Lower Costs Seen for Premium in Medicare Drug (due to few signing up)

[papau]

August 10, 2005
Lower Costs Seen for Premium in Medicare Drug Benefit Plan
By ROBERT PEAR
WASHINGTON, Aug. 9 - The Bush administration said Tuesday that the average premium for the new Medicare drug benefit would be $32.20 a month, about $5 less than previously estimated. Officials said that aggressive competition among private insurers had driven premiums below their expectations.
<snip>
Another factor could also drive down costs in 2006. Many beneficiaries say they are befuddled by the new drug coverage. If they find it too complex, they might not sign up. In January, the administration predicted that 39 million people would receive drug coverage in 2006 through a Medicare plan or an employer-sponsored health plan subsidized by Medicare. But on Tuesday, Secretary Leavitt said the figure would be 28 million to 30 million.<snip>


Federal officials said that one-third of Medicare recipients - 14 million of the 42 million - had incomes low enough to qualify for assistance that would reduce their premiums, deductibles and co-payments.<snip>

In addition, the government will pay the full premium for low-income people eligible for both Medicare and Medicaid, up to certain limits. The maximum payment for such low-income beneficiaries will vary from a low of $23 a month in California to a high of $36 a month in Maine, Mississippi, New Hampshire and North Carolina.


http://www.nytimes.com/2005/08/10/politics/10health.html