1 million sign up for Medicare plan

WASHINGTON — About 10 percent of the seniors and disabled people with little or no prescription drug coverage have signed up for Medicare's prescription drug program, the government reported Thursday.

Medicare opened enrollment for the new benefit on Nov. 15. About 17 additional million people who already had some form of drug benefit were enrolled automatically by the government, or they will receive newly subsidized benefits through their existing private retiree health care plan.

Other Medicare recipients had to enroll to participate. Of the 10 million to 12 million with little or no coverage, 1 million have signed up. The enrollment period to obtain coverage in 2006 lasts until May 15.

Critics said the small percentage who volunteered for the coverage demonstrates that the Medicare drug benefit program, which relies on scores of private providers that contract with the federal government, is too complicated and unworkable.

"We see it as a searing indictment of this convoluted drug program," said Robert Hayes, president of the Medicare Rights Center, a consumer group. "People are faced with a bewildering array of for-profit insurance plans. These plans are seen as so complex and unreliable that many people in great need of help are staying on the sidelines."

Health and Human Services Secretary Mike Leavitt told reporters that the government expects to sign up between 28 million and 30 million people for the benefit during its first year.

"We're encouraged by the early results," Leavitt said. "You'll find you'll save money and you'll never have to worry about high drug costs in the future."

Medicare provides health care to 42 million older and disabled Americans. Of those, the government estimates between 10 million and 12 million have little or no coverage to help cover the cost of prescription drugs.

The government's figures are as of Dec. 13. An additional 500,000 people are expected to enroll in January, officials said.

The drug programs are managed by private insurance companies that contract with the federal government; the government pays some of the drug costs. In some states, people have dozens of plans to choose from. Additional subsidies are available for low-income people.

Still, one survey suggested a significant number of Medicare recipients think the benefit will help them.