Sen. Chuck Grassley, chairman of the Senate Finance Committee and chief architect of the Medicare Modernization Act, made the following comment on today’s announcement of the organizations that will offer Prescription Drug Plans and Medicare Advantage- Prescription Drug Plans through the prescription drug benefit beginning January 1, 2006. The press release from the Center for Medicare and Medicaid Services with detailed information follows Grassley’s comment.
Here is Grassley’s comment.
"In a couple of months Medicare beneficiaries will be able to enroll in the first-ever Medicare prescription drug benefit. Today’s announcement shows that Iowa beneficiaries will have a number of choices in drug coverage that will help protect them from sky-high out-of-pocket prescription drug costs. They’ll be able to choose a prescription drug coverage option that best meets their needs and preferences. Best of all, these choices will be affordable, for both the beneficiaries and the taxpayers. And, remember, the prescription drug benefit is completely voluntary. So, if it’s not in an Iowan’s best interest to participate, they don’t have to.
"Beneficiaries in Iowa will be able to choose from plans provided through 18 organizations offering stand-alone plans and several other plans offered by Medicare Advantage organizations.
"On October 1, the approved organizations can formally begin to let beneficiaries know about their coverage options. As this process begins, I want to remind folks that there are a number of resources in Iowa that can help beneficiaries make decisions. First, there’s the Iowa State Health Insurance Information Program (SHIIP), which is operated by the Iowa Department of Insurance. SHIIP volunteers can provide one-on-one benefits counseling over the phone or in person. The SHIIP can be reached at 1-800-351-4664. The Centers for Medicare and Medicaid Services also has a number of community partners across the country that can be contacted for assistance."
A full list of community partners offering assistance can be found by clicking here.
Here is the CMS news release.
Medicare News
For Immediate Release:
Friday, September 23, 2005
Contact:
CMS Office of Public Affairs
202-690-6145
For questions about Medicare please call 1-800-MEDICARE or visit www.medicare.gov.
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MEDICARE APPROVES PLANS TO OFFER DRUG COVERAGE IN IOWA
MANY PLANS TO OFFER PREMIUMS LOWER THAN $20
People with Medicare in Iowa will be able to get prescription drug coverage in January, through their choice of either a newly approved stand-alone prescription drug plan that works with traditional Medicare, or a Medicare Advantage plan that offers drug coverage and other benefits, the Centers for Medicare & Medicaid Services (CMS) announced today. In Iowa , 18 organizations will offer stand-alone prescription drug plans, including 2 with premiums of less than $20 a month. People with Medicare in Iowa can also get drug coverage with additional benefits and even lower total out-of-pocket costs by enrolling in Medicare Advantage plans. The Medicare Advantage options include one new statewide PPO plan and in 2006, three Medicare Advantage organizations will provide prescription drug coverage for no additional cost.
"Thanks to the range of options available, everyone in Medicare who lives in Iowa will be able to choose a prescription drug plan that addresses their individual concerns about cost, coverage and convenience," Health and Human Services Secretary Mike Leavitt said. "For premiums that are in many cases much lower than expected seniors will be able to get Medicare-approved prescription drug coverage that will help protect their health as well as their savings."
Prescription drug coverage will be available to everyone in Medicare, regardless of their income or how they get their Medicare coverage. Extra assistance is available to those with limited incomes and resources. Of the organizations offering drug coverage in Iowa , eleven will have prescription drug plans available with no premium to beneficiaries who qualify for that extra help.
"Today CMS notified plans that have met all of Medicare’s standards and are approved to compete to provide Medicare prescription drug coverage," said CMS Administrator Mark McClellan M.D., Ph.D. "Plan marketing will begin on schedule on October 1. As we approach the start of enrollment on November 15, Medicare will work with our partners in Iowa and around the country to help people with Medicare make their decisions."
All plans approved in Iowa have met Medicare’s requirements for providing access to medically necessary drugs, including formulary standards as well as standards for access to convenient retail pharmacies and to drugs in nursing homes. All plans are required to provide coverage at least as good as Medicare’s standard coverage, which pays on average 75 percent of drug costs after a $250 deductible up to $2,250 in total drug spending. The coverage also pays approximately 95 percent after $3,600 in out-of-pocket costs to protect against very high drug expenses. This means that for a monthly premium that is lower than expected, Medicare would pay more than half of a typical beneficiary’s drug costs, or more than $1,100.
"As a result of the strong competition in Iowa , Medicare coverage will include options that cost less and also that provide coverage that goes beyond Medicare’s standard benefit," Dr. McClellan said. "With better opportunities to save and to get the coverage that works for you, it’s about time to start thinking about how you or someone you care about can take advantage of the new coverage."
Everyone who cares about someone in Medicare can also help, Secretary Leavitt and Dr. McClellan emphasized. A guide on how to talk about the prescription drug coverage will be included in the September 25 edition of Parade magazine, including a call for families to discuss the drug coverage as they gather the day after Thanksgiving.
"Any time is a good time to talk about Medicare’s drug coverage, but we’d like to create a national conversation at a time when a lot of people gather with family and friends and just catch up on their lives," Secretary Leavitt said.
"Take a few minutes to talk about Medicare’s drug coverage – it could change the life of someone you love," Dr. McClellan said. "We will use the detailed information on drug plans that will be available in the weeks ahead to help every Medicare beneficiary choose a plan that is a good fit."
More information to help guide these conversations will be published in the coming weeks. In early October, the Medicare & You 2006 handbook will be mailed to every Medicare household. Beneficiaries with coverage now, for example from a former employer, should also get information by November 15 on how that coverage will work with Medicare’s new benefits. Beginning in mid-October, Medicare’s website, www.medicare.gov, and its 24-hour toll-free number, 1-800-MEDICARE (1-800-633-4227), will also have specific information available to help beneficiaries find the drug coverage that suits their needs.
To get a fit that works for them, beneficiaries should make a note of any current drug coverage, their prescription drugs and their preferences about pharmacies or additional coverage. Medicare beneficiaries in Iowa can also get personalized, local assistance by calling the Senior Health Insurance Information Program at 1-800-351-4664.
A map of the prescription drug plan and Medicare Advantage plan regions can be found at http://www.cms.hhs.gov/medicarereform/mmaregions/
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