Lawmakers are Seeking Legislation That Addresses Medicare Part D Problems

Horror stories about people falling into the donut hole are beginning to roll in. Senator Frank Lautenberg (D - N.J.) has introduced a bill that will eliminate the coverage gap in Medicare Part D known as the "Donut Hole." This legislation would require Part D providers to offer uninterrupted drug coverage.

According to Senator Lautenberg, "Prescription drug plans that suddenly stop in the middle of the year are a cruel joke." In 2005 he offered an amendment to the Prescription Drug Plan that would have required Medicare beneficiaries to sign a disclaimer that they understood, in plain English, the coverage gap in their plan before they could enroll in a Part D plan. The amendment was defeated 43-56 with every Republican in opposition.

"The current coverage gap is fundamentally unfair and should never have been allowed in the first place," said Lautenberg.

A bill in the House of Representatives hopes to reduce the cost of prescription drugs by requiring Medicare to negotiate lower prices with the drug companies. Recent studies have found that drug prices charged by Medicare Part D drug plans are 46% higher than those paid by the Veterans' Administration that does negotiate with the pharmaceutical companies.

Drug costs paid by Medicaid had been controlled by a law passed in 1990 which ensured that Medicaid would pay no more that the best price paid by a commercial purchaser and would also pay no drug price increases that exceeded the rate of general inflation. Medicaid recipients were automatically rolled into Medicare Part D. Brand name drugs rose by 3.9 % in the first three months of 2006. This was four times the rate of general inflation. These drug prices where passed along to Part D enrollees.

The House bill also allows seniors to choose a plan administered directly by Medicare eliminating the outsourcing of drug coverage to private plans that has resulted in an expensive and complex program.

This legislation also extends the enrollment deadline to December 31 to eliminate the lifetime penalty now in effect. This bill also seeks to stop drug plans from increasing co-payments and creating administrative hurdles for changing plans mid-year.

NeedyMeds encourages contacting elected officials to let them know your opinion.

Click HERE to learn how to contact your Representative.

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Created 8/2/06