PRESCRIPTIONS Drug plan choices to abound

Enrollment starts Nov. 15, and coverage begins Jan. 1.
WASHINGTON POST
WASHINGTON -- The 42 million Americans on Medicare will face a dizzying array of choices for government-subsidized prescription drug coverage next month when private health insurance companies begin jockeying to sign them up for the new benefit.
Ten large insurers have been given the green light to market the new drug plans to consumers starting Oct. 1, Medicare officials said Friday.
Because other companies will offer coverage on a regional basis, participants in every state will have at least 11 providers to choose from. In some they will have as many as 20 choices, with some providers offering multiple plans.
Enrollment begins Nov. 15. Coverage takes effect Jan. 1.
"Medicare is taking a historic step," said Mark McClellan, administrator for the Centers for Medicare and Medicaid Services.
"Thanks to the strong competitive response, everyone with Medicare will be able to choose a drug plan that addresses their individual concerns about cost and coverage and convenience. These premiums will be lower than expected in many cases."
Cost range
No details were available Friday about specific plans. McClellan said that plans with premiums of less than $20 a month will be available in every state. Plans with premiums exceeding $37 should be rare, he said.
Beneficiaries also can choose to get drug coverage through Medicare Advantage plans, which offer comprehensive health care through HMO and PPO-like systems and serve about 10 percent of Medicare beneficiaries.
The new drug benefit, passed amid furious political wrangling on Capitol Hill in 2003, is the most significant and expensive expansion of Medicare since the creation of the federal health program for the elderly and disabled in 1965.
The cost to the federal government is expected to be $720 billion over the first 10 years. The benefit is being rolled out at a time of persistent budget deficits and mounting expenditures for military operations in Iraq and Afghanistan and relief and recovery efforts from hurricanes Katrina and Rita.
In general, the drug benefit will work like this: After an individual pays a $250 annual deductible, Medicare will cover 75 percent of drug costs up to $2,250.
The coverage then stops until the recipient has spent an additional $2,850 out of pocket, after which Medicare covers 95 percent of drug costs.