“The new Medicare drug benefit passed a major milestone in recent weeks as a substantial number of big insurance companies said they would offer prescription drug coverage to Medicare beneficiaries next year, defying the predictions of many industry experts.

…Companies gave several reasons for moving aggressively to stake out positions in the Medicare market. They see a business opportunity, with the aging of the population. They say that heavy federal subsidies will minimize the financial risks, and they do not want to cede the market to their competitors. Moreover, some companies, having lobbied for the law, said they felt an obligation to help make it work.” (New York Times )