Transcript PowerPoint

Enrollment in the Medicare Drug
Benefit
Medicare Congress Audioconference
October 19, 2005
Jennifer Bowman
Avalere Health LLC
Avalere Health LLC | The intersection of business strategy and public policy
Choosing to Enroll in the Medicare Drug Benefit Is a Complex
Decision
 Beneficiary decision includes considering:
» Current drug coverage’s formulary, premium and cost-sharing offerings
» Eligibility and application for low-income assistance
» Comparing plans (many more PDP and MA-PD plans than expected)
 CMS plan comparison tools will enable beneficiaries to compare:
» Pharmacy networks
» Formulary, including drug list and management tools
» Premiums
» Coinsurance or copayment
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CBO Assumptions about Part D Enrollment (1)
Small group of beneficiaries do not enroll in Part D
 6% of Medicare beneficiaries who do not participate in Part B
 7% of beneficiaries enrolled in Part B who are either:
» Active workers receiving drug coverage through employers, or
» Beneficiaries receiving coverage through federal programs (veterans,
federal retirees, and military retirees)
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CBO Assumptions about Part D Enrollment (2)
All retirees either receive drug coverage through an employer, or enroll in a Part D
plan
 30% of beneficiaries enrolled in Part B receive coverage through a former
employer
» Two-thirds of those beneficiaries will see their employers take the retiree
drug subsidy and receive drug benefits through the employer
» One-third are expected to enroll in Part D plans
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CBO Assumptions about Part D Enrollment (3)
All remaining Medicare beneficiaries (25.8 million) are expected to enroll
 Dual eligible beneficiaries (6.4 million)
 Medicare Advantage enrollees (5.5 million)
 Beneficiaries currently receiving Medigap coverage (3.2 million)
 Beneficiaries currently without drug coverage (7.7 million)
Overall, CBO assumes 80% of Medicare beneficiaries will enroll in Part D or receive
benefits through a former employer that takes the retiree drug subsidy
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Experience with MMA Thus Far: Enrollment in the Medicare
Replacement Drug Demonstration
60,000
50,000
50,000
37,359
40,000
30,000
20,000
10,000
0
Number of Beneficiaries allowed to enroll (cap
instituted by Congress)
Beneficiaries Enrolled (as of September 8,
2005)
* According to Avalere Health email communications with Sharon Cardinale, MRDD Outreach
Coordinator, March 29, 2005
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Enrollment in the Medicare Drug Discount Card Has Also
Been Lower than Expected
8
7.3 million
7.3
6.4 million
6.4
7
6
5
4
3
2
1
0
CMS' Initial Projected Enrolled Beneficiaries by
End of 2005
Source: CMS Press Office.
Beneficiaries Enrolled in July 2005
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Key Questions About Enrollment
 Will all Medicare beneficiaries feel comfortable navigating the
enrollment process?
 What will be the impact of low enrollment on participation in private
plans?
 If enrollment is lower than CBO projected, what happens?
» Impact on beneficiaries’ costs
» Impact on the federal government’s costs
 What policy changes may be needed if enrollment uptake occurs more
slowly than expected?
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