Government
Medicare outpatient drug benefit rule unveiled
NEWS IN BRIEF — Posted Aug. 9, 2004
The proposed rule detailing the Medicare drug benefit that will be available to all beneficiaries starting Jan. 1, 2006, was released late last month. After a $250 deductible, the drug benefit will cover 75% of seniors' drug costs up to $2,250 and 95% of drug costs once the beneficiary spends $3,600 out-of-pocket. Low-income seniors will receive additional subsidies to help them with the cost of drugs based on financial criteria that includes only liquid assets and real estate other than homesteads.
The rule also proposes allowing seniors to join managed care plans that would offer them access to preferred-provider organizations and would create new financial incentives for employers to encourage them to maintain their retiree drug benefits.
Note: This item originally appeared at http://www.ama-assn.org/amednews/2004/08/09/gvbf0809.htm.
