Transcript Part_D
Medicare drug rollout leaves seniors frazzled Overloaded Web site adds to frustration for many By Sharon Terlep / The Detroit News http://www.detnews.com/2005/business/0511/16/C01-383581.htm Glitches • ROYAL OAK -- Clutching pill bottles and paperwork, a swarm of seniors streamed into Beaumont Hospital in Royal Oak on Tuesday for what turned out to be a glitchriddled rollout of Medicare's prescription drug coverage. • The Beaumont sign-up was the first of at least 18 events to be held throughout Metro Detroit to help people enroll in the long-awaited plan that for the first time will help elderly and disabled Medicare recipients pay for prescription medicines. • But within hours of opening, the federal Web site offering online enrollment became overloaded with users, compounding the already widespread confusion over which of dozens of plans to choose. The Menu! • The stakes are high for the more than 40 million U.S. seniors and disabled adults eligible for the prescription drug benefit. • In most states, they will have more than 40 plans to choose from that offer an array of benefits. Michigan's seniors can pick from 65 Medicare health plans, at least 38 of which will include the prescription coverage. Premiums will range from $22 per month to $133. • Coverage becomes effective Jan. 1 for those who sign up before then. Those who miss the final May 15 deadline will pay a penalty equal to 1 percent of their monthly premium for each month they're late. The Economics - 1 • $250 Deductible • Monthly Fee • After $250 deductible, Part D pays 75% of expenditures UP TO total of $2,250 • From $2,250 to $5,100, Part D pays NOTHING. • After $5,100, Part D pays at rate of 95% The Economics – 2 Medicare Part D 25000 Other Goods 20000 15000 10000 No Ins 5000 w / Ins 0 0 1000 2000 3000 4000 5000 6000 7000 8000 Prescription Charges 9000 10000 Thoughts • Break-even is at $850. • Savings between charges of $2,150 and $5,200 is approximately $1,050. You’re not allowed to use Medigap to reimburse this. • After $5,100, Part D pays at a rate of 95%.