CMS Part D 2014 Standard Benefit Model Plan Details
Here are the highlights for the CMS defined Standard Benefit Plan changes from 2013 to 2014. The chart below shows the Standard Benefit design changes for plan years 2010, 2011, 2012, 2013 and 2014. This "Standard Benefit Plan" is the minimum allowable plan to be offered.
Initial Deductible: will be decreased by $15 to $310 in 2014
Initial Coverage Limit: will decrease from $2,970 in 2013 to $2,850 in 2014
Out-of-Pocket Threshold: will decrease from $4,750 to $4,550 in 2014
Coverage Gap (donut hole): begins once you reach your Medicare Part D plan’s initial coverage limit ($2,850 in 2014) and ends when you spend a total of $4,550 in 2014. In 2014, Part D enrollees will continue to receive a 52.5% discount on the total cost of their brand-name drugs while in the donut hole. The 50% discount paid by the brand-name drug manufacturer will still apply to getting out of the donut hole, however the additional 2.5% paid by your Medicare Part D plan will not count toward your TrOOP. Enrollees will pay a maximum of 72% co-pay on generic drugs while in the coverage gap.
Minimum Cost-sharing in the Catastrophic Coverage Portion of the Benefit**: will increase to greater of 5% or $2.55 for generic or preferred drug that is a multi-source drug and the greater of 5% or $6.35 for all other drugs in 2014
Maximum Co-payments below the Out-of-Pocket Threshold for certain Low Income Full Subsidy Eligible Enrollees: will increase to $2.55 for generic or preferred drug that is a multi-source drug and $6.35 for all other drugs in 2014
Out-of-Pocket Threshold - This is the Total Out-of-Pocket Costs including the Donut Hole.
+(($2850-$310)*25%) (Initial Coverage)
+(($6455-$2850)*100%) (Cov. Gap)
= $4,550 (Maximum Out-Of-Pocket Cost prior to Catastrophic Coverage - excluding plan premium)
Total Estimated Covered Part D Drug Out-of-Pocket Spending including the Coverage Gap Discount (NON-LIS) See note (2).
Catastrophic Coverage Benefit:
Generic/Preferred Multi-Source Drug (3)
Other Drugs (3)
Part D Full Benefit Dual Eligible (FBDE) Parameters:
Applied and income below 150% FPL and resources between $7,161-$13,440 (individuals) or $10,751-$26,860 (couples) (category code 4)***
Coinsurance up to Out-of-Pocket Threshold
Maximum Copayments above Out-of-Pocket Threshold
Generic/Preferred Multi-Source Drug
(1) Total Covered Part D Spending at Out-of-Pocket Threshold for Non-Applicable Beneficiaries - Beneficiaries who ARE entitled to an income-related subsidy under section 1860D-14(a) (LIS)
(2) Total Covered Part D Spending at Out-of-Pocket Threshold for Applicable Beneficiaries - Beneficiaries who are NOT entitled to an income-related subsidy under section 1860D-14(a) (NON-LIS) and do receive the coverage gap discount. For 2013, the weighted gap coinsurance factor is 94.4593%. This is based on the 2011 PDEs (85.6% Brands & 14.4% Generics)
(3) The Catastrophic Coverage is the greater of 5% or the values shown in the chart above. In 2014, beneficiaries would be charged $2.55 for those generic or preferred multisource drugs with a retail price under $51 and 5% for those with a retail price greater than $51. As to Brand drugs, beneficiaries would pay $6.35 for those drugs with a retail price under $127 and 5% for those with a retail price over $127.
(4) The actual amount of resources allowable may be updated for contract year 2014.
The annual percentage increase in average per capita Part D spending -- used to update the deductible, initial coverage limit, and out-of-pocket threshold for the defined standard benefit for 2014 -- is -4.03 percent. The annual percentage increase in the Consumer Price Index -- used to update the 2014 maximum copayments below the out-of-pocket threshold for certain dual eligible enrollees -- is approximately 1.96 percent. CMS revises these percentages to correct calculation errors identified following the release of the Advance Notice."
Annual Notice of Change (ANOC) and Other Important Notices to be Sent out Earlier
The 2014 plan year standardized, combined Annual Notice of Change (ANOC) and Evidence of Coverage (EOC) document will be mailed to current members of all Medicare Advantage (MA) plans, Medicare Advantage with Prescription Drug Coverage (MA-PD) plans, Prescription Drug Only (PDP) plans and cost-based plans offering Part D. MA and MA-PD plans must ensure current members receive the combined ANOC/EOC by September 30, 2013. Plans have the option to include Pharmacy/Provider directories in this mailing.
All plans offering Part D must mail their Low-Income Subsidy (LIS) riders and abridged or comprehensive formularies with the ANOC/EOC to ensure current member receipt by September 30, 2013.
Exception: Dual Eligible Special Needs Plans (SNPs) that are fully integrated with the State must mail an ANOC with the Summary of Benefits (SB) for member receipt by September 30, 2013 and then send the EOC for member receipt by December 31, 2013. Fully Integrated Dual Eligible SNPs that send a combined, standardized ANOC/EOC for member receipt by September 30, 2013 are not required to send an SB to current members.
Note: With the exception of the ANOC/EOC, LIS Rider, and abridged or comprehensive formularies, no additional materials may be sent prior to the beginning of when marketing activities may begin on October 1.
2014 Annual Election Period (AEP) and Open Enrollment Period (OEP).
The Annual Election Period (AEP) and Open Enrollment Period (OEP) will begin on October 15, 2013 and end on December 7, 2013. Marketing of Medicare Part D plans will begin on October 1, 2013. Your new Medicare Part D plan will still take effect on January 1, 2014. This three week period after the close of the AEP/OEP will allow the Part D Plans and Medicare to process new enrollments and get welcome kits and membership cards out to member prior to the January 1st plan effective date.
Special Enrollment Period (SEP) to Leave a Consistently Low Rated Medicare Drug or Health Plan
To promote high Medicare Part D and MA plan quality, The Centers for Medicare and Medicaid Services (CMS) will alert plan members if their Medicare Part D drug plan or Medicare Advantage health plan has failed for three straight years to achieve at least a 3-star quality rating and offer a Special Enrollment Period (SEP), if desired, that will allow the member to move to a higher quality plan. The SEP began in 2013 and continues for 2014.
2014 Special Enrollment Period (SEP) to Switch to 5-star Medicare Advantage AND Prescription Drug Plans
Beginning with the plan year 2012, CMS established a Special Enrollment Period (SEP) to allow Medicare beneficiaries eligible for Medicare Prescription Drug (PDP) Plans or Medicare Advantage (MA & MAPD) plans to switch to a 5-star plans at any point during the year.
CMS is exercising its existing statutory authority under Section 1851(e)(4)(D) of the Social Security Act to establish this special election period.
The creation of this SEP is part of CMS&rsquo overall quality effort, combined with the quality bonus payment demonstration, to give plans greater incentive to achieve 5-star status. Plan ratings for the 2013 plan year will be published in the fall of 2012, prior to the annual open enrollment period.
Who will be eligible for this SEP?
Beneficiaries currently enrolled any MA, MAPD or PDP plan (including those that already have a 5-star rating)
Beneficiaries who are enrolled in Original Medicare and meet the eligibility requirements for Medicare Advantage
The summary star rating is provided by CMS prior to the Annual Election Period (AEP) and is effective for the following contract year (January - December) -- the summary rating is awarded on a calendar year basis.
Effective dates for enrollments made under this SEP will be the first of the month following the month the enrollment request is received. Once an individual enrolls in a 5-star plan using this SEP, the individual's SEP ends for that plan year and the individual will be limited to making changes only during other applicable election periods. To summarize, the 5-star rating SEP can only be used one time during the plan year.
2013 Federal Poverty Level Guidelines: LIS Qualification
The 2013 Federal Poverty Level (FPL) Guidelines determine the income level requirements for people applying for the Low Income Subsidy (LIS) program. If your income is below 135% of the FPL($15,511.50 if you are single or $20,938.50 for married couples), you could qualify for the full Low Income Subsidy (resource limits also apply - see chart above). Even if you don’t qualify for full LIS benefits, you could be eligible for partial LIS benefits if your income level is at or below 150% FPL (resource limits also apply - see chart above). Remember, the LIS subsidy helps to pay both your monthly plan premiums and drug costs.
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However, Q1Medicare is not intended as a substitute for your lawyer, doctor, healthcare provider, financial advisor, or pharmacist.
For more information on your Medicare coverage, please be sure to seek legal, medical, pharmaceutical, or financial advice from a licensed professional or telephone Medicare at 1-800-633-4227.
Benefits, formulary, pharmacy network, provider network, premium and/or co-payments/co-insurance may change on January 1 of each year.
Our PDP-Compare.com and MA-Compare.com provide highlights of annual plan benefit changes.
The benefit information provided is a brief summary, not a complete description of benefits. For more information contact the plan.
Limitations, copayments, and restrictions may apply.
We make every effort to show all available Medicare Part D or Medicare Advantage plans in your service area.
However, since our data is provided by Medicare, it is possible that this may not be a complete listing of plans available in your service
area. For a complete listing please contact 1-800-MEDICARE (TTY users should call 1-877-486-2048),
24 hours a day/7 days a week or consult www.medicare.gov.
When enrolling in a Medicare Advantage plan, you must continue to pay your Medicare Part B premium.
Medicare beneficiaries with higher incomes may be required to pay both a Medicare Part B and Medicare Part D Income Related Monthly Adjustment Amount (IRMAA). Read more on IRMAA.
Medicare Advantage plans that include prescription drug coverage (MAPDs) are considered Medicare Part D plans and members with higher incomes may be subject to the Medicare Part D Income Related Monthly Adjustment Amount (IRMAA), just as members in stand-alone Part D plans. In certain situations, you can appeal IRMAA.
You must be enrolled in both Medicare Part A and Part B to enroll in a Medicare Advantage plan. Members may enroll in a Medicare Advantage plan only during specific times of the year. Contact the Medicare plan for more information.
If you are enrolled in a Medicare plan with Part D prescription drug coverage, you may be eligible for financial Extra Help to assist with the payment of your prescription drug premiums and drug purchases. To see if you qualify for Extra Help, call: 1-800-MEDICARE (1-800-633-4227). TTY users should call 1-877-486-2048, 24 hours a day/ 7 days a week or consult www.medicare.gov; the Social Security Office at 1-800-772-1213 between 7 a.m. and 7 p.m., Monday through Friday. TTY users should call, 1-800-325-0778; or your state Medicaid Office.
Medicare evaluates plans based on a 5-Star rating system. Star Ratings are calculated each year and may change from one year to the next.
A Medicare Advantage Private Fee-for-Service plan (PFFS) is not a Medicare supplement plan. Providers who do not contract with the plan are not required to see you except in an emergency.
Disclaimer for Institutional Special Needs Plan (SNP): This plan is available to anyone with Medicare who meets the Skilled Nursing Facility (SNF) level of care and resides in a nursing home.
Disclaimer for Dual Eligible (Medicare/Medicaid) Special Needs Plan (SNP): This plan is available to anyone who has both Medical Assistance from the State and Medicare.
Premiums, co-pays, co-insurance, and deductibles may vary based on the level of Extra Help you receive. Please contact the plan for further details.
Disclaimer for Chronic Condition Special Needs Plan (SNP): This plan is available to anyone with Medicare who has been diagnosed with the plan specific Chronic Condition.
Medicare MSA Plans combine a high deductible Medicare Advantage Plan and a trust or custodial savings account (as defined and/or approved by the IRS). The plan deposits
money from Medicare into the account. You can use this money to pay for your health care costs, but only Medicare-covered expenses count toward your deductible.
The amount deposited is usually less than your deductible amount, so you generally have to pay out-of-pocket before your coverage begins.
Medicare MSA Plans do not cover prescription drugs. If you join a Medicare MSA Plan, you can also join any separate (stand-alone) Medicare Part D prescription drug plan
There are additional restrictions to join an MSA plan, and enrollment is generally for a full calendar year unless you meet certain exceptions. Those who disenroll
during the calendar year will owe a portion of the account deposit back to the plan. Contact the plan provider for additional information.
Medicare beneficiaries may enroll through the CMS Medicare Online Enrollment Center located at www.medicare.gov.
Medicare beneficiaries can file a complaint with the Centers for Medicare & Medicaid Services by calling 1-800-MEDICARE 24 hours a day/7 days or using the
Beneficiaries can appoint a representative by submitting CMS Form-1696.