Seniors taking big hit

Saturday, June 14, 2008 | 2:09 a.m.

An analysis released this week says senior Americans enrolled in Medicare’s Part D prescription drug programs are paying higher monthly premiums this year, on average, than last year.

The report by Avalere Health, a company that does research for the health care industry, says that although premiums for four of the 10 most popular plans are actually lower than last year, those for the six others are higher — significantly so, in some cases — resulting in a 16 percent increase overall.

Monthly premiums for more than 2.7 million participants in AARP MedicareRx Preferred, the most popular plan, have risen by 15 percent, the report says. Premiums for Humana PDP Standard and Humana PDP Enhanced, the second and third most popular plans, also have increased.

Even when small, these increases are difficult for Medicare recipients because they come at a time when food and fuel costs also are rising, and while many senior citizens’ incomes remain static.

The federal government has no control over premium increases because the Medicare drug benefit, which was promoted by President Bush, is administered through private insurers. Private companies, not Medicare officials, set premiums and determine drug prices through negotiations with pharmaceutical companies.

Medicare officials told the Los Angeles Times the Part D program has illustrated how private companies can improve the delivery of government services.

But nothing could be further from the truth. Studies have shown that Medicare participants are paying more for their drugs than they would if the government were allowed to directly negotiate with pharmaceutical companies. We can presume only that premiums could also be better controlled if federal Medicare officials had the authority to set those as well.

Private entities should not be in charge of delivering important government services, such as those that ensure the health, safety and welfare of Americans. Medicare is a benefit to which all Americans of a certain age are entitled. The government should administer it so that it remains accessible — and affordable — for all those who qualify.