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Lower Cost, Broader Coverage Attract Medicare Enrollees

Quality Digest
Tue, 09/26/2006 - 22:00
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Lower premiums, lower out-of-pocket costs and a wider selection of prescription drugs were key features of plans chosen by most Medicare beneficiaries who enrolled in Medicare’s new prescription drug plan in 2006, according to a study released by the Pharmaceutical Research and Manufacturers of America.

The analysis of the plans chosen by approximately 18 million beneficiaries was conducted by The Lewin Group. Because it takes into account the number of beneficiaries enrolled in each plan, analysts say their study provides a comprehensive picture of how Part D is actually working. This is particularly important because beneficiaries have disproportionately chosen to enroll in some plans, while others have little enrollment.

According to the research, beneficiaries who have voluntarily enrolled in Medicare’s prescription drug-only plans and Medicare managed-care plans chose plans with lower monthly premiums. More than half of enrollees in prescription drug–only plans chose plans without a deductible and opted for lower-cost options among such plans. Additionally, the four plan sponsors with the highest enrollment—accounting for 64 percent of all beneficiaries—also had below-average complaint rates from enrollees.

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