States Told Not to Steer Beneficiaries to Drug Plans

by Robert Pear

WASHINGTON, April 6 - The Bush administration has told states that they cannot steer Medicare beneficiaries to any specific prescription drug plan, even if state officials find that one or two insurance plans would provide the best deals for elderly people with low-incomes.

States like Connecticut, New Jersey, New York and Pennsylvania have for years had their own programs to help elderly people with drug costs. In some cases, the state coverage is superior to what Medicare will offer. Many states want to continue those programs to supplement the Medicare drug benefit that becomes available in January.

A federal advisory commission said recently that states should be allowed to enroll their low-income Medicare beneficiaries in "one or more preferred prescription drug plans." This would help ensure "continuity of care," it said.

But in a memorandum to state officials, the Bush administration rejected that recommendation.