Human Services News

Families USA: Bush Administration Lowers Expectations for Seniors’ Participation in Medicare Part D Program

Washington, D.C. -- A report released today found that the vast majority of new Medicare Part D beneficiaries already had prescription drug coverage before the program started earlier this year and, in an effort to downplay this situation, the Administration has significantly lowered its own enrollment projections.

The analysis, released by the consumer health organization Families USA, shows that---according to the Administration's original estimates---the program's performance is falling well short of expectations.

The report shows that through mid-January 2006, only 3.6 million new beneficiaries had enrolled in stand-alone Part D plans.

3. The program is reaching too few of the people in greatest need of prescription drug coverage---seniors and people with disabilities who qualify for the low-income subsidy (or "Extra Help") that accompanies the Part D program.

A key objective in the creation of the Medicare drug benefit was to ensure that low-income seniors and people with disabilities would be able to afford the prescriptions they need.

Other beneficiaries with limited incomes and assets qualify for a separate subsidy program for which they must apply.

So far, only one out of five of those who need to apply for this separate program have actually signed up, and fewer than 5 percent of those eligible have completed the process and enrolled in a Part D plan to receive prescription drug coverage.

Some of the reasons point to the complexity of the program and the considerable costs for most beneficiaries.

"It is truly disappointing to see such a large number of seniors not get the benefits to which they are entitled," said Pollack.