Based on the recently released 2012 Medicare Part D prescription drug plan information from the Centers for Medicare and Medicaid Services (CMS), you can expect to see slightly fewer stand-alone (or prescription only) Medicare Part D plans offered in your area next year. The average number of stand-alone 2012 Medicare Part D plans offered in each region fell to 31 - down from the 33 plans in 2011.
Changes in Monthly Premiums
You might also see an increase in your 2012 monthly plan premiums. Based on enrollment or plan popularity, average Medicare Part D premiums should increase about 4% in 2012. In fact, across the country 55% of the people enrolled in a Medicare Part D plan will see an average monthly premium increase of $5 – that is, if these beneficiaries stay with their current 2011 prescription drug plan into 2012 instead of enrolling into another, more affordable Part D plan.
However, as noted by CMS in their press release, most people will have access to a lower costing 2012 Medicare Part D plan or a Medicare Advantage plan that provides prescription coverage.
Changes in Medicare Part D Plan Designs
Medicare Part D plan designs will also change in 2012 and you might notice a few more Medicare Part D plans offering plans with the $0 (or no) initial deductible. You also might notice that fewer 2012 Medicare Part D plans will be offered with any type of Donut Hole coverage and the monthly premiums for a Medicare Part D plan offering Donut Hole coverage will increase.
Not surprisingly, no 2012 Medicare Part D plan offers complete Donut Hole coverage. However, now that we have the newly enacted Donut Hole Discount, most seniors will still be able to save some money if they enter the 2012 Coverage Gap portion of their Medicare Part D plan (with a 50% brand-name drug discount and 14% generic drug discount in 2012).
The standard 2012 Initial Coverage Limit, as defined earlier this year by CMS, increased to $2,930 (as compared to $2,840). Meaning that if you enroll in a 2012 Medicare Part D plan following Medicare’s standard, you can purchase medications with a retail value of up to $2,930 before going into the Coverage Gap or Donut Hole portion of your Medicare Part D plan coverage. Medicare Part D plans are permitted to offer plans that have a different Initial Coverage Limit.
Changes in Plans Offering the Low-Income Subsidy $0 Premium
Seniors and Medicare beneficiaries qualifying for the full Low-Income Subsidy (LIS) or financial Extra Help program will still find a generous number of prescription drug plans qualifying for the $0 monthly premium in most states. Yet, residents of 15 states, including Florida and Nevada, will find fewer LIS-qualifying 2012 Medicare Part D plans.
Please remember that, if you are a Medicare beneficiary receiving financial Extra Help, you may need to move to a new 2012 Part D plan to receive this $0 premium benefit.
Looking for more details?
You can find an interactive summary of the 2012 Medicare Part D prescription drug plans – both from a national and state-by-state perspective on this site or directly at PDP-Facts.com/2012.
Please note: The information we provide on our Medicare Part D plan summaries are based only on stand-alone Medicare Part D prescription drug plans (or PDPs). A number of the 2012 Medicare Advantage plans in your area may 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 and complex features (even beyond prescription drug coverage and your Medicare Part A and Part B coverage), we do not compare the stand-alone Medicare Part D drug plans directly with MA-PDs. You can see the 2012 Medicare Advantage plans offered in your area at MA-Finder.com/2012.
Bottom Line: As in past years, you may be able to reduce the cost of your 2012 prescription drug coverage by reviewing your Medicare Part D plan options. Your 2011 Medicare plan will provide you with an Annual Notice of Change letter in late-September – and you will have plenty of time to study your options before the start of the next Annual Enrollment Period (or AEP) on Saturday, October 15th that will continue through Wednesday, December 7, 2011.