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Lawmakers may waive penalty for missing Medicare drug plan deadline

17.05.2006 09:47 Category three - Source: USATODAY.com

By Diana Marrero, Gannett News ServiceWASHINGTON — Republican lawmakers who previously opposed extending the May 15 deadline to sign up for Medicare prescription drug plans before beneficiaries would incur penalties are joining efforts to waive the fee for millions who have yet to enroll.

A group of influential lawmakers this week are introducing bills in the House and Senate that would remove the fee for people who sign up for prescription drug coverage during the next open enrollment period in November.

On Tuesday, Sen. Chuck Grassley, a Republican from Iowa who had previously opposed extending the enrollment deadline, introduced legislation that would waive the 1% fee imposed on top of premiums for each month beneficiaries wait to sign up.

The legislation also includes $18 million for government outreach to seniors about the program.

"The first enrollment period ... was very successful," Grassley said at a news conference Tuesday. "We can help more seniors choose to sign up by waiving the enrollment penalty and enhancing outreach."

Democrats had long been calling on Republican majority leaders to extend the May 15 deadline because millions of seniors had not yet signed up. But Republicans had refused to do so.

Grassley said the deadline was needed to encourage people to sign up for the benefits.

Rep. Nancy Johnson, R-Conn., is introducing a similar bill in the House.

About 43 million Medicare beneficiaries are eligible for the program that subsidizes some of their drug costs. Low-income people currently don't have to pay a penalty fee for missing the enrollment deadline.

Sen. Max Baucus, a Montana Democrat who worked with Grassley on the bill, said he would have preferred to extend the deadline but thinks the legislation will help more seniors get access to the prescription drug coverage.

"This is the first year," he said. "There are more than a few kinks (in the program). So now when seniors sign up, they won't have to pay a penalty for signing up this year."

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