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Insurance Gap Leads Some Elderly to Forgo Medicine

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by: Kevin Freking, The Associated Press

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Many elderly individuals, facing rising medical costs, are being forced to sacrifice care or confront severe financial hardships. (Photo: Jim Cole / AP)

    Washington - Many people in Medicare with diabetes, high blood pressure and other chronic conditions stop taking their medicine when faced with picking up the entire cost of their prescriptions, researchers say.

    About 3.4 million older and disabled people hit a gap, known as the doughnut hole, in their Medicare drug coverage in 2007. When that happened, they had to pay the entire costs of their medicine until they spent $3,850 out of pocket. Then, insurance coverage would kick in again.

    About 15 percent of those hitting the coverage gap stopped their treatment regimen. That rate varied depending upon illness. For example, about 10 percent of diabetes patients stopped buying the medicine, as did 16 percent of patients with high blood pressure and 18 percent of patients with osteoporosis.

    The drug benefit, which began in 2006, has come in under budget. Most participants report they are satisfied with the program. But many lawmakers and health analysts say improvements could be made.

    "If a new president and Congress consider changes to the drug benefit, it will be important to keep in mind that the coverage gap has consequences for some patients with serious health conditions," said Drew Altman, the chief executive officer and president of the Kaiser Family Foundation. The foundation conducted the study with researchers at Georgetown University and the University of Chicago.

    The Republican-led Congress in 2003 crafted the doughnut hole as a way to make the drug benefit more affordable for the federal government.

    The researchers based their findings on pharmacy claims data provided by IMS Health, a company specializing in collecting health care data. They excluded people who get extra help in paying for their drug coverage because of their income; they do not pay the full cost of medicine even when in the doughnut hole.

    When looking at spending by people who did not receive the extra help, researchers could determine when they hit the coverage gap, which began at $2,400 in total drug spending. They also could determine when they passed through the gap and catastrophic coverage kicked in.

    The researchers focused their analysis on eight categories of drugs. Those least likely to stop taking their medicine were Alzheimer's patients, at 8 percent. Those most likely, at 20 percent, were patients taking medicine for heartburn, ulcers and acid reflux disease, 20 percent.

    Jeff Nelligan, a spokesman for the Centers for Medicare and Medicaid Services, said the coverage gap kicks in after participants have saved about $1,600 on their drug costs, on average. He also noted that many plans offer some coverage when beneficiaries hit the doughnut hole. Those plans cost at little as $28.70 a month, and are available in every state for less than $50 a month.

    "We urge beneficiaries to choose wisely when selecting their drug coverage," Nelligan said. "Again, we emphasize that any changes to the coverage gap would need to come from Congress."

    The share of Medicare recipients who reached the doughnut hole varied widely by region. About one-third in Arkansas and seven states in the Northern Plains hit the coverage gap in 2007, but only 12 percent in Nevada did.

    Researchers said such regional differences may occur because of physicians' prescribing patterns as well as overall health of the population. A separate factor may be enrollment in Medicare Advantage plans. Such plans offer comprehensive health coverage on top of the drug benefit. Regions where Medicare Advantage plans were most prevalent had fewer enrollees hit the coverage gap, which could reflect stronger management of drug use.

    Democratic lawmakers have led efforts to let the government use its purchasing power to negotiate cheaper drug prices. They say the savings could be used to reduce the coverage gap, though the Congressional Budget Office projected that the legislation would not lead to any significant savings.

    About 5 percent of the people who hit the Medicare coverage gap switched to another medication, most often a generic drug, while 1 percent reduced the number of medications they were taking in a particular class of drugs, the report said.

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Because I have been blessed

Because I have been blessed with the opportunity to spend so much time outside the United States and consequently experience first hand the reality of two very distinct systems of health care, - the U.S private system, and the single payer European system, I thought that I should share some of my impressions. Here goes. The United States has a health care system that is at its crudest akin to a dysentery ward with pay toilets. No money and the afflicted shits in his pants. The European system more closely resembles a dysentery ward with free toilets, only 35- 75% of which are functioning on any given day. If you can hold on, you might make it, if not… Of the two systems, I would have to go with the European version. At least here everyone has some chance of getting to the toilet. And of course my analogy is very crude, like the joke about a trade union without jobs being like a vampire without blood to suck. In truth, for all the red tape, screw ups, and half truths slung at it by its critics-private insurers for the most part- single payer coverage is the best choice for any country with even a modicum of concern about its citizen’s well being. In Europe people certainly complain, but they are spared the fear that a major illness will leave them destitute. As to provide some background I will share with you from my own store of personal experience. This year, my wife suffered a stroke while on a trip with students in the university program she works for as housing director. All medical costs and prescriptions are covered by social security here in Spain. Believe me, we have had our share of worries. Who wouldn’t? But never have we worried about things such as what our “cost conscious” insurance company would or would not pay for. And something else, my wife has a pre existing heart problem. In the US, there is a very high probability that she would not be able to get private coverage. In Spain this never crosses our minds. But what about quality? And what about the personal attention provided by the lovable old family physician, the cornerstone of American family health care according to insurance industry propaganda, the man who socialized medicine plans to put out to pasture? Well, sure Bill Gates probably gets better care under his private plan, but recent studies find that workers in England receive care as good as affluent Americans with top private plans. The US spends more than any country in the first world, but ranks way down the list in terms of “bang for the buck”. As for the personal touch, there is a grain of truth here. Last year I saw a private specialist and must admit that I was impressed by the superior care I got from him in contrast to the impersonal treatment that the brutally overworked and underpaid public doctors had given me. What can I say? Money gives you options. In fact for these reasons many people in Spain carry private insurance. They use it to see primarily to see doctors more quickly- yes the waiting at social security can be daunting, especially for tests. However, if they have a major illness they go to the public providers. And this two-tier system also provides competition that keeps the cost of private insurance down. I only paid 85 dollars a month for a policy that would have cost hundreds or even thousands in the US. It has already been very clearly shown that the American public wants something important done about the problem. So we can probably expect a typically political solution to the problem. As soon as the next president is installed in the White house, health care will be made to more closely resemble the single payer systems of Europe. And what will the first step be? Why is it not obvious, pay toilets that are out of service 35-/75% of the time.

Unfortunately, for women who

Unfortunately, for women who have had breast cancer, there is no generic drug replacement for the medication they must take to help prevent a recurrence. It's a very expensive drug. The donut hole could be a grave for some of these women.