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Medicare drug benefit: Blessing or a bane?
This is an archived article that was published on sltrib.com in 2005, and information in the article may be outdated. It is provided only for personal research purposes and may not be reprinted.

A few weeks ago, former Utah Gov. Mike Leavitt, now secretary of Health and Human Services in Washington, D.C., came to Utah to promote awareness of a sweeping change in the Medicare program, namely the addition of coverage for prescription drugs, referred to as Medicare Part D.

When Congress added this benefit to the program last year, it was widely viewed as the single most important change in the popular health insurance program for the elderly and disabled since its establishment in 1965.

That's not to say there was strong agreement on whether it was good or bad, just that it was a very big change. So big, in fact, that someone at Mike Leavitt's level, a Cabinet member in the federal government, has embarked on a 30-plus state tour to educate the public about this option (it is voluntary for Medicare beneficiaries), how to learn more about it and how the government plans to make it available, starting in January 2006.

Gov. Jon Huntsman Jr. and I had the privilege of attending and participating in two meetings related to the secretary's visit to Salt Lake City (he had previously made similar presentations in St. George) - first, to a group of more than 40 organizations representing health professionals, hospitals, senior citizens, consumer groups, local governments, etc., and then a meeting with more than 200 citizens, most of whom were Medicare eligible, at the Columbus Senior Center in South Salt Lake.

When I read the Aug. 17 Salt Lake Tribune article reporting on these meetings, I wondered if I had attended the same meeting as the reporters. Their surprisingly negative take on the event caught me by surprise.

Mike Leavitt is a skilled communicator. He explained with care and clarity the "roll out" of this new program, including a publication to be sent to every Medicare beneficiary in October.

The publication will explain the new benefit, the fact that it is entirely voluntary and that there is a defined period from Nov. 15 through June 2006, for those who choose to take advantage of this new benefit to sign up. Most of the questions from the audience sought clarification, and the secretary's reception was hardly "chilly" like the weather on this rain-drenched morning, nor were the questions harsh or "pointed" as stated in the article.

As the executive director of the Utah Department of Health, I must also clarify an apparent misunderstanding on the part of the reporters. I did, indeed, question Leavitt regarding the "clawback." This unfortunate term refers to funds the federal government expects us to return for the cost of prescription drugs that the state would have spent for elderly citizens who are qualified for both Medicare and Medicaid (the federal/state insurance program for the poor).

In Utah's case, the "clawback" is approximately $13 million. However, this is not money we will "lose," as the federal government through Medicare Part D provides the drug benefit for "dual eligible patients," thus relieving Utah Medicaid from this financial responsibility.

While we continue to negotiate with the federal government on the specifics of this reimbursement, and hope that we will break even, taxpayers of our state need to understand that we are not losing these funds.

I personally consider the Medicare Part D prescription drug benefit a potential blessing to thousands of Utah citizens and older people throughout the country. Admittedly, it is complicated. Individuals and families are going to have to study the menu of plans that will participate in providing this benefit (just like when those of us with employer-based health insurance are given the option of choosing among several competing health insurance plans), and decide if the new Medicare benefit is worth the required "premium" (a relatively modest $32 per month), and co-payments (approximately 25 percent of the drug costs).

I think that many, especially those with high drug costs now, will find that it is. The Utah Department of Health will work with a coalition of organizations throughout the state, headed up by the AARP, to help people understand the benefits and whether or not it is in their interest to participate.

Leavitt, Huntsman and I are committed to making sure Utah citizens are well aware of the Medicare prescription drug benefit and to helping them make wise and informed choices as to whether it's a blessing or a bane for them individually.

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David N. Sundwall is executive director of the Utah Department of Health.

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