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End of late fees: CMS waives Part D penalty

Case Management Weekly, January 17, 2007

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End of late fees: CMS waives Part D penalty

CMS has extended the Part D special enrollment period for low income beneficiaries through 2007 by waiving the late enrollment penalty (LEP) for eligible individuals, the agency announced last week.

Generally, Medicare beneficiaries who are qualified to join a prescription drug plan, or Part D, but choose not to enroll during their initial enrollment period, may be subject to a LEP. These fees were intended to encourage Medicare beneficiaries to sign up for the drug coverage plan when they first become eligible, but may cause some low-income beneficiaries to avoid seeking coverage.

"It is very important that we remove whatever barriers may be preventing low-income beneficiaries from taking advantage of this great, cost-saving program," CMS acting Administrator Leslie V. Norwalk said in a press release. "This is our most difficult population to reach and the one for which we continue to focus on our efforts. By continuing to remove the fear of a later fee for those who may not be able to pay, we are taking a positive step aimed at broader coverage for everyone."

Source:Bureau of National Affairs; CMS

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