Medicare Monitor

Medicare Monitor

The Palm Beach Post's veteran Washington correspondent, Larry Lipman, tracks policy makers and interest groups who are shaping the future of the federal health insurance program for the elderly.

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Medicare is the federal health care system that covers about 36 million people age 65 and older, plus 7 million disabled. It has four parts:

Part A Covers inpatient hospital care as well as nursing home, home health and hospice care. Nearly all elderly and disabled Americans qualify for Part A coverage.
Financed by a 2.9 percent payroll tax divided equally between employees and employers.

Part B Covers outpatient care, doctor’s services, durable medical equipment, home health visits and preventive care. Part B coverage is voluntary, but roughly 40 million are enrolled.
Financed by beneficiary premiums and federal general revenue. Current monthly premiums are $93.50. Starting this year, individuals whose taxable income is more than $80,000 will pay a higher premium.

Part C Medicare Advantage managed care plans provide health care normally covered by Medicare Parts A and B. They may also provide some other benefits, including prescription drugs, not covered by traditional Medicare. Oart C is voluntary; about 7 million beneficiaries are enrolled.
Financed by Medicare and beneficiary premiums, which vary among plans.

Part D Medicare prescription drug plans come in two types, those that just cover prescription drugs and those that cover drugs as part of a broader managed care benefit. Part D is voluntary. About 9.2 million beneficiaries are in stand-alone drug plans and about 5.1 million are in managed care drug plans.
The plans are private and financed by Medicare and beneficiary premiums, which vary among plans.
-- Larry Lipman

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Home > Medicare Monitor > Archives > 2008 > January > 31 > Entry

Part D: 3.1 million switched plans

By Larry Lipman | Thursday, January 31, 2008, 04:23 PM

About 3.1 million Medicare beneficiaries switched prescription drug plans last fall, according to figures released Thursday by the federal government.

Of those who switched, about two-thirds were low-income beneficiaries who were automatically reassigned so they would not have to pay a monthly premium.

The total number of beneficiaries enrolled in private drug plans under Medicare Part D increased by 1.5 million to 25.4 million, according to the Centers for Medicare and Medicaid Services.

Roughly 40 million elderly or disabled people, or 90 percent of the 44 million Medicare beneficiaries, now have some form of prescription drug coverage including 6.6 million in an employer- or union-sponsored retiree plan and 7.5 million covered by other federal or private plans, the agency reported.

Meanwhile, the federal cost of program is expected to be $117 billion lower over the next 10 years than had been projected last summer. The total expected cost to Medicare from 2008 to 2017 dropped from $915 billion to $798 billion.

A CMS news release attributed the reduced cost estimate to a slow-down in the rise of drug prices, lower estimates of how much the private plans will cost, and higher-than-predicted rebates from drug manufacturers.

As we enter the third year, Medicare’s prescription drug benefit is proving a resounding success,” Health and Human Services Secretary Mike Leavitt said in a statement. “Enrollment continues to rise, customer satisfaction remains very high, and costs for beneficiaries and taxpayers are considerably lower than original projections.

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