Premiums Continue to Rise, the Coverage Gap Widens, and Deductibles Increase in 2010

The Medicare Part D for prescription drugs open enrollment period starts on November, 15, 2009 and runs through December 31, 2009 for coverage that begins in January 2010. During this time seniors and people on disabilities who qualify for Medicare coverage can switch their Part D plans for prescription coverage.

Medicare Part D is the prescription drug benefit that is delivered through private insurance plans that are reimbursed by the federal government. Each year the range of private plans can change the cost of their premiums as well as the coverage design of the plans. Beneficiaries will receive notification from their current plan by October 31, 2009 regarding any changes that may come in 2010.

“It pays to shop around for a better plan. Unfortunately most seniors tend to stay in the same plan that they enrolled in from the start. It’s been four years since Medicare Part D first was implemented and many of the plans have changed dramatically,” said Lynda DeLaforgue, co-director of Citizen Action/Illinois.

Medicare Part D was launched in 2005 amidst much controversy and confusion. At that time, it was predicted that these privately run insurance plans would raise premiums, restrict coverage, and drop seniors. Those predictions continue to ring true in 2009. At a time when Social Security COLA increases are frozen, Medicare Part D enrollees can expect to see an increase in their monthly premiums of about 11% according to the Kaiser Family Foundation, which tracks Part D changes. Some of the most popular plans such as those offered by AARP and Humana have seen significant increases in premium prices since 2006, with some plans doubling and tripling in cost. In 2010 several Illinois plans have either eliminated doughnut hole coverage or changed from “all” generics to “some or many” generics.

“Medicare beneficiaries should open and read all mail from their Part D plan, former employer, Medicare, and Social Security. Seniors and people with disabilities need to do their homework every year under Part D. The plan you enrolled in last year may not offer the same level of coverage or cost the same as what you paid in 2009. Now is the time to shop.” DeLaforgue added.

Consumers who want to learn more about how to be an educated consumer of Medicare Part D can access the “Cautious Consumer Guide” by visiting Citizen Action Illinois’ website at www.citizenaction-il.org.