Most Medicare Beneficiaries Now in Drug Program
By Susan Heavey
ATLANTA (Reuters) – About 88 percent of elderly or disabled Americans in the government’s Medicare insurance program are signed up for its new drug plan five days before an enrollment deadline, U.S. health officials said on Wednesday.
The figures, showing that some 37 million of 42 million beneficiaries have signed up, came in the final days before the May 15 deadline to join the voluntary drug benefit, known as Part D.
Except for those with low incomes, Medicare beneficiaries who do not sign up by Monday have to wait until November to enroll and will face added fees.
President Bush, Health and Human Services Secretary Mike Leavitt and other officials are touring the country this week in an effort to get the last 5 million plus beneficiaries into the program that allows private companies to offer coverage under Medicare oversight.
Health insurers and other companies have also launched a last minute advertising blitz. UnitedHealth Group Inc, Humana Inc, and Aetna Inc, among others, all offer plans. Shares of all three companies were up more than three percent in early afternoon trade on Wednesday following a report from stock analysts at FTN Midwest citing an improved outlook for the managed care sector.
"We have a shot this week to get 90 percent of the people eligible enrolled," Leavitt told reporters in a conference call between enrollment events in Michigan.
Still, Leavitt acknowledged some may simply chose not to participate for personal reasons.
Critics note that most of those enrolled were automatically transferred from other government programs or get benefits from employers that receive subsidies under Part D. They add the dozens of plans available have made it complicated for seniors to chose which is best for them.
Of the 37 million announced Wednesday, less than 9 million signed up on their own for a stand-alone plan.
Ira Loss, an healthcare analyst with Washington Analysis Corp, said the government’s figure of 37 million was misleading. "You’re really talking about 8.9 million new customers," Loss said.
A recent government report criticized Medicare for troubles with its drug plan hotline and hard-to-understand information. About 6,000 extra telephone operators have been hired to handle calls, Centers for Medicare and Medicaid Services administrator Mark McClellan said.
About 13 million poor people under Medicare qualify for special discounted drug plans. About 10 million of these are currently enrolled, officials said.
Shares of UnitedHealth were up $1.80 at $45.60 while Human shares rose $1.65 at $44.68. Aetna shares were up $1.46 at $39.26. All three trade on the New York Stock Exchange.
(Additional reporting by Lewis Krauskopf in New York)