June 2, 2008

In this Issue …

1. Poll: Americans Support Action on Low-Income Protections
2. CMS Launches Spring LIS Outreach Campaign
3. Physicians Not Familiar with LIS, Study Finds
4. New York Eliminates Resource Test for MSPs
5. House Report Focuses on Medicare Advantage

1. Poll: Americans Support Action on Low-Income Protections

Nearly 90 percent of Americans aged 18 and over believe that improving programs to protect low-income seniors against rising Medicare costs should be a top priority for Congress this year, according to a national telephone poll conducted by Harris Interactive for NCOA. The poll was released in conjunction with a recent Senate Special Committee on Aging hearing that highlighted the need for Congress to make improvements to Medicare low-income assistance programs.

Senate leaders are currently crafting Medicare legislation that is expected to be voted on this month. The bill is primarily designed to increase payments to physicians, which will likely cause additional increases in Part B premiums that have already more than doubled since 2000.

The NCOA survey found that 91 percent of those polled also support simplifying eligibility rules for Medicare programs to make it easier for low-income beneficiaries to get the help they need. In addition, 86 percent support raising asset eligibility levels for Medicare low-income assistance programs, and 87 percent support increased funding to find and enroll low-income beneficiaries in these programs.

In conjunction with the hearing, NCOA and more than 40 other organizations sent a letter urging senators to simplify and align low-income assistance programs; improve outreach and participation for those currently eligible; and stop penalizing seniors who did the right thing in putting aside a modest nest egg of savings for retirement by bringing outdated asset limits in line with today’s cost of living.

A new report from the Center on Budget and Policy Priorities also argues in favor of including improvements to Medicare Savings Programs (MSPs) in the current Medicare legislation before Congress. Taking into account medical expenses would push an additional 2.4 million seniors below the poverty line, researchers state. The MSPs, which help low-income Medicare beneficiaries pay their premiums and cost-sharing, have low participation because program rules are complex and many people are unaware of the programs, the report says.

To add your voice to the call for low-income protections for Medicare beneficiaries, please e-mail your members of Congress today using NCOA’s sample letter.

Back to top

2. CMS Launches Spring LIS Outreach Campaign

The Centers for Medicare & Medicaid Services (CMS) has launched a spring campaign to increase awareness and applications for the Medicare Part D Low-Income Subsidy (LIS). This special outreach will be aimed at individuals without Medicare Part D coverage who may potentially qualify for the LIS. For those who qualify, Medicare can pay 75 percent or more of their prescription drug costs.

CMS efforts are focused on targeted areas where new data indicate a high level of potentially eligible beneficiaries. Updated CMS LIS data and outreach materials are now available in the 2008 LIS Outreach Toolkit. The campaign will run through July.

CMS also held a Low-Income Subsidy Spring Partner Summit on May 16. The meeting is available online, where visitors can access the meeting agenda and speaker presentations. The site will be available for 30 days for viewing.

Back to top

3. Physicians Not Familiar with LIS, Study Finds

Most physicians do not know about the Medicare Part D LIS or other help available to help beneficiaries pay for premiums and cost sharing, according to a new report from the Medicare Payment Advisory Commission (MedPAC).

The report highlights the findings of 13 focus groups held with beneficiaries and providers dealing with Part D.

Pharmacists in the study said they are aware of programs for beneficiaries with limited means, but they tend not to discuss it with their customers for fear of offending them. Beneficiaries reported that they do not understand how the LIS works. Overall, the findings indicate that most beneficiaries are satisfied with their Part D plan, and physicians said they’re glad their patients have access to drug savings.

The report also examines steps Maine has taken to broaden the eligibility criteria for MSPs and make more patients eligible for the LIS.

Back to top

4. New York Eliminates Resource Test for MSPs

Effective April 1, there is no longer a resource test for any Medicare Savings Program consumer in New York, according to the Medical Insurance & Community Services Administration. The state has removed the test for consumers at both application and renewal. Financial eligibility is now based only on an applicant’s income.

Back to top

5. House Report Focuses on Medicare Advantage

A new report from the House Committee on Energy and Commerce examines costs under the Medicare Advantage program. While Medicare Advantage was originally conceived as a way to contain growth in Medicare spending by allowing private plans to offer Medicare coverage, that goal has not been realized. In fact, the Medicare Payment Advisory Commission and Congressional Budget Office report that, on average, "the federal government is now paying private plans 12 percent more than it costs to treat comparable beneficiaries through traditional Medicare," the report states.

Benefits Alert is published by the National Council on Aging for members of the Access to Benefits Coalition. Jean Van Ryzin, Editor, jean.vanryzin@ncoa.org.  Copyright © 2008. All content is copyrighted and must not be reproduced or distributed to others without written permission.

Back to top