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Seniors Weigh in on Medicare Prescription-Drug Plan

Posted on: Thursday, 8 September 2005, 21:00 CDT

Sep. 8--CLAREMONT -- After sitting in on a 90-minute discussion about a new prescription drug plan offered through Medicare, Annette Garrow said she may postpone her retirement just to avoid the government program.

"I was thinking of retiring this year, but I'm reconsidering because I don't want to get stuck in one of these," Garrow said.

Garrow was one 80 area seniors to attend an informational meeting at Valley Regional Hospital Wednesday morning. Anita Oelfke of the state Health Insurance Counseling Education Assistance Service explained the Medicare D program as more of an insurance policy than a government handout to seniors across the state. There are monthly premiums subject to increased co-payment plans and various levels of prescription drug coverage.

For Garrow, paying premiums for drugs she may not need isn't an investment she wants to make.

On Oct. 1, 18 private insurance and pharmaceutical companies will begin marketing 22 coverage plans from which Medicare recipients can choose.

Through Medicare, the federal government has set minimum coverage standards but the specifics of each plan are up to the private companies. The prices of prescriptions are not guaranteed and can change from month to month.

"These plans that we're telling you about are just the basics," Oelfke said.

"We won't know everything until Oct. 1. That's when they have to release all the information." In October, Medicare will send letters to the neediest seniors notifying them they've been automatically enrolled in one of the prescription drug plans. Those seniors automatically enrolled have until December to accept or reject the plan in which they were enrolled.

From Nov. 15, 2005 to May 15, 2006, everyone receiving Medicaid or Medicare can sign up for a plan during an open enrollment period. By June of next year, coverage for prescription drug costs under the new plans will begin.

Enrolling in Medicare D is optional, however, for each month after age 65 a person is not enrolled, he or she will be charged a penalty on their monthly premium when they do enroll.

For example, if a senior waits until he or she is 68, they will pay 36 percent more in monthly premiums than had they enrolled at 65.

To avoid this penalty, Don Bailey and his wife plan to buy into the least expensive program and then upgrade their coverage during the annual open enrollment period if they need to. Each year between Nov. 15, and May 15, the open enrollment applies to new and current members. Seniors already enrolled will not be charged the 1 percent penalty for switching coverage plans.

Premiums for the plans are expected to range from $20 to $35 per month, Oelfke said. When the Medicare Modernization Act was announced in 2003, the national average for monthly premiums was expected to be around $37. That figure has dropped slightly to $32. New Hampshire's premiums are likely to be higher than the national average, Oelfke said, due to the cost of living and ruralness of the area.

Before enrollng in the new Medicare program, Oelfke recommends Medicare and Medicaid recipients first apply for the low-income assistance program through Social Security that may help cover the cost of premiums and co-payments.

Patricia Foss, a 70-year-old working senior from Claremont, said she can't afford the premiums and hates the idea of being penalized for it. Foss is not taking any medications and said she has a history of good health. What she doesn't have is job security and extra income, she said.

"To invest in this would be absolutely ludicrous," Foss said. "I can't afford to invest in this when I'm not buying any drugs." Oelfke offered a comparison to life insurance policies.

"Do I buy it when I'm young and pay a little premium all my life or do I buy it later and pay a bigger premium for a few years," Oelfke said. "It's a choice."

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Copyright (c) 2005, Eagle Times, Claremont, N.H.

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Source: Eagle Times, Claremont, New Hampshire

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