HHS settles on regions to divide new Medicare drug benefit
Compliance Monitor, December 8, 2004
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The Department of Health and Human Services (HHS) announced December 6 it established 26 regions for Medicare Advantage PPOs and 34 regions for prescription drug plans beginning in 2006.
CMS will use private insurers, subsidized by the government, to deliver drug benefits, the New York Times reported December 7. Premiums for each drug plan will be uniform throughout its region, "but could vary widely between neighboring states in different regions."
Leslie V. Norwalk, CMS' acting deputy administrator, said the boundaries were drawn to maximize participation by private insurers in each region, the Times reported.
CMS also said that it will announce at a later date how the adjustment will be made to regional health plans based on the county of residence of beneficiaries who actually enroll in the plan. Under this change, payments to plans would be higher in high-cost counties, according to an HHS press release.
To read HHS' release, click here.
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