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New drug benefits too complicated for seniors

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http://today.reuters.com/investing/financeArticle.aspx?type=bondsNews&storyID=2005-11-15T210052Z_01_N15161298_RTRIDST_0_HEALTH-MEDICARE.XML

Medicare drug sign-up starts with queries, doubts
Tue Nov 15, 2005 4:00 PM ET

By Joanne Kenen

WASHINGTON, Nov 15 (Reuters) - Enrollment in Medicare's new drug benefit began on Tuesday amid questions from U.S. lawmakers on the left and right about whether portions of the program should be postponed or curtailed.

Roughly 42 million mostly elderly Americans are covered by Medicare, which until now covered doctors and hospitals but not prescription medications. Enrollment in drug plans runs until next May and the benefit itself begins in January.

Many Democrats -- and a few Republicans -- say that seniors are overwhelmed by the complexity of the plan with its multiple options. They called for legislation that would extend the six-month enrollment window through 2006 and give senior citizens the right to change plans once during the first year if they picked one that didn't fit their needs.

"These plans are so complicated and the options so varied that Albert Einstein couldn't understand them," New York Democrat Sen. Charles Schumer told reporters.

Some conservative Republicans, concerned by the federal deficit, say that the country after Hurricane Katrina and the ongoing costs of the Iraq war cannot afford a drug benefit that could well cost more than $700 billion over 10 years. They want to postpone it for all but the poorest Americans.

President George W. Bush, who made Medicare drugs a cornerstone of his first term, has pushed aside criticism and urged Americans to sign up or help their elderly parents sign up.

"This new benefit is the greatest advance in health care for seniors and Americans with disabilities since the creation of Medicare 40 years ago," Bush said in his weekly radio address on Saturday.

Karen Ignani, president of America's Health Insurance Plans, said the roll-out of the new voluntary benefit was going well. Private health insurers are offering the drug policies.

'PROFUSION OF CONFUSION'

"We have products on the market that have wildly exceeded expectations," Ignani told reporters. "Our members report there's far more understanding about the range of choices out there."

That very range of choices can be formidable, some critics say. In some parts of the country, seniors have to compare more than 100 plans to figure out which ones cover their specific drugs, at pharmacies they have access to, at prices they can afford.

"It's a profusion of confusion," said Ron Pollack, executive director of the Families USA advocacy group. For instance, in the Washington, D.C. area, monthly premiums can be as low as $6.44 and as high as $68.91, while deductibles can run from zero to $250, Families USA found.

Republican leaders and Bush have opposed changing the plan before it even begins, and are unlikely to accept alterations in the timetable.

Since Katrina, fiscal conservatives have stepped up their call for postponing the benefit for all but the neediest.

"It's not too late to try to contain the cost of this entitlement," said Arizona Republican Rep. Jeff Flake, who advocates delaying the benefit for two years except for the very poor. But so far House conservatives' budget-cutting zeal has been stymied by moderates.

Many community centers, advocacy groups and senior organizations are running public meetings and counseling sessions to help people sort out their options.

"What I'm hearing back home is 'My gosh, it's so confusing,'" acknowledged South Dakota Republican Sen. John Thune, who said even his own father, almost 86, found the choices daunting. But Thune said he had held three well-attended town meetings and that once the program was explained to senior citizens and their adult children, South Dakotans felt more comfortable with their choices. (Additional reporting by Susan Heavey)

© Reuters 2005.


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