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Risky Business

 
• By Cole Werble

The government protected Medicare prescription drug plans against excessive losses in 2006. But the "risk corridors" in Part D also limited the upside on profits for plans. The protections start phasing out in 2008. That brings a new set of risks for Part D plans--and Big Pharma.

When the Medicare Modernization Act was signed into law in 2003, no one knew for sure whether any insurance company would be willing to provide the new drug coverage.

Stand-alone drug insurance did not exist in the private sector prior to Part D. Moreover, the Medicare population of seniors...

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