...The shit is about to hit the fan for the millions of seniors forced to choose private companies for their Medicare Part D prescription drug coverage, the Bush drug plan, according to the health care consultancy firm Avalere Health's Oct. 5 press release.
After wading through the incomprehensible complexity of the sign-up process for the plan, and settling on a company for their prescription needs, seniors are not likely to switch companies if they can avoid it, the release says. Thus, knowing they have "captive" customers, the big medical insurance blood suckers are hiking the prices of their premiums by as much as 89% (in the case of United's Medicare Rx AARP Plan-Saver prescription drug plan, which has over 900,000 enrollees).
The average customer who remains in his or her present plan stands to pay 21% more in 2008 than in 2007, the inaugural year of Bush's privatized program. And though there are still some deals to be had, the large insurance companies are banking on the elderly staying put and biting the bullet.
Like every other instance of privatization, from utilities to health care, what is advertised as cheaper and more efficient due to competition in the marketplace, in reality turns out to be paying more for less to fewer gargantuan corporations. Just one mor major tick in the inflationary spiral for ordinary Americans.
One thing not mentioned are the copay changes and also the constant shifting of what drugs are covered by the insurance which brands fall away from the formulary lists of these companies. It is the accountants and health insurance administrators who are directing the care of the elderly in the United States today. <snip>
Average Medicare Prescription Drug Premiums to Rise 21% WASHINGTON, Oct. 5 /PRNewswire/ -- If consumers stay put in their
current Medicare prescription drug plans, the average beneficiary will see
a 21% increase in their monthly premiums for 2008, says new analysis
released by Avalere Health.
Using newly released CMS data and its proprietary DataFrame(R)
database, Avalere experts computed an "enrollment weighted" average premium
for the Medicare Part D marketplace. Under this method, the premiums of
plans with the most enrollees are assigned a heavier weight relative to
plans with scant enrollment, giving a truer measure of the beneficiary
experience. For example, a premium increase for a prescription drug plan
(PDP) with 3 million enrollees carries vastly greater impact on more people
than a premium increase for a plan with 10,000 enrollees.
"The reality of the Medicare experience is that beneficiaries have been
very loyal thus far to their initial plan selections," said Dan Mendelson,
president of Avalere Health. "If consumers stick to their choices again,
they are likely to see a dramatic increase in their monthly premiums. But,
consumers who shop around may be able to find lower cost alternatives."
The top ten PDP sponsors in Medicare have more than 80% of the people
enrolled in stand-alone PDPs. Among those top ten plan sponsors, all have
raised their premiums, with the exception of two: CVS Caremark's
SilverScript plan and First Health's Part D Premier plan. Using Avalere's
enrollment-weighted premium methodology, the Humana PDP Standard (currently
with the second-most enrollment) raised its premium an average of 69%. The
largest increase -- 89% -- is in United's Medicare Rx AARP Plan-Saver PDP,
which as of July 2007 had over more 900,000 enrollees.
"The shift in premiums from year to year reflects a close calibration
by the plan sponsors to maintain customer loyalty, remain competitively
priced, and achieve profitability," said Bob Atlas, senior vice president
of Avalere Health.
Avalere will continue to analyze Medicare drug benefit data as it is
publicly released. Since the inception of the Medicare drug program,
Avalere has used its DataFrame(R) database to track trends in drug pricing,
plan strategy and structure, and the beneficiary experience. For more
information on DataFrame(R) and Avalere's analytic capabilities, contact
Brian Bruen, bbruen@avalerehealth.net.
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