Medicare Drug Plan To Cost Less Than Expected

WASHINGTON -- Medicare officials say the program's new drug benefit will cost less than expected this year, as beneficiaries gravitate to plans with lower premiums.

The average premium for beneficiaries this year is about $25 a month, down from about $32 as estimated in August. The government also will see savings, said Mark McClellan, administrator of the Centers for Medicare and Medicaid Services.

The reason for the reduction: Health insurers are offering lower premiums than expected, and beneficiaries, Dr. McClellan said, "are choosing the plans that offer them the best deal."

Last year, Medicare actuaries projected that the drug benefit would cost taxpayers $737 billion over 10 years. That figure, updated after beneficiaries began enrolling in drug plans, now is $678 billion. Under the new estimates, the 2006 cost of the benefit dropped to $30.5 billion from $38.1 billion.

Still, some enrollees are having difficulty using their coverage, and pharmacists also are reporting problems. Yesterday, Medicare told health insurers to provide beneficiaries' current medications through March, even if they normally would be restricted or not included. The extension is meant to alleviate more problems as kinks in the program are worked out. The agency also released instructions on how states may be repaid for drug costs they have covered for some low-income Medicare beneficiaries.

The developments came as Dr. McClellan appeared before the Senate Committee on Aging and faced grilling...

"I for one believe we should scrap this and start over," said Sen. Hillary Rodham Clinton... Sen. Ron Wyden (D., Ore.), who voted in favor of the drug benefit in 2003, said seniors have too many choices of plans. He suggested standardizing the selection to simplify enrollment. "I think you have done great damage in the rollout to the cause of private-sector choice in health care," Mr. Wyden said...

There was an article Sunday in the Orlando Sentinel about how some seniors have gotten screwed by this big time. They gave one example of a guy who was on some cancer drug. He used to pay about $60 for the drug per month, then enrolled for the medicare benefit. Turns out he'll have to pay $900 a month for the same drug on the medicare plan.

The moral is don't sign up until you know how much it's going to cost you. Apparently, that's not so easy to figure out, though.

They explained that the reason the price is more under the plan is that before he signed up for the medicare plan, the State picked up most of the cost. Now that he's on the medicare plan, though, the State won't do that. I guess you could blame it on the State rather than on the medicare plan, if you want.

This infuriates me. It is a PR campaign that was in the can and ready to go before anyone even signed up. As ususal, it is based on the idea that seniors who have been buying insurance all of their lives are too stupid to do it.

Furthermore, it is plain as day, given the diversity of plans, that the congress did not know enough to figure this out. therefore, we will go through a time of shake out, as if this was a big market research project.

Dem's bigest beef is that they wanted government bureaucrats to negotiate drug prices. I am a lot more comfortable with Walmart and Walgreens doing the negotiating. And, are these the same bozos who say that Walmart's everyday low prices are bad for America?

One more beef. Are you the same people who keep hammering us with the rule of law? Well, it's the law. So, get over it!

Because the msn has made this out to be a BIG confusion - I put off looking into Medicare D until now. Oh I had already called AARP who I get my supplemental thru and was not pleased with their plan. So this is what I found....today

MEDICARE ... DRUG PLAN (in Hawaii)
1. $22.85 per month premium...
2. No cost for Rx until MEDICARE has paid out $2250.00 -** except you do pay a copay of $5.00 or $28.00 or $55.00 copay depending on generic vs name brand AND your Dr can fax a request for the drug he desires & eliminate the higher copay
3. When Medicare reaches $2250.00 in drugs payouts *** then all drug will become your responsibility UNTIL costs reach $3600.00 Then Medicare will pick up 95% and you will pay 5%.

Medicare D recap

1. Monthly Premium .. $22.85
2. Copay .. $ 5.00 +
3. No deductible
4. No expense to patient until Medicare has paid out $2250.00
5. Drug expenses from $2250.00 - 3600.00 is patient responsibility.
6. From $3600.00 on with no limit Medicare pays 95% and patient pays 5% -- until the end of the year!!

Now for an AARP partnered plan ( I don't know what else to call it).

AARP Partnered Private Plan RX plan. ... Drug Plan
1. $80.00 (aprox) premium per month
2. Deductible of $250.00
3. THEN the non government program will pay 50% and you pay 50% of the RX up to $3000.00 (which includes your 50% and the $250.00 deductible). After $3000. has been paid out ALL RX pay-outs are finished or as they say here pau until the next year starts - and so does the deductible start again.

AARP Plan recap

1. $80.00 premium - aprox.
2. $250.00 deductible YOU have to reach.
3. private plan does a 50/50 with patient after deductible has been met.
4. when expenses reach $3000.00 (including the $250. ded. and include patients part of the 50/50 the coverage STOPS not to begin again until the next year.

I do not know how MEDICAL SAVINGS ACCOUNTS plays into this!!!

I don't have road rage ----- I have PHONE RAGE ....BIG TIME as one of my favorites says.

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