1.5 Million Seniors Grappling with Catastrophic Drug Costs; New Research Shows Potential of Medicare Drug Benefit, USA
The number of Medicare beneficiaries who have coverage for catastrophic drug costs in 2006 would dramatically increase under the soon-to-be-implemented Medicare prescription drug program, research released today shows. The study indicates that the number of seniors who would be paying more than $4,000 in annual out-of-pocket drug costs - and who would not have any coverage for these catastrophic costs - would decrease from more than 1.5 million to just 160,000 nationwide in 2006. Furthermore, the study shows nearly all (98 percent) Medicare beneficiaries could have catastrophic coverage once the new Medicare prescription drug benefit takes effect. Currently, just 52 percent of Medicare beneficiaries have coverage for catastrophic drug costs.
The analysis further shows that more than one million of the U.S. seniors spending $4,000 or more a year on prescription medications, would have 2006 incomes of approximately $14,500 or less annually. The analysis shows that their prescription drug costs take more than one-fourth (28 percent) of their annual income. The analysis estimates that the number of low-income seniors with catastrophic drug costs would decrease to just 50,000 nationwide if all eligible seniors enrolled in the new Medicare drug benefit.
These and other findings were highlighted in Curtailing Catastrophe: Medicare's Rx for Catastrophic Drug Costs, released today by Medicare Today, a national partnership of more than 350 organizations that is providing consumers with nonpartisan, easy-to-understand information about Medicare's new prescription drug coverage. Medicare Today partners include AARP, the American Academy of Family Physicians, the National Association of Chain Drug Stores, the Healthcare Leadership Council and others. Together, the group is conducting a comprehensive outreach program in all 50 states and the District of Columbia, to reach seniors through a grassroots, person-to-person approach, explaining the Medicare drug benefit and other new Medicare features with clarity and objectivity.
"Suffering a debilitating stroke, being diagnosed with advanced heart disease or finding out that you have cancer is devastating - physically, mentally and financially, for seniors who cannot afford to pay for multiple medications each day," said Mary R. Grealy, president of the Healthcare Leadership Council, which is coordinating Medicare Today's efforts. "Under the new Medicare prescription drug plan, America's seniors will be better protected from high drug costs that are the result of a life-threatening, catastrophic event."
The report was prepared for Medicare Today by analysts at PricewaterhouseCoopers, LLP, Washington D.C., and is derived from data from the U.S. Census Bureau's March 2004 Current Population Survey, the Medicare Current Beneficiary Survey, and other sources adjusted to reflect 2006 estimates by the Congressional Budget Office.
Additional findings include:
-- In all 50 states, about one in three seniors do not have coverage for catastrophic drug costs. In 13 states, more than half of seniors find themselves without coverage for catastrophic drug costs - including South Dakota (66 percent), North Dakota (65 percent), Arizona (57 percent), Oregon (57 percent), Pennsylvania (56 percent), Nevada (54 percent), Texas (54 percent), Florida (53 percent), California (52 percent), Rhode Island (52 percent), Colorado (52 percent), Kansas (51 percent) and New York (51 percent).
-- Seniors who already have catastrophic coverage will still see significant savings. The analysis shows that the average senior would pay more than $1,300 in annual out-of-pocket charges for his or her prescriptions in 2006 in the absence of the new Medicare benefit. By enrolling in the new Medicare prescription drug program, these costs would be reduced by one-third - to less than $900 per year. Low-income seniors will see even greater savings, cutting annual out-of-pocket spending by more than half - from $1,085 to $536.
Medicare beneficiaries are eligible to join a new prescription drug program beginning November 15. The coverage will go into effect on January 1, 2006. Seniors joining a prescription drug plan will pay approximately $32 a month for the coverage, which will cover 75 percent of seniors' annual drug costs up to $2,200, and nearly all costs over $3,600.
"Although none of us expect to face a catastrophic health problem, it's critical that seniors be prepared," Grealy said. "Everyone 65 and older needs to evaluate this new coverage, because the research shows that millions will see significant savings on their medications in the event of a catastrophic health problem."
Medicare Today organizers nationwide are planning activities to provide objective information to seniors in their own community. Medicare Today has engaged organizers in every state to coordinate local events in senior centers, senior housing facilities, pharmacies, grocery stores and other gathering places to inform beneficiaries about the new Medicare provisions. Activities include:
-- Presentations to key community organizations, such as senior centers, Rotary clubs, service organizations and local disease/patient support groups, in cities and towns nationwide.
-- Informational materials distributed in grocery stores, pharmacies, hospitals, physician offices, health clubs and retirement communities.
-- Coordinated efforts with members of Congress and state and municipal elected officials to conduct Town Hall meetings to fully explain the new benefits.
In addition to learning more, those seniors who are eligible are encouraged to enroll early. Those who elect to enroll after May 15, 2006, may be subject to a late-enrollment penalty.
To access Medicare Today's interactive tools or to locate Medicare Today activities, visit http://www.MedicareToday.org or http://www.HLC.org.
Medicare Today is a broad-based partnership of organizations representing seniors, patients, health care groups, employers, and others. The mission of this nonpartisan partnership is to educate and inform Medicare beneficiaries and the public at large on the new benefits provided through The Medicare Prescription Drug, Improvement and Modernization Act of 2003 (MMA) and about how millions of seniors will benefit from the new Medicare law.
1,5 milioane de Seniori Grappling cu Catastrophic Costurile consumului de droguri; New Cercetãrile aratã potenþial al Medicare Drug Benefit, SUA - 1.5 Million Seniors Grappling with Catastrophic Drug Costs; New Research Shows Potential of Medicare Drug Benefit, USA - articole medicale engleza - startsanatate