Originally published October 4 2005
New Medicare drug program is expected to confuse most enrollees
by Mike Adams, the Health Ranger, NaturalNews Editor
As competition between drug companies intensifies for a share of the market opened by Medicare's new prescription drug program, health officials are expecting the media blitz of advertising to overwhelm consumers, who have little way of knowing which package best suits their needs.
Beginning today, Medicare enrollees can expect an onslaught of television, mail and telephone advertising from insurers that want to sign them up for the new Medicare prescription drug program.
"They are going to be deluged," said Deane Beebe, spokeswoman for the Medicare Rights Center, an independent organization that helps seniors with Medicare.
Medicare beneficiaries can begin signing up for the program Nov. 15, but today is the first day insurers can advertise their plans directly to consumers.
It's a potential windfall for insurers, according to analysts.
But consumer advocates say seniors will have a difficult time cutting through the marketing to make an important decision about the voluntary program.
The federal government selected which companies would offer the plans, which vary state by state.
In California, 18 companies will offer stand-alone prescription drug plans, and 19 companies will offer drug coverage through a Medicare managed care plan, which provides additional benefits.
California Health Insurance Counseling and Advocacy Program, a nonprofit organization, at www.calmedicare.org or (800) 434-0222 The Centers for Medicare and Medicaid Services said the competition helps control costs and increase choices for seniors.
Competition from insurers wanting to offer plans in California dropped the state's average premium to one of the lowest in the nation: $25 a month for a stand-alone plan versus the $32 national average.
The federal government has agreed to work with numerous state and local groups to aid seniors with hotlines, one-on-one counseling and informational meetings.
According to Goldman Sachs & Co., the prescription drug program could generate as much as $10 billion in revenue and $250 million in earnings next year for nine large insurance companies.
Federal, state and local officials urge seniors to be wary of anyone requesting personal information such as Medicare, bank account or social security numbers.
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