Goals of Medicare Part D met according to Reuters

In a recent article at Reuters, they note that in a study of 7,000 senior Americans, after 2006, when heart failure medication was covered through their insurance, the number of prescriptions filled was increased. They also found that in 2008, the out of pocket expenses for seniors decreased 16% while prescriptions filled increased by 7%. All of this shows that the goals of Medicare Part D, helping seniors, especially those with low incomes, afford needed medications, are being met.

Loophole in Medicare Drug Plan Severely Impacts Seniors

The latest post on news.health.com reports that seniors who have reached the “no coverage” point in the Medicare Part D drug plan are less likely to use percription drugs or visit the doctor according to researchers at the University Of Pittsburgh Graduate School Of Public Health.

The team suggests that a subtle increase in the initial co-payments of prescription drugs can help protect seniors against the problems that arise from the loophole in their Medicare coverage. This “doughnut hole” will pose as a serious problem for seniors with chronic illnesses who need to take prescription drugs on a regular basis.

Lower 4th Quarter Earnings for Humana Means Trouble

The Associated Press reports in this post in DailyAdvance.com that the health insurer Humana has reported huge fourth quarter loss in earnings due to higher claim expenses from its stand-alone Medicare prescription drug plans, lower investment income and a loss in its commercial business. The company though, is forecasting a huge turnaround in 2009, with share earnings ranging from $5.90 to $6.10, compared to $3.83 at year end. Humana Chief Operating Officer Jim Murray even mentions:

"We're doing them much more vigorously and identifying new opportunities to evaluate data that makes us feel much more comfortable than we did at this point last year."

Is the expected turnaround for Humana feasible? What are your thoughts?