« Ind. Decisions - Billboard controversy is spotted in new venue | Main | Environment - Group tackles runoff at Lake Wawasee; Much more on Confined Feeding »

Sunday, January 29, 2006

Ind. Gov't. - Indianapolis Star today reports on high cost of heath insurance and problems with Medicare drug plan

"Coverage denied: The alternatives are few when health insurers don't want you" is the headline to this story by Daniel Lee, on the front page of the Indianapolis Star business section today. The subject is the difficulty of obtaining, and the high cost of, health insurance for people below 65 who have taken early retirement.

On the front page of today's Star is this lengthy story by Tammy Webber headlined "Medicare plan gives Hoosiers a headache: Confusion, frustration mar start of prescription-drug benefit." This problem has been reported widely in papers from other states, but this is the first Indiana coverage I recall seeing. Some quotes from about half-way into the story:

State defers to feds. For now, Gov. Mitch Daniels has declined to step in.

State Sen. Vi Simpson, D-Ellettsville, called on the governor to make state money available temporarily to help cover drug costs until the glitches are worked out, just as more than 20 other states have done. The federal Centers for Medicare & Medicaid Services has agreed to reimburse states.

But Indiana officials don't think the problem is extensive and probably will let the federal government resolve the issues, said Dennis Rosebrough, spokesman for the Family and Social Services Administration, which oversees the state's Office of Medicaid Policy and Planning.

"People going days without necessary medication appears to be less widespread in the state of Indiana" than other states, he said.

Rosebrough said his agency had no hard data to support its observation but came to the conclusion after talking to pharmacists, long-term care facilities and its Medicaid office. "The situation in Indiana is not to the point there needs to be a major policy (shift)," he said.

Simpson and Indiana senior advocates disagree, saying hundreds, if not thousands, of Hoosiers -- especially the poor -- have left pharmacies without needed drugs. Furthermore, they say, pharmacies that are dispensing drugs anyway are bearing an unreasonable financial burden.

"At this point in time, the state has not declared this an emergency situation, which is very sad," said Barbara Burcham, who coordinates Medicare services for the Indiana Association of Area Agencies on Aging and its 16 member offices.
She said some people have used their rent money to pay for medications, while others have called the association's offices in a panic.

Burcham suggested the state could make the money available to the agencies on aging, which could distribute the money to needy Medicare recipients. "When it comes to problems with one individual who needs a medication in order to survive and not have to be rushed to the emergency room, it becomes critical," Burcham said. "Adding even more people makes it more of a snowball going downhill."

Here are some quotes from an AP story from Jan. 24th describing the extent of the problem:
Federal officials said Tuesday they would reimburse states that bought medicine for senior citizens and disabled people who could not get help through the new Medicare drug benefit.

The benefit began on Jan. 1. Under the program, Medicare beneficiaries enroll in private plans that get a government subsidy to provide prescription drug coverage.

But the program got off to such a difficult start that more than 20 states opted to continue emergency coverage for some of their low-income residents. Those residents often didn't show up in pharmacists' computers as being enrolled in a plan. On other occasions, the residents were charged fees for their medicine that far exceeded what they were supposed to pay.

Indiana has not provided such emergency coverage.

See also these Washington Post stories from Jan. 14th ("The States Step In As Medicare Falters: Seniors Being Turned Away, Overcharged Under New Prescription Drug Program") and Jan. 18th ("HHS Works to Fix Drug Plan Woes: Widespread Difficulties With New Medicare Benefit Reported").

Posted by Marcia Oddi on January 29, 2006 09:06 AM
Posted to Indiana Government