New Bill Bars Extra Insurance for Drugs:

“Millions of Medicare beneficiaries have bought private insurance to fill gaps in Medicare. But a little-noticed provision of the legislation prohibits the sale of any Medigap policy that would help pay drug costs after Jan. 1, 2006, when the new Medicare drug benefit becomes available.

This is one of many surprises awaiting beneficiaries, who will find big gaps in the drug benefit and might want private insurance to plug the holes — just as they buy insurance to supplement Medicare coverage of doctors’ services and hospital care.” —New York Times

Congress’ supposed rationale is a curious one: “Health economists have long asserted that when beneficiaries are insulated from the costs, they tend to overuse medical services.” But, unless I have missed something in the practice of medicine, while sharing some of the cost of medical care may control overutilization, sharing the cost of prescription drugs will not help control overprescribing, since it is not the benificiary but the benificiary’s physician who decides what medications are necessary.