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Long Branch, NJ --- U.S. Rep. Frank Pallone, Jr. (D-NJ) today once again called on House Republicans to join House Democrats this week in extending the deadline seniors have to sign up for a private prescription drug plan so they don't face a Bush prescription drug tax that would remain with them for the rest of their lives.
The New Jersey congressman, a senior member of the House Energy and Commerce Committee, has coordinated Democratic floor efforts in the House to extend the May 15th deadline until the end of the year, giving more than five million seniors an additional seven months to decide on a drug plan without facing any penalties.
Pallone said that without a deadline extension, seniors will encounter a one-percent increase on their premiums for every month that they wait to sign up after the May 15th deadline. Since seniors would not be able to begin coverage after the deadline until January 2007, seniors would encounter at least a seven-percent monthly penalty that would be tacked on to their monthly premiums for the rest of their lives.
"The Bush administration is unfairly trying to scare millions of seniors into signing up for a prescription drug plan over the next week by threatening to penalize them with a lifetime tax if they don't meet the deadline," Pallone said. "Some seniors simply need more time to decide, which plan, if any, is right for them. Time is running out for Congress to do the right thing. If House Republicans really want to support our seniors, they should join us this week in giving seniors more time to make the right decision without the threat of a Bush prescription drug tax."
The New Jersey congressman, who has been critical both of the plan itself and its implementation, also announced plans to introduce legislation that would prevent drug plans from collecting months of premiums all at one time from a seniors' monthly Social Security check.
When seniors signed up for a plan, they were given the option of having their monthly premiums automatically withdrawn from their monthly Social Security check. However, a computer glitch at either the Social Security Administration (SSA) or the Centers for Medicare and Medicaid Services has prevented SSA from dispersing the funds to the drug plans, leaving some seniors with months of outstanding premiums. In some instances, insurance companies are now trying to collect four months of outstanding premiums.
"American seniors depend on their monthly Social Security check to help pay their bills," Pallone said. "Seniors should not have to worry that they won't be able to make ends meet one month because the Bush administration can't get its act together. The insurance companies should be reimbursed, but over time so our seniors do not face unnecessary financial burdens."
Pallone wants to ensure that private plans cannot collect all the owed premiums at one time. His legislation will only allow insurance companies to collect 125-percent of the monthly premium at one time, and would prevent insurance companies from charging seniors interest on the uncollected premiums. |
