Washington, DC – Citing misinformation and widespread confusion about the program, U.S. Senator Mark Dayton today called for an extension of the May 15 enrollment deadline for Medicare Part D prescription drug program. Currently, seniors who have not signed up by May 15 face increases in their monthly premiums. In a bipartisan letter cosigned by 46 of his colleagues, Dayton urged the President to push back the prescription drug program’s registration deadline until the end of the year. In January of last year, Dayton introduced legislation (S.18) to roll back the enrollment cutoff date until January 1, 2008, and he is currently pushing for legislation (S.1841), introduced by Senator Bill Nelson (D-FL), which would extend the deadline through the end of this year, waiving the late enrollment penalty and allowing beneficiaries a one-time change in their prescription drug plan enrollment at any point during that period.

“There’s been an enormous amount of confusion, with all the different options and misinformation about what is subsidized and what is not,” said Dayton. “If this program is going to be as successful as it can be, it needs to give seniors the time and the ability to decipher the complexities and to make the decision that is in their own best interest.”

Of the almost 390,000 Minnesota Medicare beneficiaries who could enroll in the stand alone drug program, only 200,000—just over half—have done so. Dayton’s Health Care Help Line has heard from hundreds of seniors who are confused and overwhelmed by Part D’s complicated rules and vast array of coverage options. In Minnesota alone, there are 72 different plan options, each offering different benefits with different premiums. Those who do not sign up by Monday, May 15 will have to pay a penalty of 1 percent of their premium cost for every month delayed for the rest of their lives. Thus, a person who does not enroll until October, for example, five months after the deadline, will be forced to pay an additional 5 percent of their monthly premium cost, each month for life.

In October, the Senate unanimously passed Dayton legislation to correct a serious error that resulted in 42 million Medicare beneficiaries receiving the wrong information about their benefits. In September, the “2006 Medicare & You” Handbook incorrectly summarized the prescription drug subsidies available to low-income seniors, a mistake which could have cost them millions. This and other errors, including one that resulted in beneficiaries receiving empty envelopes instead of import benefit information, prompted Dayton and his colleagues to write Senate Majority Leader Bill Frist (R-TN) in April, urging Senate consideration, as soon as possible, of legislation to extend the deadline.

The full text of the Senators’ letter to the President is below.

May 11, 2006

The President

The White House Office

1600 Pennsylvania Avenue, N.W.

Washington, D.C. 20500

Dear Mr. President:

Across the country, over 40 million Medicare beneficiaries have been presented with the choice of signing up for the Medicare prescription drug program. Unfortunately, many seniors and individuals with disabilities are understandably concerned and confused about the new benefit.

Beneficiaries face a number of prescription drug plan options, and choosing the right plan can be a challenge. Each of the options differs in terms of premiums, cost-sharing requirements, drugs covered and pharmacy access. Sorting through these plans has proven to be difficult and time consuming for many beneficiaries. Further complicating matters, the Medicare drug program has experienced a variety of implementation problems that have disproportionately affected the most vulnerable beneficiaries.

Yet, beneficiaries who do not act by the May 15, 2006, deadline and who enroll at a later date will face a financial penalty. Seniors who choose a plan after May 15, 2006, will be penalized by a one percent increase in their premium for each month they delay their choice.

We are writing to request that you direct Secretary Leavitt to extend the enrollment deadline through the end of the year, and eliminate the financial penalty during this period.

The Congressional Budget Office (CBO) has estimated that an additional 1.1 million beneficiaries would sign up for the Medicare prescription drug program during this year if the May 15th deadline was extended. In addition, they calculate that eliminating the penalty for this year would ultimately lower premiums for 7.5 million beneficiaries.

Since Congress has not yet passed legislation expanding the existing six-month open enrollment period, we urge you to take action. The stakes here are too high to deny seniors the time and resources they need to make an informed decision.

As you know, Secretary Leavitt has already extended the enrollment deadline for some low-income beneficiaries and hurricane Katrina evacuees. We believe the Secretary has the legal authority to provide the same benefit to all Medicare beneficiaries.

We all share the goal of ensuring that Medicare beneficiaries have sufficient time and assistance to make a wise decision regarding prescription drug coverage. We respectfully urge you to announce your intention to delay both the enrollment deadline and penalty as soon as possible.

Thank you for your attention to this important matter.

Sincerely,

Senators Akaka (D-HI), Bayh (D-IN), Biden (D-DE), Bingaman (D-NM), Boxer (D-CA), Byrd (D-WV), Carper (D-DE), Cantwell (D-WA), Clinton (D-NY), Collins (R-ME), Conrad (D-ND), Dayton (D-MN), DeWine (R-OH), Dodd (D-CT), Dorgan (D-ND), Durbin (D-IL), Feingold (D-WI), Feinstein (D-CA), Harkin (D-IA), Inouye (D-HI), Jeffords (Ind.-VT), Johnson (D-SD), Kennedy (D-MA), Kerry (D-MA), Kohl (D-WI), Landrieu (D-LA), Lautenberg (D-NJ), Leahy (D-VT), Levin (D-MI), Lieberman (D-CT), Lincoln (D-AK), Menendez (R-FL), Mikulski (D-MD), Murray (D-WA), Ben Nelson (D-NE), Bill Nelson (D-FL), Obama (D-IL), Pryor (D-AK), Reed (D-RI), Reid (D-NV), Rockefeller (D-WV), Salazar (D-CO), Sarbanes (D-MD), Schumer (D-NY), Specter (R-PA), Stabenow (D-MI), Wyden (D-OR).

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