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With the start of the new Medicare prescription drug program just around the corner, senior citizens are getting some welcome news. The question is: are they paying attention?
In late August, the Department of Health and Human Services said that premiums for the new benefit–called Medicare Part D–will be lower than expected, and benefits better, as robust competition among companies offering the drug plans drives costs down. Average premiums will be just $32 a month, and seniors in almost every state will have access to plans with premiums of less than $20 a month, the agency said.
Meanwhile, a PricewaterhouseCoopers study found that the benefits to seniors will be substantial. Low income seniors will see their average drug bill slashed by about $1,500–in Colorado the savings will be $1,480. Nearly all Medicare beneficiaries stand to save nearly $700 a year. Seniors without coverage today will see their drug bills slashed by two-thirds, on average. Other analyses have shown significant savings.
The drug benefit is the most significant change to senior health care since the inception of the Medicare program. It represents a monumental collaboration among government, non-profit and private entities to resolve a fundamental healthcare issue: the need for access to affordable prescription drugs.
The problem is that too many seniors still aren't focused on this benefit, despite the fact that enrollment begins very shortly. Few even appear to understand what an incredible deal they are being offered.
A recent study by the Kaiser Family Foundation found that just 37 percent of retirees said they thought the drug benefit would be helpful to them. Just over half understood that they need to sign up to get the new benefit, and only 22 percent said they plan to enroll. That's a troubling figure given that the federal government expects 30 million seniors to sign up.
This lack of awareness isn't for lack of trying to educate seniors. U.S. Department of Health and Human Services Secretary Mike Leavitt has been traveling the country to tell retirees about the program. The AARP is mounting an extensive multimillion dollar information campaign. The private sector also is actively involved in broad education and community outreach campaigns in tandem with these efforts.
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Companies that are partnering with the federal government to provide the drug benefit, such as UnitedHealth Group, which specializes in meeting the health needs of seniors, have placed a high priority on consumer education and outreach as well. So far, UnitedHealth Group has distributed more than nine million copies of its Show-Me Guide, a 24-page educational booklet on the new Medicare drug program.
If the new Medicare Part D program is to succeed it is now up to seniors to do their part.
They need to take advantage of these resources–today–to understand how the program works, whether the coverage is superior to what they currently have, how to take advantage of it, and the benefits of signing up sooner rather than later. Enrolling later than May 15, 2006 entails late fees.
Starting October 1, the private plans administering the new benefit will be free to market their products, filling up seniors mailboxes with potentially dozens of offers. So, seniors and their loved ones will also need to carefully read the promotional information. What are the benefits? What are the costs? Which plan is best suited to a particular senior's individual needs? As Charles Johnson, director of Illinois Department on Aging put it: "Whatever you get in the mail, do not throw it away."
This responsibility doesn't have to fall entirely on the shoulders of today's senior citizens. Their adult children can and should pitch in to help. Who else is better equipped to help senior navigate the options available?
Medicare Part D is the most significant advancement in Medicare since the law was enacted in 1965. But it won't do anyone any good if seniors let it sit on the shelf.
Editor’s note: Wellington E. Webb is the past president of U.S. Conference of Mayors and mayor of Denver 1991-2003.
UnitedHealthcare of Colorado is a client of Webb Group International, a consulting company founded by Wellington Webb in October 2003.
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