Due to "significant compliance failures" which "create a serious threat to enrollee health and safety," CMS has issued an immediate sanction against SmartD Rx, a Medicare Part D contractor, and suspended all its marketing and enrollment activities effective April 23, 2013.
SmartD RX (S0064) is now prohibited from accepting new members or conducting marketing activities.
There are two SmartD Rx plans in New York State -- SmartD Rx Saver, a benchmark plan - free for people with Extra Help, and SmartD Rx Plus, an enhanced plan. There are over 5,000 New Yorkers currently enrolled in these plans, according to the latest CMS statistics. Existing members can remain in SmartD RX or try to switch to another plan.
Although the sanction letter does not grant a special enrollment period for existing members, it notes that 85% of them are receiving Extra Help. Extra Help recipients can switch plans at any time. Also, the violations noted in the sanction letter are so serious that SmartD RX members may be able to switch plans even if they aren't receiving Extra Help, depending on their individual circumstances.