More Than a Million Low-Income Seniors Being Moved
to New Medicare Drug Plans
Avalere Health says low-income beneficiaries
will again see choices shrink in 2009
Oct. 9, 2008 More than 1.3 million low-income
senior citizens will find themselves automatically reassigned to new
drug plans for 2009, according an analysis by Avalere Health, which says
there will be fewer options for low-income Medicare beneficiaries trying
to choose a Part D drug plan. Avalere notes this is a trend that has
increased every year since the drug benefit began.
Using its proprietary DataFrame database tool,
Avalere researchers compared 2008 and 2009 standalone prescription drug
plans (PDPs) qualified to serve low-income beneficiaries, including dual
eligibles (i.e., those eligible for both Medicare and Medicaid) in all
50 states.
Six states Arizona, Florida, Hawaii, Maine,
Nevada, and New Hampshire will each have five or fewer PDPs available
to automatically enroll low-income residents in 2009.
Nevada will have only one auto-enrollment PDP, thus
leaving low-income residents in that state with no PDP choice, unless
they move to a Medicare Advantage plan.
Arizona has the second fewest options with two
plans available for low-income residents.
Wisconsin will have 16 auto-enrollment PDPs,
unchanged from 2008 and higher than any other state.
The analysis revealed that, nationwide, there will
be a total of 308 PDPs qualified to serve low-income Medicare
beneficiaries in 2009, almost 200 fewer than in 2008.
These almost-200 plans covered approximately 1.3
million individuals who will now need to be reassigned. That number is
up from 1.2 million individuals who CMS reassigned in 2008 and 250,000
individuals in 2007.
Humana continued its withdrawal from the low-income
market, this year exceeding the benchmark in all states.
United Healthcare, however, expanded its presence
in the market after losing nearly 600,000 low-income beneficiaries last
year. Of the top 10 PDPs as ranked by August 2008 enrollment, only one
United Healthcares AARP MedicareRx Saver will see an increase in
the number of states in which it is eligible for auto-enrollment.
Pursuit of the dual eligibles is now a matter of
business strategy for insurers with some expanding and some
diminishing their service to low-income beneficiaries in 2009, said
Bonnie Washington, vice president of Avalere Health.
The fundamental question for Medicare is whether
low-income beneficiaries ending up in plans that do not fully meet their
medical needs especially given the fact that their choices are limited
in many states. said Washington.
Avalere continues to analyze Medicare drug benefit
data. It uses its proprietary DataFrameฎ database to track trends in
drug pricing, plan strategy and structure, and the beneficiary
experience.
About source:
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.
Oct. 9, 2008 More than 1.3 million low-income
senior citizens will find themselves automatically reassigned to new
drug plans for 2009, according an analysis by Avalere Health, which says
there will be fewer options for low-income Medicare beneficiaries trying
to choose a Part D drug plan. Avalere notes this is a trend that has
increased every year since the drug benefit began.