Tuesday, April 10, 2007

Governor Doyle Formally Requests Six Month Extension of SeniorCare

Governor Jim Doyle today formally requested that the U.S. Department of Health and Human Services (HHS) give Wisconsin a six month extension of SeniorCare. Last week, the state received word from the federal government that after June 30 of this year, Wisconsin would no longer be allowed to offer the program.

"Today, I have requested a six month extension of the SeniorCare program, so that 105,000 of our citizens will not lose their drug coverage in the next 90 days," Governor Doyle said. "Making prescription drugs affordable remains a top priority. This extension will give us time to work with the federal government and leaders in the Legislature to implement a solution and give seniors all the information they need to get the coverage they deserve."

A letter to HHS, submitted by Kevin Hayden, the Secretary of the Wisconsin Department of Health and Human Services, on behalf of Governor Doyle, requesting the extension said, "While I am sure you can understand our disappointment with the decision not to renew this cost-effective, successful program, Wisconsin is committed to working with you to achieve the best possible result for our seniors as we move forward."

According to state analysis, the federal government pays $617 a year, on average, to subsidize someone on SeniorCare, compared with nearly $1,200 a year for someone with Part D coverage.

In October, Governor Doyle submitted a formal request to U.S. Department of Health and Human Services (HHS) Secretary Michael Leavitt to extend SeniorCare through June 30, 2010. Until last week, Governor Doyle did not receive a reply from Secretary Leavitt - including any request for additional information - other than a brief acknowledgement that HHS received the request.

The Governor made this request a year after personally negotiating 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.

According to analysis by AARP Wisconsin, more than 94 percent of seniors are better off on SeniorCare than they would be under Medicare Part D because the co-payments are lower and the coverage is more comprehensive. In addition, 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.

In the last year, thousands of Wisconsin seniors chose SeniorCare over Medicare Part D and SeniorCare's enrollment surged by more than 25 percent because enrollment in the SeniorCare program costs just $30 per year, the application is one page, and there are no asset tests for eligibility. Only income is counted.

A copy of Secretary Hayden's letter is available at: http://www.wisgov.state.wi.us/docview.asp?docid=10976

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