Sens. Klobuchar, Smith Request Information and Resources for Minnesota Seniors About Medicare Changes Taking Effect This Fall

WASHINGTON, June 20 -- The office of Sen. Amy Klobuchar, D-Minnesota, issued the following news release:

U.S. Senators Amy Klobuchar and Tina Smith requested information and resources from the Centers for Medicare and Medicaid Services (CMS) to ensure Minnesota seniors can continue to access the health care coverage they need when Medicare changes required by law come into effect in many parts of Minnesota this fall. Medicare Cost Plans provide comprehensive health insurance options to beneficiaries in areas with limited Medicare Advantage options, but many Cost Plans will no longer be permitted to operate beginning on January 1, 2019. In the letter, the senators asked CMS to provide the information and resources necessary for seniors to make informed, timely choices about their Medicare plan options.

"Medicare Cost Plans have provided comprehensive health insurance options to beneficiaries in areas with limited Medicare Advantage plan options for years... We remain concerned about this transition and the significant strain it could put on seniors in Minnesota who will have to switch plans," the senators wrote.

"To minimize confusion and ensure that seniors have the resources they need to make informed choices in a timely manner, we urge CMS to provide our offices, the Minnesota Department of Commerce, insurers, insurance agents, consumer advocates, and consumer services such as the Minnesota Board on Aging's Senior LinkAge Line with critical information about this transition as soon as possible."

The full text of the letter can be found below:

Dear Administrator Verma,

We write to request your continued assistance in ensuring that Minnesota seniors remain able to access the health care coverage they need when significant changes in the Medicare market required by law come into effect in many parts of our state this fall.

As you know, Medicare Cost Plans have provided comprehensive health insurance options to beneficiaries in areas with limited Medicare Advantage plan options for years. There are currently approximately 400,000 Minnesota residents enrolled in Cost Plans, which is the highest number in the country. As a result of the Balanced Budget Act of 1997 and subsequent legislation, however, many Cost Plans will no longer be permitted to operate beginning on January 1, 2019--including those that serve approximately 340,000 beneficiaries in Minnesota.

We appreciate the Centers of Medicare and Medicaid Services' (CMS) engagement with us on this issue--including our offices' most recent conversation on May 3rd--but we remain concerned about this transition and the significant strain it could put on seniors in Minnesota who will have to switch plans. To minimize confusion and ensure that seniors have the resources they need to make informed choices in a timely manner, we urge CMS to provide our offices, the Minnesota Department of Commerce, insurers, insurance agents, consumer advocates, and consumer services such as the Minnesota Board on Aging's Senior LinkAge Line with critical information about this transition as soon as possible. Specifically, we urge CMS to answer the following questions:

1. What communication are states, insurers, insurance agents, consumer advocates, and other affected groups permitted to provide to seniors who are currently enrolled in Cost Plans? And on what timeline? We want to ensure that affected seniors can receive education materials from sources they trust and can make a smooth transition to a new Medicare plan that meets their individual needs.

2. Will your agency provide guidance regarding these interactions and the types of communications that are allowed? We believe that a standard policy will help ensure affected seniors receive consistent and accurate information.

3. Specifically, are current Cost Plan carriers allowed to proactively communicate with Cost Plan members--in the employer, group, and individual markets--on or earlier than August 15, 2018?

4. What is CMS's timeline for sending notifications to policy holders who will no longer be able to enroll in Cost Plans about the transition? What information does CMS plan to include in these notifications? Will the Minnesota Senior LinkAge Line's phone number be provided with the notifications? For employees enrolled in a Cost Plan through their employer, does CMS plan to send notifications to the employer or the individual employee?

5. If a consumer has a Medicare Cost Plan and a standalone prescription plan, will they be able to utilize the special enrollment period to switch plans?

6. Finally, what other efforts or engagement strategies will CMS undertake to limit disruption for seniors in Minnesota? For example, will CMS provide any technical assistance or other resources to assist seniors during this transition?

Thank you for your prompt attention to this important matter.

Sincerely,