A Washington Post-ABC poll, released last week, found that nearly two-thirds of seniors enrolled in the program said they were saving at least some money. But less than a third said they were saving a lot, and 26% said they had seen no savings, according to the findings, which were based on a subsample of 147 enrollees nationally.
As the May 15 deadline looms, about a third of Medicare's estimated 23 million non-indigent beneficiaries who lack employer-funded prescription drug coverage have enrolled in Medicare plans, the Kaiser Family Foundation estimates.
On first blush, the possible savings appear enticing. The 2003 law that created the new program mandates that enrollees, after paying a $250 deductible, receive minimum annual benefits equivalent to 75% off total drug purchases up to $2,250. Enrollees also would save 95% off purchases of $5,100 or above.
For this coverage, the government agreed to pay the for-profit insurers running the plans an annual subsidy that now is at least $1,124 for each Medicare beneficiary who enrolls. The insurers also collect annual premiums from seniors averaging about $324 nationally plus whatever co-payments they charge.
Medicare is making a huge investment in the program -- nearly $700 billion over the next 10 years, according to the Kaiser Family Foundation.
Experts say the program clearly can benefit chronically or catastrophically ill people who take many costly medications, provided they carefully choose a plan that covers the drugs they need. Low-income people stand to benefit as well; a key provision of the Part D plan waives most premiums and co-payments for low-income people who earn up to 150% of federal poverty levels.
The plans offer "meaningful and affordable" coverage and catastrophic insurance protection for as little as $2 per month in some states, said Leslie Norwalk, deputy director of the Centers for Medicare and Medicaid Services. The plan covers two drugs in every class, including some expensive drugs such as Gleevec, a cancer drug that sells for $2,800 per month at Costco.
"Not all plans will be cheaper all the time, but we're looking at the overall mix and the value of the insurance," said Steve Hahn, a spokesman for the American Assn. of Retired Persons, which endorses the AARP MedicareRx Plan, operated by UnitedHealthcare, and obtains undisclosed royalties for enrollments. "It's very difficult to come up with a program for 44 million that would provide the corporate coverage you or I are used to for $5 to $10" co-payments.
