In My Opinion
It did not take a lot of analysis to persuade me. The Medicare Prescription Benefit is not a Benefit; it is a Rip Off.Here are the facts: Joining the prescription plan means a $420 annual Premium. There is a $250 annual deductible. The plan pays 75% of Prescription Drugs between the $250 deductible and $2250. From $2250 to $3600 it pays Nothing. After $3600 The Plan pays 95% of prescription costs.
This rather complex formula is plotted in the figure below. The Green Line labeled Cost shows what you will pay for your Drugs. The Red Line shows what you pay without any coverage. The Blue line is your Savings line. Blue = Red - Green .
The Blue line is interesting. You don't save a cent until your drug costs reach $810. The maximum benefit is $1080. Well, you ask, what's wrong with that? If you are unfortunate enough to have bills from $2250 to $3600 you are stuck with no more coverage.
It is not clear to me whether Drugs purchased in Canada will be covered by the plan. I doubt it. That's what many do to Save money. If you save 33% by purchasing in Canada your drug costs are shown by the Yellow Line. This line crosses the Green Line at $1500. That means you don't save a cent until your drug costs reach $1500. $1500 is interesting to me because that's about what I pay each year.
Quite obviously if you can save 40% the crossover point moves further out.
For Most people the wisest thing to do is to self insure and shop for your drugs in Canada.
The big beneficiary of this program is the Drug companies. Seniors joining the plan will buy their drugs at high US Prices. They will be not be covered for Shopping in Canada. The Administration of the program will be oursourced to the Big insurance companies. What is missing is a strong government hand to negotiate reduced drug prices for the Medicare program. Meanwhile the Republicans will fleece the vast majority of Seniors to the tune of $420 a year. If enough seniors join the plan it could become a great source of revenue.
Unfortunately my Congressman, Tom DeLay, is at the Heart of this conspiracy. Writing him would be no help. And President George Bush, the misguided, thinks he is a big hero for providing this Benefit to Medicare recipients.
The only good feature of the program is that you can opt out. Which is what I will do.
Marion said "Your Blood Pressure is too High." I know Why.
Ed H
Dec.31, 2003