‘Hopelessly Complicated’ Benefit Plan Signup to Begin
By George Anderson
William Beard, a retired chemist with a Ph.D., told The New York Times, “it’s too complicated to suit me.”
Pauline Olney, a retired nurse, said, “The whole thing is hopelessly complicated.”
What Mr. Beard and Ms. Olney were talking about are the details of the federal government’s new Medicare D drug benefit program. The new plan will begin enrolling seniors tomorrow and will be available to beneficiaries on January 1.
The Bush administration has said that the program will help seniors covered by Medicare to cut their prescription medicine expenses by at least 50 percent, with lower-income consumers achieving far greater savings.
In a radio address on Saturday, Mr. Bush said, “This new benefit is the greatest advance in health care for seniors and Americans with disabilities since the creation of Medicare 40 years ago.”
Most appear willing to test the accuracy of Mr. Bush’s statement, but many say the complexity of the program makes its very difficult to determine which is the right drug plan to join.
Participants in most states have dozens of plans to choose from. They differ on drugs covered, premiums, deductibles and co-pays.
Retailers and others are holding Plan D workshops to help consumers cut through the complexity. Many pharmacists have participated in in-house as well accredited continuing education seminars approved by the Boards of Pharmacy.
Bernie Slome, vice president of business development for the mystery shopping and research firm ICC/Decision Services [a RetailWire sponsor], said that the complexity of the
program led his company to create an auditing program to help clients determine just how well pharmacists understand Plan D and are communicating that information to seniors interested
in joining.
“This is a unique opportunity for drug store chains to enhance their customer service and, ultimately, their sales,” he said. “Many people are unclear as to the particulars of the new rule; who better than the trusted pharmacist to explain the rules, thus giving comfort and assistance to the consumer who is asking.”
“If you don’t measure it, you can’t improve it,” he said.
Moderator’s Comment: Are pharmacies ready to counsel seniors on Plan D? Will the way pharmacies handle this have an impact on where consumers shop for
prescription medicines in the future? What retailers have impressed you with their communication efforts related to Plan D? –
George Anderson – Moderator
- Confusion Is Rife About Drug Plan as Sign-Up Nears – The New York Times
- President’s Radio Address – The White House
- How do you ensure that you are properly prepared for the new Medicare Part D program? – ICC/Decision Services
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7 Comments on "‘Hopelessly Complicated’ Benefit Plan Signup to Begin"
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This whole thing immediately reminded me of that study, I think by Bill Bishop, where providing too many choices left shoppers either too confused to buy anything, or believing they actually had fewer choices. I bet a lot of people won’t read the brochure, and will just go to their pharmacies to be steered. So, sure there’s opportunity here.
When I read Plan D, all I could think of was why does the government provide a multiple choice, beneficial program in such a possibly intimidating wrapper to people who are trying to slow down? Most recipients will go to their local pharmacies for clarity. May those pharmacists do their homework thoroughly so they can counsel wisely.
Perhaps this new retailer function – teaching seniors about various prescription plans – will put to rest the ongoing debate in these spaces regarding the day-to-day usefulness of on-site pharmacists. Can our government position this as a way they’re supporting business, by driving more traffic to retail stores? They’ve already caused businesses to spring up around the daunting tasks of making Federal disability claims and qualifying for electric mobility carts, so could a business devoted to deciphering the new prescription benefit plan be far behind?
One of the points raised in the NY Times piece was particularly relevant. Apparently not all pharmacies will offer all plans. So the booklet sent to people’s homes will not always be helpful or relevant and explanations by pharmacists will be essential. Especially if they have made a decision themselves as to which plan is best for their customers and can explain why they recommend it.
The new plan D is not hopelessly complicated if people would take the time they spend complaining about it and read the information the SSA sent all eligible enrollees. As someone who is affected by this plan, I recently attended a seminar given by my Medicare Advantage HMO. When the 100+ in attendance were asked who had read the brochure, my hand was the only one raised.
The only complicated thing is the inability to know what the $ charge against your $2250 initial benefit will be for each medication you take by an insurer before you make your choice.
As for the poll question, the pharmacy’s materials will get less attention than the aforementioned SAA brochure mailed to every eligible household and, therefore, will have little or no impact.
In the end, the winning pharmacies will be those affiliated with the plans (both freestanding and HMO inclusive) that enroll the greatest numbers and, ultimately, stretch the $2250 benefit the furthest.