Drug Plan for Seniors Profits Companies

Drug companies are eating doughnuts while millions of senior citizens are left with the doughnut hole. Medicare Part D was supposed to benefit older Americans but it has turned out to be a windfall for the pharmaceutical industry.
For years one of the hottest issues in American politics has been the high cost of medicines. Senior citizens were hardest hit and politicians paid attention because older people vote.
Eventually, Medicare Part D was passed with great fanfare and presented as the solution to this problem. Millions signed up, expecting that their drug tab worries would be over.
In the first several months, most recipients were pleased. After paying the $250 deductible, Uncle Sam picked up three fourths of the drug bill. Many didn’t realize that there was a catch in the plan.
Once people’s drug expenses total $2,250 they enter the dreaded doughnut hole. Not only must they continue to pay monthly premiums to insurance companies, they must also pay 100 percent of their prescription drug costs until the total outlay for the year reaches $5,100. At that point, they leave the doughnut hole and 95 percent of their drug costs will be paid until the whole thing starts over again in January.
Many older people now feel betrayed. In the rush to sign up before the May deadline, most were encouraged to pay attention to premiums and formularies to make sure their medicines would be covered. Few realized that come August or September they would be on their own.
Some senior citizens are finding that the bottle of pills that was $20 in July costs more than $150 in August. Now that they are in the doughnut hole, some older people are spending $300 or $400 a month for crucial medications. A premium of $30 or $40 a month that offers no benefits just adds insult to injury.
At the same time seniors are feeling pinched, drug companies are reaping a bonanza. According to the Wall Street Journal, the Medicare Part D benefit is fueling profits for big pharma.
Part D has allowed older folks who used to skip doses or skimp on their medication to take the prescribed dose. This has boosted sales of drugs such as Lipitor to lower cholesterol and Diovan for high blood pressure.
Companies are reporting higher sales and robust profits. That is in part because when the Medicare Part D program was written, the pharmaceutical industry made sure that Medicare would not be allowed to negotiate prices.
Government officials and members of Congress are starting to hear the complaints of seniors who are likely to vote this November. The main solution is to encourage folks with big drug bills to beg their doctors for less costly generic prescriptions.
That may work for some, but not all drugs are available generically. What’s more, readers tell us that certain generics don’t work as well as the brand name medicine. One man found that his blood sugar levels climbed dramatically when he was switched to a generic diabetes medication.
Medicare Part D was supposed to ease the pain of high drug costs. But what started as a good idea has become a confusing challenge for senior citizens. The next five months may be especially difficult as increasing numbers of older people have nothing left but the hole in the doughnut.