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Medicare Drug Program News
As Many as Five Million Not in Medicare Drug
Program; 38.7 Million are In
HHS holds news conference following release of new
fact sheet
June 9, 2006 – At a news conference late yesterday
by officials from Health and Human Services, the enrollment figures for
the Medicare drug program were modified slightly from a fact sheet
released earlier in the day. There are 38.7 in the program and four
million to five million beneficiaries are still without drug coverage.
KaiserNet.org reports today on reaction. (Read more about fact sheet in
sidebar story.)
 38.7M Medicare Beneficiaries Have
Rx Drug Coverage, 4M to 5M Not Signed Up, HHS Says
Final Medicare prescription drug benefit enrollment
data show that about 11.5 million Medicare beneficiaries voluntarily
enrolled in the program before the May 15 deadline, bringing the total
number of Medicare beneficiaries with prescription drug coverage to 38.7
million,
HHS officials said on Thursday, the
AP/Detroit Free Press reports (Freking, AP/Detroit Free Press, 6/9).
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Medicare says Drug Benefit Enrollment Up, Costs Down
Average premium drops
to $23, 38 million enrolled
June 8, 2006 – Medicare released a fact sheet today
on the latest results of the Medicare Part D drug program that says 38
million beneficiaries are covered, the average premium is down to $23
and adjustments are being made that will allow low income beneficiaries
to continue to have zero premium drug plan options next year. CMS
officials earlier said there are about 4.5 million beneficiaries note
enrolled and about three million of those beneficiaries are low-income
beneficiaries eligible for assistance.
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more...
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Medicare Drug Program |
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In a
fact sheet (see sidebar story) released on Thursday,
CMS said that more than 90% of all beneficiaries "have good drug
coverage." The total enrollment figure includes beneficiaries who were
automatically enrolled in Medicare drug plans, federal retirees and
beneficiaries who receive coverage through former employers that receive
a subsidy from Medicare (Reichard,
CQ HealthBeat, 6/8).
The final enrollment figures indicate that four
million to five million beneficiaries are still without drug coverage,
the AP/Free Press reports (AP/Detroit Free Press, 6/9). HHS Secretary
Mike Leavitt said more than two million beneficiaries obtained drug
coverage between May 1 and the May 15 enrollment deadline.
CMS Administrator Mark McClellan said the agency
would release more detailed data on coverage sources soon.
Premiums
Many of the beneficiaries who signed up in the last two weeks before the
deadline are in good health, which will help keep premiums from
increasing significantly next year, CMS officials said (CQ HealthBeat,
6/8).
Leavitt said beneficiaries chose plans with monthly
premiums averaging $23 (AP/Detroit Free Press, 6/9). Last year, Medicare
actuaries estimated monthly premiums would average $37. McClellan said
CMS will use its authority to ensure the bidding process will allow
low-income beneficiaries to continue to have access to no-premium plans.
According to a CMS spokesperson, without such
intervention from the agency, low-income beneficiaries likely would have
to switch plans next year to maintain no-premium coverage. "[O]ur intent
is to determine how to make adjustments as necessary to moderate premium
increases for all beneficiaries," CMS said in a release, adding, "We
expect that this will result in premiums that will increase on average
by about medical inflation, but that will depend on actual plan bids."
Program Costs
CMS also said it expects in July to announce a further "significant
downward revision" in the cost of the drug benefit. Last month, the
Medicare trustees in their 2006
report projected that the cost of the drug benefit would be 20%
lower than 2005 estimates. According to the CMS release, "By choosing
plans that met their needs at a much lower cost than expected, both
beneficiaries and taxpayers are saving more than expected" (CQ
HealthBeat, 6/8).
Comments
Leavitt said, "I'd just like to stress what good news this is for our
seniors and the Medicare program," adding, "Competition works. The costs
are lower and enrollment in Medicare drug coverage is stronger than
expected." The Bush administration in January 2005 projected that about
39 million beneficiaries would obtain coverage through the drug benefit.
However, Robert Hayes, president of the
Medicare Rights Center, said, "The moral dilemma is that the people
in greatest need are the people still unenrolled," adding, "Unless we
can dramatically increase the number of the poorest Americans in this
program, we need to re-examine the best way to meet the primary
objective of the law" (AP/Detroit Free Press, 6/9).
Senate Finance Committee Chair Chuck Grassley (R-Iowa) said in a
statement that the actions announced on Thursday by CMS "will ensure
that low-income beneficiaries continue to have a choice of plans in 2007
that have a premium of zero. It also will minimize the need for people
to switch plans just to continue to be enrolled in a zero-premium plan"
(CQ HealthBeat, 6/8).
"Reprinted with
permission from 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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