CMS has released the list of health insurance companies that have contracts under Medicare to offer prescription drug plans to Medicare beneficiaries. The prescription drug benefit begins Jan. 1 for enrolled elderly and disabled Medicare beneficiaries.
The CMS Web resource "Medicare Prescription Drug Plan Approvals - September 23, 2005" includes state-specific news releases and lists of companies that are approved to offer prescription drug coverage under stand-alone plans and, where offered, Medicare Advantage plans. The resource also lists programs approved to offer plans for beneficiaries who will be automatically enrolled in a prescription program.
These companies can begin marketing their prescription plans to patients on Oct. 1. Medicare beneficiaries must choose and enroll in a plan by May 15, 2006, or pay an additional 1 percent in premiums per month for each month they are eligible but not enrolled.
All plans are required to provide coverage at least as good as that offered by Medicare's standard coverage, which pays, on average, 75 percent of drug costs after a $250 deductible up to a total of $2,250 in drug spending. The coverage also provides catastrophic drug coverage by paying about 95 percent of prescription costs after enrollees pay an initial $3,600 out of pocket.
CMS said beneficiaries would receive the Medicare & You 2006 handbook in October. In addition, the agency plans to unveil additional information via Medicare.gov and through its 24-hour toll-free number, (800) MEDICARE [633-4227]. The new information is designed to help beneficiaries determine the drug coverage that suits their needs, according to CMS officials.
