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Medicare Drug Program News

Two Million Dual Eligibles Being Moved to New Medicare Drug Plans

Avalere Health analysis of large dual eligible population in Texas

Dec. 5, 2007 - Over 2 million dual eligibles (eligible for Medicaid and Medicare) must switch Medicare Part D plans for 2008 because many plans with robust dual eligible enrollment in 2007 submitted premium bids that exceed certain states’ low-income subsidy benchmarks for 2008, according to Avalere Health, which analyzed the situation in Texas and found many of the state’s lowest income residents will find themselves randomly re-assigned into less generous Medicare Part D plans.

 

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Texas has one of the largest dual eligible populations in the country.

Avalere researchers compared 2007 and 2008 standalone prescription drug plans (PDPs) that qualified to serve dual eligibles (i.e., those eligible for both Medicare and Medicaid) in the state of Texas, using its DataFrame database tool and proprietary modeling.

Their analysis reveals that many of these low-income beneficiaries, who are typically heavily reliant on prescription drugs, may potentially experience disruptions in medication access in 2008. 

The research also shows which Part D plans are poised to pick up or lose a significant number of insured lives based on the pending transition. 

Avalere’s analysis shows that the 13 PDPs in Texas that can accept auto-enrolled dual eligibles in 2008 will cover 1,783 drugs on average and will require prior authorization for 15 percent of drugs. 

For comparison, the PDPs that covered these individuals in 2007, but will no longer enroll dual eligibles in 2008, covered 2,837 drugs in 2007 and required prior authorization for just 6 percent of drugs – a reduction of 1,054 drugs on average. 

 


"Changes are occurring at all levels of the Medicare drug benefit – from significant movements in monthly premiums, to the composition and copayment structure of formularies."

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Humana and UnitedHealth Group will lose the most dual eligible lives; entrants include offerings from Caremark (SilverScript), Aetna (Aetna Medicare Rx Essentials), and Scott and White (Scott & White Health Plan Texas Rx Value).  

“The Medicare Part D offerings in Texas are fluid, and many vulnerable beneficiaries will feel the effect of Humana and United’s generous plans exiting the market,” said Jon Glaudemans, senior vice president of Avalere Health. 

Editor’s Notes:

Avalere Health is a leading advisory company focused on business strategy and public policy. It serves a diverse client base, which includes Fortune 500 healthcare technology companies, federal government agencies, and major medical foundations. The company is organized into seven substantive areas - Medicare, Medicaid, Reimbursement, Long-Term and Post-Acute Care, Health Information Exchange, Evidence-Based Medicine, and Education. Anchored by a comprehensive research engine and staffed by experts in business, medical product commercialization, and health policy, Avalere provides strategic guidance, objective analytic research, and quality educational programs focused on the full range of healthcare issues facing our nation.

>> Texas analysis report by Avalere Health

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