News Release
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FOR IMMEDIATE RELEASE
Wednesday, March 10, 2004 |
Contact: CMS Public Affairs
(202) 690-6145
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HHS Increases Funding to Educate Seniors and Disabled Americans About New Improvements to Medicare
SHIPs Help Beneficiaries Navigate the Medicare System
HHS Secretary Tommy G. Thompson today announced that HHS will award $21.1 million this year and another $31.7 million next year to state and local programs that counsel Medicare beneficiaries to help them understand and take advantage of new benefits in Medicare.
This year's funding represents a 69 percent increase above the fiscal year 2003 total, reflecting the increased emphasis on one-on-one advice and counseling for Medicare beneficiaries provided by the staff and volunteers at State Health Insurance Assistance Programs (SHIPs).
"These counselors are among the most effective resources we have in helping Medicare beneficiaries learn about the changes to Medicare," Secretary Thompson said. "They will be able to use these new funds to equip each local organization with the tools it will need to answer beneficiaries' questions."
Secretary Thompson announced the expanded funding for SHIPs in testimony today before the House Energy and Commerce Committee. The Medicare Prescription Drug, Improvement, and Modernization Act of 2003 provides for additional funds to be used to educate Medicare beneficiaries. HHS' Centers for Medicare & Medicaid Services will increase funding to SHIPs from $12.5 million last year to about $21.1 million for fiscal year 2004. HHS' budget plan for fiscal year 2005 allocates $31.7 million in 2005 -- more than double the amount awarded in fiscal year 2003.
SHIPs are local organizations funded by CMS through State Units on Aging or state insurance departments in all 50 states, the District of Columbia, the Virgin Islands and Puerto Rico that provide individual help to seniors and people with disabilities with health insurance questions and problems. More than 12,000 volunteers and paid staff in nearly 1,200 local programs use their knowledge of Medicare and other local insurance programs and services to provide in-depth assistance to people with Medicare.
"Because the SHIPs are local and staffed mainly by volunteers, they are innovative in how they reach beneficiaries, including those who may not seek information because of cultural differences and language, location and literacy barriers," said CMS Acting Administrator Dennis Smith. "SHIPs are among the few organizations that are effective in helping people with Medicare with their health insurance concerns and issues and Congress agrees."
With the new funding, SHIPs will be able to expand their efforts to work with and reach even more Medicare beneficiaries and increase and enhance their volunteer staff through additional training and resources. These may include:
- Increasing recruitment, training and supervision of volunteers to make sure the information they provide to Medicare beneficiaries continues to be accurate and timely;
- Expanding the number of counseling locations in areas close to low-income and hard-to-reach beneficiaries;
- Increasing access to Web based information and tools, including standard CMS training and comparison tools; and
- Improving their telephone services.
"The SHIPs are just one part of the information and education arsenal that we are using to help Medicare beneficiaries navigate the changing system," said Smith. "Beneficiaries and their family members will see more direct mail pieces, including booklets and pamphlets about the new benefits, an enhanced Web site and our toll free phone line."
More information about changes to Medicare can be found by calling 1-800-MEDICARE or logging on to www.medicare.gov.
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Note: All HHS press releases, fact sheets and other press materials are available at http://www.hhs.gov/news.
Last Revised: March 10, 2004
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