As stated by CMS:
“Under Part D, beneficiaries with low incomes can receive valuable extra assistance with their drug plan premiums and cost-sharing. Nearly 9.5 million beneficiaries are currently receiving extra help through the Part D program. To avoid a premium for these low income beneficiaries and to avoid any gap in coverage, about 1 in 6 of these beneficiaries will be assigned by CMS to a new plan sponsor in their coverage area on a random basis (effective January 1, 2008). These beneficiaries will be able to switch to another plan if they choose.” (CMS Press Release, August 13, 2007).
What can you expect to see in your mail? You will be sent a letter in October from CMS explaining that your current Medicare Part D plan premium has increased above the established subsidy amount and you will be enrolled in a new Medicare Part D plan that has a lower premium. (see the next section on Important CMS Mailings)
Bottom Line: Low-income Medicare beneficiaries should be prepared to re-evaluate their new 2008 Medicare Part D plan and ensure that their medications are covered. If they wish, low-income beneficiaries can enroll in a Medicare Part D plan of their own choosing.