United States, November 18 With the enrollment for Medicare's Part D prescription drug coverage program for 2009 beginning Saturday, senior citizens have been advised to carefully weigh their options and select the plan most suitable. The enrollment will continue till the end of the year.
With the enrollment for Medicare's Part D prescription drug coverage program for 2009 beginning Saturday, senior citizens have been advised to carefully weigh their options and select the plan most suitable. The enrollment will continue till the end of the year.
Medicare prescription drug coverage, also called Part D, is an insurance for seniors and certain categories of disabled people which includes both brand-name and generic prescription drugs at participating pharmacies.
In the face of increasing monthly premiums or changing benefits offered by different insurance plans, caution has been advised in the selection of the most suitable plan. The elderly have been advised to approach their local aging agency and seek help in making the best choice.
There is a wide variety of existing plans, with premiums varying from $10.30 a month to as much as $136.80 a month.
Recently, a California study found that more than 80 percent of Medicare beneficiaries who go for separate prescription drug coverage would probably have their monthly premiums increased by $5 or more, if they continue with their current plan.
"There are big increases in premiums, particularly for a stand-alone drug plan. There's volatility in premiums and benefit structure, and seniors need to look at their options and evaluate them every year," said Chris Perrone, senior program officer with the California HealthCare Foundation in Oakland, which published the study earlier this month.
While lauding the success of the Medicare Part D prescription drug program at the threshold of its fourth year, Kerry Weems, acting administrator of the U.S. Centers for Medicare and Medicaid Services, also put in a word of caution.
"… Plans do change their offerings from year to year. Some beneficiaries may see significant premium increases or changes, such as reduced coverage in the gap, if they stay in the same prescription drug plan in 2009," said Weems.
Consumers should also be aware of the ‘doughnut hole,’ a coverage gap that reduces benefit costs. If spending under the plan hits $2,700 next year, the beneficiary will have to bear 100 percent of all drug costs until spending by the consumer hits $4,350. Those who take a large number of brand-name medications are likely to be caught in the spending gap.
According to the Kaiser Family Foundation, most Part D participants who do not qualify for a low-income subsidy and who do not switch plans will see an increase in their monthly premium. About the ‘doughnut hole,’ for most plans this will total $3,454 in 2009, says the Foundation.
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