subject: Medicare Supplement Part D - Benefits Of Open Enrollment [print this page] Its fair to say that many seniors are creatures of habit. After all, weve had some time to figure out how we like to do things and to, as they say, get stuck in our ways. Unfortunately, a number of American seniors allow this way of life to carry over into the ways they handle their Medicare, Medigap, and overall healthcare coverage. In this case, those habits must be broken.
The Open Enrollment period for Medicare Part D ends on December 7th. In the past, seniors have had until December 31st to take advantage of this annual chance to re-evaluate current plans, compare alternative options, and make changes to their Medicare coverage if necessary.
Its safe to assume that a number of seniors in the U.S. are unaware of the date changes. This isnt necessarily dues to us being stuck in our ways, but more the result of the fact that there has been so much talk about potential changes to Medicare and the future of healthcare in America that its gotten difficult to keep everything straight. However, its imperative that seniors act before the end of Open Enrollment.
The Donut Hole: A Medicare Part D Case Study
The Coverage Gap, often simply referred to as The Donut Hole, remains a source of confusion for a wide range of seniors receiving Medicare benefits, and it has remained a major economic issue for others:
The Donut Hole is the coverage gap that people with Medicare hit after a certain amount is spent on their drugs, presents serious financial challenges---making some people choose between their rent and groceries or their medicine. (from Healthcare.gov)
In 2011, the Affordable Care Act sought to lessen the strain that the Donut Hole put on American seniors by providing a 50% discount on covered brand name drugs for those who were in the Coverage Gap phase. What does this mean on a practical level? Its best to simply look at an actual case to get a sense of the types of savings that can stem from these Donut Hole discounts:
The Houston Chronicle recently featured a story about a school teacher whose two regular prescriptions ran her about $370 and $270 per month respectively in 2010. With the discounts in 2011, the costs changed to $150 and $130. Over the course of a single year, she was able to save thousands of dollars.
While this discount is set to remain in 2012, the gap is set to close even more with the decrease in premiums. Of course, debates about the Donut Hole continue to rage in Washington, but for the time being, some (not all) seniors can expect to benefit:
[With the 50% discount] Beneficiaries have seen an average savings of $581 on covered brand name drugs, and an additional $22 in savings on generic drugs yet another reason to compare and choose the drug plan that best fits a patients needs. Average premiums for Part D prescription drug plans will also decrease to $30 in 2012, about 76 cents less compared to the average 2011 premium. (from Texas Insider)
Of course, changes in Medicare coverage are not usually cut and dry. Although the Donut Hole discounts will remain in place and many seniors can expect decreased premiums, its not all cost-saving and half-off prescriptions in 2012. A number of insurers are changing the way they charge for prescriptions or simply dropping coverage of certain prescription drugs. This means that medicines you regularly rely on may no longer be covered by your current policy in 2012. It also means that youre current policy simply might not be the best choice financially for you as we move into the New Year.
That is why its essential that you act now before the Open Enrollment period ends. This is your chance to see how your current coverage stacks up against all of the other options out there. It will also provide you with the opportunity to see exactly how you will be affected by the changes that are coming to Medicare Part D coverage.
Weve heard them all: Old habits die hard, you cant teach an old dog new tricks, etc. And honestly, they might apply sometimes (at least for this senior), but with Medicare Part D coverage, you have to be willing to change. That doesnt mean that your current coverage isnt the right one for you. However, it does mean that you have to take action to evaluate your policies and all of your options before the Open Enrollment period ends on December 7th. Its the only way to ensure that you are not overpaying and that you can continue to receive the prescription drug coverage that you need in 2012.
