Medicare beneficiaries enrolled in the program's Part D prescription drug benefit are saving an average of $1,200 per year on medications, the Centers for Medicare and Medicaid Services has announced, but critics say the savings don't adequately extend to the poor.
Questions surround Part D's low-income subsidy, which 3 million low-income seniors currently are not receiving, according to recent testimony before the Special Committee on Aging of the U.S. Senate. Seniors with income of less than roughly $15,000 and assets totaling less than roughly $11,500 are eligible for the subsidy, under which beneficiaries pay low or no out-of-pocket expenses and are covered in Part D's "doughnut hole" gap in drug cost coverage.
Health and Human Services Secretary Michael Leavitt announced in a CMS press release that 1.4 million beneficiaries have enrolled in plans under Part D since June 2006. "Over 90 percent of all people eligible for the Medicare prescription drug benefit are receiving the prescription drug coverage they need and are leading healthier, better lives," Leavitt said.
But Sen. Herb Kohl (D-Wis.), chairman of the Special Committee on Aging, said serious issues – such as a complex application process – are preventing needy beneficiaries from getting the subsidy for Part D.
"It's time for CMS to put together a comprehensive plan and report back to this committee on how they will fix these problems," Kohl said.
"We have been paying close attention to the approximately 632,000 beneficiaries who lost their low-income eligibility status," said Leslie Norwalk, CMS's acting administrator. "So far, 35 percent have regained their deemed status or have applied and qualified for the low-income subsidy."
Approximately 10 million low-income beneficiaries – 9.1 million of whom are enrolled in Part D – are receiving "comprehensive drug coverage for little or no cost," CMS said in the release.
Part D premiums are averaging $22 per month for 2007, a figure 42 percent lower than originally estimated, CMS noted. "Despite this solid record, we will continue to improve the program by working with community partners to find, fix and eliminate any problems, as well as to reach out to low-income beneficiaries who will save the most with Part D coverage," Norwalk said.