The Washington Post published results of a study that indicate a generally modest level of satisfaction with Part D among enrollees. According to the Post, “Three-fourths of Medicare beneficiaries enrolled in the drug benefit say paperwork to sign up was easy to complete, and almost two-thirds say the program saves them money…”
I’d just point out that seniors are pretty sharp consumers, and the ones who signed up for Part D are likely those who did the math to figure out the cost-benefit.
This is called adverse selection, and is the main reason the program will not be successful over the long term. Simply put, the ones who sign up are the ones who will get more in benefits than they will pay in premiums.
Matt Holt’s Fierce Healthcare points out that the Post erred in stating that 29 million had signed up for Part D – this number actually included all seniors with some form of drug coverage from Medicaid, Medicare Advantage, or other sources, and grossly overstates the actual enrollment – which is about 30% of eligibles.
Also of note is this stat – among all seniors surveyed, (those with and without Part D coverage), 41% approve of the benefit and 45% don’t. Leaving aside the health policy issues of Part D, it sure does not look like a political win for the current Administration.
Apr
12
The Medicare recipients that I have talked with are glad about saving the money on their meds. The early reports by the news media scared many people, but it wasn’t as complicated as had been reported. The news media could have helped the situation by educating more.
Cherilyn – I have no doubt that for the most part seniors who signed up like it – they are saving money. that’s my point – the only ones who signed up voluntarily are the ones who will cost more than they are contributing. This is why the program will fail – those who will not save money will not sign up, therefore they will not defray the costs of those who do.
Cherilyn- I really enjoyed reading this report Thanks for the info. I am working on my dissertation and was wondering has anybody found any information with regards to member satisfaction concerning access and availability to their Part D Plans? specifically in the NYC area? response much appreciated…….