Row triggered by claim of rising Rx drug coverage costs for Medicare Part D

A row has erupted in the USA over a late election campaign period report by Families USA, a pressure group that has consistently opposed the Medicare Part D prescription drug benefit for senior citizens, which states that private health insurance companies in 13 states do not offer "meaningful" coverage gap benefits, as well as predicting an increase in insurance costs for next year.

The main area of concern raised by the Families USA study is the infamous "donut hole," the gap in prescription drug coverage for spending between $2,400 and $5,451.25 in 2007, up from $2,250-$5,100 for the current year. Ron Pollack, executive director of Families USA, said: "drug coverage in the donut hole will be much scarcer in 2007 than in 2006 and in those states where such coverage continues to be available it will be far more expensive." Mr Pollack's views were echoed by Democratic Party leader in the US House of Representatives, Nancy Pelosi (California). She said that "the number of seniors at risk of falling into the donut hole will sky-rocket next year, denying millions more seniors access to their prescription drugs."

Specifically, Families USA argues that premiums will increase a median of 87% next year for full coverage, with seven states facing 185% premium increases. Mr Pollack explained the rises, saying: "the people who are sickest, the people who need the most medicines, are the most likely to adopt these kinds of plans and of course that means that the cost of those plans grows rather significantly."