Medicare's new private stand-alone drug plans vary significantly - in terms of covered drugs, out-of-pocket costs for specific medications, and restrictions placed on the use of certain drugs - according to a new analysis released today by the Kaiser Family Foundation.
“The drug law was designed to encourage competition among plans, and in that respect, it's working. But because there are big differences from plan to plan, choice matters,” Kaiser Family Foundation President Drew E. Altman said. “What’s not yet clear is how well people with Medicare can sort through all these differences to make informed decisions.”
The study examined formularies, drug costs and utilization management tools in drug plans offered by 14 national and near-national organizations. These organizations offer 35 unique prescription drug plans that account for a total of 1,222 of the 1,429 packages available to Medicare beneficiaries. The study examined a sample of 152 generic and brand-name drugs, selected to include both drugs commonly used by Medicare beneficiaries, such as those treating high cholesterol and high blood pressure, as well as some less common, high-cost drugs used to treat specific conditions such as osteoporosis and rheumatoid arthritis. The study was conducted by Jack Hoadley of Georgetown University, Elizabeth Hargrave of the National Opinion Research Center at the University of Chicago, and Juliette Cubanski and Tricia Neuman of the Kaiser Family Foundation.
Key findings include: