Thompson Introduces $100 Million Effort to Help Medicare Recipients with Prescription Drug Program

In an effort to help guide seniors through what they are calling confusing and ill-conceived changes in Medicare prescription drug coverage, Rep. Mike Thompson (D-Calif.) introduced a bill today that would add $100 million to funding for State Health Insurance Assistance Programs (SHIPs). Known as HICAPs in California, SHIPs are federally mandated programs that provide Medicare beneficiaries with unbiased information about their coverage options. Lately, they have been focused on helping seniors sign up for the new drug benefit and resolving Part D enrollment disputes.

“These programs are overwhelmed and understaffed,” Thompson said. “The Administration knows that beneficiaries want one-on-one assistance and they say SHIP counselors are the best trained to provide that help. But, they haven't funded these programs at a level that lets them assist all beneficiaries. This bill increases funding without adding a single penny to the deficit.”

The increase in SHIP funding is paid for by a one percent reduction to a health plan stabilization fund that was included in the Medicare Modernization Act. This fund has never been used and the Senate has voted to eliminate it and redirect the funding.

Last year, SHIPs were funded at $31.7 million. With over 43 million Medicare beneficiaries, that averages out to less than 80 cents per person. This bill will bring beneficiary assistance funding up to approximately $3 per person.

Thompson questioned Health and Human Services Secretary Michael Leavitt about the SHIP program when the Secretary testified before the House Ways and Means Committee today. He pressured Leavitt with data indicators, which show that SHIPs cannot meet beneficiary demand, and said that he was unmoved when the Secretary responded that beneficiaries must look to other resources for help - such as pharmacies, churches, or family members.

“HHS cannot expect pharmacists - who are already under-reimbursed and who are sorting out their own payment problems with these drug plans - to walk beneficiaries through every step of this process,” said Thompson. “Nor can they rely on just any volunteer. SHIP counselors are specifically trained to do this job. They need to be given the funding to put that training into action.”