U.S. Rep. Tom Allen, D-Maine, blasted the new Medicare prescription drug program, which began enrolling seniors on Tuesday.

More than 200,000 Maine seniors will be eligible for the plan, known as Plan D, which is causing confusion among seniors, according Larry Gross, executive director of the Southern Maine Area Agency on Aging.

In Maine, eligible seniors can choose from one of 41 different programs that are being offered by 18 different companies with monthly premiums raging from $19.60 to $65.39.

These wide ranging options are one of the major flaws with the system, according to Rep. Tom Allen, who spoke on the issue at the agency’s Scarborough office Monday morning, saying the program is run by insurance companies.

“This new prescription drug plan is complicated and confusing, leaving many seniors and people with disabilities concerned that they will be faced with fewer benefits and possibly higher out of pocket costs that before,” Allen said.

Further complicating the issue is that each plan offers different coverage for drugs, its own system of co-payments, its own preferred pharmacies and its own set of restrictions and considerations, Allen said.

The purpose of the new plan is to assist seniors with drug coverage. According to the White House Web site, on average, Medicare beneficiaries will receive more than $1,300 in federal assistance to pay for prescription drugs. Seniors with no drug coverage and average prescription expenses will see their drug bills reduced by half or more.

Enrollment will conclude on May 15, 2006. After there will be an annual open enrollment period each year. Seniors who opt for a program but find out it is not what they want are allowed to change programs before the May 15 deadline. A penalty of 1 percent on top of the monthly premium will be assessed for seniors who do not sign up by May 15, unless they have coverage certified by Medicare as equivalent.

The state’s 42,000 low-income seniors whose prescriptions are paid for by Medicaid through the MaineCare program will lose their Medicaid coverage and must either choose one of the new plans or Medicaid will automatically assign them one, Allen said.

“The big picture is that this is not a cost-effective way to run a prescription drug program for seniors,” Allen said.

Allen also finds fault with how much money the program spends on the prescription benefits. Medicare will pay 75 percent of the cost for each prescription up to $2,250 in total costs each year. Then payments will stop until the total costs reach $5,100. When that threshold is reached, Medicare will pay for 95 percent of the prescription costs.

Allen provided a couple of examples how he is trying to fix what he believes is a flawed program. One is a bill that would allow beneficiaries the option of adding a secure and affordable drug benefit to their existing Medicaid coverage. The other all Medicaid beneficiaries have six months to explore their options and gradually make a transition to as Medicare drug plan.

“Congress put pharmaceutical company profits ahead of the pocketbooks of our seniors and disabled,” Allen said. “It chose insurance company paperwork and premiums over the predictable, reliable, affordable health care Medicare has delivered for 40 years.”

Gross’s organization is a clearinghouse on senior-related issues and has become the go-to place to learn more about the prescription drug program. The organization is hosting two drop-in sessions, on Thursdays Dec. 1 and Dec. 15 from 9 a.m. to 4 p.m. at its office at 136 Route 1 in Scarborough.

While Medicare has provided some funding for additional staffing, the organization is still overwhelmed with questions. On Monday alone the organization had nearly 90 messages from people trying to get information regarding the new program. In addition callers to a Medicare hotline regarding the new plan are referred back to SMAA.

Medicare has offered a plan finder on its Web site www.medicare.gov, but Gross said that the process is daunting for some seniors, while others do not even have access to a computer.

“My message to older people is there is help, please be patient,” Gross said.

Southern Maine Area Agency on Aging Executive Director Larry Gross and Rep. Tom Allen discussing the new Medicare drug program in Scarborough on Monday.