States Told Not to Steer Beneficiaries to Drug Plans -NYT

The Bush administration has told states that they cannot steer Medicare beneficiaries to any specific prescription drug plan, even if state officials find that one or two insurance plans would provide the best deals for elderly people with low-incomes.

States like Connecticut, New Jersey, New York and Pennsylvania have for years had their own programs to help elderly people with drug costs. In some cases, the state coverage is superior to what Medicare will offer. Many states want to continue those programs to supplement the Medicare drug benefit that becomes available in January.

A federal advisory commission said recently that states should be allowed to enroll their low-income Medicare beneficiaries in "one or more preferred prescription drug plans." This would help ensure "continuity of care," it said.

But in a memorandum to state officials, the Bush administration rejected that recommendation.

State programs that steer people to a specific drug plan are "contrary to Medicare policy goals" and "may violate federal fraud and abuse laws," said the memorandum, signed by Leslie V. Norwalk, deputy administrator of the federal Centers for Medicare and Medicaid Services.........MORE.......

http://www.nytimes.com/2005/04/08/politics/08medicare.html?oref=login

"Medicare policy violates federal fraud and abuse laws" ...the new Medicare plan is nothing if not fraudulent and abusive to seniors.

But they are right about it...Pennsylvania is steering all of it's PACE members towards one particular plan (FirstHealth--the same one that they use to run the PACE plan). Strangely enough (or not), going from the Medicare price comparison tables, FH charges WAY MORE for the same drugs as compared to practically any other plan that's on the list (often by 3-5x as much). Supposedly, seniors (or anyone else on the PACE plan) would have to pay more if they enrolled in any other than the state's preferred plan as they're "not compatible".

It's tough to agree with the chimp-in-chief, but I think there's some serious graft going on in this (supposedly) blue state that should be looked into.