Ten Companies on Board to Offer Medicare Drug Plans
Ten companies are prepared to offer prescription drug coverage
to 42 million Medicare beneficiaries. Each and every Medicare subscriber
is eligible to receive a drug coverage plan – all that's required
is they enroll.
Aetna, Cigna, Coventry Health Care, Medco Health Solutions,
MemberHealth, PacifiCare, SilverScript, UniCare, UnitedHealth Group, and
Wellcare Health Plans will offer drug plans nationwide while other companies
will offer plans in selected areas only.
Potential insurers may begin marketing their wares after October
1 and enrollments may begin on November 15. Premiums are expected to average
$32 per month. The AARP-endorsed plan from UnitedHealth will be available
in all states with monthly premiums ranging from $23 to $31.
By law, all plans must offer coverage comparable to Medicare's
standard coverage which, as outlined by Congress, requires beneficiaries
to pay as follows:
- $250 annual deductible,
- 25% of drug costs from $251 to $2,250,
- 100% of the next $2,850.
Medicare will pay approximately 95% of drug costs in excess
of $5,100.
Dr. Mark B. McClellan of the Centers for Medicare and Medicaid
Service (CMS) indicated, "Drug plans are offering better benefits and
lower prices than independent experts had predicted because they are competing
to serve everyone in Medicare."
Source: The New York Times, 9-24-05
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