Tuesday, November 23, 2004
The Associated Press reports on a new independent analysis by the Kaiser Family Foundation that shows that the Medicare Prescription Drug plan isn't saving everyone money. Although approximately 19 million people will benetif from the new Medicare drug benefit, 10 million others will pay the same or more for their medications.
"The biggest winners are low-income Americans who will receive government assistance that is projected to reduce their drug spending by 83 percent when the drug insurance program begins in 2006, said the Kaiser Family Foundation. The poorest of these people would spend an average of $90 for medicines, said the study by Kaiser, a health care think tank.
The signature component of last year’s Medicare law, the prescription drug benefit will vary widely in its impact on the 29 million older and disabled Americans that the Congressional Budget Office projects will enroll, the study said. The CBO said the average savings will be 37 percent in 2006."
In response, the federal Centers for Medicare and Medicaid Services sent a four-page rebuttal of the report, claiming that it is flawed and tends to "understate savings and exaggerate the number of people who would pay more."