Private insurers urge inaction

Make the wrong decision and the consequences can be dire.
los Angeles Times
For millions of senior citizens struggling to make sense of Medicare's new drug coverage, one pitch is enticingly simple: Don't do anything.
It's a message being pushed by private insurers eager to hang on to 5 million older Americans who already buy supplemental Medicare policies and must decide whether to stay with them or switch to another plan.
In workshops and town hall meetings throughout California, insurance sellers are encouraging customers to indulge in the urge to avoid a complex decision.
"As members of Secure Horizons, you don't have to do anything! Yeah!" shouted Holly Ackman, a tall redhead wielding a wireless microphone at a recent workshop attended by 400 Ventura, Calif., seniors. "We know that 99.9 percent of you are going to be absolutely delighted to stay with us!"
Similar sessions are being held across the nation to enroll as many seniors as possible in the drug program's critical first year. Under the new benefit, private plans contract with Medicare to provide prescription drug coverage, with costs estimated at up to $700 billion over a decade.
Not for everyone
Although the "don't do anything" message might make sense for some people, consumer advocates caution that others could lose out financially, and even medically, if they follow that advice.
Medicare's drug coverage options are complex, and the consequences for making a wrong choice are serious, said David Lipschutz of California Health Advocates, a nonprofit agency that focuses on Medicare education and advocacy.
"You shouldn't rely on marketers to give you completely unbiased information about your choices," Lipschutz said. "That's not to dissuade people from going to these things. But they need to supplement those sessions with information from a trusted source."
A spokeswoman for Secure Horizons, owned by PacificCare Health Systems, said the town hall meetings are intended to inform customers of new benefits. Most of those attending are already members, said spokeswoman Cheryl Randolph.
Presenters are trained in Medicare's marketing guidelines, which ban sales at the meetings. Since October, Secure Horizons has held dozens of the sessions for its 360,000 California members, Randolph said.
If people want to explore other options, "they always should," she said. "We think competition is a good thing."
Too confusing
Many seniors are confused, say advocates who help the elderly navigate Medicare. The government is spending $300 million on an education campaign that offers assistance in person, by phone and on the Internet.
Medicare Today, a national nonprofit group, offers one-on-one counseling for people who need help comparing policies, said spokeswoman Samantha Rothenberger. The group does not advocate any particular plan.
"It's time-consuming," she said of the decision seniors must make. "You have to know what drug you are taking and what services you need. Then it's a question of sitting down and making some important choices."
If people pick the wrong plan, they may not be able to get a specific drug that they need, she said.
Medicare will impose premium penalties on those who fail to meet a May 15 enrollment deadline.