Bill To Improve Access to Medicare Prescription Drug Low Income Subsidy

Representative Lloyd Doggett (D-TX) introduced the ‘Prescription Coverage Now Act of 2007,’ a bill designed to assist low income individuals in applying and qualifying for the Medicare prescription drug program’s Low Income Subsidy (LIS), on March 15, 2007.

The LIS provides prescription drug coverage premium and cost-sharing subsidies to low income Medicare beneficiaries.  The ‘Prescription Coverage Now Act of 2007’ (H.R. 1536) seeks to improve access by expediting the LIS application process and modifying income and resource limits.

The bill requires the creation of an “Opt-In” process that would screen new Medicare beneficiaries for LIS eligibility.  Current beneficiaries who are not already receiving the LIS would also be screened for eligibility.  Beneficiaries who are identified by the screening will receive written information, in their preferred language, about Medicare prescription drug coverage and the LIS and a one page LIS application form.  In addition, plans would add an “opt in” option to their enrollment forms to streamline the process.

The bill also liberalizes the LIS income and asset rules.  It increases the resource limit for the LIS from three to six times the Social Security Income program’s limit and exempts the complete value of life insurance policies and in-kind support and maintenance.

In addition, the bill would ensure that receipt of the LIS does not affect eligibility for benefits under other programs, require the Social Security Administration to screen LIS applicants for Medicare Savings Program eligibility, establish an annual Special Enrollment Period for LIS recipients and waive permanently the Late Enrollment Penalty for beneficiaries who are eligible for the LIS.

Supporters of the bill include NSCLC, Families USA, National Council on Aging, Consumers Union and the Center for Medicare Advocacy.  The text of the bill should be available shortyl at http://thomas.loc.gov/home/c110query.html.