270,000 low-income Medicare beneficiaries in California will be assigned new prescription drug plans

About 270,000 low-income elderly and disabled Californians will automatically be assigned to new Medicare prescription drug plans Jan. 1, 2007, because four plans will no longer be available next year, the Los Angeles Times reports.

The change is "raising concern about a resurgence of the coverage glitches," according to the Times. CMS in a recent news release said that "in California, 100% of low-income beneficiaries will not need to switch plans to continue to receive this coverage for a zero premium."

However, the National Senior Citizens Law Center in Oakland found that four of the 10 drug plans for low-income beneficiaries will not be available next year.

Two of the plans -- PacifiCare Saver Plans and United HealthRx -- will be withdrawn.

The other two plans -- AARP MedicareRx and Health Net Orange 008 -- are projecting premiums that exceed the limit to qualify for a government subsidy for low-income seniors.

About 70,000 beneficiaries who were enrolled in the Health Net plan will be transferred to another plan offered by the company, and about 200,000 beneficiaries from the other three plans will be transferred into the AARP MedicareRx Plan Saver.

Medicare spokesperson Jeff Nelligan in a statement said the "change will be seamless" for beneficiaries who are transferred to plans administered by the same companies.

However, NSCLC attorney Jeanne Finberg said there is no guarantee that the new plans will offer the same coverage to beneficiaries.

She added, "Last year, the auto-assignment process was very disruptive and confusing.

We were pleased initially when we heard there wasn't going to be any disruption, but now we are alarmed that (Medicare) seems to be hiding the ball."

Jackie Kosecoff -- CEO of Ovations Pharmacy Solutions, which administers the AARP plan -- said, "I want to assure [citizen action groups] we have taken extraordinary steps to make sure we represent stability and good service" (Alonso-Zaldivar, Los Angeles Times, 10/12).