Seniors spent on averageĀ $368 moreĀ than they needed to on drug coverage through Medicare Part D plans in 2009 ā their decisions complicated by the sheer volume of plans availableĀ and difficulties involved inĀ determining what makes aĀ plan a good choice,Ā a Ā released Tuesday has found.
There are 1,736 plans available to Medicare beneficiaries for purchasing prescription drugs through Medicareās Part D program, and, based on 2009 data, thatās about 50 plans per region.
The study authors Ā found, though, Ā that only 5.2 percent of Medicare recipients chose the most economic Part D plan available. This happened despite video tutorials, online materials and printed information guiding seniors to choose an appropriate plan.
Chao Zhou, a co-author of the study and a postdoctoral researcher at the University of Pittsburgh, said thatĀ the experiencesĀ generated by Medicare Part DāsĀ market-based approachĀ could guide the next steps inĀ health care.
For instance,Ā its lessons could be applied to the health lawās insurance exchanges āĀ marketplaces in which people who qualify for subsidies could easily compare plans and costs as they purchase insurance, according to the study.
āIn general this market approach is a good thing, but when there are so many options, we need seniors to choose a better plan,ā Zhou said.
Co-author Yuting Zhang, who is a University of Pittsburgh associate professor, said that plan choices werenāt affected by how sick a patient was or if they had mental disorders. The study did show, however, that excess spending increased with age and varied by location.
The tendency of beneficiaries to āoverprotect themselves by purchasing plans with relatively generous featuresā was also one of the main drivers of excess spending. The authors wrote that some seniors looked past their medication needs to choose plans with low deductibles, and ended up with higher premiums.
Zhang suggested more targeted government assistance might help Medicare recipients better choose their plan. āIf they are able to choose their plans, we could rely on a private market to drive down costs,ā she said.
But one health care advocate said that the tools for choosing the cheapest option already exist .
āThereās so much out there for people to access information,ā said Julie Bennett, a community outreach specialist for HICAP, a Sacramento-based health care counseling and awareness program that is part of the volunteer-based group, .
Bennett, who regularly talks to seniors in northern California about Medicare, said that beneficiaries received ample information in the form of government-distributed āMedicare and Youā books, and an online video tutorial. She said most of the people she counsels, including those living under the poverty level, knew how to access materials on the Internet.
But Bennett also said that the number of variations in each Part D plan was a confusing obstacle to their Medicare choices.
āItās complicated, and every individual has a different situation,ā she said. āWe have to make sure the person weāre helping understands their situation is probably unique.ā