New Medicare guidelines are eventually expected to consolidate the number of prescription drug plans offered under Medicare Part D ”“ a reform that is long overdue.
When the prescription drug benefit was rolled out in 2006, seniors needed help sorting through the scores of firms clamoring for a share of the business even in small states like Maine. The field is still crowded; this year there are 1,576 plans nationwide, and 43 in Maine.
New directives from the Centers for Medicare and Medicaid Services are intended to reduce those numbers substantially. For instance, plan sponsors will no longer be able to offer multiple plans in a single state unless each is markedly different.
A more streamlined market will eventually benefit both beneficiaries and the government. Republican critics have complained that the administration is reducing choice, but the AARP supports the change, arguing that the marketplace is just too crowded.
Republicans point to a consultant’s study that estimates that as many as 3 million Medicare recipients will have to switch to a new prescription drug plan. A Medicare official said there is no way such an estimate can be made at this point, but did not deny that many seniors will be affected.
Medicare beneficiaries who have found a good plan may be dismayed at the possibility they may have to switch, but the reforms in Medicare Part D will eventually be worth it. They will improve a program that was passed in haste and designed to provide rich rewards to insurers.
By eliminating the well-known gap in coverage and streamlining the choices, this administration hopes to establish a program that can stand the test of time.
— Questions? Comments? Contact Managing Editor Nick Cowenhoven at nickc@journaltribune.com.
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