San Diego was fortunate to be one of the stops for the Medicare program’s National Mobile Office Tour. This was an important opportunity for area seniors to discuss with leaders the new Medicare prescription drug coverage, which takes effect this year.
Though Medicare’s mobile office has since moved on to other cities, we need to continue the discussion about Medicare and prescription drugs. Without effective outreach and constant communication by local concerned organizations and healthcare leaders, many seniors and other Medicare beneficiaries may not enroll for the coverage that can make a profound difference in their lives.
The evidence is becoming increasingly clear. The new Medicare prescription drug coverage is going to be a tremendous value to beneficiaries, particularly those who currently have either limited insurance coverage to help pay for pharmaceuticals or no coverage whatsoever.
A new study released last month by Medicare Today and performed by the PriceWaterhouseCoopers global accounting firm showed that many seniors are going to receive the type of savings through the new drug coverage that could only be described as life-changing.
The study showed that there are four million low-income Medicare beneficiaries in America today who have no form of prescription drug coverage. Those beneficiaries are currently paying $1,905 annually out of their own pockets for their medication needs. Once they enroll in a Medicare prescription drug plan, those out-of-pocket costs next year will drop to only $130.
Even for those who are not classified as low-income, out-of-pocket spending will decline from $1,550 per year to $863. That’s a big difference for people trying to make their pensions or their Social Security checks stretch a little further.
It also appears that the new Medicare coverage is going to cost program beneficiaries less than originally expected. At the outset, Medicare officials said the average monthly premium to enroll in a drug plan would be approximately $37. Last November, though, Medicare announced that every region of the country (except Alaska) would feature at least one prescription drug plan with premiums below $20 monthly. Also, every region will have plans that have deductibles lower than the Medicare standard $250 annual deductible, and some plans will have no deductible at all.
It was also announced that, in every region, beneficiaries with limited incomes will be able to choose from plans offered by at least five organizations charging zero premiums.
Those of us who want to see our financially vulnerable residents take advantage of this program have a major task ahead of us. The concept of Medicare drug coverage is brand new and, as can be expected when you change a program that has essentially been the same for over 40 years, some beneficiaries are going to view it with a fair amount of skepticism.
It’s up to local physicians, pharmacists and healthcare administrators ” not to mention families, friends and neighbors of Medicare beneficiaries ” to get the word out. We need to sit down with those beneficiaries closest to us and make sure they have the information necessary to access to this program.
” Larry Krutchik represents Medicare Today.