Health Insurance Companies Compete to Provide Seniors with Drug Benefit (9/23/2005)

Source:BCBShealthIssues.com

Medicare announced today that beneficiaries will be able to choose their new drug benefit from more than 10  private prescription drug plans. Medicare officials said eight companies will offer drug plans throughout the country and that seniors in 49 states will have access to discount drug  plans with premiums of less than $20. Few details were available about the individual plans' coverage and prices, but officials said they would divulge those details as they begin marketing their offerings to seniors Oct. 1.

Critics of the new Medicare Part D drug benefit fear that the higher-than-expected number of plans will produce its own set of problems: As drug plans compete for seniors' business, their aggressive marketing might confuse or mislead potential enrollees.  "Seniors and people with disabilities will be extremely confused as they try to figure out their options with regard to private Medicare drug plans," Stark said. "The 'Medicare Informed Choice Act' can provide beneficiaries extra protections during the first year of this complex new program so that they won't feel pressured into making a bad choice."

But McClellan said Medicare officials will be monitoring how companies market their products to ensure that they hew to marketing guidelines aimed at preventing fraud. McClellan also brushed aside suggestions made by Republicans in recent weeks that the drug benefit slated for Jan. 1 be delayed to save money as the government looks at higher deficits caused by spending on Hurricane Katrina recovery. "If you want good reasons not to delay the benefit, listen to me, and the White House, and members of Congress ... and to seniors themselves," he said. "They have waited far too long for coverage that is up to date."

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