Many Insurers Set to Offer New Medicare Drug Plans - 10/11/05

Article from the New York Times Online


In a major step to cut drug costs for older Americans, the Bush administration announced on Friday that 10 companies would offer prescription drug coverage to Medicare beneficiaries in all parts of the country, while many other insurers would sell coverage in specific states, for premiums averaging $32 a month. Each company can offer several options, with different benefits and co-payments. Advocates for the elderly said the large number of choices could confuse beneficiaries. Under the new Medicare law, all 42 million beneficiaries will have access to drug coverage if they choose to sign up for it. Insurers can start marketing on Oct. 1, and people can sign up in the six-month period starting Nov. 15. Drug coverage becomes available on Jan. 1. People who are eligible now but delay signing up will be subject to financial penalties, in the form of higher premiums, for late enrollment.