It's a fascinating social experiment in using private sector resources to deliver a social benefit. What Congress did was completely unprecedented — they created new markets and new products. |
Many of the plans that set out into this market, set out with expectations that they would have a larger base of beneficiaries. I do expect you will see some of the smaller, newer plans dropping out. |
Of those 17 million, only about one million seem to have enrolled so far. |
That will serve as a disincentive for some beneficiaries to enroll in a plan. It is a way to ensure some plans attract healthier people. |
The conventional view on Wall Street is that the Medicare formularies mimic commercial formularies, and that's incorrect. These formularies are more stringent than what you see in the private sector. |
The whole purpose of this drug benefit was to get drug coverage in the hands of all Medicare beneficiaries. Where are the people? That's the question. |
We estimate that 17 million individuals need to actually fill out the forms, send in a premium and sign up. |