Monday, October 23, 2006

Governor Doyle Asks Bush Administration to Extend SeniorCare to 2010

Governor Doyle today submitted the formal application to the U.S. Department of Health and Human Services to save the state's successful prescription drug program, SeniorCare. Unless the Bush Administration approves the request, SeniorCare is set to expire on June 30, 2007 - at which point nearly 110,000 Wisconsin seniors could lose their coverage or be forced into the complicated Medicare Part D prescription drug program.

"Wisconsin's SeniorCare program is a lifeline for nearly 110,000 seniors across our state and has helped to make their prescription drugs more affordable," Governor Doyle said. "I will continue to fight for this vital program and I sincerely hope the federal government will give it fair consideration - and not play politics with the health of our seniors."

The Governor submitted his formal request in a letter to U.S. Department of Health and Human Services Michael Leavitt, along with an application that highlights the benefits of the SeniorCare program. SeniorCare provides comprehensive, affordable prescription drug coverage to nearly 110,000 seniors across the state. In the last year, as thousands of seniors chose SeniorCare over Medicare Part D, SeniorCare's enrollment surged by more than 26%.

According to an analysis by AARP Wisconsin, more than 94% of SeniorCare participants are better off under SeniorCare than they would be under Medicare Part D because the co-payments are lower and the coverage is more comprehensive. The state uses its bargaining power to negotiate the lowest prices for prescription drugs, while Congress made it illegal for the federal government to bargain for lower prices.

For that reason, SeniorCare saves taxpayers - and the federal government - money because it costs nearly half per person than Medicare Part D. The average annual cost for a SeniorCare participant is $617, while that price tag is $1,174 to subsidize a Part D participant.
Enrollment in the SeniorCare program costs just $30 per year and is available for seniors age 65 and older. The application is one-page and there are no asset tests for eligibility. Only income is counted.

Under Medicare, most seniors pay 100 percent of drug costs between $2,250 and $5,100 in total drug costs. This $2,850 gap in coverage is commonly referred to as the "donut hole."

In June 2006, the Governor wrote to Secretary Leavitt to notify him of his intention to seek an extension of SeniorCare. Governor Doyle's office contacted Senator Feingold, Senator Kohl, Congressman Obey and others in the Wisconsin congressional delegation and asked them to support his efforts to extend the waiver.

In October 2005, Governor Doyle personally negotiated an agreement with Secretary Leavitt to allow the SeniorCare program to continue through at least June 30, 2007. Absent that agreement, the SeniorCare program could have been terminated as of January 1, 2006. The Governor and the Secretary also agreed that SeniorCare participants will be exempt from any financial penalties if they decide to move into a Medicare Part D prescription drug plan at a later date.

For SeniorCare information, call the SeniorCare hotline at (800) 657-2038 or visit http://dhfs.wisconsin.gov/seniorcare/.

A copy of the letter to Secretary Leavitt is available at http://www.wisgov.state.wi.us//docview.asp?docid=9718.

A copy of the application is available at http://www.wisgov.state.wi.us//docview.asp?docid=9717.

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