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Beyond the Numbers:
Minnesota’s 2010 Medicare Part D plan choices in plain text
|Based on the 2010 Medicare Part D plan information released by the Centers for Medicare and Medicaid Services (CMS),
Minnesota seniors and Medicare beneficiaries will find that 2010 will bring a number of changes to prescription drug
coverage and they should be prepared to examine their current 2009 plans closely to see what changes
are on the horizon for 2010.
Please note that the information we provide below is based only on stand-alone Medicare Part D prescription drug plans (or PDPs). As many people know, a number of the Medicare Advantage plans also include comprehensive prescription drug coverage, along with Medicare Part A (hospitalization) and Medicare B (physician) benefits (also called MA-PD plans). However, because MA-PDs include many additional features (including Part A & B coverage) as compared to a stand-alone Medicare Part D plan, we do not try to compare the stand-alone drug plans directly with MA-PDs.
What is new for 2010 Medicare Part D Prescription Drug Plans?
|First, the number of prescription drug plans available in Minnesota has
Fifteen (15) companies from 2009 will once again offer 2010 Medicare Part D plans in most states across the country. In addition, a wide assortment of regional and local Medicare Part D plans are offered within each state or CMS region, with the average number of prescription drug plans offered per state decreasing from 49 plans in 2009 to 46 plans in 2010.
Locally, Minnesota residents will find that the total number of stand-alone Medicare prescription drug plans has decreased from 48 in 2009 to 46 in 2010.
As a note, if you find that your current 2009 Part D plan is not being offered in 2010, you may wish to review your Part D plan’s Annual Notice of Change (or ANOC) letter to see if you will be automatically moved to another 2010 prescription drug plan or whether you will need to actively choose a new Medicare Part D plan for 2010.
94% of Minnesota seniors can expect to see their monthly prescription drug plan premiums increase in 2010.
Across the country, the national average monthly Medicare Part D premium will increase from $45.46 in 2009 to $46.58 in 2010. Based on the 2009 enrollment figures, 81% of Medicare Part D beneficiaries nationwide (over 13 million people) could experience an average increase in premium of $5.47, unless they switch to a lower priced plan. At home, Minnesota residents will also notice an increase in their Medicare Part D premiums. 94% of Minnesota seniors and other Medicare beneficiaries enrolled in a stand-alone Medicare Part D plan, (or around 886,723 people) will see an average increase in monthly premiums of $7.32 in 2010 -- if they do not switch to a lower cost prescription drug plan. Overall, monthly 2010 prescription drug plan premiums in Minnesota will increase 1.17% from a 2009 average monthly cost of $48.23 to a 2010 average Part D plan premium of $49.40.
The average monthly premiums discussed above treat all Medicare Part D plans equally. Perhaps a more telling average is the weighted average - that is, looking at each plan’s monthly premium based on number of people enrolled in that plan. Based on the weighted average, Minnesota residents can expect to see a 16% increase in their monthly premiums. This means that if everyone stays in their current 2009 prescription drug plan through 2010, then across the state we can expect beneficiaries to pay 16% more for their monthly premium.
The range of monthly drug plan premiums will increase.
Across the country, 2010 Medicare Part D plan premiums range from a low of $8.80 (First Health Part D-Secure (PDP) in OR WA) to a high of $120.20 (Blue Rx Enhanced (PDP) in DC DE MD) . Comparatively, the premiums within Minnesota will range from $22.80 (First Health Part D-Secure (PDP) in IA MN MT NE ND SD WY) to $104.10 (Humana Complete S5884-053 (PDP) in IA MN MT NE ND SD WY) - as compared to the 2009 Minnesota monthly premium range of $15.20 to $106.70. Of those 2010 plans, 1 plans will have a premium under $25 (in 2009, 2 Part D plans were offered in Minnesota with a premium under $25).
Fewer Medicare prescription drug plans will offer some level of coverage gap protection.
The selection of prescription drug plan coverage options has also changed with fewer companies offering 2010 Part D plans with donut hole coverage. In 2009, 12 plans offered plans with some form of donut hole coverage and in 2010 that number will decrease to 9. People are reminded to see what drugs are actually covered in the donut hole because some Part D plans only cover a "few" drugs through the coverage gap.
Less Medicare prescription drug plans will offer plans with enhanced options.
Minnesota residents will find that less Part D plans will offer enhanced prescription drug coverage options with 24 enhanced Part D plans in 2010 as compared to 26 in 2009. Enhanced Medicare Part D coverage includes prescription drug plans that have a lower or no initial deductible and a variation of cost-sharing (for instance, copayments instead of co-insurance). For example, in 2010, fewer Minnesota Part D plans will offer prescription drug coverage with a $0 initial deductible (18 in 2010 as compared to 27 in 2009).
Low-Income Subsidy Recipients in Minnesota will have less Part D plans that qualify for the $0 monthly premium.
Minnesota Medicare beneficiaries who qualify for full "Extra Help" will find that fewer Part D plans qualify for the $0 premium Low-Income Subsidy as compared to last year. In 2009, 9 Medicare Part D plans qualified for the $0 premium Low-Income Subsidy as compared to 8 Part D plans in 2010. Please note, if you received "Extra Help" in 2009 and your plan does not qualify for the $0 premium in 2010, you may be automatically moved to a new Part D plan that does qualify for the $0 premium. If this occurs, please check to be sure that your prescriptions are covered on your new plan. If they are not, you can switch to a plan which will cover your medications.
So what is the Bottom Line? Review your 2010 Medicare prescription drug plan options.
Minnesota seniors and Medicare beneficiaries will see fewer prescription drug plan choices in 2010 and higher premiums.
In addition, behind the numbers, some of 2009’s more popular Medicare Part D plans will change their 2010 plan structure. Some plans are adding initial deductibles or changing cost-sharing limits (for instance, how much you pay after for a covered drug). Also, some plans actually change the initial coverage limit defining when you enter the coverage gap. For instance, the Coventry AdvantraRx Part D plans, will now have a $100 initial deductible (where the 2009 plan had a $0 deductible) and change their cost-sharing structure from co-payments to co-insurance. It goes without saying that Minnesota seniors could be unpleasantly surprised by the changes in 2010 plans.
Accordingly, people are reminded to consider their 2010 prescription drug plan options carefully. If you are a Medicare beneficiary and make no decision to change your existing prescription drug coverage, you will be automatically reenrolled in your existing prescription drug plan - along with any changes that have been made in coverage or cost for 2010. If your prescription drug plan is discontinued, and you are not automatically moved into a new plan, then you will need to enroll in another Part D plan or not have prescription drug coverage in 2010.
For more information, Q1Medicare.com has developed national and state one-page interactive summaries of prescription drug plan information.
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