Monday, 2 October 2006
Seniors To Get More Medicare Options In 2007
Starting next year, senior citizens enrolled in the Medicare Prescription Drug Plan will have more options for coverage and pay lower premiums, according to the New York Times.
The number of plans available is increasing in most states. Most states had 40 plans in 2006. That number is going up to more than 50 next year in every state except Alaska and Hawaii. New York will have 61 plans for seniors to choose from.
Premiums on many plans are going down. The lowest-priced plan in 2007 will be a $9.50-a-month plan from HIP Insurance. This year, a similar plan from HIP costs $40.70. Overall, the average premium payment is expected to hold steady at $24 a month. But the average number of drugs covered is expected to increase by 13%, with 4,390 medications being covered.
Insurance companies are also taking steps to fill in the “donut hole,” or gap in coverage that has threatened seniors with prescription drug bills of several thousand dollars. Many companies will be adding plans in 2007 that will still offer coverage when the plan hits the gap. These plans are expected to have premiums between $40 and $50 a month.
“As a result of robust competition and smart choices by seniors, plans are adding drugs, removing options that were not popular, and providing more options with enhanced coverage,” Dr. Mark McClellan of the Centers for Medicare and Medicaid Services said.
Consumer advocates have pointed out that despite the reductions in premiums and increases in coverage, seniors still need to be careful when choosing a plan.
“Your drug plan might have worked for you this year, but you can’t assume that it will be affordable or cover the drugs you need next year,” said Deanne Beebe of the Medicare Rights Center.
The 6-week “open enrollment” period for the new plans begins November 15. Seniors who are satisfied with their current plan don’t have to do anything. But advocates are encouraging them to review their plans carefully, and make sure that next year won’t bring an unexpected increase in premiums or a reduction in benefits.
Said Ms. Beebe:
“You should go back to the drawing board to determine whether your current plan or another one would best meet your needs.”
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