Medicare Updates

When Medicare's new prescription drug program rolls out in 2006, it will begin providing coverage for sexual performance drugs such as Viagra, Levitra and Cialis. The additions are estimated to cost the Federal Government $500 billion over 10 years, and has drawn the ire of numerous citizens against wasteful government spending groups. The Bush administration contends that the prescription drug program can cut the cost of drugs in half for the majority of seniors.

MRDD Extended beyond Sept. 30, 2004

The Medicare Replacement Drug Demonstration has been extended beyond Sept. 30, 2004. Under the MRDD, Medicare will help to pay for new drugs replacing those currently covered under Medicare’s Part B. This includes certain drugs for treatment of serious diseases such as rheumatoid arthritis, cancer, & multiple sclerosis among others. The effects of MRDD can produce savings as high as 90% depending on the cost of the specific drug. In order to qualify, you must have both Medicare Parts A & B, live in one of the 50 U.S States or the District of Columbia & have doctor certification that you need one or more of the covered drugs. For more information, visit www.Medicare.gov.

Reduction In Future Medicare Spending?

Federal Reserve Chairman Alan Greenspan has warned that the U.S will face "abrupt & painful" choices in the future unless officials limit Medicare & Social Security benefits for baby boomers. Greenspan believes that the addition of the New Medicare prescription drug benefit program comes at an inopportune time, citing the recent surge in health care costs at a time when the population of retirees is increasing. One solution suggested by Greenspan would be an increase in payroll tax to help account for inflated health care costs.

Medicare Obesity Coverage

After 40 years of stating that obesity was a personal problem and not an illness, Medicare has changed its position on the matter, now defining obesity as a medical problem that can be covered under the Medicare program. Under the new definition, surgeries such as those designed to shrink the stomach along with in-hospital diet/excercise programs could be covered under Medicare. Of the 40(+) million Americans on Medicare, approximately 37% are overweight and approximately 18% are obese.

Medicare Modernization Act: Prescription Drug Discount Card

The recent implementation of the Medicare Prescription Drug, Improvement, and Modernization Act of 2003 has created a new, voluntary discount card for purchasing prescription drugs, & a low-income Transitional Assistance Program that will be in effect until Medicare’s Part D becomes available in 2006. Estimates suggest that the prescription drug discount card has the ability to save recipients anywhere from 10% - 25% on the cost of covered drugs.

Transitional Assistance Program

If you have an annual income that is less than or equal to 135% of the federal poverty limit then your prescription drug discount card will come with a credit of $600 to be used for the purchase of covered drugs in 2004. This is an annual credit, meaning another $600 credit will be received in 2005 assuming your income still qualifies you. Co-payments will range from 5% - 10% of the $600 credit, & are again dependent on your exact income. Once you have spent your $600 credit, you are responsible for 100% of the prescription drug costs you incur for the remainder of the yr. To apply for the Transitional Assistance Program, you must first report your income on the discount drug card application.

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