Posted At CRM Buyer

By: Richard Benedetto

President Bush has enlisted federal, state and local government agencies along with faith-based and community groups such as Catholic Charities and AARP to partner in the program and help spread the word.

President Bush kicked off yesterday what he called a "massive" nationwide outreach to millions of seniors to make sure they are enrolled for the first-ever Medicare prescription-drug benefit that begins in January.

Seniors can apply between Nov. 15 and May 15. Various local groups and volunteers will help with the process, from explanation to application. Those who enroll by the end of the year will be covered beginning Jan. 1.

Taking It Personally

Bush, who takes to the road today to carry the message to Maple Grove, Minn., said he is personally spearheading the 11-month education effort because he is worried that those low-income seniors who most need coverage might not get it. He said he is concerned that potential beneficiaries may be confused by the forms or unaware of the benefits and how to apply for them.

getting a temporary drug-discount card program for seniors off the ground in the past year.

Bush promised seniors prescription-drug coverage in his 2000 campaign, and he made the program a major priority when he prodded Congress to pass it in 2003. Offering the benefits will cost US$500 billion in its first eight years and $700 billion over 10 years, program officials estimate. The original 10-year cost estimate was $395 billion.

Rep. Charles Rangel, D-N.Y., told House Republicans last year, "You would have not had the votes to pass this bill if the true cost of the bill was known."

Bush has enlisted federal, state and local government agencies along with faith-based and community groups such as Catholic Charities and AARP to partner in the program and help spread the word.

'Good Deal'

"This is a good deal, and people need to take advantage of it," Bush said in his kickoff speech delivered at the U.S. Department of Health and Human Services, which administers Medicare.

Fewer people than expected have signed up for the cards, and there were complaints the paperwork was too complicated and the many options too confusing.

Mark McClellan, director of the Centers for Medicare and Medicaid Services, said the administration has "learned from our experience" and pledged to get the new program off to a smoother start.

Bush said seniors will receive in the mail in October a handbook from Medicare explaining the drug options along with a four-page application for benefits. He said no financial documents or complicated records will be required. "Over the next 11 months," Bush said, "we will work to ensure that every American on Medicare is ready to make a confident choice about prescription-drug coverage."

Medicare Shortfall

Medicare, in its current form, does not cover prescription drugs for seniors. The new program changes that. Medicare beneficiaries will be offered a range of prescription-drug plans to choose from. Costs will vary depending on the type of plan and the income of the recipient. Most beneficiaries will have 95 percent of the drug costs covered once they spend $3,600 of their own money in a year. Most will pay a monthly premium of about $37, a $250 deductible and a share of their drug costs. Seniors who have other prescription-drug coverage can keep it and not participate in the program.

Low-income seniors, about one-third of the total, will be eligible for a drug benefit without premiums or deductibles, and more than 95 percent of their drug bills will be covered.