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
© Avalere Health LLC
Page 2
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)
© Avalere Health LLC
Page 3
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
© Avalere Health LLC
Page 4
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
© Avalere Health LLC
Page 5
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
© Avalere Health LLC
Page 6
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
© Avalere Health LLC
Page 7
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?
© Avalere Health LLC
Page 8