Settlement proposed in Medicaid/Part D case

The lawsuit was one of the first pieces of litigation to arise in the opening days of the Medicare drug benefit. By David Glendinning, AMNews staff. July 21, 2008 The tens of thousands of Medicaid beneficiaries who become eligible for Medicare's drug benefit each month soon will have new federal protections to ensure that they keep receiving their subsidized prescription drugs without delay. The safeguards are the result of a proposed settlement of a lawsuit against the Bush administration that has been pending for more than two years. Two beneficiary advocacy groups filed the suit in April 2006 after Medicaid beneficiaries complained that they were encountering widespread problems when transitioning to the Medicare drug benefit, which launched in January of that year. Congress had decided that, in cases in which beneficiaries were eligible for both programs, Medicare would take on the responsibility of covering their drug needs.