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Thursday, Mar 28, 2024
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PacifiCare Up on Drug Plan

Federal regulators signed off on PacifiCare Health Systems Inc.’s plans to market a Medicare drug plan to seniors as part of the government’s effort to insure seniors’ prescriptions.

Shares of PacifiCare were up about 3% on the news.

PacifiCare said Friday the Centers for Medicare & Medicaid Services OK’d its Medicare drug plans for marketing in all 50 states.

The company plans to offer three different plans that would take effect Jan. 1.

PacifiCare plans to market the plans to its own enrollees and through insurers and brokers that offer “Medigap,” or Medicare supplement insurance.

The company also plans to offer additional dental and vision coverage to seniors.

The news likely encouraged investors that the Medicare drug plan is moving ahead, even as some in Washington, D.C., call for a delay amid the high costs of Hurricane Katrina and expected spending for Hurricane Rita.

PacifiCare, which is being bought by Minnesota-based UnitedHealth Group Inc., is spending $50 million to roll out its drug plan for seniors.

Medicare drug coverage is part of a gift that keeps on giving for PacifiCare and others: 2003’s Medicare Prescription Drug, Improvement and Modernization Act.

Already, the act has steered billions to PacifiCare and others to up their Medicare health insurance plan offerings. The government projects spending $720 billion on the drug program in the next 10 years.

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