More may join, switch Medicare drug plans

With rising costs and many more drug insurance options to choose from, it appears more enrollees are considering the opportunity to make a change.

By WARREN WOLFE, Star Tribune

Last update: November 14, 2008 - 9:12 PM

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The window for Medicare beneficiaries to join or switch Part D drug insurance plans for next year opens today for more than 740,000 eligible Minnesotans.

An increase in calls to government-backed phone centers indicates that more enrollees may change plans, a move that Medicare and advocates applaud because most insurers will raise costs and change aspects of drug coverage next year.

"We're getting more calls -- up 50 percent the first week in November -- and they're taking longer," said Jean Wood, executive director of the Minnesota Board on Aging, which sponsors the Minnesota Senior LinkAge Line. "People are comparing plans and, we hope, looking at their options very closely."

About 575,000 older or disabled Minnesotans on Medicare have drug insurance under the program or through former employers. About 140,000 have no drug coverage. Open enrollment ends Dec. 31.

The plans

There are three types of plans: drugs only; Medicare Advantage plans combining Medicare health insurance and drug coverage; and "special needs" plans for people who are disabled or on both Medicare and Medicaid.

Under the standard plan, enrollees pay the first $290 in annual costs, then 25 percent of each drug's cost until the total paid by the recipient and the plan reaches $2,700. Then the recipient pays all costs until the total hits $6,153.75. After that gap -- called the doughnut hole -- the recipient pays 5 percent of costs.

How to choose

Enrollees who compare plans could save hundreds of dollars and might avoid the doughnut hole. The only way to compare policies accurately is to use the plan-comparison tool on the www.medicare.gov website. Many older people and their families will use that site or call help-line services.

Low-income help

People on Medicare with low incomes and low assets qualify for a full or partial subsidy that cuts costs sharply. Those with the full subsidy pay no monthly premium or deductible, and pay $1.10 for a generic drug or $3.20 for a brand-name drug. To qualify, income must be below $15,600 ($21,000 for a couple), and savings must be below $12,510 ($25,000 for a couple).

Phone counseling

Minnesota Senior LinkAge Line: 1-800-333-2433, 8 a.m.-4:30 p.m. weekdays. Counselors may make some home visits and can help enrollees apply for the low-income subsidy.

Minnesota Disability Linkage Line: 1-866-333-2466, 8:30 a.m.-5 p.m. weekdays.

Minnesota Senior Federation Health Plan Information Center: 651-783-5045 or 1-866-783-5045, 10 a.m.-noon and 1-3 p.m. weekdays.

Medicare: 1-800-633-4227 (TTY/TDD 1-877-486-2048) 24 hours a day, or go to www. medicare.gov.

Warren Wolfe • 612-673-7253