Governor Douglas changes plans to collect federal benefits for Vermont seniors

Vermont officials gave in after refusing to leave the $250 federal rebates for prescription drug costs to seniors. Much of the reason they changed their plan was because collecting $250 checks from people who receive them in the mail would have been complicated. Senator Patrick Leahy and Senator Bernie Sanders applauded the state's decision to make this change.
The rebate checks are intended to provide fiscal relief to seniors, not states, said Secretary Sebelius in a letter yesterday to Governor Douglas. Seniors who enter the donut hole have serious illnesses, take more medication, and need additional financial help. They have extremely high out-of-pocket costs; for example, they must personally spend at least $2,830 to qualify for rebate checks in 2010.
The tax-free federal $250 rebates are being mailed to seniors who enter the Medicare Part D donut hole this year, as a first step in closing the coverage gap under the Affordable Care Act. The first federal rebates were mailed to seniors who have fallen into the Medicare Part D donut hole yesterday. About 9,000 Vermont seniors are expected to receive the rebate this year.
Vermont Lawmakers counted on receiving the federal tax rebates when planning for a tight budget this year. Governor Jim Douglas said this was because they had already been paying premiums that allowed low-income seniors to take advantage of federal Medicare Part D prescription drug coverage; so the recipients of this rebate will be receiving the same benefit twice.