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New Senior Survey
Medicare Faces a 'Rocky Road' in Enrolling Seniors
in New Drug Benefit
1% Penalty For Delay a Strong Incentive for
Encouraging Enrollment
Oct. 6, 2005 A new survey of senior citizens says
only 20 percent plan to enroll for the new prescription drug program,
officially known as Medicare Part D. The researchers say, however,
significant opportunity exists among one-fourth of the respondents who
"haven't heard enough information yet to decide." These results are
similar to several other polls showing a cautious approach by seniors
and a lack of knowledge my many.
Approximately 70 Prescription Drug Plans (PDPs)
began their marketing activities on October 1 to help seniors better
understand the plan benefit designs. Whether their current prescription
drugs are included within the formularies and the reputation of the
plans will all play a role in the beneficiary's decision-making process.
Today, Market Strategies, Inc. (MSI), a
full-service custom and syndicated research and strategic consulting
firm, announced findings from its most recent research featuring 1,565
Medicare beneficiaries. The research, conducted by MSI's Global Life
Sciences division, focused on the awareness, understanding, attitudes
and likely response to the new Part D drug benefit by those
beneficiaries 65 and older.
"Clearly," according to Peter Carlin, Senior Vice
President of MSI's Global Life Sciences division, "those without
coverage represent a significant opportunity for targeting focused
communication messages to this audience. In addition, nearly 40% of
those without drug coverage would enroll in a plan if they were told
about the 1% penalty per month they would incur if they are not enrolled
by May 15, 2006.
"Our study," Carlin stated, "also focuses on nearly
20 medical conditions -- from hypertension to depression, to type II
diabetes to irritable bowel syndrome -- and nearly each one shows that
these patients want more information." Noted Carlin, "In examining these
medical conditions, our research indicates how many would be eligible
for assistance, their current out-of-pocket spending and the number of
prescriptions they take each month because of co-morbidities.
Additionally, medical conditions are segmented by type of coverage: for
example, less than 15% of patients with type II diabetes have no
coverage, but almost 30% of those with depression fall into this group."
Jack Fyock, Ph.D., Vice President and Head of MSI's
new Medicare Strategy division, reports that "For those beneficiaries
who are already thinking about the criteria they will use for deciding
on the plan they need, the top three reasons for choosing a specific
plan are cost of the benefit, reputation of the plan and whether or not
the plan includes a beneficiary's current medications on its formulary.
Additionally, in our third wave, 64% of respondents rated their
understanding of the benefit as 'not well,' which is up from 48% from
our second wave. It appears that as more beneficiaries begin to look at
the new benefit, they discover that the information is confusing.
"This is a complex benefit," Fyock added, "and the
simpler plans and supporters of the legislation communicate their
messages, the easier it will be for beneficiaries to make an informed
decision."
This study is the third wave of research that MSI
has conducted with almost 5,000 Medicare beneficiaries. A fourth wave is
targeted for December, 2005 with two additional waves planned in
February and May of 2006. Our 2006 surveys will also capture beneficiary
reactions to the plans. For further information on these studies, as
well as to learn more about how to purchase the complete study, please
contact Peter Carlin at 908.739.4501 or
peter_carlin@marketstrategies.com .
The syndicated study features 1,565 interviews
conducted with individuals age 65 and older including 610 interviews via
telephone and 955 via web. Data collection was conducted August 3 - 23,
2005. Post-stratification weights were computed adjusted to data from
the March 2003 Current Population Survey based upon gender, age (65-70,
71+), marital status and education. Significance testing was done
throughout this study at the 5% significance level. Generally, a 95%
confidence interval can be obtained by adding or subtracting 3.2% from a
proportion based upon the full sample.
Established in 1989, MSI goes above and beyond in
delivering unparalleled insight, innovative tools and unique solutions
that positively impact clients' ability to succeed. MSI is the 19th
largest research firm in the US according to "Honomichl Top 50,"
published in the June 2005 issue of Marketing News. Corporate
headquarters are located in Livonia, MI with regional offices in:
Portland, OR; Washington, DC; and New Providence, NJ. Please visit
http://www.marketstrategies.com/ for more information.
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