Even low spenders will gain from US Medicare

A new report "does the math" for seniors who are questioning whether it pays for them to enroll in the new US Medicare prescription drug benefit, even if they use relatively few medicines. The research finds that most seniors who spend just $381 a year on prescription drugs - less than $32 a month - would "break even" under the new benefit. Anyone who spends more on these in the course of a year would save money by enrolling, says the new study by Medicare Today, a national partnership providing Medicare information to consumers.

Research analysts found that in every state there was at least one, if not several, plans offered that have monthly premiums of $25 or less. By enrolling in one of these low-cost plans, Medicare beneficiaries who currently spend as little as $381 annually on prescriptions will earn more in benefits than they pay in premiums.

The research, undertaken for Medicare Today by the Lewin Group, also shows that seniors who spend little on prescription medicines now are likely to have need for more medications in the near future. For every 1,000 Medicare beneficiaries who spent $381 or less on prescriptions in 2005, nearly half are expected to see their spending increase this year - to an average of $730.