CHAPEL HILL, N.C., Oct. 3 /PRNewswire/ -- Blue Cross and Blue Shield of North Carolina, which has been serving people with Medicare since that program was created 40 years ago, today announced that it is offering two Medicare prescription drug plans open to any Medicare recipient in the state.
BCBSNC is offering both a Plus Plan and a Standard Plan. The plans will offer members two different options for out-of-pocket costs and number of covered drugs. Both plans will use the extensive BCBSNC retail pharmacy network, which includes about 97 percent of the pharmacies in the state as well as a wide choice nationwide. The retail network includes almost all national chains and many independent pharmacies.
“We’ve demonstrated our commitment to serving Medicare recipients over the long term, and we’re excited to take part in this unprecedented effort to help them afford their medicines,” said John Roos, BCBSNC senior vice president of Sales and Marketing. “We believe that seniors and other Medicare beneficiaries will be attracted by our broad choice of pharmacies, the value of our plans and the reliability we bring to the marketplace.”
BCBSNC Plus Plan’s enhanced benefits offer several advantages over standard Medicare drug plans. Plus Plan members will avoid the $250 deductible in all standard Medicare drug plans. That means prescription drug coverage will begin immediately without members having to pay $250 out-of-pocket before they can get any benefits. BCBSNC’s Plus Plan has no “coverage gap” for generic drugs. Standard plans also have a “coverage gap,” requiring members to pay 100 percent of their drug costs from the point their total drug spending reaches $2,250 for the year until they have spent $3,600 out-of-pocket. BCBSNC’s Plus Plan will cover nearly all FDA-approved drugs that Medicare allows, while the Standard plan will cover fewer drugs. The premium for the Plus Plan will be $59.60 per month.
“For just a few more dollars a month, our Plus Plan covers more drugs and allows members to avoid the $250 deductible and lower their out-of-pocket costs,” Roos said. “We believe that many Medicare recipients will be attracted by the convenience and greater simplicity of this product.”
BCBSNC Standard Plan will cover more than 2,500 drugs and will have a monthly premium of $52.03 a month. As with all standard Medicare drug plans, the product will carry a $250 deductible. It will also include a coverage gap for all drugs.
Medicare recipients can choose plans beginning November 15, 2005, and coverage will begin on January 1, 2006. In most cases, Medicare recipients must specifically choose a prescription drug plan to take advantage of the new prescription drug benefit. They may be subject to a penalty if they do not choose a plan by May 15, 2006.
BCBSNC is already the largest provider of Medicare Supplemental policies in North Carolina and currently serves more than 122,000 people with those products.
Here’s how the BCBSNC Medicare prescription drug plans will work: Plus Plan: Deductible None Drugs covered Nearly all FDA-approved drugs covered by Medicare Copayments Until a member’s total drug spending for the year reaches $2,250, copayments are: - $10 for generic drugs - $25 for brand-name drugs - 25% of the cost of specialty drugs. Coverage gap There is no coverage gap for generic drugs. Members continue to pay a $10 copayment for generic drugs. When a member’s total drug spending reaches $2,250 (including both member and BCBSNC share), he or she is responsible for 100 percent of brand-name and specialty drug costs until reaching $3,600 in out-of- pocket costs on prescription drugs for the year. Catastrophic Once the member’s out-of-pocket costs reach $3,600 for coverage the year, he or she pays 5 percent of the drug costs, or a copayment of $2 or $5. Standard Plan: Deductible $250 Drugs covered More than 2,500 After deductible Member pays 25 percent of their drug costs and BCBSNC is met pays 75 percent, until the member’s total drug spending (including both member and BCBSNC share) reaches $2,250. Coverage gap Once a member’s total drug spending for the year reaches $2,250, he or she is responsible for 100 percent of the drug costs until reaching $3,600 in out-of-pocket costs. Catastrophic Once the member’s out-of-pocket costs reach $3,600 for coverage the year, he or she pays 5 percent of the drug costs, or a copayment of $2 or $5. About BCBSNC:
Blue Cross and Blue Shield of North Carolina is a leader in delivering innovative health care products, services and information to more than 3.2 million members, including approximately 620,000 served on behalf of other Blue Plans. For 72 years, the company has served its customers by offering health insurance at a competitive price and has served the people of North Carolina through support of community organizations, programs and events that promote good health. Blue Cross and Blue Shield of North Carolina is an independent licensee of the Blue Cross and Blue Shield Association. Access BCBSNC online at www.bcbsnc.com.
Blue Cross and Blue Shield of North Carolina
CONTACT: Mark Stinneford of BCBSNC, +1-919-765-3745
Web site: http://www.bcbsnc.com//
