The Centers for Medicare and Medicaid Services (CMS) has announced that state pharmacy assistance programs can enroll low-income Medicare beneficiaries automatically into the transitional assistance benefit of the Medicare Modernization Act. States that have the authority to act as an “authorized representative” of a beneficiary (as defined by state law) would be permitted to enroll beneficiaries in drug cards on the beneficiary’s behalf. This step will make it easier for low-income beneficiaries in states with pharmacy assistance programs to get $600 in additional help.

Secondly, Medicare will issue a standard enrollment form that will be accepted by all Medicare Approved Discount card programs. This standard form will make it easier for community based organizations, health professionals, and consumer groups to assist beneficiaries with the enrollment process.

CMS will soon provide a standard enrollment form for the Medicare-approved drug discount card program for use by State Health Insurance Programs (SHIPs), and other partners and organizations that assist beneficiaries with their health care decisions.

The automatic enrollment policy will help many states coordinate their own drug benefits for low-income Medicare beneficiaries with the new Medicare drug benefit by making enrollment easier for the states and beneficiaries.

Twenty states have large programs that already provide drug benefits to these beneficiaries. Many of these beneficiaries will be eligible for the new transitional assistance benefit under the new Medicare Modernization Act. Individuals may be enrolled in both types of programs at the same time.

Beneficiaries who are signed up for the transitional assistance get $600 to pay for drug costs. Depending upon how the State plan is organized, this could mean state programs would not have to pay the first $600 for each of these beneficiaries, thus freeing up money to help states pay for their own program.

States that are able to automatically enroll Medicare beneficiaries into the new program will be able to identify which card a beneficiary is enrolled in so that the individual can return to the state program after the $600 is used without losing any coverage.