American Federation of Teachers - A Union of Professionals

Skip directly to:

AFT - A Union of ProfessionalsTeachersHigher EducationPSRPPublic EmployeesHealthcareRetireesEarly Childhood Educators


    Print 


A rocky start for Medicare prescription drug plan
 
The new Medicare prescription drug benefit, which began Jan.1, is off to a rocky start. Computer glitches, jammed phone lines and other communication breakdowns have marred the launch of the new program and left thousands of low-income seniors and disabled citizens unable to obtain their medications. As a result, more than two dozen states have taken emergency measures to make sure that beneficiaries can get their medications.

“The Medicare prescription plans hatched by this Administration are so convoluted that they are a disincentive for seniors to get the medications they need. These plans must be made easier to understand and not force seniors to pay more for less,” says AFT president Edward J. McElroy.

One of the biggest problems with the drug plan has been with “dual eligible” beneficiaries, in other words those who receive both Medicaid and Medicare. The government automatically enrolled this group into certain Medicare drug plans. But in some cases, people have not been enrolled in programs or designated as eligible for Extra Help. Despite repeated warnings from advocacy groups of potential problems in transitioning dual eligible beneficiaries, Medicare officials failed to prepare for such problems.

“Part D is not just failing, it’s failing those who can least afford it,” says George J. Kourpias, president of the Alliance for Retired Americans.

Dual eligible beneficiaries aren’t the only ones having trouble with the new program. Newspaper reports from across the country recount the stories of enrolled beneficiaries who have yet to receive their benefit cards proving they have coverage; pharmacists having problems confirming their patients’ new insurance; and seniors being overcharged for medications.

In an effort to give seniors adequate time to make informed choices, the AFT is backing a bill introduced by Reps. Pete Stark (D-Calif.) and Jan Schakowsky (D-Ill.) that would extend to Dec. 31, 2006, the May 15, 2006, deadline for beneficiaries to enroll in the prescription drug plan without financial penalties.

The AFT also is calling for two substantive changes in the law which would allow creation of a national Medicare-administered program and permit Medicare to negotiate lower drug prices. No changes are likely, however, before the end of 2006.

The AFT has teamed up with Medicare Interactive to connect members to an online source of information about the new prescription drug benefit. Visit www.medicareinteractive.org/aft.


Determined delegates flip the script at White House conference
 
The 2005 White House Conference on Aging held December 11-14 in Washington, D.C., did not go exactly as planned, thanks to delegates from the AFL-CIO’s Alliance for Retired Americans.

Angry and frustrated that the conference offered only limited opportunity for discussing resolutions not on the preapproved agenda, Alliance delegates circulated a petition demanding that the conference consider any resolution signed by at least 10 percent of delegates. The petition opened the door for debate on issues such as the Medicare drug benefit and privatizing Social Security, issues which Alliance delegates wanted to discuss but were not included on the conference agenda.

“Most of the delegates felt handicapped on the first day of the conference. You could sense the restlessness of delegates,” says attendee Will Parry, a retired member of AFT Washington and the president of the Puget Sound Alliance for Retired Americans.

Delegates in attendance selected the top 50 resolutions to present and participated in working groups to develop strategies for implementing them. However, many of the resolutions offered at the conference were “milk and water” resolutions that lacked substance, says Parry.

Alliance delegates used the implementation strategy sessions to lobby other conference delegates on Social Security and Medicare, managing to get delegates to vote on whether they support or oppose private accounts. Delegates also voted for an implementation strategy that would provide comprehensive drug coverage under Medicare and allow the federal government to negotiate lower drug prices.

“The two hallmarks of the Bush administrations—Social Security privatization and the confusing Medicare Part D—were flatly rejected,” says Alliance president George J. Kourpias. “Despite a highly scripted agenda designed to promote the president’s goals, our delegates successfully forced attentions on the Alliance’s top priorities: strengthening Social Security and providing an affordable and accessible drug benefit under Medicare.”

The final report from the conference will be presented to the president and Congress by June 2006.

HomeContact UsSite Map

 

 Advanced Search

Q&A on the Medicare
Drug Benefit

The Medicare Rights Center provides answers to questions and concerns about the new Medicare prescription drug benefit.

What should I do if I enroll in a Medicare private drug plan but don’t receive a card or any information from it and I need my drugs now?

You should contact the plan immediately. If you do not get a timely response from the plan, you should contact Medicare at 800/MEDICARE.

Can I get Extra Help if my income is low?

Yes. If your annual income is below 150 percent of the federal poverty level (FPL) ($14,355 a year for individuals and $19,245 a year for couples in 2005) and your assets are low (less than $11,500 for individuals and $23,000 for couples) you may be eligible for Extra Help paying for your Medicare drug costs. Even if your income or assets are above the limit you may still qualify. If you get Medicaid, are enrolled in a Medicare Savings Program (MSP) or receive Supplemental Security Income (SSI), you automatically qualify for help. If you do not have Medicaid or an MSP, you can apply for Extra Help paying for your Medicare drug benefit through the Social Security Administration using either its paper or online application (available at www.ssa.gov), or over the phone at 800/772-1213. You also will be able to apply for it at your local Medicaid office.

Which drugs will Medicare private drug plans cover?

Each Medicare private drug plan will have its own formulary (list of covered drugs), which will include both brand-name and generic drugs. Plans will be allowed to change their formularies at any time as long as they give a 60-day notice.

What will happen to my employer or retiree drug coverage under the Medicare drug benefit?

If you already have prescription drug coverage through your employer or union, check with your plan or benefits administrator to learn how your plan coordinates with Medicare drug coverage. It does not matter whether you are currently working or retired.

You should have received a letter from the company that provides your employer or retiree drug coverage letting you know whether your drug coverage is at least as good as Medicare’s standard drug coverage (“creditable coverage”). Be sure you have this information before deciding whether to enroll in the Medicare drug benefit. Keep a copy of the letter to verify that your coverage is creditable. Contact the company’s human resources department if you have not received your letter.

Can I get free help understanding my options?

Yes. For help comparing your Medicare private drug plan options you can call 800/MEDICARE, visit the Medicare Web site at www.medicare.gov, or call your State Health Insurance Information and Assistance Program (SHIP). You can also contact your union or health benefits administrator. For help filling out the application for Extra Help paying for your Medicare drug costs if your income is low, call Social Security at 800/772-1213 or your SHIP. You can get the telephone number of your local SHIP by calling 800/MEDICARE.

people picture
American Federation of Teachers | 555 New Jersey Ave. N.W., Washington, DC 20001

© American Federation of Teachers, AFL-CIO. All rights reserved. | Disclaimer
Photographs and illustrations, as well as text, cannot be used without permission from the AFT.