This is no April Fool’s joke. As of April 1, 2004, Medicare payments that significantly impact Iowa’s health care delivery system will grow significantly. In fact, over the next 10 years Iowa stands to gain an additional $25 billion.
As chairman of the Senate Finance Committee, which bears legislative and oversight authority over Medicare, I worked long and hard to fix the flawed federal payment system and bridge the reimbursement gap between rural and urban providers. Iowans pay the same Medicare tax rate as everyone else and deserve our fair share.
The new Medicare law signed by President Bush in December increases payments to Iowa hospitals, doctors and ambulance service providers. The larger payments will help keep access to health care close to home for all Iowans, especially in rural areas where reimbursement rates were set far below what’s paid in other regions of the country.
As the lead architect of these changes in the U.S. Senate, I insisted on the rural equity measure to fix the payment disparity that for too long shortchanged Iowa health care providers. The payment system created an unfair situation for communities to compete for the best and brightest job candidates and retain medical professionals to serve residents.
Since the first of the year I have held dozens of meetings throughout Iowa to help educate Iowans about the new choices coming soon for Medicare recipients. The new Medicare law reflects the most sweeping improvements to the health insurance program for retirees and disabled Americans since its creation in 1965.
Essentially, lawmakers worked to bring Medicare into the 21st century and shape benefits to reflect the 21st century practice of medicine. That includes for the first time ever, a universal, voluntary, comprehensive prescription drug coverage benefit.
In my public meetings, I remind those in attendance to remember the improvements are entirely voluntary. If seniors are satisfied with Medicare as we know it, no one has to change a thing. If, however, seniors need assistance to help pay for prescription medicine, I encourage them to consider the new benefits becoming available soon.
Starting this summer an interim prescription drug discount card will be available to those interested in saving between 10 and 25 percent on the cost of their prescription medicine. The cards will be available for an annual fee of no more than $30. For lower income beneficiaries, who will pay no annual enrollment fee, the discount cards will include a $600 credit each year for individuals earning less than $12,000 a year and married couples whose income is less than $16,000. Sign-up begins in May. The discount cards will continue until the new Medicare law takes full effect in January 2006.
After that, Medicare beneficiaries will have three choices to consider. First, seniors may choose to stay with traditional Medicare and decline prescription drug coverage. Second, seniors may choose to stay in traditional Medicare and enroll in a free-standing prescription drug plan offered by Medicare-approved health insurance carriers. Third, seniors may enroll in the new Medicare Advantage Program. Tailored after health insurance benefits most typically offered Americans in the workplace, Medicare Advantage will provide prescription drug coverage through Preferred Provider Organizations (PPOs) or Health Maintenance Organizations (HMOs). Plus, coverage also may include extra benefits not included in traditional Medicare. The first enrollment period will run November 15, 2005 to May 15, 2006. Every year Medicare beneficiaries will have the choice to re-enroll in one of the three.
Starting in April, Iowans should receive in the mail detailed information from the federal agency that runs Medicare. In the meantime, I will continue to hold town meetings across the state to help raise awareness about the new Medicare benefits, answer questions and listen to any concerns Iowans may have about the new law. From April 12-15, I will visit with Iowans in Perry, Guthrie Center, Jefferson, Carroll, Denison, Missouri Valley, Council Bluffs, Greenfield, Winterset, Indianola and Pella.