Medicare Part D Prescription plans are annual contracts with that are subject to change every year.
If you've been in a drug plan for the past year and you like it, you might be lulled into thinking you don't need to look around at the competition.
This could be a big mistake.
Failing to make a selection for the new year will be interpreted as choosing to accept the new terms of your plan.
Unfortunately, so many seniors assume everything will be the same and get stuck with the new rate structure that may be significantly different than what they were used to.
Rates going up 20 to 30% can have a disastrous impact on the budgets of seniors who are not getting cost of living increases in their social security checks.
The co-pays for their medications can increase dramatically.
Some Part D plan may have had generics available with no co-pay one year, then see a jump to $7 per month on the next.
If you were taking several prescriptions, an increase in prices like this could be disastrous.
The deductible on a Medicare prescription plan for 2011 could be as high as $310.
If you had no deductible this year and expected the same for the new year, you could be bitterly disappointed to find your out-of-pocket costs jumping significantly.
The list of drugs available on your Part D plan (known as the formulary) could change as well.
Many Medicare prescription plan members are thrown into a panic when they go to the pharmacy in early January and find an important medication is no longer covered.
Frantic calls are made to the insurance company and their doctors to find out what happened and how to get around the new restrictions or to find an affordable alternative.
To avoid a shock in the new year be sure to review your plans terms before the end of the annual enrollment period on Dec 31.
On the positive side, the donut hole in Medicare Part D will no longer be as scary as it has been in the past.
The Healthcare Reform law included a provision for the manufacturers of name brand prescriptions to provide a 50% discount on their products during the coverage gap period for 2011.
If you've been in a drug plan for the past year and you like it, you might be lulled into thinking you don't need to look around at the competition.
This could be a big mistake.
Failing to make a selection for the new year will be interpreted as choosing to accept the new terms of your plan.
Unfortunately, so many seniors assume everything will be the same and get stuck with the new rate structure that may be significantly different than what they were used to.
Rates going up 20 to 30% can have a disastrous impact on the budgets of seniors who are not getting cost of living increases in their social security checks.
The co-pays for their medications can increase dramatically.
Some Part D plan may have had generics available with no co-pay one year, then see a jump to $7 per month on the next.
If you were taking several prescriptions, an increase in prices like this could be disastrous.
The deductible on a Medicare prescription plan for 2011 could be as high as $310.
If you had no deductible this year and expected the same for the new year, you could be bitterly disappointed to find your out-of-pocket costs jumping significantly.
The list of drugs available on your Part D plan (known as the formulary) could change as well.
Many Medicare prescription plan members are thrown into a panic when they go to the pharmacy in early January and find an important medication is no longer covered.
Frantic calls are made to the insurance company and their doctors to find out what happened and how to get around the new restrictions or to find an affordable alternative.
To avoid a shock in the new year be sure to review your plans terms before the end of the annual enrollment period on Dec 31.
On the positive side, the donut hole in Medicare Part D will no longer be as scary as it has been in the past.
The Healthcare Reform law included a provision for the manufacturers of name brand prescriptions to provide a 50% discount on their products during the coverage gap period for 2011.