How Senior Citizens
Can Get the Most Out of the Season
The
open-enrollment period gives seniors a valuable opportunity to get the
most out of their Medicare drug benefit
By Peter Pitts,
Center for Medicine in the Public Interest
Nov.
23, 2010 - The holiday season is here. From peppermint lattes and potato
latkes, carols to dreidels, there are reminders at every twist and turn.
Seniors should also be reminded that it's time to sign up for Medicare's
prescription drug benefit, known as Part D. From now until the end of
the year, seniors can enroll in Part D or switch from their existing
plan to a new one.
Invest
time during enrollment period -- Nov. 15 to Dec. 31 -- to evaluate
options; make sure you're signed up for the plan that's best for you.
- Nov. 11, 2010
All those
eligible should take advantage of this "open enrollment" period. Unlike
most public health programs, the Medicare prescription drug benefit is
administered by the private sector. The program is subsidized by
taxpayer dollars, but seniors are allowed to select the drug benefit
that best suits their needs.
Providers must
compete for this business, which leads to more choices, better service,
and lower premiums. This feature - the freedom to comparison shop
between competing Medicare drug plans - is one of the reasons the
program is both popular and cost-effective.
Part D has a 92
percent satisfaction rate among its beneficiaries. And the program has
reduced the number of seniors without a drug plan by 17 percent.
Meanwhile, the price of Part D over the next decade is expected to be
nearly $120 billion less than originally estimated.
Many seniors
worried that healthcare reform would put the drug benefit in danger. But
now that the dust has settled, it looks like Part D has emerged as an
even stronger program.
According to the
Centers for Medicare and Medicaid Services (CMS) 99 percent of seniors
in Part D will have access to a plan in 2011 with a premium that is the
same or lower than what they are paying now. In fact, CMS estimates that
the average senior will pay $30 per month for coverage in 2011, just $1
more than this year.
Also, thanks to
the healthcare reform bill, the gap in coverage known as the "donut
hole" is about to start closing. In the past, seniors faced a gap in
coverage after spending a certain amount on drugs until they hit a
"catastrophic" level. This was confusing and often an unforeseen cost
for seniors. But beginning in January, America's drug companies will
start providing eligible seniors who reach the donut hole a 50 percent
discount on their brand-name drug purchases.
The donut hole
will be completely closed by 2020.
The
open-enrollment period gives seniors a valuable opportunity to get the
most out of their Medicare drug benefit. Even beneficiaries who are
happy with their current Part D plan should visit www.Medicare.gov and
consider their options. There are dozens of plans out there, so everyone
should be able to find one that's both affordable and well-suited to
their needs.
Like holiday
sales, this opportunity will be gone by the New Year. Seniors should
make sure they get the most out of the season - and their Medicare drug
benefit - before the end of the year.
Peter J. Pitts
is President of the Center for Medicine in the Public Interest and a
former FDA Associate Commissioner.
The Center
for Medicine in the Public Interest is a nonprofit, nonpartisan research
and educational organization that seeks to advance the discussion and
development of patient-centered health care.
http://www.cmpi.org
