Q: Has Medicare Part D been effective?
A: As Chairman of the Senate Finance Committee, which is responsible for Medicare legislation, I led the effort in the Senate to bring Medicare in line with the 21st century and modern medicine by helping shepherd through Congress in 2003 the first-ever Medicare prescription drug benefit. Today, Medicare Part D provides universal and affordable prescription drugs through voluntary enrollment in private insurance programs. Since the program became available to seniors, the power of harnessing competitive markets has led to cheaper premiums for seniors. In fact, average enrollee savings is $1,100 a year. In surveys, 80 percent of seniors have expressed satisfaction with their Medicare prescription drug plan. The program is not only making drugs more affordable, it is costing less than originally expected, for both premium holders and taxpayers. Earlier this year, Medicare actuaries announced that the 10-year cost of Part D has dropped by $189 billion over the original budget. That is a 30-percent drop in the actual cost compared to the projection. As with all federal programs, there is room for improvement. I will continue to keep a close eye on Medicare Part D to make sure seniors get the greatest value out of their prescription drug plans.
Q: What is the coverage gap or doughnut hole in Part D?
A: To make Medicare Part D a benefit that tailored the greatest benefit to those most in need of assistance, a coverage gap exists. Filling that gap would cost taxpayers more than $400 billion over the next decade. So Medicare beneficiaries who choose the standard plan in 2008 will be responsible for prescription drug costs that fall between $2,510 and $5,726. However, beneficiaries who anticipate their prescription drug expenses may run north of $2510 in 2008 may choose from affordable insurance plans in all 50 states. These plans provide coverage for generic drug costs in the gap. What's more, beneficiaries in 37 states, including
Iowa , may choose a plan that covers both generic and at least some brand drugs in the gap.
Q: When is Open Season for Part D?
A: From November 15 to December 31, Medicare has Open Enrollment or Open Season for prescription drug coverage. This allows the more than 40 million Part D enrollees to change to another private plan covered by Medicare. As more programs become available in each state, it’s important for participants to make sure they are enrolled in the plan that best suits their needs. Furthermore, there are a few minor changes to consider this year, including the list of drugs covered under the various plans and changing figures in the coverage gap. If you are interested in studying the plan changes or would like to enroll in a different plan visit www.medicare.gov or call (800) MEDICARE for around-the-clock toll-free assistance. Iowans also may turn to
Iowa ’s Senior Health Insurance Information Program (SHIIP). SHIIP volunteers in 86 Iowa counties stand ready to provide confidential, objective information about Medicare Part D free-of-charge. To locate the nearest SHIIP representative, call (800) 351-4664. Patients need to provide a list of their medications and SHIIP will help match them up with a Medicare-approved prescription drug benefit plan that best fits their needs. The Access to Benefits Coalition (ABC) offers another resource for beneficiaries. The Coalition can provide information through its website at www.accesstobenefits.org or by calling (202) 479-6670.