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US says Medicare drug plan passes 30 million goal

Posted on: Thursday, 20 April 2006, 17:14 CDT

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.

Source: REUTERS

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