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Medicare Bridge Plan Announced
A coalition of drug manufacturers is working on a plan to
help millions of low-income seniors pay for drugs when they
hit the so-called doughnut hole in the new Medicare drug benefit.
But the government warned such a plan to bridge the program's
coverage gap could run afoul of antikickback laws unless properly
structured.
The drug manufacturers have dubbed their plan Bridge Rx.
When Medicare patients' drug bills reach $2,250 in a year,
or amount to $750 out of their own pockets, they hit this
doughnut hole at which the Medicare plans stop paying the
drug costs (or in some cases pay much less). The plans resume
payment after the patient's drug bills top $5,100, or total
$3,600 in out-of-pocket costs. Under Bridge Rx, the manufacturers
would offer discounts of at least 50% on their drugs when
certain low-income seniors hit the doughnut hole, according
to two people familiar with the manufacturer's plans. Those
in the program would have a co-pay of at least 15%. The companies
hope to announce their plan in April and launch it in May,
these people say.
Medicare beneficiaries would qualify if they earn
between $14,000 and $18,620. Seniors who make less than $14,000
but have too many assets to qualify for the Medicare subsidy
programs, would also qualify.
March 28, 2006 |
