Confusion abounds on Medicare Part D

Last week FierceHealthcare reported on surveys from Kaiser FF and Harris/WSJ which showed that confusion is rife about the new Medicare plan. Sunday's New York Times reported that many seniors are totally bewildered by the choice of plans offered. There are at least four variables between the plans: premium level, drugs covered, pharmacies covered and co-insurance and co-pay amounts. In addition, premiums increase if recipients delay in selecting a plan, and there remains little indication whether those with retiree drug coverage (usually from an employer) can be certain that the coverage will continue. And of course there is the "donut hole" where coverage ends before it starts again.

The Times says the reason for the complexity is that the Bush administration thinks "competition among private plans will hold down costs, and they do not want the government to specify which drugs will be covered." Critics note that the program gives large subsidies to private health plans and prevents Medicare from directly negotiating drug prices, provisions in the law heavily sought by health insurers and pharma companies.

- see the article from The New York Times

PLUS: Hold on a second, the critics are getting carried away, writes investment adviser Terry Savage in the Chicago Sun Times. Comparing plans may be difficult, but Medicare.gov "takes the pain out of choosing a plan." Just use the drop down menus and your computer does the rest. Article

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