November 2008
Should you switch plans?
According to recent advice, you shouldn't switch plans if you're happy with the one you have, the premium is reasonable, most
of your drug costs are covered, and you didn't fall into the "doughnut hole" (the gap in Medicare prescription coverage) last
year.
That advice may apply again this year for most people, but even the government agency that runs Medicare and the Part D benefit (the Centers for Medicare and Medicaid Services) has advised people to shop around this year. The main reasons:
Be sure to compare your current Part D plan with other plans available in your area. We advise narrowing your options to three or four as soon as you can, using the Medicare plan finder or by studying written material. You can also call plans directly and talk through their offerings. Be prepared with specific questions and create a comparison table in writing or on your computer.
Be especially attentive to any change in coverage of drugs you must take on a long-term basis, such medications for high blood pressure, diabetes, or high cholesterol.
That advice may apply again this year for most people, but even the government agency that runs Medicare and the Part D benefit (the Centers for Medicare and Medicaid Services) has advised people to shop around this year. The main reasons:
- Premiums are rising across the board in 2009, with some plans charging an estimated 30 to 60 percent more than they did in
2008. The average monthly premium for basic benefits will be about $33, according to a Kaiser Family Foundation report, but
premium ranges will vary widely, from around $10 per month for some basic plans to more than $100 for comprehensive plans.
- Over the years, plans have been changing the scope of their coverage, co-payments, and overall cost sharing (the amount you
pay out of your own pocket). This is critical because if you need prescription medicines, the main expense in many plans is
the co-payments, not the monthly premium. Regarding those premiums, there is a wide difference between the lowest-cost plan
and the highest-cost plan in many areas of the country. That difference in price will always depend on which drugs are covered
in the plan and which drugs you take.
- A few plans are dropping gap coverage of select generic drugs in the Part D benefit gap known as the "doughnut hole," according
to a Kaiser report.
- Your current plan might be changing its formulary, or list of covered drugs, so check to see if the drugs you take will still
be included in 2009. Drugs are put in "tiers" according to co-payment. For example, in 2009 UnitedHealth (which administers
the AARP Part D plans) will change some of its plans to restrict selected drugs used to lower cholesterol and treat osteoporosis
and heartburn. Humana, meanwhile, is increasing its co-pays for many "non-preferred" drugs.
Be sure to compare your current Part D plan with other plans available in your area. We advise narrowing your options to three or four as soon as you can, using the Medicare plan finder or by studying written material. You can also call plans directly and talk through their offerings. Be prepared with specific questions and create a comparison table in writing or on your computer.
Be especially attentive to any change in coverage of drugs you must take on a long-term basis, such medications for high blood pressure, diabetes, or high cholesterol.
