The nation's 43 million seniors and disabled eligible for Medicare have until Sunday to choose a prescription drug plan, called Part D, for 2007. Those already enrolled who do nothing will be automatically enrolled in the same plan in January.
With so many plans to choose from, and with every person's situation different in terms of monthly drug costs and income, people need to examine their choices closely, especially since they'll be stuck with the plan they choose until 2008.
And because co-pays, deductibles, premiums and even formularies — the lists of drugs covered under the plan — have changed since Part D began last year, staying with the same plan may not be the best way to save money, experts said.
In fact, of the hundreds of seniors surveyed this fall, only five found the best deal by staying in the same plan. Surveys indicate that most seniors will stay with what they already have. Only 5 percent of enrollees said they will change plans, according to a November survey by the Kaiser Family Foundation. Some 36 percent of those surveyed said it was simply too much trouble to choose another plan. Fourteen percent said they didn't know they could switch to another plan, according to the survey. Even the 78 percent who said they were satisfied with their current plan may not have realized that their plan costs and benefits could change in January.
Insurers were required by law to notify enrollees of changes to Part D benefits by Oct. 31, but the Bush administration last week notified Congress that some insurers did not notify members in time. Some members of Congress are now considering extending the enrollment deadline past the first of the year to those who did not receive the new information, the New York Times reported Wednesday.
Although median premiums will fall slightly in California overall, most beneficiaries already enrolled in drug plans will actually see premium increases, according to a California HealthCare Foundation examination of Part D in the state.
Many Californians will have to switch plans if they want to take advantage of the increase in availability of lower-cost plan options, however that's easier said than done, however.
No matter which plan enrollees choose, basic costs will go up. The annual deductible — the price enrollees must pay out of pocket before any benefit kicks in — will rise to $265 in 2007, up from $250 this year.
And the doughnut hole costs will change. After the $265 annual deductible, plans typically pay 75 percent of drug costs, and the enrollee pays 25 percent until total drug costs reach $2,400.
Then enrollees fall into the doughnut hole and must pay the total retail price of their drugs until they reach spending of $5,451 for the year (in other words, they can pay as much as $3,051 out of pocket in the gap). Thereafter, they will only pay 5 percent of the drug costs.
With so many plans to choose from, and with every person's situation different in terms of monthly drug costs and income, people need to examine their choices closely, especially since they'll be stuck with the plan they choose until 2008.
And because co-pays, deductibles, premiums and even formularies — the lists of drugs covered under the plan — have changed since Part D began last year, staying with the same plan may not be the best way to save money, experts said.
In fact, of the hundreds of seniors surveyed this fall, only five found the best deal by staying in the same plan. Surveys indicate that most seniors will stay with what they already have. Only 5 percent of enrollees said they will change plans, according to a November survey by the Kaiser Family Foundation. Some 36 percent of those surveyed said it was simply too much trouble to choose another plan. Fourteen percent said they didn't know they could switch to another plan, according to the survey. Even the 78 percent who said they were satisfied with their current plan may not have realized that their plan costs and benefits could change in January.
Insurers were required by law to notify enrollees of changes to Part D benefits by Oct. 31, but the Bush administration last week notified Congress that some insurers did not notify members in time. Some members of Congress are now considering extending the enrollment deadline past the first of the year to those who did not receive the new information, the New York Times reported Wednesday.
Although median premiums will fall slightly in California overall, most beneficiaries already enrolled in drug plans will actually see premium increases, according to a California HealthCare Foundation examination of Part D in the state.
Many Californians will have to switch plans if they want to take advantage of the increase in availability of lower-cost plan options, however that's easier said than done, however.
No matter which plan enrollees choose, basic costs will go up. The annual deductible — the price enrollees must pay out of pocket before any benefit kicks in — will rise to $265 in 2007, up from $250 this year.
And the doughnut hole costs will change. After the $265 annual deductible, plans typically pay 75 percent of drug costs, and the enrollee pays 25 percent until total drug costs reach $2,400.
Then enrollees fall into the doughnut hole and must pay the total retail price of their drugs until they reach spending of $5,451 for the year (in other words, they can pay as much as $3,051 out of pocket in the gap). Thereafter, they will only pay 5 percent of the drug costs.
