Medicare Compliance & Reimbursement

MEDICARE PART D:

Beneficiaries Confused About Part D Benefit

Lack of knowledge concerns industry insiders.

Providers that are having trouble deciphering the Medicare Part D drug benefit have company in their confusion: Senior citizens who the new benefit is supposed to be helping.

There are "serious problems" with how little seniors understand about the drug benefit, says Dan Mendelson, president of Avalere Health in Washington, who says many "don't even know a benefit is coming, and those who do know about it are unlikely to understand how complex it is."

"Awareness is creeping up slowly," says George Kelemen, manager of AARP's Medicare Rx outreach campaign. Research in the spring showed that awareness was quite low, but more recent research shows that the needle is moving, thanks partly to press coverage and the CMS campaign.

Despite the popular confusion about the benefit, PDP sponsors are unlikely to engage in long, drawn-out marketing efforts because of federal rules about when beneficiaries can be enrolled and when certain products are approved.

Plans can launch campaigns to broadly educate beneficiaries about Medicare, but they can't market any particular products too early, says Wayne Rosenberger, senior vice president of health care markets for marketing specialist Harte-Hanks Direct in Langhorn, PA.

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