Changes on the way for the Medicare prescription drug program

Last modified: Thursday, November 6, 2008 9:02 PM CST

Changes on the way for the Medicare prescription drug program

By DIANE COCHRAN
Lee Newspapers

Changes are in store for Medicare Part D, set to begin its fourth year on Jan. 1 as the government's prescription drug program for senior citizens.

Open enrollment begins Nov. 15 and gives seniors and other Medicare beneficiaries six weeks to sign up for benefits or make changes to existing coverage.

''It is very important for people to be aware that plans are changing,'' said Twila Sunden, an advocate at St. Vincent Healthcare. ''Just because you're happy with the coverage you have now doesn't mean it's going to continue next year.''

Sue Bailey, program manager for the Yellowstone County Council on Aging Resource Center, said: ''I think most people are going to face an increase in cost. . . . 'But there might be something cheaper than what you're in.''

A tool on Medicare's Web site also can evaluate each plan based on the medications a person uses.

Even seniors who do not take any prescription drugs should sign up for the program, said Bobbi Roberts, coordinator of Senior Life Partners at Billings Clinic.

''One doesn't know whether the next doctor's visit might result in medication,'' Roberts said.

Senior citizens who do not enroll in Part D as soon as they become eligible for Medicare face financial penalties when they do sign up.

But people who have been covered by other insurance, such as from the Veterans Administration or a former employer, usually are not penalized.

As companies react to the nation's financial meltdown by cutting insurance benefits for retirees, more seniors are turning to Medicare for prescription coverage, Bailey said.

''We've had a lot of retirees losing insurance this year,'' she said.

Beneficiaries who participated in Part D this year should check their plans to ensure their medications will be covered next year.

Deductibles vary across plans, but the highest amount a beneficiary can pay out-of-pocket next year is $4,350.

Seniors who meet income and asset guidelines can qualify financial assistance to help pay for coverage.

A single person taking in less than $15,600 a year and who has less than $11,990 in assets qualifies. The cutoff for a couple is $21,000 in income and $23,970 in assets.

Vehicles and homes do not count as assets. The assistance is available through the Social Security Administration.

The Wall Street Journal section in Sunday's printed edition of The Chippewa Herald will have extensive coverage of changes in the Medicare prescription drug program.