US says Medicare drug plan passes 30 million goal
By Susan Heavey
WASHINGTON (Reuters) – The controversial U.S. Medicare
prescription drug program has met the government’s goal to
provide benefits to more than 30 million elderly or disabled
beneficiaries, U.S. health officials said on Thursday.
Health industry analysts and government officials had been
predicting that 28 million to 30 million people in the Medicare
insurance program would enroll in the supplemental program that
allows private companies to offer drug coverage.
“We’ve surpassed that goal,” Health and Human Services
Secretary Mike Leavitt told reporters in a conference call.
About 42 million Americans receive Medicare. Under the
voluntary drug benefit, they have until May 15 to choose from
dozens of plans offered by insurance providers and other
companies.
Medicare participants can still sign up after the deadline,
but face a penalty fee.
Critics say most of those 30 million already had drug
coverage under other programs now transferred to the Medicare
drug benefit. They also argue the program is too complicated
and locks patients into a plan for a year, but allows companies
to change the drugs they offer at any time.
About 8.1 million have signed up voluntarily for a plan.
“There should be a straight-forward, comprehensive and
affordable Medicare drug benefit. We do not have that now,”
said Bob Hayes, president of the consumer group Medicare Rights
Center. He said many of the poorest beneficiaries have yet to
sign up.
Leavitt said officials are still working to enroll people,
especially those who do not currently need medicine or who may
think the benefit is only for the poor.
AARP, the nation’s largest group representing older
Americans, welcomed the enrollment figures but said it was
still working to lower drug costs overall. The group sponsors a
Medicare drug plan with UnitedHealth Group Inc
UnitedHealth Group, WellPoint Inc. and Humana Inc. are
major providers of the benefit.
Shares of UnitedHealth closed up about 1.9 percent at
$50.12, while Humana shares ended up nearly 2.5 percent at
$48.71. WellPoint shares finished up 25 cents at $72. All three
trade on the New York Stock Exchange.
DEADLINE DEBATE
Medicare’s announcement comes one day after 48 Democratic
and Republican senators called for a vote on legislation to
extend penalty-free enrollment until December 31.
That would ensure “that our constituents are not forced to
make hasty decisions about their health care,” they wrote in a
April 19 letter to Senate Majority Leader Bill Frist, a
Tennessee Republican.
The bill offered by Maine Republican Sen. Olympia Snowe and
Florida Democrat Bill Nelson would also allow more time to
switch plans without paying a fee.
Leavitt said on Thursday that the May deadline would
prevent procrastination. The government estimates about 2
million beneficiaries would delay if given an extension.
“The deadline is a very important part of this because it
helps seniors to make a decision,” Leavitt said. “We expect
that there will be millions more who will sign up in the next
25 days.”
Centers for Medicare and Medicaid Services Administrator
Mark McClellan said the agency was working to pay back states
that had covered drugs for beneficiaries during problems with
the program’s start in January. Several states have already
begun to file claims, he added.