LAT: Private Companies Want Piece of Prescription Drug Action

[DeepModem Mom]

Private Companies Want Piece of Prescription Drug Action
By Ricardo Alonso-Zaldivar, Times Staff Writer


WASHINGTON -- Despite fears that private health plans might shy away from participating in Medicare's new prescription drug program, the federal government has received bids from enough companies to assure Medicare's 42 million beneficiaries of a wide range of choices when the program starts up next year, industry and government officials say.

Industry officials say 10 major insurers have submitted bids to offer plans in all 50 states, and a number of other ompanies are competing to provide benefits in various regions of the country. Medicare spokesman Gary Karr said the agency is not ready to release specifics, but "we are getting a robust amount of interest from prescription plans."

Under the prescription drug program, which was created by Congress as part of larger Medicare reform legislation, the government will approve plans offered by private companies that will offer medicines at reduced prices in exchange for monthly premiums and co-payments. Plans may vary in their costs and benefits. And low income recipients can receive government assistance with the cost.

This week was the deadline for companies to submit their offers, and Medicare has until Sept. 14 to pick those it will approve.

Insurers who win government approval will begin marketing their plans in October. Elderly and disabled beneficiaries can sign up beginning Nov. 15 for outpatient drug coverage that starts Jan. 1....


http://www.latimes.com/news/nationworld/nation/la-na-medicare11jun11,0,2756269.story?coll=la-home-headlines