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Prescription Drug Plans Improved

Posted on: Wednesday, 31 August 2005, 03:01 CDT

Medicare beneficiaries this fall will be able to purchase prescription drug plans offering more generous benefits and costing less than originally predicted, the Bush administration announced Monday.

While the average monthly premium for federally subsidized stand- alone drug plans will be about $32.20 nationwide, beneficiaries in every state except Alaska will have at least one plan offering premiums below $20 and all states will have several plans offering premiums below $30, said Dr. Mark McClellan, administrator of the Center for Medicare and Medicaid Services.

In addition, all states will have plans that offer more generous benefits - such as deductibles below the $250 "standard" specified by the prescription drug law that President Bush signed into law in December 2003.

Bush touted the lower-than-expected premiums Monday at a rally in El Mirage, Ariz., where he encouraged beneficiaries to sign up for the drug plans when they become available Nov. 15. The benefits will begin Jan. 1.

"Competition works," Bush said. "If you've got one provider, the federal government, it doesn't give consumers a lot of choice. But when you provide consumers choice, it's amazing what can happen."

Preliminary figures indicate Florida's 3 million Medicare beneficiaries will have a choice of about two dozen plans. The average premium in Florida is expected to be about $33 a month. So far, four plans have indicated they will offer premiums below $20; three have indicated premiums between $20 and $25; three plans anticipate premiums between $25 and $30; and about 14 will have premiums between $30 and $35.

In addition, about five plans in Florida will include zero- premium options for low-income beneficiaries and several will offer deductibles below the $250 "standard" benefit.

When Bush signed the Medicare drug bill into law in December 2003, the average monthly premium was predicted to be about $35, but more recent estimates had placed the figure at about $37.

"This is great news for people with Medicare," McClellan said in a telephone briefing with reporters. "Competition among the drug plans is working to drive down prices for the coverage and for the prescription drugs that seniors and people with disabilities need."

Medicare officials expect to determine by the middle of September which plans will be eligible this fall. Approved plans will be allowed to begin marketing their products starting in October, and beneficiaries can enroll beginning Nov. 15.

McClellan said Medicare - working with numerous private organizations - will launch an intensive educational effort to help beneficiaries compare the myriad plans being offered.

larryl@coxnews.com

Source: Palm Beach Post

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