Letter: Drug plan needs revisions to help seniors

Wednesday, Dec. 24, 2003 | 8:50 a.m.

The heralded prescription drug plan will be a financial back breaker for many of those who are retired.

The employer, union or agency does not have to offer the same prescription drug plan to those retired and working. This was supported by employers and unions, including the teachers union. The retiree may have to pay a maximum premium of $30 a month plus a $250 deductible and 25 percent of the cost of the medications up to $2,250. After that amount is reached, there is no coverage at all until you have paid out a total of $5,100. At that level, the coverage picks up 95 percent.

The plan will provide a list of specific drugs that it covers. If your medication is not on the list, you will have to pay the entire cost and it counts toward the maximum out-of-pocket costs. You will not be allowed to purchase insurance to cover the cost of your out-of-pocket expenses.

If you retire before you are eligible for Medicare (age 65), you automatically go on this plan.

The 28 percent subsidy, which will be provided to the employer if they decide to keep you insured, will be available if they provide the above plan. They cannot keep your current plan and still receive the subsidy.

To solve the above problems the bill must be amended to grandfather those retired and those 50 and older whom are not yet retired, to remain under the same plan as those working.

LOU DEBOTTARI Carson City