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Medicare Drug Program

Medicare Says 37 Million in Drug Program Approaching May 15 Deadline

May 12, 2006 – With just four days left to enroll in a Medicare drug plan before the first year deadline of May 15, Medicare says over a million more people have enrolled in prescription drug coverage between late April and May 6, bringing the total of beneficiaries with prescription drug coverage to 37 million. But, it seems certain that millions will not join by the deadline and will face a stiff penalty for joining in future periods.

The number enrolled includes about 9 million individual enrollees in “stand alone” prescription drug plans and more than 1 million new enrollees in Medicare Advantage plans. It also includes the estimated 5.8 million Medicare beneficiaries who receive drug coverage from the Veterans Affairs and other sources of coverage equal to Medicare. This week, beneficiary calls and online enrollments have accelerated, according to Medicare.

“With six days left before the end of the enrollment period, I am traveling across the country and working with our many dedicated partners to ensure that everyone who wants help gets the assistance they need to make a confident decision,” HHS Secretary Mike Leavitt said. “I am very pleased with this increase in enrollment. With the help of so many, we have a real opportunity to make history and have prescription drug coverage for 90 percent of people with Medicare in the first year.”

“I continue to remind everyone everywhere I go, signing up is just three simple steps. One: get your prescriptions together. Two: Get your Medicare card. Three: Call 1-800-MEDICARE or go online at www.medicare.gov. Help is here -- 24/7.”

Medicare is making extra efforts to enroll minority populations and beneficiaries who are eligible for the low income subsidy, with the assistance of a broad range of community and advocacy groups.

“We’re pleased that 10 million of the 13 million beneficiaries eligible for the low-income subsidy now have coverage, and we will not stop our outreach to all those who are eligible,” said Centers for Medicare &Medicaid Services (CMS) Administrator Mark B. McClellan, M.D., Ph.D. “We will continue our work with both national and local partners after May 15th to reach those who might be eligible and assist them in enrolling in the benefit. Individuals who are approved for the low income subsidy and enroll after May 15th will not be charged any penalty.”

CMS has taken extra measures to be prepared for any late surge in enrollment, such as having 6,000 customer service representatives available for 1-800-MEDICARE and quadrupling the server capacity for www.medicare.gov.

“If you haven’t made a decision yet, our message is simple,” added Dr. McClellan. Take advantage of the help available right now to sign up, start saving, and get protection for the future – and avoid any last minute rush.”

Overall prescription drug coverage figures as of May 7 are:

  ● Stand-Alone Prescription Drug Plans (PDPs): 8.9 million people with Medicare have enrolled in stand-alone prescription drug plans, including 2.1 million enrollees receiving the low income subsidy.

  ● Medicare Advantage with Prescription Drugs (MA-PDs): 5.9 million beneficiaries receive coverage through Medicare Advantage plans with drug coverage (MA-PDs). Medicare Advantage includes 940,000 enrollees receiving the low income subsidy. About 490,000 of these are full Medicare/Medicaid beneficiaries.

  ● Medicare/Medicaid: About 5.9 million Medicare/Medicaid beneficiaries were automatically enrolled in prescription drug plans. An additional 490,000 Medicare/Medicaid beneficiaries enrolled in Medicare Advantage plans with prescription drug coverage and are counted in the MA-PD total above.

  ● Retiree Coverage: About 6.9 million retirees are enrolled in the Medicare retiree subsidy. In addition, about 1.4 million retirees are in employer and union-sponsored coverage that incorporates Medicare group drug coverage and are counted in the PDP and MA-PD totals above.

  ● Federal retiree coverage: 3.5 million

      > TRICARE: There are 1.9 million beneficiaries with TRICARE retiree coverage.

      > FEHB: There are 1.6 million beneficiaries with FEHB retiree coverage. This figure includes spouses with Medicare who are covered under a FEHB family policy by retirees who also have Medicare coverage.

  ● Additional Sources of Prescription Drug Coverage for Medicare Beneficiaries: Approximately 5.8 million Medicare beneficiaries have alternative sources of “creditable” prescription drug coverage:

      > Veterans Affairs (VA): There are an estimated 3.2 million beneficiaries with creditable drug coverage through the VA.

      > Indian Health Service (IHS): There are an estimated 0.1 million beneficiaries with creditable drug coverage through the IHS.

      > Active Workers with Medicare Secondary Payer: There are an estimated 2.0 million beneficiaries who are active workers with creditable drug coverage through an employer group health plan.

      > Other Retiree Coverage: An estimated 0.5 million retirees are continuing in coverage from a former employer that is not coordinated with Medicare drug coverage but is still creditable.

To view enrollment data online visit cms.hhs.gov/PrescriptionDrugCovGenIn/02_enrollmentdata.asp.

To enroll, visit www.medicare.gov.

*Stand-Alone PDP includes 2.2 million enrollees recieving the limited income susidy.
**Medicare Advantage includes 930,000 enrollees recieving the limited income susidy. About 500,000 of these are Medicare-Medicaid beneficiaries.

^Other includes other territories and beneficiaries whose address information is being updated.

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