Office of Governor Gary Locke
FOR IMMEDIATE RELEASE - July 7, 2000
Contact:  Governor's Communications Office, 360-902-4136

State may file lawsuit to protect seniors on Medicare

OLYMPIA - Gov. Gary Locke, Attorney General Christine Gregoire and Insurance Commissioner Deborah Senn are considering legal action against the federal government to ensure senior citizens and disabled citizens served by Medicare continue to have a range of choice among health plans and quality health care.

At issue is the withdrawal from Washington of several managed health care plans that contend federal Department of Health and Human Services monthly premiums for those on Medicare are too low.

The federal government makes average payments of $465 monthly for each of the eligible persons enrolled in the federal managed care Medicare+Choice Program in Washington. In contrast, it pays higher amounts in other parts of the country. In an extreme example, the federal government pays an average of $809 per month for enrollees in Miami, Fla., where the health care markets are very inefficient.

"The federal government is punishing Washington for its health care efficiency. And these low rates in Washington are forcing some insurance companies and doctors to cease offering Medicare managed health care services for seniors," Locke said.

"I am deeply concerned by the withdrawals of several of our health plans from this program. Some of the seniors and disabled people served by them may have to switch medical providers, some will be confused and many will face higher out-of-pocket costs," Locke added.

Gregoire commented, "Washington's senior citizens shouldn't have to pay for the inefficiencies of other states. The inequities of treatment between states cry out for a review and investigation to determine if litigation against the federal government is appropriate."

In addition to working with the attorney general to consider filing legal action, Locke asked Insurance Commissioner Senn to use her office's resources to help seniors affected by the withdrawals to select new health plans.

"I want to help our older citizens to have as smooth a transition to a new plan as possible without a lapse in coverage," the governor said.

Senn said a benefits-counseling program in her office will set up clinics and workshops in all affected counties to advise Medicare beneficiaries about their options. Medicare HMO subscribers and their families can call a toll-free number, 1-800-397-4422, with questions or problems.

"There will be time to make these changes, so families should not panic," Senn said. "It is important not to act precipitously. Subscribers need to have all the necessary information in hand before making any changes."

Displaced enrollees have until Dec. 31 to select an alternative plan. The federal Health Care Financing Administration will oversee notices to the affected individuals.

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