Companies to pitch cheaper Medicare drug plans

By Lisa Richwine

WASHINGTON (Reuters) - Companies that provide Medicare prescription drug coverage will offer most seniors cheaper options for 2007 during an enrollment period next month, U.S. officials said on Friday.

More than 80 percent of Medicare patients will be able to switch to plans with lower monthly premiums if they choose, the Centers for Medicare & Medicaid Services (CMS) said.

Average premiums will remain at about $24 a month, CMS said. Co-payments, deductibles and the drugs that are covered vary with each plan.

Medicare is the federal health insurance program that covers 42 million elderly and disabled Americans. Signing up for prescription drug benefits, which started in 2006, is optional.

The companies that offer Medicare drug plans include Aetna Inc., Cigna Corp., Caremark Rx Inc., Wellpoint Inc., and UnitedHealth Group.

Officials stressed that patients who are happy with their current coverage can stay with it without taking any action. Others who want to sign up for drug benefits or change plans can do so during an enrollment period from November 15 to December 31.

Some companies are raising premiums on current plans, and those seniors could switch to another option, CMS Administrator Mark McClellan said.

"We expect most (patients) will not want to change, but we do encourage seniors to compare their current plans with the new offerings," McClellan told reporters.

Many seniors will have dozens of options available in their states. Critics say the large number of choices are confusing.

McClellan said companies were offering fewer basic plans but more alternatives with expanded coverage.