Guest guest Posted January 10, 2008 Report Share Posted January 10, 2008 Asclepios Your Weekly Medicare Consumer Advocacy Update What a Waste January 10, 2008 • Volume 8, Issue 2 The Medicare prescription drug benefit (Part D) saves enrollees $9 or less per month, according to researchers who tracked purchases of over 100,000 older adults before and after the benefit began in 2006. Why does Part D yield so little savings, when the program will cost about $1 trillion over the next ten years? Because the Part D benefit is run by private companies and not by Original Medicare. Consider these two facts from a recent overview of health spending published in Health Affairs by researchers for the Centers for Medicare & Medicaid Services: Of the $41 billion in Part D spending in 2006, $5.3 billion, or 13 percent went for administrative costs and the profit siphoned off by the insurance companies offering Part D. By contrast, just 3 percent of spending for coverage of doctor visits and hospital care under Original Medicare goes to administrative costs. The Part D plans cannot negotiate discounts and rebates from drug manufacturers that come close to matching what Medicaid received, when that program provided drug coverage for low income people with Medicare. In fact, even though enrollment in Part D plans is more than double the number of people enrolled in Medicare and Medicaid, the total amount of rebates received by Part D companies are less than Medicaid received before Part D took over coverage. It is becoming more and more clear that the privatized structure for Part D has created a boondoggle for drug manufacturers and insurance companies even as it has fallen woefully short in providing people with Medicare the kind of drug coverage they need. It is time to for Congress to provide a drug benefit directly through Medicare. Older adults and people with disabilities deserve that choice. Medical Record “A new report from the ls of Internal Medicine that finds the Medicare Part D program saved beneficiaries on average about $6 to $9 a month on prescriptions over what older Americans not yet eligible for Medicare pay,†(“ Most Medicare Drug Plans Continue to Hike Costs into 2008 Two-to-Three Times Rate of Inflation,†Consumers Union). “Prescription drug spending growth accelerated in 2006 to 8.5 percent, partly as a result of Medicare Part D’s impact.†(“ National Health Spending In 2006: A Year Of Change For Prescription Drugs,†Catlin, Cowan, Micah Hartman, Heffler the National Health Expenditure Accounts Team, Health Affairs, 27, no. 1 (2008): 14-29). “Providing older adults and people with disabilities the option to obtain prescription drug coverage directly through the Original Medicare program, without the insurance middleman, will provide a refuge from the rising costs, instability and gaps of the Part D plan marketplace.†(“ The Best Medicine: A Drug Coverage Option Under Original Medicare,†Medicare Rights Center, October 2007). * * * * Medicare Part D Appeals Help for Advocates Is Here! MRC’s new Medicare Part D Appeals: An advocate’s manual to navigating the Medicare private drug plan appeals process offers an easy-to-understand, comprehensive overview of the entire appeals process, including real-life case examples, a glossary of important appeals terms, a sample protocol for advocates, and links to important resources. Register for a FREE copy of this great resource. * * * * Medicare Private Health Plan Monitoring Project The Medicare Rights Center (MRC) would like to hear about your experience, or that of someone you know, enrolled in a private health plan. With information about what the issues are with Medicare Advantage plans, we will be able to demand that those problems be fixed. Submit your story at www.medicarerights.org/maplanstories.html. * * * * The Louder Our Voice, the Stronger Our Message Asclepios—nammed for the Greek and Roman god of medicine who, acclaimed for his healing abilities, was at one point the most worshipped god in Greece—”is a weekly e-newsletter designed to keep you up-to-date with Medicare program and policy issues, and advance advocacy strategies to address them. Please help build awareness of key Medicare consumer issues by forwarding this action alert to your friends and encouraging them to subscribe today. * * * * The Medicare Rights Center (MRC) is the largest independent source of Medicare information and assistance in the United States. Founded in 1989, MRC helps older adults and people with disabilities get good, affordable health care. Visit our online subscription form to sign up for Asclepios at http://www.medicarerights.org/subscribeframeset.html. Unsubscribe from this mailing. Modify your profile and subscription preferences. Quote Link to comment Share on other sites More sharing options...
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