Seniors' confusion over Medicare Part D is turning out to be a major deterrent to enrollment. According to the results from The Social Security & Medicare Advisor's "2006 (online) Senior Survey", performed in January 2006, 34% of those responding said they had enrolled, or planned to enroll in a Medicare Part D drug plan. Of those opting not to enroll, 63% said they already have prescription drug coverage. But of those with no prescription drug coverage, two out of three of those who didn't plan to enroll said they weren't, because "the program is so confusing, I don't know what to do."
In addition, a majority of those responding, more than 70%, said that Part D premiums, deductibles and co-pays were either higher than they expected them to be, or too high. TSCL believes that program out-of-pocket costs may continue to be an especially problematic deterrent in the very near future, as premiums, deductibles, and the "doughnut hole" in coverage are estimated by Medicare Trustees to increase about 10% annually.
The $250 Part D deductible is currently two times higher than the Medicare Part B (doctors and hospital outpatient services) deductible in 2006. Although some popular drug plans charge no deductible, most recover the deductible cost and more by charging a higher monthly premium for the coverage. Co-pays and co-insurance are significantly higher than what many private plans typically charge, and this could continue to be a burdensome cost to seniors who have to take several prescriptions.
TSCL thanks all of you who took the time to respond to our annual Senior Survey. We will be sharing your opinions in our meetings with your elected lawmakers on Capitol Hill.
Sources: "HHH Inspector General Investigates Whether Medicare Beneficiaries Were Pushed Into HMOs," Kaiser Daily Health Policy Report, Friday, February 24, 2006. "Avalere Health Releases Comprehensive Medicare Marketplace Report," Avalere Health, February 6, 2006.
May 2006
