News Release

New Progress Report Shows Millions Of Beneficiaries Are Saving Money And Choosing Plans With Enhanced Coverage Options

HHS Secretary Mike Leavitt today released the third in a series of progress updates on the new Medicare Prescription Drug Benefit. The report details substantial increases in enrollment in the past month, as well as new data showing that the vast majority of seniors are choosing alternatives to the standard government-designed plan.

"Enrollment has been accelerating because beneficiaries know that the savings are real and so are the benefits," Secretary Leavitt said. "We expect to see a substantial surge before May 15 - that's why we're encouraging seniors to sign up now so they do not pass up an average savings of $1,100 per person."

The Medicare Part D Prescription Drug plan is now three months old, and more than 27 million beneficiaries are receiving prescription drug coverage. Around 90 percent of Medicare beneficiaries have enrolled in a different plan from the standard plan designed by the government. Many are choosing plans that offer lower deductibles, or no deductibles; fixed co-payments for most drugs; and extra coverage in the coverage gap.

Beneficiaries are not the only ones seeing savings. The overall cost of the program to taxpayers for 2006 has dropped 20 percent since last July's estimate. States will save $700 million in 2006 compared to what they thought they would spend.

In addition, the report addresses efforts being made by the Centers for Medicare & Medicaid Services (CMS) to improve and strengthen the program including:

• Enrollment reconciliation - A relatively small number of beneficiaries were carried on the books of more than one Medicare plan. CMS is working with plans to ensure each beneficiary is enrolled in the plan of their choice.
• Customer service -- CMS has increased its monitoring of plan call centers to ensure beneficiaries are receiving timely and accurate information.
• Transition -- Working with plans, pharmacists and physicians, CMS has provided guidance to ensure smooth transitions to drugs that are covered and, when necessary, to provide timely exceptions.

The report concludes with action steps for the next six weeks, including frequent data exchanges and accuracy checks with drug plans to assure beneficiary information is as up-to-date as possible; monitoring of plan care center wait times; and continued aggressive outreach and education to plans, providers and pharmacists so that beneficiaries have appropriate medications during any transition period.

The �Secretary�s Progress Report III on the Medicare Prescription Drug Benefit� is available at http://www.hhs.gov/secretaryspage.html.

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Last revised: April 7, 2006