Delaying Enrollment in Medicare Rx Coverage Is Prescription for Disaster
By: Source: AARP Bulletin Today Date Posted: 2005-05-26 15:09:06
As my colleagues on the AARP Board of Directors recently discussed the new Part D Medicare Prescription Drug Benefit that begins in 2006, I surprised them when I said I would be among the first to sign up for this program—even though I am a healthy, 74-year-old, successful family physician on no prescription drugs.
I explained that I have seen too many of my patients over the years get hit by sudden, catastrophic health problems, such as cancer or a heart attack, that required prolonged use of potent, highly expensive drugs that sometimes cost more than $500 a day and quickly ate up a large portion of their savings and income and drastically changed their quality of life.
I remember one patient, a widow in her 70s who had retired as a lifelong secretary. She had a small home and some savings but mostly lived on her Social Security benefits. She liked to grow flowers and made a couple of trips with friends each year. She had Medicare but no supplemental drug coverage because it was too expensive, and she always had been healthy. When her cancer was detected, it was inoperable but was treated with oral chemotherapy—various prescriptions that work better than radiation and other treatments against certain kinds of cancer. Her condition became complicated by diabetes and fluid in the lungs. In a short time, her medication costs of more than $300 a day wiped out her meager savings, and she only existed by taking a reverse mortgage on her home.
I view the estimated $35-a-month premium for the new drug benefit like inexpensive catastrophic protection, much like my car insurance. I pay more than $1,700 a year for this auto insurance to protect myself against catastrophic accidents.
So, even if I don’t use it, prescription drug coverage for $420 a year doesn’t sound so bad—even with the $250 deductible and the “donut hole” in coverage if I do use it. After all, if I exceed $5,100 in drug costs in a year, 95 percent of all further drug costs will be covered.
Also, I know that, for every month I delay in signing up for the benefit after the initial enrollment period, I will pay an additional 1 percent premium per month if I decide to enroll later.
So why wait? Seems like a good bargain to me.
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