Medicare official says management of new drug benefit improving

Congress need not step in to help, Mark McClellan says.

Medicare's top official maintained Wednesday that Congress does not need to intervene in the new Medicare drug benefit, despite criticism about the troubled program from senators on both sides of the aisle.

Centers for Medicare and Medicaid Services Administrator Mark McClellan told the Senate Finance Committee that "things are getting better" as Medicare makes changes to reduce the wait time for seniors seeking help, makes it easier for seniors to compare private drug plans they may choose from, and encourages seniors to enroll in new plans earlier in the month in order to process them before the benefit begins the following month.

Some Finance Committee members blamed the administration's implementation of the new law for the problems. "This has been a fiasco," said Sen. Kent Conrad, D-N.D. "It has been botched and bungled every step of the way."

Others insisted that the problems lie in the quirks of the law underpinning the benefit. Sen. Rick Santorum, R-Pa., suggested the problems stemmed from design flaws. "Some might say that Congress may not have been thinking quite clearly," he said, referring to one of the biggest problems facing Medicare: The law gives beneficiaries up to the last day of a month to sign up for a plan for which coverage begins the next month.

Under that scheme, if a senior signs up on the 31st and tries to fill a prescription the next day, there may be problems, McClellan said.

But McClellan assured the senators that Medicare is assessing whether it can fix that and other problems administratively and does not need new legislation.

"We will continue to work with you," he told lawmakers, although he indicated that work would consist of Medicare officials reporting progress to the committee. Meanwhile, Sen. Ron Wyden, D-Ore., said he and Sen. Olympia Snowe, R-Maine, and others plan to introduce legislation restricting private Medicare drug plans from changing the formularies, or lists of drugs, they cover.