Friday Alert  3/31/06
Alliance for Retired Americans
888 16th Street, N.W. -  Washington DC, 20006 - (202) 974-8222 - www.retiredamericans.or

More Part D Problems
There was a flurry of disappointing news this week for those hoping Part D would be a success.  Word of seniors falling into the doughnut hole earlier than expected first made headlines in the Cape Cod Times.  The story was based on letters that seniors have been horrified to receive from their drug plans.  Many seniors had been under the false impression that only individual-out-of-pocket costs paid by plan members counted toward the initial coverage limit of $2,250, which is where the doughnut hole begins.  However, this was not correct.  The truth is that the insurance companies' costs also count toward the initial coverage limit of $2,250 - meaning that the doughnut hole is being reached much sooner.  Seniors have therefore already begun footing the entire bill for their drug costs, while also paying an insurance premium.  To make matters worse, the news goes against what many had been told previously.  Even calls to the Medicare Part D hotline resulted in different answers. 

In addition, the New York Times reported that hundreds of thousands of letters were being sent to beneficiaries enrolled in more than one drug plan, a result of beneficiaries switching plans and errors in disenrollment records.  The letters inform participants they will be dropped from one plan and retain coverage under the most recent plan in which they were enrolled, leaving many to fret over the confusion this will cause.  Non-English speakers are finding it impossible to get their prescriptions through the Part D program, according to the Los Angeles Times.  Faced with the difficulties in obtaining prescriptions at pharmacies all over the country, non-English speakers are being told there are no available translators when they call their drug plan providers with questions.  "Proponents of Part D don't want to extend the May 15 deadline, but clearly there is still a crisis in the making," said Ruben Burks, Secretary-Treasurer of the Alliance.  "The program has been in effect for 3 months now.  If the problems have not yet been worked out, I doubt the problems can be solved in just one month."

Even HHS Secretary Leavitt's Parents Experience Medicare Confusion
Dixie and Anne Leavitt, the parents of Health and Human Services (HHS) Secretary Mike Leavitt, have become the latest seniors across the country to have trouble choosing a Medicare Part D prescription drug plan.  After initially selecting a plan that put their retiree medical coverage at risk, the Leavitts recently had to switch to a different plan.  Secretary Leavitt had assisted his parents last fall in making that initial selection, and Anne, 73, was quoted at the time in The Salt Lake Tribune as saying that the enrollment process had been "smooth" and the program was "a guaranteed money-saver."  Secretary Leavitt's father Dixie, 76, coincidentally made his own fortune earlier in life in the insurance business.  While the Leavitts were able to address their misunderstanding without a lapse in coverage, the problems have been far worse for many other retirees who find themselves with fewer resources at their disposal.  "If even the parents of the HHS Secretary are showing signs of confusion, one could easily see where anyone would be bewildered by the multitude of choices," said George J. Kourpias, President of the Alliance.

Congressional Election Watch
Time magazine is reporting that "top strategists of both parties say privately the Republicans would probably lose the 15 seats they need to keep control of the House" if the 2006 elections were held today.  The article also states that GOP incumbents in Congress are trying to decide whether they want to be tied closely to President Bush in a campaign dominated by "ethics scandals, the GOP's failure to curb spending, the government's inept response to Hurricane Katrina," and "a confusing new prescription-drug program for seniors."  CQPolitics.com noted recently that seven self-imposed congressional term limits are up this year -- and all seven incumbents are breaking their previous pledges not to run again in 2006.  The seven who are breaking their promises: Rep. Barbara Cubin (R-WY), Rep. Phil English (R-PA), Rep. Jeff Flake (R-AZ), Rep. Tim Johnson (R-IL), Rep. Ric Keller (R-FL), Rep. Frank LoBiondo (R-NJ), Rep. Mark Souder (R-IN) and Rep. Zach Wamp (R-TN).  "We have not heard the last about ineptitude and broken promises by this Congress," said Edward Coyle, Executive Director of the Alliance.  "Eventually all of their mistakes are going to catch up with them."

State Chapter News
New York State Alliance Secretary Nancy True spoke to a U.S. Senate Democratic Policy Committee meeting on Thursday in Washington regarding the state of Medicare Part D implementation.  Sen. Hillary Rodham Clinton led the meeting of key principals of national aging organizations to discuss Part D implementation, long-term care needs and the reauthorization of the Older Americans Act.  True told the meeting that "chaos and confusion" were the words that described retirees when confronting Part D, based on her hands-on experience in counseling Teamsters retirees in her New York City local.  True also expressed concern that the impending May 15 deadline for enrolling will cause even greater confusion and harm down the road.

The Rhode Island Alliance for Retired Americans, along with the Rhode Island AFL-CIO, Lt. Gov. Charles Fogarty, state Rep. Paul Moura, and state Sen. Rhoda Perry, endorsed a prescription drug discount program called "Rhode Island's Best Rx."  The program would use the state's bulk purchasing power to cut prescription drugs costs by 30-40% for 110,000 elderly Rhode Islanders who have no drug coverage.  Teresa Heinz Kerry, chairwoman of the Heinz Family Philanthropies and wife of U.S. Sen. John Kerry (D-MA), and Jeffrey Lewis, President of the Heinz Family Philanthropies, mentioned the Rhode Island Alliance in an op-ed praising the coalition.

Did You Know?...
Part D beneficiaries may face a new wave of problems with their drug plans on April 1, when the 90-day transition period negotiated between Medicare officials and the private insurance plans ends.  Insurance companies agreed to cover all necessary drugs during the transitional period, even if the drugs were not covered in their plans.  Enrollees in Part D are urged to carefully review their formulary before April 1 to avoid problems at the pharmacy.