Monday, January 11, 2016

Like your Prescription Drug Plan? You May Not Be Able to Keep It


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...


January 8, 2016

 
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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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