Monday, July 31, 2006

Proof Medicare Drug Coverage was too Complicated

The new Medicare Prescription Drug Coverage plan was supposed to help seniors or or the Republicans pander to drug companies depending on who you listen to. It was widely criticized as having too many plans and being too complicated. Now we have proof that's true. See some of the plans had a gap in coverage called a donut.

Your first x amount spent on prescription drugs was (partly) covered by the plan. Your next y amount was not covered, you had to pay all of it. And then your next z amount was (partly) covered again. So if you had small drug bills you were fine and if you had medium drug bills you had to pay more and if you had huge drug bills you had most of it covered but payed a portion of it yourself.

Now of course this might be difficult to explain to your grandmother. It was all spelled out in the plans but it seems people are starting to hit the donut and are complaining. "They have just learned that their Medicare drug plans are maxing out on early coverage and that they must now spend $2,850 from their own pockets before coverage will resume."

So here's the part that's the proof the plan was too complicated. "According to a report by the Campaign for America's Future, a Washington-based advocacy organization, seniors enrolled in the program at the start of the year will, on average, reach the doughnut hole Sept. 22." There's no way a politician would would structure a new entitlement to piss off millions of seniors a month before elections. This must mean the politicians voting for these plans didn't understand them.

No comments: