WASHINGTON – U.S. Rep. Benjamin L. Cardin has urged Secretary of Health and Human Services Tommy Thompson to immediately implement the new law waiving Medicare Part B late enrollment penalties for thousands of military retirees. Effective January 1, 2004, all Medicare-eligible military retirees enrolling in Part B between January 2001 and December 2004 are exempt from normally assessed late fees.

"I am extremely concerned that the Centers for Medicare and Medicaid Services (CMS) has not yet implemented this provision. Because of their delay, more than 90,000 military retirees cannot get the relief Congress granted them. The longer this process drags out, the more complicated it will be to refund late enrollment fees that have been unfairly assessed since Jan. 1, 2004," said Rep. Cardin.

To encourage widespread participation, Medicare fines individuals who do not enroll in Part B when first eligible a 10% penalty for every year they do not participate. In June 2001, the Congressman introduced the TRICARE Retirees Opportunity Act, which waives late penalties for certain Medicare-eligible military retirees and establishes a year-round Part B enrollment period in 2004 to facilitate registration. Rep. Cardin’s legislation was included in the Medicare law enacted in December 2003.

"It is an outrage that CMS has failed to implement this provision," said Rep. Cardin. "We are already three months into 2004 and CMS needs to immediately stop assessing these penalties. In addition, CMS must adjust premiums for retirees who have been fined in error since January 1 and refund all overpayments."

In 2001, Congress enacted legislation permitting military retirees over age 65 to remain in the military health care system, a program known as TRICARE-for-Life (TFL). Participation in TFL requires enrollment in Medicare Part B, which many retirees had been advised was unnecessary prior to 2001.

"It’s time to remove the barriers to full health care coverage for Medicare-eligible military retirees who were unfairly penalized when Congress changed the rules of the game," said Rep. Cardin. "It took three years to correct this injustice. Now that we’ve passed the law, CMS must fulfill its responsibility and implement it without further delay."

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