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April 2008 Medicare Part D Newsletter
:: A Glimpse into your 2009 Medicare Part D Plan
:: Not sure how this tool works?
:: What changes can you expect for next year?
:: How will changes in 2009 compare to the changes we experienced in 2008?
:: What do all these numbers mean?
:: Still need help using or understanding our online PDP-Planner tool?
:: Closing Notes
A Glimpse into your 2009 Medicare Part D Plan
Now that you are getting settled into using your new 2008 Medicare Part D prescription drug plan, you may be wondering what changes are on the horizon for 2009.
The technical team here at Q1Medicare.com just released an online comparison tool called 2009 PDP-Planner that includes cost and benefit data based on the Centers for Medicare and Medicaid Services (CMS) 2009 defined standard Medicare Part D plan benefit parameters. PDP-Planner allows users to easily enter their current retail prescription costs and estimate their potential 2009 annual prescription costs.
Our new 2009 PDP-Planner is available at no cost and users have the option to have a copy of their PDP-Planner results sent directly to them via eMail. The 2009 PDP-Planner can be found at www.PDP-Planner.com/2009.
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Not sure how this tool works?
We have added a few real-life examples to help people who are unfamiliar with the phases of their Medicare Part D prescription drug plan. Click here for an example.
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What changes can you expect for next year?
In general, most of next year’s 2009 Part D standard plan benefit parameters
are based on an increase of 7.54% over the same 2008 parameters. In other words, plan variables like the initial deductible or doughnut hole limits will increase about 7.54%.
Please note that these parameters released by CMS do not include any information on the average monthly Part D plan premium. However, users of the 2009 PDP-Planner tool will note that some of the key 2009 Part D plan parameters affected by this increase include:
- the initial annual deductible - increasing from $275 in 2008 to $295 in 2009 (please note that some, if not most, 2008 Medicare Part D plans do not have an initial deductible and provide first dollar coverage),
- the initial coverage limit - also know as the portion of coverage shared by the beneficiary and the insurance carrier before the doughnut hole or coverage gap, increases from $2,510 to $2,700,
- the annual out-of-pocket threshold - or the total amount that beneficiaries could personally spend before exiting the doughnut hole is increasing from $4,050 to $4,350, and
- the Retiree Drug Subsidy (RDS) cost threshold and cost limit for 2009 qualified retiree prescription drug plans will increase by 7.54% from their current 2008 values of $275 and $5,600 to $295 and $6,000 respectively.
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How will changes in 2009 compare to the changes we experienced in 2008?
The 7.54% increase in 2009 Part D plan values can be compared to a 4.64% increase in 2008 Part D plan parameters from 2007. A side-by-side comparison of the 2009 Medicare Part D standard defined plan parameters to past year’s Part D plans can be viewed at:
www.Q1Medicare.com/2009.
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What do all these numbers mean?
Your Medicare Part D plan will change each year - and each year CMS releases a Defined Standard Benefit or standard Medicare Part D plan as a base model for the next year’s Medicare Part D plans.
For example, next year if you have a Medicare Part D plan that exactly follows this 2009 CMS plan, you will notice an increase in your initial deductible to $295 from the current 2008 value of $275. Also, people with high prescription drug costs can begin to prepare for increases in total out of pocket expense (or TrOOP – True Out of Pocket expenses) that must be spent before entering the catastrophic coverage portion of their Part D plan. As noted, TrOOP will increase in 2009 to $4,350 from the current 2008 value of $4,050.
But please remember - some 2009 Medicare Part D plans may be exactly the same as the standard CMS plan. Other 2009 Medicare Part D plans may provide some doughnut hole (or coverage gap) coverage and/or no initial deductible or even a variation of the initial deductible. The actual 2009 Medicare Part D plans will not be released by CMS until the beginning of October 2008 and our
2009 PDP-Finder will be updated when the new 2009 Part D plan data becomes available.
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Still need help using or understanding our online PDP-Planner tool?
Use our
contact form and we can work with you to help you get an idea of your potential 2009 prescription expenses.
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Closing Notes
Important Clarification
“Individuals enrolled in an MA plan may not concurrently enroll in a PDP except for individuals enrolled in a Medicare MSA plan or individuals enrolled in a PFFS plan that does not offer Medicare prescription drug coverage. An individual enrolled in an MA PFFS plan that does not include a Part D benefit may enroll in a PDP, even if under the same MA contract the organization offers another PFFS plan that includes a Part D benefit." Chapter 2 “Medicare Advantage Enrollment and Disenrollment" of the CMS Medicare Managed Care Manual, Section 20 (2007).
Many thanks to Tim from San Diago’s HICAP who noted that enrolling in a stand-alone prescription drug plan (PDP) may affect the status of your current Medicare Advantage plan. Tim cautioned that enrolling in a Medicare Advantage plan without prescription coverage may indicate to CMS that you no longer wish to have Medicare Part D coverage for the current year. The bottom line is that you understand your options before enrolling in any Medicare health plan and consult a professional for assistance. Again, thanks to Tim for his insights!
Questions about your Medicare Part D or Medicare Advantage plan?
Send us an eMail at Team@Q1Group.com or click
here for our online contact form or take a browse through our Frequently
Asked Questions (FAQ’s).
Click
here to receive your own copy of the Medicare Part D Newsletter. There is no cost and your eMail information
will not be shared with any third parties.
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Last updated on: 07/05/2009
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