A new report was released from the Center for Economic and Policy Research (CEPR) on the changes in the average Medicare Prescription Drug Plan premium and deductible from 2007 to 2008. Across states, the average premium rose by 24.5 percent, or $57.70. While this increase is lower than originally projected, costs will exceed projections as early as 2010 if this trend continues. The costs of Premiums increased the most in New Jersey, California, Connecticut, New York, Rhode Island and Vermont. Calculations for all 50 states are available in the full report, which is posted at http://www.cepr.net/content/view/1370/8/
Update on Medicare Part D
November 15 -December 31, 2007 was the Open Enrollment Period for part D plans. This period was an opportunity for individuals who were locked in their Medicare Part D plan, to switch to a different plan. It was also an opportunity for those individuals who did not enroll in a Medicare Part D plan when they were first eligible and who now want to enroll in one.
Annual Notice of Change (ANOC): At the end of every year, Medicare Part D plans send Annual Notices of Change (ANOC) to their enrollees notifying them about any changes to their plan coverage, including premium increases. If a plan is terminating, it should notify its enrollees through an ANOC. In this case enrollees of the terminating plan have to enroll in another plan (unless auto-enrolled) or they could be without coverage until the following Open Enrollment Period.
The Social Security Administration (SSA) is re-considering Low Income Subsidy (LIS) recipients for their eligibility for LIS for 2008. SSA is sending notices to LIS beneficiaries regarding this re-determination process.
Individuals who were deemed eligible for LIS on 2007 because they were dual eligible or were enrolled in a Medicare Savings Program (MSP) could be re-deemed for the subsidy based on information sent by New York State to SSA regarding their eligibility. Individuals who are not re-deemed will be notified and will have to apply for LIS through SSA. Individuals who are re-deemed will be re-deemed for all of 2008, their co-pays may change if their income has changed and they may be reassigned to a different Medicare Part D plan.
The Center for Medicare and Medicaid Services (CMS) reassigns people to different Part D plans in response to changes in their current plans. Reassignments are effective January 1, 2008. CMS will only reassign individuals who meet all of the following conditions:
They had full LIS in 2007,
They will continue to receive LIS in 2008,
They were auto-enrolled in their Medicare Part D plans in 2007
They did not affirmatively switch into another plan for 2008 and,
Their Medicare Part D plans will either terminate in 2008 or there is an increase of the premium to over $24.18
Individuals will be re-assigned to another plan in the same company that has covered them through 2007 if that company offers a Medicare Part D plan with a premium at or below $24.18. If that is not the case, individuals will be re-assigned to a plan (with a premium at or below $24.18) from a different company in their area.
