|
New Medicare Benefits for Seniors
- Overview of the new Medicare law -
The Medicare Prescription Drug, Improvement, and Modernization Act of 2003, signed into law in
December 2003, allows for the biggest improvements in senior health care in nearly 40 years, and will provide seniors with prescription drug benefits and more choices in health care.
For the first time in
Medicare' s history, a prescription drug benefit will be available to the 40 million seniors and disabled Americans in Medicare. This new benefit will help seniors afford the cost of their medicines and will
allow seniors to replace more expensive surgeries and hospitalizations with less expensive prescription medicine.
The new law also gives older Americans more health care choices so they can find the
health coverage that best meets their needs. Importantly, no senior will be forced to change their current coverage if they are happy with it. Seniors can voluntarily sign up for the new prescription
drug benefit. Seniors who want to gain improved benefits such as dental coverage, or eyeglass coverage, or managed care plans that reduce out-of-pocket costs can make those choices as well.
The new law also
makes Medicare smarter and more efficient by providing preventive screenings that will enable doctors and patients to diagnose and treat health problems early.
For example, all newly-enrolled Medicare beneficiaries will now be covered for a complete physical. The Medicare system will now help seniors and their doctors diagnose health problems early, so they can treat them early and ensure a better quality of life. Additionally, all seniors will be covered for blood tests that can diagnose heart diseases and for blood sugar screening tests for diabetes.
Beginning this year, seniors will be able to save 15-20% off the cost of most medicines through a Medicare-approved drug discount card. Seniors will be able to take the card to their local pharmacy and
receive the discount. Since the typical senior spends $1,285 annually on his or her medicines, the card could save a senior who lacks drug coverage as much as $300 annually. The discount card will
provide savings until the full drug benefit goes into effect in 2006.
Beginning in 2006, seniors without prescription drug coverage will be able to join a Medicare-approved plan that could cut their yearly
drug costs roughly in half, in exchange for a monthly premium of approximately $35.
Low-income seniors will receive additional help paying for their medicines including a $600 annual subsidy that will
be added to their drug discount card like a debit card account.
Additionally, seniors with limited savings and low incomes will receive additional benefits in the form of lower or no premiums, deductibles or co-payments.
Private sector employers will receive
incentives to continue to provide drug coverage to their retirees.
Finally, new accounting safeguards will put the program on a stronger financial foundation by alerting future congresses and
Presidents when the program's costs are rising faster than expected so they can address the problem.
|
->