This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.
What people want to know:
Here are answers to some of the most common questions Utahns have about the new Medicare prescription drug benefit program, according to advocates and queries from readers of The Salt Lake Tribune. To read more about the late penalty and available help, see page A12. Who qualifies for the new Medicare prescription program?
Anyone who is 65 years or older and those who qualify for Medicare under other criteria.
Will the program save me money?
Advocates say most people will save money. The biggest winners: seniors with low incomes, those with exorbitant drug expenses or no existing coverage. The savings are likely to be less significant for healthy seniors. For them, this is insurance against future catastrophic illnesses that are treated with drugs.
What are the insurance companies up to? What's in the fine print?
As with any insurance product, companies are in this to make money. Some will succeed, attracting adequate numbers of enrollees to make it worthwhile. Others won't, and will likely eventually drop out.
Experts say premiums are likely to increase in cost in the future, just as costs of other health benefits programs do.
The bet is that the insurance companies will be able to negotiate lower drug prices on behalf of their subscribers.
Why did Medicare decide to run the prescription program through private insurers?
In 2003, Congress approved a market-driven approach to dealing with the exorbitant medication costs being borne by the nation's senior citizens, rather than attempting to implement federal controls on drug pricing. The government hopes competition among the private insurers will provide more choice for seniors and drive costs down.
Why is there a late penalty?
Like any insurance pool, all participants pay in so coverage is available to those who need it. In this case, healthy seniors will help pay for those who are sick. The penalty is a prod to help encourage as many people as possible to join up.
What about the Medicare drug discount cards?
The cards were a temporary way of helping to reduce drug costs. They may be used until your new plan coverage begins or May 15, 2006, when they expire.
Why are there so many plans to sift through?
No one knew how many insurers would opt to participate; initial estimates were that most states would have at least two companies offering plans. But far more companies opted in; there are at least 40 insurers offering plans in most states.