Medicare officials are placing most immediate efforts on reaching the estimated 8 million low-income beneficiaries -- not counted in the prior groups -- who are not on Medicaid but who might qualify for various levels of additional assistance.

Calling the Medicare Modernization Act, which he signed in December 2003, "the greatest advance in health care for seniors since the founding of Medicare," Bush told several hundred people at the Department of Health and Human Services that the law will "provide greater peace of mind" to nearly 42 million elderly and disabled beneficiaries.

New Benefits in Medicare

Noting that the new law will offer a physical examination to all new beneficiaries, stress preventive care and lower drug costs, Bush said, "I urge every senior to take advantage of these new benefits in Medicare."

The law, which for the first time in Medicare's 40-year history will help beneficiaries pay for prescription drugs, is scheduled to take effect Jan. 1.

But Bush and senior administration officials plan to stump the country this summer and spend about $300 million informing beneficiaries that they need to start making decisions. The first stop will be Friday in Maple Grove, Minn.

About 28 million to 30 million beneficiaries are expected to enroll in a prescription drug plan, Health and Human Services Secretary Michael Leavitt said Thursday.

About 10 million of those will receive coverage from a former employer or union retiree plan. Another 5 million will receive coverage through their managed care plans, and about 6 million will be automatically enrolled through Medicaid.

Low-Income Beneficiaries

Another 12 million people, including about 2 million with private Medigap coverage, also could enroll in the voluntary program.

Medicare officials are placing most immediate efforts on reaching the estimated 8 million low-income beneficiaries -- not counted in the prior groups -- who are not on Medicaid but who might qualify for various levels of additional assistance.

Dr. Mark McClellan, head of the Centers for Medicare and Medicaid Services, noted that fewer than 20 percent of low-income people usually enroll in federal assistance programs during their first year, but said he expects "better than 15 or 20 percent" enrollment for the drug program because of the intense outreach program.

"We're going to try to reach beneficiaries where they live, work, play and pray," he said.

- larryl@coxnews.com