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       MEDICARE MANAGED CARE
      
      
    
    
     
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       The number of beneficiaries with drug coverage through Medicare managed care has risen to 17 percent.  Most 
       Medicare managed care plans offer prescription drugs.  Drug coverage is one of the major attractions for 
       beneficiaries to enroll in these plans.  
      
 
     
     
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       Drug coverage under Medicare+Choice is unstable.  Managed care plans are not required to offer a drug 
       benefit, but can do so with any excess Medicare payments or by charging a premium.  This results in wide variation 
       across areas, since payments vary by area, and over time.  
      
 
     
     
    
     
       
      
    
    
     
       
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       The value of Medicare managed care drug benefits is declining.  Nearly three-fifths of plans are reporting 
       that they will cap prescription drug benefits below $1,000 in the year 2000. The proportion of plans with $500 or 
       lower benefit caps will increase by over 50 percent between 1998 and 2000.  This is part of a troubling trend of 
       plans to severely limit benefits through low caps.  
      
 
     
     
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       Plans dropping out of Medicare limit access to drugs.  Nearly 80,000 Medicare beneficiaries will lose access 
       to Medicare managed care next year as plans withdraw from particular areas or Medicare altogether.
      
 
     
     
    
  
    
     
    
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