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Medicare Compliance & Reimbursement

Medicare Part D:

Seniors Slowly Coming Around On PDP

Published on Sun Aug 21, 2005

Attitudes shift as PDP enrollment approaches.

Do more seniors believe that the upcoming Medicare prescription drug plan will save them money, even as drug prices continue to increase faster than inflation?

Yes, says a new Kaiser Family Foundation survey released Aug. 15. The poll found that 32 percent of seniors have a favorable view of the drug plan, while 32 percent do not; 18 percent of those questioned were neutral.

These findings point to a slow yet steady increase in beneficiaries' favorable views on the prescription benefit. In February 2004, a similar Kaiser survey discovered that only 17 percent of seniors liked the plan, while 55 percent disapproved. On the other hand, just 33 percent who responded to the August poll said they had enough information about the benefit to understand how it will impact them personally.

Seniors can enroll in the drug plan this November, but the official start date is Jan. 1, 2006. Enrollees will pay approximately $32 a month for the coverage. The new program will cover 75 percent of seniors' annual drug costs up to $2,200 and nearly all costs over $3,600.

On the heels of this spike in approval for the drug plan, comes a study that shows that the program will reduce the amount of money low-income seniors spend on prescription drugs by 90 percent.

For example, seniors who earn approximately $14,500 or less--150 percent of the federal poverty level--will see their out-of-pocket costs for medications fall from $1,657 to $180 a year, according to the study, "Medicare Tomorrow: Future Savings for Beneficiaries." Medicare Today, a national partnership of more than 200 organizations committed to providing objective information about the new benefit, released the study.

The study also found:

• Seniors who do not currently have prescription drug coverage will see significant savings.

• In all 50 states, at least one in five seniors who don't receive Medicaid is without drug coverage. But 95 percent of seniors will have coverage in all 50 states if everyone who is eligible enrolls.

• In 31 states, low-income seniors will pay less than the national average in out-of-pocket expenses. "Although seniors who are living with less money stand to see the biggest results, the research shows that many seniors in the U.S.-- regardless of current income or overall net worth--may save hundreds of dollars each year," said Mary Grealy, president of the Healthcare Leadership Council, which is coordinating Medicare Today's efforts.

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