requirements of the individual notices changed as of May 16, 2006. To review more information visit : www.cms.hhs.gov/CreditableCoverage/02_CCafterMay15.asp#TopOfPage
Infinisource, Inc. is prepared to assist employers with the notice requirement, both on an ongoing basis as well as annually (i.e., before November. 15 of each year). Simply contact our Sales Team at 800-779-6384 for more information.
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