New Medicare Legislation Considered…
bipartisan group of at least five senators plans to sponsor legislation that would reimburse states that are covering the costs of drugs for Medicare beneficiaries who have had difficulty obtaining medications under the new Medicare drug benefit, AP/Long Island Newsday reports. The legislation — co-sponsored by Sens. Norm Coleman (R-Minn.), Dianne Feinstein (D-Calif.), Frank Lautenberg (D-N.J.), Charles Schumer (D-N.Y.) and Olympia Snowe (R-Maine) — would reimburse the states for 100% of their costs plus interest. In addition, the bill would require the HHS secretary to recover overpayments to Medicare drug plans and return the money to Medicare (Freking, AP/Long Island Newsday, 1/18). Lautenberg is expected to introduce the legislation (Campbell, Newark Star-Ledger, 1/19). Lautenberg said, “While there are many problems that need to be dealt with regarding the implementation of this drug plan, it is critical that we pay these states back as soon as possible” (AP/Long Island Newsday, 1/18). On Tuesday, CMS Administrator Mark McClellan said the government will not reimburse states covering the costs of beneficiaries’ prescriptions, adding that CMS does not have the authority to pay states directly. The Bush administration has instructed insurers offering Medicare drug plans to provide beneficiaries with a 30-day emergency supply of any drugs they were taking before the Medicare prescription drug benefit began Jan. 1. In addition, the administration said insurers must take steps to ensure that no low-income beneficiary is charged more than $2 for a generic drug and $5 for a brand-name drug. McClellan said the agency will assist state agencies in compiling and filing claims with Medicare drug plans (Kaiser Daily Health Policy Report, 1/18).
