PA Governor Rendell Responds to U.S. Sen. Santorum's Criticism of Medicare Part D Drug Benefit: "PA Governor Rendell Responds to U.S. Sen. Santorum's Criticism of Medicare Part D Drug Benefit
November 29, 2005 - 2:01 PM
HARRISBURG, Pa. — Governor Edward G. Rendell today issued the following letter in response to Pennsylvania U.S. Sen. Rick Santorum's misinformed critique of the commonwealth's handling of the merger of the state PACE program with the new Medicare Part D drug benefit:
Dear Senator Santorum:
I am in receipt of your letter of November 22nd concerning the integration of the Pennsylvania Pharmaceutical Assistance (PACE) program with the new Medicare Part D drug benefit. I appreciate your concern, but I'm afraid that you might not have complete information about these discussions.
As you know, when the legislation creating the Part D benefit was considered in 2003, it passed the Senate with an amendment added to it that would have created a direct link between the PACE program and the Part D program, so the transition for PACE members would have been seamless. Opposition by the Senate Republican Leadership to that provision was largely responsible for its removal and the substitution of the more complicated process now in place.
Pennsylvania has been working closely with the various federal agencies responsible for implementing the new program. Consequently, we are on the verge of announcing an agreement that will enable the Commonwealth to assist the nearly 300,000 Pennsylvanians, who currently receive drug coverage through our state program, to enroll in the Part D program as well. I have had several conversations with Secretary Leavitt about this agreement, which, as you know, will be announced in the near future.
As you are aware, the federal benefit is complicated both in terms of the benefits provided and the choices that consumers have to make from among the many plans. As you point out, many seniors, not just PACE beneficiaries, are confused about the decisions that confront them. We have been working diligently for many months with the Centers for Medicare and Medicaid Services, the Social Security Administration and the Department of Health and Human Services to develop a model that will facilitate PACE beneficiaries enrolling in the new benefit program while enjoying the same level of coverage that they have enjoyed under the state PACE program for over twenty years. These efforts were hampered by the fact that the details of the federal program, the identity of the vendors who would offer coverage in the Commonwealth and the benefit levels that they would offer was not known until early October. As you know, Pennsylvania was not alone in having to develop a strategy to integrate its state program with the federal program and we have benefited by the arrangements that several of these states forged.
I am confident that the agreement that Secretary Leavitt and I will announce later this week will result in a significant partnership between the PACE program and the providers of the federal benefit.
I also want to take the opportunity to correct another statement in your letter. You point out that, if the Commonwealth were to wrap the PACE benefit around the new federal program, filling the gaps in the federal benefit, Pennsylvania could "save" hundreds of millions of dollars. Specifically you wrote that "Pennsylvania stands to gain $500 million per year or more if only a fraction of the PACE beneficiaries enroll in Medicare Part D."
I'm not sure of the source of this misinformation. In point of fact, the PACE program only costs the state $415 million to operate. Covering the large gaps in the Medicare D benefit, so that PACE beneficiaries continue to receive the same level of benefit they currently enjoy, will reduce the potential savings significantly. So clearly, if only a small portion of the nearly 300,000 PACE beneficiaries enroll in the federal program, the state savings would be substantially less than $500 million.
Finally, in your letter you mention the assistance available to states to assist in integrating their state prescription drug plans with the federal benefit. I understand that you were instrumental in securing this assistance. As you know, because the details of the federal plan weren't available to the states in time, Pennsylvania and many of the other twenty-two states that operate state programs were unable to draw on this money. Pennsylvania and these other states are working to ensure that this money is still available to us. Of course as you know, the Senate passed a bill earlier this fall to extend the life of the money so it would not be lost to the states. That legislation is now in conference with the House. We would greatly appreciate your support for including this funding in the final legislation.
Pennsylvania is committed to ensuring that seniors who currently benefit from the PACE and PACENet programs continue to receive the same high level of coverage that they now enjoy. The array of options that they face in electing a Medicare Part D plan can be confusing for many seniors. The state is committed to making this transition as easy and as simple as it can be and that they will have the ability to choose a plan that suits their needs whether or not they are enrolled in PACE or PACENet.
Sincerely,
Edward G. Rendell
Governor
The Rendell Administration is committed to creating a first-rate public education system, protecting our most vulnerable citizens and continuing economic investment to support our communities and businesses. To find out more about Governor Rendell's initiatives and to sign up for his weekly newsletter, visit his Web site at: http://www.governor.state.pa.us/.
CONTACT: Kate Philips
Pennsylvania Office of the Governor
717-783-1116
Source: Pennsylvania Office of the Governor
CONTACT: Kate Philips, Pennsylvania Office of the Governor,
+1-717-783-1116
Web site: http://www.governor.state.pa.us/ "
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