Nevada seniors to have choice of Medicare drug providers

Monday, Sept. 26, 2005 | 10:58 a.m.

CARSON CITY -- An estimated 292,000 Nevada senior citizens will have a wide variety of companies from which to choose for their new Medicare prescription drug plan.

Seventeen companies have qualified to provide the voluntary drug plans starting Jan. 1.

Two of the plans will offer coverage for less than $20 per month, officials said.

Medicare recipients will be able to sign up from Nov. 15 to May 15, 2006. Those who sign up after May 15, 2006, will be penalized 1 percent a month.

Michael Leavitt, secretary for Health and Human Services, said Friday: "For premiums that are in many cases much lower than expected, seniors will be able to get Medicare-approved prescription drug coverage that will help protect their health as well as their savings."

All plans must cover at least two drugs in each medication class.

Humana Insurance Company and Coventry Health and Life Insurance are offering Medicare prescription drug coverage in Nevada for less than $20 a month.

The federal government had initially estimated the premiums would be $37 for those on Medicare that choose to join the prescription drug coverage.

Other firms to offer stand-alone prescription drug coverage in Nevada are Aetna Life Insurance Company; Athem Insurance Companies; Connecticut General Life Insurance Company; Marquette National Life; Medco Containment Life Insurance; MemberHealth; PacifiCare Life and Health Insurance; RxAmerica; Sierra Health and Life Insurance Company; SilverScript Insurance; Sterling Life Insurance; Unicare; United American Insurance; United Health Care Insurance and Wellcare Health Plans.

All plans are required to provide coverage at least as good as Medicare's standard coverage, which on average pays 75 percent of drug costs after a $250 deductible. The 75 percent on payments goes up to $2,250 and then there is a hole in the coverage in which Medicare insurance will not pay until the person's drug bill reaches $3,600. After that Medicare will pay about 95 percent of the drug costs.

Dr. Mark McClelland, administrator of the federal Centers for Medicare & Medicaid Services, said, "As a result of the strong competition in Nevada, Medicare coverage will include options that cost less and also that provide coverage that goes beyond Medicare's standard benefit."

People with Medicare in Nevada can also get drug coverage with additional benefits and even lower total out-of-pocket costs by enrolling in Medicare Advantage plans. These options include one new statewide PPO plan and in 2006 three managed care plans that will provide prescription drug coverage at no additional costs.

Sierra Health and Life Insurance, Health Plan of Nevada and PacifiCare will offer at least one plan in Nevada with no additional premiums for drugs for their members.

The federal agency said it would mail in early October a handbook explaining the program to every Medicare household. It will tell seniors how to enroll and other details.

It said that seniors who have drug coverage with former employers will get information by Nov. 15 on how that policy will work with Medicare's new benefits.