Washington politicians are considering plans to fundamentally
alter the Medicare Part D prescription drug plans which would have the effect
of reducing access to many kinds...
By Greg Allen
January 8, 2016
Washington politicians are
considering plans to fundamentally alter the Medicare Part D prescription drug
plans which would have the effect of
reducing access to many kinds of drugs and severely curtail the
introduction of new drugs.
Medicare Part D was implemented in
2006, giving seniors and those with disabilities access to prescription drug
coverage at an affordable price. It does this by utilizing a market-based
structure that lets private insurers compete against one another to offer a variety
of plans to enrollees.
This competitive environment has
resulted in low costs and an abundance of choice. Heading into next year, New
Jersey beneficiaries can choose from 25 different prescription drug plans.
Thanks to these diverse offerings, the state’s lowest monthly premium will be a
mere $18.40. All in all, Part D costs the government $349 billion less than
initially expected from 2004 to 2013.
Part D helps improve patient outcomes. A recent study reveals
that better access to medication through Part D caused an 8 percent decrease in
hospital admissions among seniors.
Part D has been one of the few parts
of Medicare to work reasonably well and enjoys wide popular support.
By expanding the customer base of
seniors with prescription drug coverage, Part D has incentivized drug companies
to increase investments in new treatments and cures. Today, there are more than
435 medications in the development pipeline specifically for older Americans.
This is extremely important given that more than 90 percent of American seniors
have at least one chronic condition and more than 70 percent have at least two
chronic conditions.
Consider the increased research on
Alzheimer’s disease, which affects 170,000 New Jersey seniors. Before Part D
was created in 2003, there were only 18 medicines in development. As of 2013,
that number had skyrocketed to 82.
With all its success, it is no wonder beneficiaries approve of
Part D. In August, a Medicare Today survey revealed that nearly 90 percent of
seniors with Part D are satisfied with their coverage and 85 percent think
their prescription plan is a good value.
A scheme to hand more power to
Washington bureaucrats in the name of “cost control” is a total red
herring. Government control in other areas of drug insurance have proven
to be massive failures for seniors.
Consider Medicaid and the Department of Veterans’ Affairs, both
of which permit federal interference in pricing negotiations, resulting in
restrictive formularies. Under Medicaid, states use “Preferred Drug Lists” that
limit choice among beneficiaries. The VA formulary offers veterans access to
less than 82 percent of the 200 most widely prescribed medications in Part D
plans. On the other hand, Part D plans cover, on average, more than 95 percent
of these medications.
http://senioramericansassociation.com/2016/01/08/like-your-prescription-drug-plan-you-may-not-be-able-to-keep-it/?utm_source=160110SAADBA4U1&utm_medium=email&utm_campaign=160110SAADBA4U1
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