Enrollment in the new Medicare prescription drug plan is less than 90 days away, and so far – despite mailings and meetings – Colorado seniors aren’t showing much interest in the multibillion-dollar federal program.
“There are lots of people who just don’t have a clue,” said Eileen Doherty, executive director of the Colorado Gerontological Society.
“We need to be really creating a sense of urgency about this whole thing,” Doherty said.
Michael Leavitt, U.S. Department of Health and Human Services secretary, is scheduled to stop in Denver today as part of a summer-long, 100-city bus tour aimed at promoting the plan.
An estimated 250,000 to 300,000 Colorado seniors and disabled people will have to decide whether to participate in the drug plan, which will cost $37.4 billion nationally in its first year, Doherty said.
The new drug benefit is complicated and confusing, even for those helping seniors navigate the process, said Doherty.
In 2006, the plan’s monthly premium will be $32.20 – a total of $386.40 for the year. Those participating also will be responsible for the first $250 in drug costs.
Participants will then pay 25 percent of prescription costs up to $2,250, and the entire cost of the drugs up to $5,100. Beyond that amount, seniors would pay 5 percent of drug costs.
While congressional budget experts predict the typical Medicare member will save $465 in the drug program’s first year, many seniors are wary of the plan simply because it’s new and untested, said Morie Pierce of Colorado AARP.
Between nine and 20 health- insurance companies will likely offer drug plans in Colorado, Doherty said.
Details will not be available until October.
“I think that’s going to be a major problem,” Doherty said.
The prescription drug plan is voluntary, but for those who don’t enroll between Nov. 15 and next May 15, there is a financial penalty.
After May 15, Medicare beneficiaries will have to pay a 1-percent premium increase for every month they wait to sign up, and they’ll pay that higher price for as long as they participate in the plan.
Enrollment forms will be arriving in Medicare members’ mailboxes soon, and AARP’s message is: “When in doubt, fill it out.”
“Don’t throw it away,” Pierce said.
Of the estimated 43.1 million Medicare members nationwide, federal officials expect 29.3 million to enroll in the new drug-benefit plan in 2006.
Staff writer Marsha Austin can be reached at 303-820-1242 or maustin@denverpost.com.
