Senior Citizens Facing Higher Medicare Drug Plan
Premiums May Seek Lower Cost Options
Marketing 2010 plans started October 1 and seniors
can start seeking better options for the open enrollment November 15
Oct. 8, 2009 Medicare announced in August that
senior citizens are expected to face a 7 percent premium increase for
the average Part D prescription drug plan in 2010. The news is even
worse for some in Medicare Advantage plans that will see a premium jump
of almost 22 percent. With the open enrollment window opening on
November 15, and many seniors expected to seek less expensive options,
Medicare says choosing a new plan will be easier than in previous years.
| |
Related Stories |
|
| |
Medicare Sends More Funding to SHIPs for Counseling
Seniors as Open Enrollment Nears
$6.3 million awarded to state-based information
programs to help people with Medicare
Oct. 7, 2009
House Passes Bill to Stop 2010 Increase in Medicare
Part B Costs, Helping Seniors Cope
Action stops insurance increase for about 27% of
senior citizens, others protected already; Seniors wont see COLA for
2010
Sept. 25, 2009
Would Americans Welcome Medicare if It Were Being
Proposed in 2009?
 One of the ironies in all of this is that the
strongest critics of health care reform, and those most worried about
government involvement in health care, are seniors, who are satisfied
with their Medicare-provided health care
By Andrew Kohut, President,
Pew Research Center
Aug. 26, 2009
Medicare Prescription Drug Program Has Exceeded
Expectations, Says New Study
 'Most seniors now have prescription drug coverage
that allows them to buy drugs at a reasonable cost'
Aug. 24, 2009
Read the latest
news
>
Medicare
>
Medicare Drug Program
>
Senior Politics
>
Today's
Senior Headlines |
|
Medicare beneficiaries enrolled in Medicare health
and prescription drug plans will continue to have a wide range of plan
options in 2010, and those beneficiaries who decide to change plans
should find choosing a new plan simpler than in previous years.
Higher premiums in 2010
In 2010, beneficiaries who are currently enrolled
in Medicare Advantage plans can expect to see an average premium of
about $39 a month, a $7 difference from the 2009 price or an increase of
21.9 percent.
But, Medicare says, almost 87 percent of Medicare
beneficiaries will have access to a Medicare Advantage plan that does
not require a premium.
Medicare Prescription Drug plan premiums will
average $30, a $2 difference from 2009. The premium increase for Part D
is less than previously expected CMS had previously anticipated the
average premium would be $32.
Those who qualify for the full Medicare low-income
subsidy will pay no premiums or deductibles in Medicare Prescription
Drug plans. .
CMS is taking aggressive steps to address
discriminatory benefit packages, those that would cost sicker enrollees
more for the important health care services they need. In addition,
beneficiaries will find more plans that will limit their out-of-pocket
spending for the year to $3,400 or less for Medicare-covered health care
services.
Some older Americans will have to choose a new
plan, because their plan is not continuing in the new year.
Only 1.5 percent of all Medicare beneficiaries (and
approximately seven percent of beneficiaries enrolled in Medicare
Advantage plans) will need to choose a new health plan or Original
Medicare in 2010 because their current plan announced earlier this year
it would not renew in 2010.
Most of these plans are private fee-for-service (PFFS)
plans that made their business decisions to exit the program. These
business decisions have been previously announced by the plan sponsors.
CMS also implemented a comprehensive review of
plans that served less than 100 enrollees, had been in operation less
than two years and were not serving a special population, such as
beneficiaries enrolled in special needs plans. CMS also identified plans
offered by the same sponsor with similar benefits plans that made it
hard for beneficiaries to distinguish differences between the plan
offerings.
Consistent with its 2010 Call Letter issued in
March 2009, CMS says it worked collaboratively with plan sponsors to
reduce the number of these low enrollment and duplicative plans while
continuing to ensure beneficiaries had access to a range of plans.
The same percentage of Medicare beneficiaries who
have access to a Medicare Advantage plan today (99.9 percent) will have
access to a Medicare Advantage plan in 2010. In addition, all Medicare
beneficiaries will have many prescription drug plans from which to
choose.
In 2010, nearly all beneficiaries will have access
to a Medicare Advantage plan, most of which offer prescription drug
coverage.
Plan marketing began on October 1.
CMS encourages beneficiaries enrolled in Medicare
Advantage and Medicare Prescription Drug plans to review their current
health and drug plan coverage for any changes their plans may be making
for 2010 before the annual enrollment period begins Nov. 15.
Beneficiaries should also remember, says Medicare,
that at no time will they lose their Medicare coverage, no matter what
business decisions have been made by their Medicare Advantage or
Prescription Drug Plan.
To protect beneficiaries from deceptive marketing
practices conducted by sales agents and brokers who sell Medicare
Advantage and Medicare Prescription Drug plans, or the plans themselves,
CMS has strengthened its oversight of plan marketing activities.
|
Medicare's Annual Open Enrollment is from Nov. 15 -
Dec. 31
Each year plans change what they cost and what they
cover. The next general open enrollment starts on November 15, 2009.
During this time, people with Medicare can add, drop or change their
prescription drug coverage. They can also select a health plan for their
2010 coverage.
You'll find helpful Medicare tools and information
on this page. Use these resources to compare the cost or benefits of
Medicare health plans in your area.
Get answers to your Medicare
questions. Learn how to lower health care costs and stay healthy.
>>
More Early Enrollment Information at CMS
|
This includes stronger rules governing the
commissions that can be paid to independent sales agents and new
marketing guidelines around how Medicare Advantage plans identify
themselves.
In addition, CMS has plans to expand current
surveillance efforts by conducting a greater variety of secret shopping
activities, including one-on-one marketing sessions. Extra surveillance
and outreach activities will also be focused on areas where Medicare
beneficiaries are most impacted by non-renewals.
Beneficiaries should receive their 2010 Medicare &
You handbook and find updated information at
www.medicare.gov and 1-800-Medicare in mid-October.
Users of the Medicare Plan Finder, available at
www.Medicare.gov , will be able to compare plans quality summary
rating from the previous year, identify which drugs may or may not be on
a plans formulary or be restricted, and compare the cost ranges for
plans available in their community.
In addition, Medicare has joined forces with
thousands of organizations and individuals across the country, including
local State Health Insurance Assistance Programs (SHIPs), to assist in
beneficiary decision-making.
Additional Weblinks include:
Open enrollment center:
http://www.cms.hhs.gov/center/openenrollment.asp
2010 Landscape Data Files (Downloads section):
http://www.cms.hhs.gov/PrescriptionDrugCovGenIn/
