CMS Review of Medicare Drug Plans Shows That Consumer Choice, Comparison Will Work in Beneficiaries' Favor
Posted on: Tuesday, 30 August 2005, 09:01 CDT
WASHINGTON, Aug. 30 /PRNewswire/ -- With the announcement yesterday by the Centers for Medicare and Medicaid Services (CMS) that Medicare prescription drug plans will be offering lower-than-expected monthly premiums and deductibles, as well as coverage that goes beyond the Medicare standard benefit, seniors and other beneficiaries have compelling reasons to enroll for Part D prescription drug coverage, according to the Medicare Today partnership.
"If there was any question that competition and consumer choice would work heavily in favor of Medicare beneficiaries, that doubt is being wiped away," said Mary R. Grealy, president of the Healthcare Leadership Council, a founding member of Medicare Today. "Organizations offering prescription drug plans know that they will be engaging in a competitive environment. As a result, they are significantly reducing beneficiaries' out of pocket costs and expanding the coverage they will be receiving."
Medicare Today is a broad-based partnership of over 200 organizations representing seniors, patients, health care groups, employers, and others. Medicare Today's mission is to educate and inform Medicare beneficiaries and the public at large on the new prescription drug benefit and other improvements to the Medicare program.
Last week, Medicare Today released a new study by PricewaterhouseCoopers showing that seniors who earn approximately $14,500 or less -- 150 percent of the federal poverty level -- and do not qualify for Medicaid will see their out-of-pocket costs for prescription drugs drop from $1,657 to $180 a year.
"Seniors are savvy consumers," said Ms. Grealy, "and they want to see hard evidence that a new program is going to be a good deal. That evidence is mounting. Not only will low-income beneficiaries see their out-of-pocket costs cut by as much as 90 percent, but all beneficiaries will see tremendous value. Today's announcement regarding reduced premiums and deductibles, and expanded coverage, underscores that value."
The highlights of CMS's announcement today included: * In every region of the country except Alaska, beneficiaries will be able to choose at least one prescription drug plan with premiums below $20 per month -- significantly below CMS's most recent estimate of $32 monthly. * Every region will have prescription drug plans that offer zero deductible or deductibles below the Medicare standard $250 deductible. * Some plans will have coverage that exceeds the Medicare standard prescription drug coverage. That means some plans will offer help for beneficiaries to pay for costs above $2,250 and before their out-of- pocket costs hit $3,600 annually.
Ms. Grealy said, "The vision behind this program was that companies and organizations would be eager to offer plans and to compete for beneficiaries' loyalties. Clearly, that vision is coming to fruition and Medicare beneficiaries will be seeing even greater value for their dollar than anyone had anticipated."
Medicare Today
CONTACT: Michael Freeman of Medicare Today, +1-202-452-8700, ormfreeman@hlc.org
Source: PRNewswire
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