2008 Medicare Rx Plan Changes
Many Low-Income Beneficiaries Will Have to Change Plans
Rising costs of health care and declining government subsidies will affect at least 1.6 million Medicare beneficiaries for 2008.
Open Enrollment for Medicare will begin again on November 15, 2007. This year it is estimated that as many as 1.6 million low-income beneficiaries will have to switch their Part D prescription drug coverage.
This is due to the fact that some of the more popular plans and in particular, Humana, Inc. and UnitedHealth Group are planning to raise their premiums to help meet rising costs and to adjust to lower subsidy levels provided by the government.
Humana, Inc. plans to increase monthly premiums by more than $10 and UnitedHealth Group which is AARP's plan will increase monthly premiums by $5. On the other hand, many plans have said they expect the Part D premiums to actually be less for 2008.
The federal government subsidizes Medicare's Part D, but private insurance companies sell and administrate the product. The government-set benchmarks protect low-income beneficiaries and insurance plans that exceed this preset benchmark are not allowed to automatically offer coverage to those in this low-income bracket.
For 650,000 low-income beneficiaries who are in the UnitedHealth Group this means they will have to be switched to another provider for 2008.
Insurance companies begin marketing their plans for Part D prescription coverage as well as Medicare Advantage program on October 1.
All Medicare beneficiaries should compare plans with their actual costs for 2007 and their individual medical needs to determine the best plan for 2008.
Open Enrollment begins each November 15 and continues through December 31. On January 1, all selections are locked in for 2008. Changes can only be made during Open Enrollment now and take effect on January 1 of the next year. In the past, Medicare allowed beneficiaries to make changes several times during the year, but as of 2007, these changes are only allowed during the Open Enrollment period.
All possible options for Medicare hospital, medical and prescription drug coverage can be compared on the Medicare website. Premiums, deductibles and coinsurance vary by plan. Additionally, under some Medicare Advantage Plans vision, dental and hearing care is included.
As beneficiaries age, their financial situations can change as well as health conditions. These changes can necessitate a change in medical care and coverage.
Some Medicare Advantage Plans are very localized. All Advantage Plans require beneficiaries to live in the proximity of hospitals within the plan. In some cases, in order to move closer to their children, beneficiaries need to change Advantage Plans. This needs to be done during Open Enrollment.
Take time now to consider options for 2008. Visit Medicare.gov. Compare the Part D prescription plans, Medicare Advantage Plans and traditional Medicare to see which makes a better fit.
