Medicare Prescription Drug Benefit, Insurers’ Marketing Efforts Examined

The AP/Detroit Free Press on Thursday examined the new Medicare prescription drug benefit and the preparations that insurers seeking to offer coverage under the new benefit are making for its formal launch on Jan. 1, 2006. According to the AP/Free Press, federal health officials this month are expected to announce which insurers have been chosen to participate in the new drug benefit, and some companies "already are spending millions to ramp up marketing campaigns and prepare for the formal rollouts of their programs."

Such companies include Aetna, PacifiCare Health Systems, Humana, Cigna, WellPoint and UnitedHealth Group. According to Goldman Sachs estimates, nine of the largest insurers could see $10 billion in revenue and $250 million in earnings next year from the Medicare prescription drug benefit (Singer, AP/Detroit Free Press, 9/8).