• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

MESSAGE FOR SENIORS: Medicare Drug Plan Touted

Posted on: Monday, 15 August 2005, 12:01 CDT

By K.C. HOWARD

REVIEW-JOURNAL

Health and Human Services Secretary Michael Leavitt was in Las Vegas on Friday to shepherd seniors into the new Medicare prescription drug program.

The voluntary federal program that will begin in January has been billed as the biggest change to government health programs in 40 years, when Medicare began.

It will present complex choices for middle-income seniors who must decide whether to enroll between Nov. 15 and May 15, 2006.

If they join later, they'll face premium penalties.

At the Cambridge Recreation Center, Leavitt was joined by Gov. Kenny Guinn and Rep. Jon Porter, R-Nev., in urging all seniors to learn about and apply for the program before the deadline.

"People don't have to have a working knowledge of the Medicare law to deal with this," said Leavitt, who noted the biggest problem he's having is people's fear of the unknown.

Democrats have criticized the program as too complex and expensive for middle-income seniors who fall through the so-called doughnut hole.

According to the AARP, enrollees will pay a $250 deductible and then 25 percent of drug costs up to $2,250 a year.

After that, they would spend a maximum of $2,850 out of pocket before receiving more help.

Once a recipient reaches about $5,100 in drug expenses a year, coverage would kick in again.

Democrats warned that retirees might lose drug coverage they have from former employers or medigap insurance policies if they enroll in the Medicare program.

"We think it's a good start for low-income seniors, but we're concerned it leaves middle-income seniors behind," said Kirsten Searer, a state Democratic Party spokeswoman who protested Friday's event with eight other Las Vegans.

About 100 people attended the town hall meeting, which is part of a national tour Leavitt is making to educate seniors about the program.

"It's going to help me, but not my husband," said Florence Ravis, 78, an audience member. "He takes too many drugs."

Both are going to enroll in the program, which they need to learn more about, she said.

But her husband, Marvin Ravis, 81, said he believes he'll pay more out of pocket than he does now.

The plan will help seniors with incomes around $11,000 or less a year (about $22,000 for married couples), according to the Department of Health and Human Services.

The government will subsidize their costs, so they'll pay no premiums and a $3 co-pay for generic drugs and $7 co-pay for name- brand ones, Leavitt said.

Medicare seniors will receive a booklet in October, which will provide information on different plans and fees.

HMOs will receive government subsidies to provide the program to recipients, and the state drug assistance program will also incorporate the federal plan, Leavitt said.

The average middle-income recipient will pay $32 a month. But if seniors do not sign up by May 15, they must pay a cumulative penalty of 1 percent per month.

A recipient who enrolls three years after the 2006 deadline would pay a penalty of 36 percent of the premium, according to the AARP. That's $11.52 per month on top of $32-a-month premium.

The late enrollment penalties are typical of most insurance programs, Leavitt said.

Those who do not become eligible for Medicare until after the deadline will face no penalty. They'll be able to join the drug program immediately, according to the Department of Health and Human Services.

There should be no penalties if the state does its job to enroll all eligible seniors, Guinn said.

He said it will be difficult for some to make a decision to go with the Medicare program if they have drug benefit plans from former employers. But he urged Nevadans to enroll, saying businesses that provide their retirees with such benefits could go bankrupt.

"It's going to be a tough decision for people in the middle," said Lance Moran, the Las Vegas Senior Citizens Advisory Board chairman.

Those with little or no medical expenses a month will have to weigh whether it's worth it to join now and pay more than $300 a year in premiums or wait, he said.

Moran said the city has plans in place to educate seniors about the nuances of the program.

A meeting will be held at 9 a.m. Thursday, at the West Flamingo Senior Center, 6255 W. Flamingo Road, to further explain the Medicare drug program.

Source: Las Vegas Review - Journal

More News in this Category