Alexandria, VA (November 20, 2006) Seniors are hearing from their Part D drug plans and learning what their costs will be in 2007. The news is sending many sifting through the confusing details of dozens of drug plans all over again during the Part D Open Enrollment Period that starts November 15 and runs through December 31.
Jean, a senior living in Central Virginia, recently learned that her monthly premium would be increasing more than $18, an increase of 31%. If that wasn't enough, she also learned she would no longer receive coverage for brand name drugs in the "doughnut hole" coverage gap. Only one other drug plan serving her area offers coverage of some brand name drugs, but, if she switches, Jean will pay a monthly premium that's $34 more than she paid in 2006. The new plan would also require Jean to try older, less expensive drugs before paying for the expensive brand drug she currently takes. She's still weighing her options.
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Harold, a senior in central Pennsylvania, received a letter from his drug plan telling him that he would hit the coverage gap "doughnut hole" before the year ended, and that he should consider enrolling in the insurer's plan that offered gap coverage. Uncertain about what to do, Harold found out that he already receives coverage for the "doughnut hole," and he didn't need the more expensive plan. Harold receives the federal government's "Extra Help" which pays drug costs during the coverage gap. If he switches plans he would pay $318 more in 2007 for unnecessary coverage that he already receives. Harold is verifying his eligibility for "Extra Help" in 2007 and hopes to stick with his current low-cost drug plan.
Irene, who lives in a small Virginia village, opened her notice to learn that her co-insurance costs for brand name drugs would double in 2007. Irene is considering a new plan in her area. If she switches, she would pay $0 for her generic drugs, cut her brand name drug co-insurance costs by almost one third, and get valuable gap coverage for generics - much better coverage than she had in 2006. Altogether, Irene's costs would average about $13 per month more than she paid in 2006.
Seniors or their family caregivers are urged to get unbiased help to review changes in their Medicare Part D coverage, warns Ralph McCutchen, Chairman of TREA Senior Citizens League (TSCL). "Recent polls are finding that many seniors are saying they plan to keep their drug plan in 2007. We are finding that many people simply don't understand what changes to their drug plans can mean in terms of higher costs. Some may find big increases in their premiums, and others may see huge jumps in what they must pay for their prescriptions, or may lose coverage for some drugs altogether," he says. "In most areas of the country there are new options that offer just as good or better coverage for 2007," McCutchen explains.
"In addition, the 'doughnut hole' coverage gap is growing bigger in 2007, but more drug plans are offering partial coverage for the gap," McCutchen adds. In 2006, beneficiaries had to spend $3,600 out-of-pocket before they received the Part D catastrophic coverage level. In 2007, they will need to spend $3,850. Once the catastrophic level of coverage is reached, beneficiaries pay only $2.15 for generics and $5.35 for brand name drugs in 2007. TSCL urges seniors to at least consider plans that offer coverage for the "doughnut hole" gap, or apply for the federal "Extra Help" program that provides the coverage in the gap.
"We urge Medicare beneficiaries to get trained, unbiased help to evaluate changes in your coverage, and to use the Medicare Drug Plan Finder to help you locate plans offering better deals," McCutchen says. "Seniors can receive one-on-one counseling at no charge at their Area Agencies on Aging," he says. "Check the listing in your local phone book, or to locate the Agency nearest you call the Eldercare Locater at 1-800-677-1116."
With 1.2 million members, TREA Senior Citizens League is one of the nation's largest nonpartisan seniors groups. Located just outside Washington, D.C., its mission is to promote and assist members and supporters, to educate and alert senior citizens about their rights and freedoms as U.S. Citizens, and to protect and defend the benefits senior citizens have earned and paid for. Please visit www.SeniorsLeague.org or call 1-800-333-8725 for more information.
Distributed by The Senior Exchange, Inc.
Serving The Mature American With Timely, Low-Cost, Self-Help Information
November 2006
