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 About half of seniors likely to enroll

 in Medicare Drug Benefit, up significantly since June 2005, but key challenges for enrollment remain...Forty-one percent of seniors say they are not very or not  at all confident that they would be able to choose a drug plan that’s right for them

 

ROCHESTER, N.Y. – Nov. 16, 2005 – A new Wall Street Journal Online/Harris Interactive Health-Care Poll shows that about half (49%) of U.S. adults aged 65 and older say they are somewhat likely, very likely or absolutely certain to enroll in a new Medicare drug plan by May 2006, when the initial enrollment period for the new benefit ends. This represents a substantial increase from June 2005 when 32% said they would be somewhat likely, very likely or absolutely certain to enroll. While this increase is encouraging news for the Centers of Medicare and Medicaid Services, problems still exist regarding seniors’ perceptions of the complexity of the drug plan and their confidence in being able to choose a plan that is right for them.

Below are the results of the online survey of 2,160 U.S. adults, of whom 290 are aged 65 or over, conducted by Harris Interactive® between Oct. 26 and 28, 2005 for The Wall Street Journal Online’s Health Industry Edition.

Steps seniors are taking and factors that are important to them

More than three in five (62%) seniors have seen or heard an ad for the new Medicare drug benefit and substantial numbers have taken proactive steps to look for information about the plan.

    More than half (53%) of seniors say they have looked for general information about the Medicare drug benefit.

    Fewer seniors, although still substantial numbers, have looked at information from an insurer or health plan that will be offering a Medicare drug plan (45%), talked to a family member or friend about it (35%) or compared the different Medicare drug plan offerings (22%).

    Less than one in 10 seniors have talked to their pharmacist about the benefit (9%), attended an information session or seminar about it (6%) or talked to their doctor about it (4%).

When considering the different options that might be available to them when choosing a Medicare prescription drug plan, the majority of seniors say the most important factor for them personally is related to their out-of-pocket costs. Two in five (40%) seniors say the most important factor for them is the cost of the co-pays and deductibles they would pay for prescription drugs and about one-third (32%) say the most important factor is the cost of the monthly premium they would pay. Other factors seen as most important by seniors include the choice of prescription drugs that are covered by the plan (18%), the network of pharmacies that they could use to fill their prescription (3%) or something else (8%).

Challenges remain

While there has been an increase in the number of seniors likely to enroll and many have taken proactive steps to look for information on the Medicare prescription drug plan, several challenges still remain.

The majority of seniors remain skeptical or uncertain about the impact of the Medicare prescription drug plan on affordability of prescription drugs. While 21% of seniors say the plan will make prescription drugs more affordable for seniors over the next two to three years, a similar 22% say it will make prescription drugs less affordable and 27% say it will make them neither less nor more affordable.  Additionally, almost one-third (29%) of seniors are not sure of the impact the plan will have, an increase of 15 percentage points from June 2004.

The majority of seniors say they find the new Medicare prescription drug benefit either somewhat (33%) or very (38%) hard to understand, while much smaller percentages say it’s somewhat (6%) or very (2%) easy to understand.

While 39% of seniors say they are somewhat or very confident that they will be able to choose a drug plan that’s right for them (compared to 46% in June 2005), a similar 41% say they are not very or not at all confident that they will be able to do this. More than one-third (35%) say they already have prescription drug coverage so they are not in need of a new plan.

TABLE 1

“In general, do you believe the new Medicare prescription drug benefit will make prescription drugs less affordable, more affordable or neither less nor more affordable for seniors over the next 2 to 3 years?”

Base: All Adults

 

Total

Adults aged 65+

 

Oct.

2005

June 2004*

Oct.

2005

 

%

%

%

Less affordable

21

23

22

Neither less nor more affordable

25

47

27

More affordable

18

15

21

Not sure

35

14

29

Note: Percentages may not add up exactly to 100% due to rounding.

* Data from the Harris Interactive Strategic Health Perspectives Survey conducted in June 2004.

TABLE 2

UNDERSTANDING THE MEDICARE PRESCRIPTION DRUG BENEFIT

“Overall, do you find the new Medicare prescription drug benefit is…?”

Base: Adults aged 65 and older

 

June 2004*

Oct.

2005

 

%

%

Very hard to understand

42

38

Somewhat hard to understand

36

33

Neither hard nor easy to understand

17

21

Somewhat easy to understand

4

6

Very easy to understand

1

2

Note: Percentages may not add up exactly to 100% due to rounding.

* Data from the Harris Interactive Strategic Health Perspectives Survey conducted in June 2004.

 TABLE 3

“The new Medicare drug benefit will be available to seniors beginning in January 2006.  Have you personally seen or done any of the following in the past 3 months?”

Base: Adults aged 65 and older

 

Oct. 2005

 

%

Seen or heard an ad for the new Medicare drug benefit

62

Looked for general information about the new Medicare drug benefit

53

Looked at information from an insurer or health plan that will be offering a Medicare drug plan

45

Talked to a family member or friend about the new Medicare drug benefit

35

Compared different Medicare drug plan offerings

22

Talked to your pharmacist about the new Medicare drug benefit

9

Attended an information session or seminar about the new Medicare drug benefit

6

Talked to your doctor about the new Medicare drug benefit

4

None of these

18

Note 1:  This is a new question, 2005 data only.

Note 2: Multiple-response question.

TABLE 4

FACTORS THAT MATTER WHEN CHOOSING A PRESCRIPTION DRUG PLAN

“When considering the different options that might be available to you when choosing a Medicare prescription drug plan, which of the following is most important to you personally?”

Base: Adults aged 65 and older

 

Oct. 2005

 

%

The cost of the co-pays and deductibles you would pay for prescription drugs

40

The cost of the monthly premium you would pay

32

The choice of prescription drugs that are covered by the plan

18

The network of pharmacies that you could use to fill your prescription

3

Something else

8

Note:  This is a new question, 2005 data only.

Note: Percentages may not add up exactly to 100% due to rounding.

TABLE 5

SENIORS’ INTENT TO ENROLL IN MEDICARE DRUG PLAN

“How likely are you to enroll in a new Medicare drug plan by May 2006, when the initial enrollment period for the new benefit ends?”

Base: Adults aged 65 and older

 

June 2005*

Oct. 2005

 

%

%

Absolutely Certain/Very or Somewhat Likely (NET)

32

49

Absolutely certain to enroll

2

12

Very likely

15

13

Somewhat likely

15

24

Not Very/Not At All Likely (NET)

30

16

Not very likely

21

9

Not at all likely

9

7

I already have prescription drug coverage so I don’t need a new plan

38

35

Note: Percentages may not add up exactly to 100% due to rounding.

* Data from The Wall Street Journal Online/Harris Interactive Health-Care Poll conducted June 8-12, 2005 among 2,153 U.S. adults aged 18+.

TABLE 6

SENIORS’ CONFIDENCE IN CHOOSING A DRUG PLAN

“Whether or not you plan to enroll in a new Medicare drug plan, how confident are you that you would be able to choose a drug plan that’s right for you?”

Base:  Adults age 65 and older

 

June 2005*

Oct. 2005

 

%

%

Very/Somewhat Confident (NET)

46

39

Very confident

13

6

Confident

33

32

Not Very/Not At All Confident (NET)

37

41

Not very confident

25

30

Not at all confident

13

11

Not sure/Too early to tell

16

21

Note: Percentages may not add up exactly to 100% due to rounding.

* Data from The Wall Street Journal Online/Harris Interactive Health-Care Poll conducted June 8-12, 2005 among 2,153 U.S. adults aged 18+.

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