Originally published June 19 2005
Medicare prescription drug plan receives widespread interest from medical insurance companies
by Mike Adams, the Health Ranger, NaturalNews Editor
Despite fears, the Medicare prescription drug plan would receive little interest or confuse beneficiaries. The Los Angeles Times reports that industry officials say 10 major insurers have submitted bids to offer plans in all 50 states.
Despite fears that private health insurers may shy away from participating in Medicare's new prescription drug program, the federal government has received bids from enough companies to assure Medicare's 42 million beneficiaries of a wide range of choices when the program starts up next year, industry and government officials say.
Industry officials say 10 major insurers have submitted bids to offer plans in all 50 states, and a number of other companies are competing to provide benefits in various regions of the country.
Under the prescription drug program, created by Congress as part of larger Medicare overhaul legislation, the government will approve plans offered by private companies to provide medicines at reduced prices in exchange for monthly premiums and co-payments.
Low-income recipients can receive government assistance with the costs.
Elderly and disabled beneficiaries can sign up beginning Nov. 15 for outpatient drug coverage that starts Jan. 1.
America is graying as a nation, and the elderly are the biggest consumers of prescription drugs.
Though the different plans would have the same insurance value, they could be tailored to suit the preferences of individual consumers.
For example, seniors who are willing to pay somewhat more out of pocket, or limit their use of brand-name drugs, could get a plan that would shrink the standard plan's $250 annual deductible.
"We can lower premiums, eliminate the deductible and offer better drug coverage options that will allow seniors to select for themselves," said Howard Phanstiel, chief executive of PacifiCare Health Systems Inc., which is bidding to become a national provider.
The Bush administration believes that competition among private plans will help rein in drug costs, though some experts say a proliferation of choices may prove confusing.
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