Whether it’s a good or a bad thing is actually a matter of perspective, but the fact is, since its introduction to the Medicare industry in 2006, Medicare Part D has undergone

several changes.

The changes are not in the basic design of Part D, but rather in the Standard Benefit Plan, or the minimum allowable amounts in a plan.

 

 

 

From 2008 to 2009, there are increases in the minimum amounts, among them:

• Initial Deductible: $295 in 2009 from $275 in 2008

• Initial Coverage Limit: $2,700 in 2009 from $2,510 in 2008

• Threshold for Out-of-Pocket: $4,350 in 2009 from $4,050 in 2008

• Minimum Cost-sharing in Part D’s Catastrophic Coverage Portion: $2.40 for generic drugs and $6.00 for all other drugs in 2009, up from $2.25 for generics and $5.60 for all other drugs in 2008 

• Maximum co-payments for some low-income full subsidy eligible enrollees spending below the out-of-pocket threshold: $2.40 for generic drugs and $6.00 for all other drugs in 2009, up from $2.25 for generics and $5.60 for all other drugs in 2008

Medicare Part D recipients can begin to re-evaluate the Part D plans available on the market beginning October 1, 2008, because this is when marketing activities for the 2009 Medicare Part D begins. But let us put a damper on your enthusiasm, no enrolments are accepted into the 2009 Part D plans before November 15, 2008.

You will get your chance to join a Part D plan from between November 15 to December 31, 2008 because that period is the time for the annual coordinated election. What this means is that this is the time for all Part D beneficiaries to change their minds or stick with their old plans. If you opt not to make a decision, you will still be covered under your 2008 Part D plan.

Choosing not to choose or choosing to stay with the old plan does present one convenience – at least you’re not required to renew your present Part D plan. Do not delay in your decision if you’re not satisfied with your current plan, because the next time you’ll get to change your plan (if you pass up this one) is for the next election period for the 2010 plan.

Should you decide on changing your Part D plan, you can begin to enjoy the benefits beginning on January 1, 2009. There is a Special Enrolment Period from January 1 to March 31, 2009 for people who want to switch to original Medicare with a Prescription Drug Plan (PDP) from a Medicare Advantage Plan with coverage for prescription drugs (MA-PD).

Under the guidelines set by the Centers for Medicare & Medicaid Services, PDP plan providers must accept MA-PD enrollees who want to revert to original Medicare with prescription drugs coverage.

The 2009 Part D coverage may still be a long way from the 2008, but it does pay to check this early if you’re satisfied with your current Part D plan or if you want to switch providers altogether, it certainly won’t be fun going through a myriad of plans and plan providers just to find the one.

Read More

AARP for Medicare Part D
Federal subsidy program
Factors to Consider
What's the program?
Costs and Rates for 2009
What's on the books for 2009
How to stay out of the Donut Hole