The Landscape of Private Firms Offering Medicare Prescription Drug Coverage in 2006

Publication Date: March 2006

Publisher: Henry J. Kaiser Family Foundation

Author(s):

Research Area: Health

Type: Brief

Coverage: United States

Abstract:

The Landscape of Private Firms Offering Medicare Prescription Drug Coverage in 2006 describes key characteristics of the organizations that offer the new Medicare drug benefit and analyzes how companies are positioning themselves to attract Medicare enrollees.


• Seven of the 10 organizations that sponsor stand-alone prescription drug plans nationwide are based in commercial insurance firms with substantial Medicare Advantage experience, and three of the 10 firms are in the pharmacy benefit management and service sector.


• Nine of the 10 organizations that sponsor stand-alone prescription drug plans nationwide offered a Medicare-endorsed discount card in 2004 and 2005 or partnered with a firm that did.


• Most of the major firms that dominated the Medicare Advantage program prior to 2006 have expanded their options and offer stand-alone prescription drug plans to appeal to a broader range of beneficiaries.