Contributed by William Angelos| 30 September, 2006  23:19 GMT
 It's good news, bad news for seniors and disabled people covered by the Medicare prescription drug program. The good news is that there will be more and better options. The bad news is that all the new choices will mean a lot more confusion.
The number of companies offering prescription drug plans to Medicare beneficiaries will increase from nine to 17 in 2007, and many of these companies will be offering multiple plans. In some states, seniors and the disabled will have upwards of 50 individual plans to choose from.
During a six-week open enrollment period beginning November 15, new Medicare recipients can sign up for a plan.
People who are already enrolled can switch to a different plan or do nothing if they choose to keep their existing coverage.
In some cases, people who elect to stay with their current plans may be unpleasantly surprised by significant price changes, warn consumer advocates, who advise that everyone eligible for the program examine the new options.
Many of the plans will cover more medications.
There will also be changes in the types of coverage available, with some no-deductible options, as well as plans that fill the so-called "doughnut hole," when Medicare prescription drug benefits dry up until a certain amount of out-of-pocket payments have been made.
The basic Medicare plan has a $265 deductible. It then pays 75 percent of drug costs up to $2,250. At that point -- the doughnut hole -- coverage stops completely until drug costs reach $5,100. Then Medicare kicks in again, paying 95 percent of all costs.
The new offerings undoubtedly will cause some consternation along with potential advantages.
"The incredible confusion that persisted in the past year about the Medicare drug program is about to get worse," comments Ron Pollack, executive director of Families USA.
Insurers will began advertising their 2007 plans on Sunday. |