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Less Than Half of Senior Citizens Joining Medicare Drug Plans

New poll finds enthusiasm for the program is less than six months ago

 

Seniors Turnings Less Friendly to Drug Plan
click for larger view

 
   

Feb. 21, 2006 – Less than half – about 45 percent – of senior citizens have enrolled or plan to enroll in the Medicare prescription drug program, according to the latest poll by the Kaiser Family Foundation. Most seniors citizens say the do not intend to enroll (29%) or they are still uncertain (23%). And, the poll says, according to a report by KaiserNet.org, seniors have become less enthusiastic about the new Medicare drug benefit over the past six months.

Medicare | Three in Four Seniors Have Reached Decision About Signing Up for Medicare Prescription Drug Benefit, But About One-Quarter Still Uncertain, Poll Finds
[Feb 21, 2006]

Click here to the Daily Health Policy Report - KaiserNetwork.orgForty-five percent of seniors have enrolled in the Medicare prescription drug benefit or plan to enroll before the May 15 deadline, while 29% do not plan to enroll and 23% are unsure, according to a tracking poll released on Friday by the Kaiser Family Foundation, CQ HealthBeat reports (Reichard, CQ HealthBeat, 2/17).

 

Related Stories

 
 

Seniors with Chronic Illness Get Special Help in Choosing Medicare Drug Plan

Feb. 17, 2006 - A free, step-by-step guide that helps senior citizens and other Medicare beneficiaries with chronic or complex medical conditions find a Medicare prescription drug plan is now available. The online guide is the brainchild of Medicare Access for Patients-Rx, (MAPRx), a coalition formed by patient advocate, family caregiver and health professional organizations. Read more...

Democrats, Advocates Beating Drums for Changes to Medicare Drug Program

Feb. 16, 2006 – Congressional Democrats and advocacy groups are beginning a push to make changes in the Medicare prescription drug program. President Bush, however, says legislative changes to the drug benefit are unnecessary and HHS Secretary Mike Leavitt says problems can be corrected with administrative action, according to a report by KaiserNet.org. Read more...

Read more on the Medicare Drug Program

 

The majority of seniors who do not plan to enroll already participate in another drug plan or other program that helps pay for prescription medications, according to the poll (Kaiser Family Foundation release, 2/17).

In addition, the poll finds that about 45% of seniors have an unfavorable view of the drug benefit, compared with 23% who have a favorable view. In August 2005, seniors were as likely to view the benefit favorably (32%) as unfavorably (Lueck, Wall Street Journal, 2/17).

The poll also finds that 45% of seniors say they understand how the drug benefit will affect them personally, compared with 33% in August 2005 (Kaiser Family Foundation release, 2/17)

When told that most beneficiaries have a choice of at least 40 drug plans, two-thirds of seniors said the number of choices make the drug benefit "confusing and difficult to pick the best plan," the poll finds (Reichard, CQ HealthBeat, 2/17).

About 21% said the number of choices "is helpful and provides an opportunity to find the best plan," according to the poll. By comparison, 73% of beneficiaries polled in October 2005 said the number of choices is "confusing and difficult," while 22% said "it is helpful" (Kaiser Family Foundation release, 2/17).

Obtaining Information
The poll also questioned beneficiaries on how they obtain information about the drug benefit (Reichard, CQ HealthBeat, 2/17).

About 14% of seniors said they have used the Medicare Web site to compare drug plans, either by themselves or with help from a family member or friend (Wall Street Journal, 2/17).

Fewer than three in ten seniors say they have ever gone online for any purpose.

About 14% of seniors said they have called the government's toll-free phone line for assistance with the drug benefit, and an additional 6% have had a friend or relative call on their behalf, according to the poll (Kaiser Family Foundation release, 2/17).

Nearly two-thirds of seniors said they trust a physician or pharmacist a lot to help them understand the drug benefit (AP/Gainesville Sun, 2/21).

 

Current Impressions of Drug Program
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Comments
Drew Altman, president and CEO of Kaiser Family Foundation, said, "A substantial number of beneficiaries are already enrolled, but a lot turns on what those who are on the fence decide to do between now and May 15."

Mollyann Brodie, a Kaiser Family Foundation vice president and director of public opinion and media research, said, "The plan finder at Medicare.gov is the best way to compare Medicare drug plans, but relatively few beneficiaries and their helpers are using it to date."

CMS spokesperson Gary Karr said, "The ultimate judge of the Medicare drug coverage is whether people are enrolling or not." He said the poll "confirms that we're going to do better than our enrollment projections." Karr said the poll shows that Medicare must improve outreach to beneficiaries who are undecided about enrolling in the drug benefit (Reichard, CQ HealthBeat, 2/17).

OnlineThe poll is available online.

Medicare Advantage Enrollment
Enrollment in Medicare Advantage plans has increased by 460,000 to a total of five million since the drug benefit began on Jan. 1, CMS officials said in a news release on Friday. CMS Administrator Mark McClellan said increases in payments to MA plans under the 2003 Medicare law has led to wider availability of MA plans. McClellan said beneficiaries who enroll in MA plans will save $100 more monthly than with other Medicare drug coverage (CQ HealthBeat [1], 2/17).

Low-Income Subsidy Enrollment
About 1.4 million low-income Medicare beneficiaries eligible for drug benefit coverage with no premiums, no deductibles and copays of less than $5 have enrolled in the program, "a fraction of the eight million eligible," the Washington Post reports.

Congress designated $500 million to the Social Security Administration to identify beneficiaries eligible for the low-income subsidy and enroll them in the drug benefit. Beneficiaries qualify for the subsidy if their income is less than $19,000 but still exceeds eligibility requirements for Medicaid.

To target the eligible beneficiaries, SSA has purchased computer systems, hired 2,500 employees, contributed to 65,000 informational meetings and sent at least one letter to each of the 19 million beneficiaries who might qualify for the subsidy.

According to James Firman, president of the National Council on the Aging, the agency targeted many ineligible individuals and then spent a lot of time and money to process the applications, ultimately rejecting about 70%. CMS Administrator Mark McClellan acknowledged the difficulty of marketing to eligible beneficiaries, saying, "Some people think it's too good to be true" (Connolly, Washington Post, 2/21).

Letter
Reps. Charles Rangel (D-N.Y.) and Pete Stark (D-Calif.) on Friday criticized a "views and estimates" letter issued by the House Ways and Means Committee majority last week to outline its agenda for the year, CQ HealthBeat reports.

According to CQ HealthBeat, the letter says that Republicans will continue oversight of the 2003 Medicare law. In a response letter, Rangel and Stark write that the committee had 59 hearings in the 109th Congress, including 14 on health care issues, and none specifically addressing the drug benefit. Rangel and Stark write that it is "embarrassing" that the committee "is failing to uphold its duties" (CQ HealthBeat [2], 2/17).

Democrats
Congressional Democrats will hold more than 100 town meetings this week to present their proposals for changing the drug benefit and "capitalize on the much-publicized problems" with the program ahead of midterm elections in November, CQ Today reports. Democrats including Rep. John Dingell (Mich.) and Sens. Richard Durbin (Ill.), Carl Levin (Mich.) and Debbie Stabenow (Mich.) plan to discuss the drug benefit at town meetings over the congressional recess.

Stabenow said Democrats will try to attach their proposals to any eligible legislation and likely will address the agenda in sections. Brendan Daly, spokesperson for House Minority Leader Nancy Pelosi (D-Calif.), said Republicans "are concerned about this because we did this on Social Security, and we defeated that." Rep. Deborah Pryce (R-Ohio) said, "Instead of spending their recess unleashing scare tactics ... Democrats could make better use of their time by signing up more seniors for this benefit" (Schuler/Crowley, CQ Today, 2/17).

Frist and Boxer on 'Face the Nation'
In related news, Senate Majority Leader Bill Frist (R-Tenn.) acknowledged "confusion" and "all sorts of stumbles and glitches" with the start of the drug benefit, but said he doesn't think the program will be a "liability" for Republicans in the midterm election, the AP/Detroit Free Press reports.

Appearing on CBS's "Face the Nation" on Sunday, Frist said, "Of course it won't be a liability. I think it will be a huge plus." Sen. Barbara Boxer (D-Calif.), also appearing on the program, disagreed, saying, "It's the privatization of Medicare, just as [the Republicans] wanted to do with Social Security" (Lester, AP/Detroit Free Press, 2/20).

Radio Address
In the Democrats' weekly radio address on Saturday, New Mexico Attorney General Patricia Madrid said Congress should amend the drug benefit to allow Medicare to negotiate drug prices with pharmaceutical companies and permit beneficiaries to purchase drug coverage directly from Medicare, the AP/Boston Herald reports. Madrid said, "[R]ather than allowing Medicare to provide prescription drugs directly to seniors, the Republican Congress invited the health insurance industry into the process and wrote a needlessly complicated law" (AP/Boston Herald, 2/18).

State Reimbursements
In other Medicare news, 44 states and Washington, D.C., are expected to receive reimbursement from the federal government for expenses incurred in providing prescription drugs to dual eligibles who were unable to obtain medications under the drug benefit, the AP/Owensboro Messenger-Inquirer reports.

Medicare will reimburse the states for any administrative costs, as well as any difference between what the states paid for medications and what they were reimbursed by insurers who sponsor Medicare drug plans. Idaho, Indiana, Iowa, Michigan, Nebraska and South Carolina will not participate in the reimbursement program.

CMS officials said California, Massachusetts, New Jersey and New York have incurred the highest expenses by covering medications for dual eligibles. Most states have been paying for at most only one or two prescriptions daily for each pharmacy in the state, McClellan said (Freking, AP/Owensboro Messenger-Inquirer, 2/17).

Additional Coverage

  ● New York Times: The Times on Sunday examined how the drug benefit could "[p]aradoxically" become a "major vulnerability" for Republicans among older voters in the November midterm elections, even though the program "was intended to cement their loyalty" (Toner, New York Times, 2/19).

  ● Wall Street Journal: The Journal on Tuesday examined how some beneficiaries have decided to not enroll in the drug benefit because they believe "they can get a better or equal deal" by "doing what they've always done" -- asking doctors for samples, buying generics and ordering from pharmacies abroad (Fuhrmans, Wall Street Journal, 2/21).

Broadcast Coverage
Several broadcast programs reported recently on the Medicare prescription drug benefit:

ABCNews' "World News Tonight": The segment reports on beneficiaries' confusion about the benefit and includes comments from President Bush, Sen. Joseph Lieberman (D-Conn.), political analyst Stuart Rothenberg and Medicare beneficiaries ("World News Tonight," ABCNews, 2/19). The complete segment is available online.

CBS' "Face the Nation": In an interview on the program about several issues, Frist discussed the prescription drug benefit (Schieffer, "Face the Nation," CBS, 2/19). The complete transcript is available online. A video excerpt of the segment is available online in RealPlayer.

NPR's "Day to Day": The segment reports on beneficiaries' confusion about prior authorization for the benefit. The segment includes comments from Jeffrey Kelman, CMO of the Center for Beneficiary Choices in Medicare; and a Medicare beneficiary and her physician about their experiences processing prior authorization for medications (Silberner, "Day to Day," NPR, 2/20). The complete segment is available online in RealPlayer.

For the complete poll – Click Here.

"Reprinted with permission from kaisernetwork.org (insert hyperlink to http://www.kaisernetwork.org). You can view the entire Kaiser Daily Health Policy Report, search the archives, and sign up for email delivery at www.kaisernetwork.org/dailyreports/healthpolicy. The Kaiser Daily Health Policy Report is published for kaisernetwork.org, a free service of The Henry J. Kaiser Family Foundation. © 2006 Advisory Board Company and Kaiser Family Foundation. All rights reserved.”

 

 

 

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