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Drug bill no thrill for local seniors

As Tampa Bay area retirees learn more about the new Medicare legislation, many aren't excited about their prospects.

James Hlavacek of Citrus County would save about 46 percent on his drug expenses under the Medicare prescription drug benefit that is expected to win final approval in the Senate today.

But members of Congress shouldn't expect a thank you note from Hlavacek, a retired caterer who has no other drug coverage and no particular political preferences.

"I think they're just throwing us a bone again," said Hlavacek, 70, who figures he now pays about $75 a month, or $900 a year, for prescriptions. Under the legislation, his out-of-pocket drug costs would drop to about $400 a year. Add in the $35 a month premium for the Medicare drug plan, however, and Hlavacek's annual out-of-pocket expense would be about $830, only a $70 savings.

"I don't think what they're doing is going to benefit me unless I get really sick," he said.

The prescription drug coverage that is the centerpiece of Medicare legislation has the strong endorsement of President Bush and Republican leaders, and more reluctant support from many Democrats who oppose other provisions experimenting with private alternatives to Medicare.

While architects of the legislation expect it to provide bragging rights in next year's political campaigns, seniors in the Tampa Bay area seem to fall into two camps: unimpressed and afraid.

The unimpressed include Robert Shell, an 88-year-old retired pharmacist in Brooksville who now has no drug coverage. He estimates he pays about $2,400 a year for prescriptions, an amount that would be cut 38 percent under the pending legislation. Add in the $420 a year in premiums for the new coverage and Shell's expenses would drop to $1,320, a savings of roughly $1,000.

"I think the bill is all right, but it doesn't go far enough," said Shell, who identifies himself as politically independent. "They're way short of the goal."

Those who are afraid include seniors fortunate enough to have benefits through a company retirement plan. They worry the bill could jeopardize their coverage.

"I think it will be a good excuse for the company to drop it," said Glenn Paul, a 67-year old retiree in Indian Rocks. Formerly employed by medical device maker Linvatec of Largo, Paul pays about $2,000 a year in premiums so that he and his wife can have the best possible coverage. That includes copays for generic drugs of just $4 for a 90-day supply, with most brands requiring a $30 copay. One particularly expensive drug, which would cost $600 for a 90-day supply without insurance, is available for a $60 copay under Paul's company-subsidized plan.

"If we had to pay for drugs out-of-pocket, it would be well over $10,000 a year," Paul said. "And these are just maintenance drugs."

Tricia Neuman, director of the Medicare Policy Project with Kaiser Family Foundation in Washington, D.C., said the bill in Congress includes subsidies intended to encourage employers to retain existing benefits.

"The bill's subsidies for private employers total about $71-billion of the $400-billion package," Neuman said. "So it's a significant effort to encourage employees to maintain benefits for retirees."

Still, she said a recent study by the Congressional Budget Office concluded that about 2.7-million retirees would lose their current private benefits. About 40-million retirees are on Medicare; about one-third (or 13-million) of them have some employer-sponsored drug coverage.

Judy McAnally of Hudson, who is 64 and disabled, will save 41 percent on the new plan compared to her drug costs under a Humana HMO. Once she pays premiums of $35 a month for the new plan, however, her savings would dwindle to about $250 a year. "I probably still would join," said McAnally, who traveled north of the border during a vacation last summer to save on drugs. "Then I wouldn't have to deal with Canada."

For a fortunate few, it will be difficult to beat their current coverage. Stephen Hale, a 71-year-old Spring Hill resident retired from the U.S. Postal Service, pays a $3 copay for generic drugs and $9 for brands.

"There's always a concern they might change the plan, but I don't think they will," Hale said. "It works for me."

- Kris Hundley can be reached at hundley@sptimes.com or 727 892-2996.

The new Medicare prescription benefit is complicated. But the Kaiser Family Foundation has created a Web site that allows seniors to plug in their current out-of-pocket drug costs and calculate what those costs would be under the pending legislation. The address on the Web is: www.kff.org/medicare/rxdrugscalculator.cfm