Congress Gets Update on Medicare Drug Benefit, States to be Reimbursed

Administration officials yesterday told senators the new Medicare prescription-drug program has problems, but they're under control, and states will be reimbursed for covering seniors' prescription costs resulting from the glitches. Senators on the Finance Committee seemed cautiously optimistic at the assurances, but some said Congress will still probably need to act, including possibly extending the mid-May enrollment deadline. Health and Human Services Secretary Michael O. Leavitt said yesterday, "We've identified the problems, we're working on them and the plan gets better every day." He and Mark McClellan MD had a private meeting yesterday with committee members to brief them on the situation. Since the program began three weeks ago, enrollment problems have left many seniors without coverage, and more than 20 states stepped in to cover costs. Low-income seniors had the most trouble, as the government worked to automatically transfer them from Medicaid drug coverage to the new Medicare program. Mr. McClellan said states should first seek reimbursement from private plans offering the drug coverage, but the government will reimburse the states for any difference.