Medicare Update

CMS Reminds Medicare Beneficiaries to Review and Compare Their Current Drug Coverage. On September 25, 2008, CMS Acting Administrator Kerry Weems announced the 2009 Medicare prescription drug and Medicare Advantage plan options for those of us enrolled in Medicare. Almost 97% of beneficiaries enrolled in a stand-alone prescription drug plan (PDP, also called Medicare Part D) will have access to Medicare drug and health plans in 2009 with premiums that are the same or less than those in 2008.
But, plans do change from year to year and need to be reviewed for premium increases or benefit decreases, such as reduced coverage in the "gap" if they stay in the same prescription drug plan in 2009. The "gap" or "donut hole" is created when Medicare-covered prescription drug costs exceed an annual limit, e.g., $2,250. Medicare pays nothing above this limit until the beneficiary spends another out-of-pocket amount, e.g., $3,000. Then Medicare picks up the tab again for almost the entire amount spent for prescription drugs in that calendar year.
Plans with coverage in the gap for generics are available in every State. Every State will also offer Medicare beneficiaries at least one prescription drug plan with premiums of less than $20 a month. Low-income individuals who apply and qualify for the full Medicare subsidy will pay no premiums or deductibles in these plans. n In 2009, all beneficiaries will also have access to a Medicare Advantage plan. Some Medicare Advantage plans have prescription drug coverage (MA-PDs) and more than 93% of people with Medicare will have access to a MA-PD for a $0 premium and with a $0 drug deductible.
Marketing of 2009 plans will begi
October 1. Details about the specific plans will be available mid-October at www.medicare.gov and 1-800-MEDICARE (1-800-633-4227).
The list of national stand-alone prescription drug plans and State-specific fact sheets can be found at: http://www.cms.hhs.gov/center/openenrollment.asp n