Medicare | 38.7M Medicare beneficiaries have Rx drug
coverage, 4M to 5M not signed up, HHS says
[Jun 09, 2006] Final Medicare prescription drug benefit
enrollment data show that about 11.5 million Medicare beneficiaries
voluntarily enrolled in the program before the May 15 deadline,
bringing the total number of Medicare beneficiaries with
prescription drug coverage to 38.7 million,
HHS officials said on Thursday, the
AP/Detroit Free Press
reports (Freking, AP/Detroit
Free Press, 6/9). In a
fact sheet released on Thursday,
CMS said that more than 90% of all beneficiaries "have good drug
coverage." The total enrollment figure includes beneficiaries who
were automatically enrolled in Medicare drug plans, federal retirees
and beneficiaries who receive coverage through former employers that
receive a subsidy from Medicare (Reichard,
CQ HealthBeat,
6/8). The final enrollment figures indicate that four million to
five million beneficiaries are still without drug coverage, the
AP/Free Press
reports (AP/Detroit Free
Press, 6/9). HHS Secretary Mike Leavitt said more than
two million beneficiaries obtained drug coverage between May 1 and
the May 15 enrollment deadline. CMS Administrator Mark McClellan
said the agency would release more detailed data on coverage sources
soon.
Premiums
Many of the beneficiaries who signed up in the last two weeks before
the deadline are in good health, which will help keep premiums from
increasing significantly next year, CMS officials said (CQ
HealthBeat, 6/8). Leavitt said beneficiaries chose
plans with monthly premiums averaging $23 (AP/Detroit
Free Press, 6/9). Last year, Medicare actuaries
estimated monthly premiums would average $37. McClellan said CMS
will use its authority to ensure the bidding process will allow
low-income beneficiaries to continue to have access to no-premium
plans. According to a CMS spokesperson, without such intervention
from the agency, low-income beneficiaries likely would have to
switch plans next year to maintain no-premium coverage. "[O]ur
intent is to determine how to make adjustments as necessary to
moderate premium increases for all beneficiaries," CMS said in a
release, adding, "We expect that this will result in premiums that
will increase on average by about medical inflation, but that will
depend on actual plan bids."
Program Costs
CMS also said it expects in July to announce a further "significant
downward revision" in the cost of the drug benefit. Last month, the
Medicare trustees in their 2006
report projected that the cost of the drug benefit would be 20%
lower than 2005 estimates. According to the CMS release, "By
choosing plans that met their needs at a much lower cost than
expected, both beneficiaries and taxpayers are saving more than
expected" (CQ HealthBeat,
6/8).
Comments
Leavitt said, "I'd just like to stress what good news this is for
our seniors and the Medicare program," adding, "Competition works.
The costs are lower and enrollment in Medicare drug coverage is
stronger than expected." The Bush administration in January 2005
projected that about 39 million beneficiaries would obtain coverage
through the drug benefit. However, Robert Hayes, president of the
Medicare Rights Center, said, "The moral dilemma is that the
people in greatest need are the people still unenrolled," adding,
"Unless we can dramatically increase the number of the poorest
Americans in this program, we need to re-examine the best way to
meet the primary objective of the law" (AP/Detroit
Free Press, 6/9).
Senate Finance Committee Chair Chuck Grassley (R-Iowa) said in a
statement that the actions announced on Thursday by CMS "will ensure
that low-income beneficiaries continue to have a choice of plans in
2007 that have a premium of zero. It also will minimize the need for
people to switch plans just to continue to be enrolled in a
zero-premium plan" (CQ
HealthBeat, 6/8).