Although these 632,000 beneficiaries are able to participate in the Medicare Part D prescription drug plans, they will need to proactively apply/re-apply for low-income subsidy, find a plan and then enroll on their own. They will not be automatically enrolled by either the State or Federal government. However, these people will be sent a letter from the Centers for Medicare and Medicaid Services (CMS) advising these people to apply for low-income "extra-help" status that provides a Part D subsidy.
Firman said that his organization's experience in reaching out to low-income seniors is that about 20 percent will respond to a letter. "We're talking about a population that's sick, may have low literacy. There are a lot of challenges," he said. "What they need is one-on-one assistance from trusted intermediaries." He said he hoped that insurers would take some follow-up steps, too. "We believe the plans themselves should have responsibility for helping their customers do this. It also makes good business sense because they could lose these customers," Firman said.
As noted in the San Fancisco Chronicle article, "the Centers for Medicare and Medicaid Services recognizes that some in the [former Dual-Eligible] group may miss signing up for a drug plan during the next open enrollment period running from November 15 though December 31 and has granted former Medicaid beneficiaries an extra three months [emphasis added] to enroll in a plan without the prospect of a penalty for late enrollment."https://www.sfgate.com/cgi-bin/article.cgi?f=/n/a/2006/10/18/national/w121530D45.DTL&type=politics